NCLH Q4 2023 Earnings

Call Details

• Call Title: Norwegian Cruise Line Q4 2023 Earnings Call
• Date: February 27, 2024 at 3:00 PM UTC
• Management Team:
  • Harry Sommer (Chief Executive Officer)
  • Mark Kempa (Chief Financial Officer)

Call Summary

Financial Performance

• Net per diems increased approximately 14.5% in Q4 2023 versus Q4 2019, and net yield increased approximately 8.6% in the quarter.
• Adjusted net cruise costs excluding fuel per capacity day were $151 in Q4 2023, in line with guidance, and marked the fourth consecutive quarter of improvement on this metric.
• Adjusted EBITDA was approximately $360 million in Q4 2023 and approximately $1.9 billion for full year 2023.
• Full year 2023 adjusted EPS was $0.70 while Q4 2023 adjusted EPS was a loss of $0.18, with a $0.06 below-the-line FX impact noted.
• Adjusted free cash flow for 2023 was approximately $1.1 billion, which supported nearly $1.9 billion of debt repayments during the year.
• Year-end advance ticket sales were $3.2B, which represents a 56% increase versus 2019.

Guidance

• Full year 2024 adjusted EBITDA is expected to be approximately $2.2B, representing an 18% increase versus 2023.
• Full year 2024 adjusted net income is expected to be approximately $635M and adjusted EPS is expected to be approximately $1.23, a 76% increase versus 2023.
• Occupancy for 2024 is expected to be approximately 105% as presented for modeling purposes.
• Full year 2024 net yield is expected to increase approximately 5.5% on a constant currency basis, inclusive of Middle East/Red Sea headwinds.
• Full year 2024 adjusted net cruise cost excluding fuel per capacity day is expected to average approximately $159, which includes an estimated dry dock-related impact, and would be approximately $154 excluding dry dock impacts.
• First quarter 2024 net yield is expected to increase approximately 15.5% with Q1 adjusted net cruise cost ex-fuel per capacity day expected at $165 and Q1 adjusted EBITDA expected at approximately $450M.