NCLH Q4 2021 Earnings

Call Details

• Call Title: Norwegian Cruise Line Q4 2021 Earnings Call
• Date: February 24, 2022 at 3:00 PM UTC
• Management Team:
  • Frank Del Rio (Chief Executive Officer)
  • Mark Kempa (Chief Financial Officer)

Call Summary

Financial Performance

• Cash and short-term investments decreased by approximately $200M in the quarter to $1.75B on a net basis.
• Quarter-end liquidity was $2.7B, which includes a $1.0B committed facility through August 2022 that remained undrawn.
• Gross advanced ticket sales in the fourth quarter increased 40% to $700M versus $500M in the prior quarter.
• Monthly cash burn in Q4 was $345M, slightly better than prior guidance of $350M.
• Positive contribution was delivered from the portion of the fleet that operated in the quarter despite Delta and Omicron headwinds.
• Net cash provided by operating activities is expected to turn positive in Q2 2022.

Guidance

• Cash burn is expected to increase to approximately $390M per month in Q1 2022 as the company ramps to 85% capacity by quarter end.
• Net cash from operations is expected to inflect positive in Q2 2022 on a GAAP cash flow basis.
• The company expects the second half of 2022 to be profitable on an adjusted net income basis.
• Remainder of 2022 fleet is expected to be sailing by early May in time for peak summer season.
• Fuel consumption hedges cover approximately 40% of 2022 consumption and approximately 25% of 2023 consumption.
• Incremental guidance was provided for categories such as depreciation and amortization, interest expense, fuel consumption, and capital expenditures but line-item amounts for all were not disclosed on the call.