NCLH Q4 2022 Earnings

Call Details

• Call Title: Norwegian Cruise Line Q4 2022 Earnings Call
• Date: February 28, 2023 at 1:00 PM UTC
• Management Team:
  • Jessica John (Vice President of Investor Relations, ESG, and Corporate Communications)
  • Frank Del Rio (President and Chief Executive Officer)
  • Mark Kempa (Executive Vice President and Chief Financial Officer)
  • Harry Sommer (President and Chief Executive Officer of Norwegian Cruise Line)

Call Summary

Financial Performance

• The company carried nearly 1.7 million guests during 2022.
• Total revenue per passenger cruise in Q4 2022 was up approximately 24% versus 2019.
• Net per diems in Q4 increased approximately 15% versus 2019 on a constant currency basis.
• Gross onboard revenue per passenger cruise day in Q4 increased approximately 25% versus 2019.
• Q4 load factor reached 87%, which was in line with guidance and approximately 20% below the comparable 2019 quarter.
• Adjusted net cruise cost excluding fuel per capacity day in H2 2022 decreased approximately 10% versus H1 2022.
• Adjusted EBITDA in H2 2022 was nearly break-even and adjusted free cash flow was positive in Q4 2022 for the first time in three years.

Guidance

• Full year 2023 adjusted EBITDA is expected in the range of $1.8B to $1.95B.
• Adjusted EPS for 2023 is expected to be approximately $0.70 at the midpoint of guidance.
• Net per diem growth for 2023 is expected to be approximately 9% to 10.5% versus 2019.
• Net yield for 2023 is expected to increase approximately 5% to 6.5% versus 2019.
• Adjusted net cruise cost excluding fuel per capacity day is expected to average approximately $160 for full year 2023.
• Q1 2023 net per diem is expected to increase approximately 6.75% to 7.75% versus 2019, and Q1 net yield is expected to increase approximately 1.25% to 2.25%.
• Q1 2023 adjusted net cruise cost excluding fuel per capacity day is expected to be approximately $165, Q1 adjusted EBITDA is expected to be approximately $195M, and Q1 adjusted EPS is expected to be a loss of approximately $0.45.
• Costs are expected to decrease approximately 16% in the remaining quarters of 2023 versus the same period in 2022.