UPDATE: Some notes on the earnings:

  • Kevin Sheehan told investors on the earnings call, that bookings have softened a bit from earlier.
  • At that point in time, NCL was selling cruises at double digit increases.
  • They forecast a 4% yield increase for all of 2014.
  • 72% of its total berths sail the Caribbean
  • Interesting note, their gamble to leave ships in Europe [Norwegian Jade for example] is “proven to be the correct strategy.”

Norwegian Cruise Line today reported results for the quarter and year ended December 31, 2013, and provided guidance for the first quarter and full year 2014.

Full Year 2013 Highlights

  •     Adjusted EPS of $1.41, up 45.4%
  •     Net Yield increase of 4.3% (or 4.2% on a Constant Currency basis
  •     Revenue of $2.6 billion, up 12.9%
  •     Adjusted EBITDA of $647.2 million, up 16.5%
  •     Financial transaction milestones, including initial public offering, optimize capital structure
  •     Introduction of Company’s first Breakaway class ship, Norwegian Breakaway
  •     Commenced development of recently acquired island destination in Belize

Fourth Quarter 2013 Highlights

  •     Adjusted EPS of $0.19 compared to $0.04 in prior year
  •     Net Yield increase of 4.8% (or 4.7% on a Constant Currency basis)
  •     Revenue of $600.3 million, up 19.3%
  •     Adjusted EBITDA of $124.1 million, up 19.9%

Full Year 2013 Results

“A year that began with a highly successful initial public offering, followed by other transactions which resulted in a strong balance sheet and credit metrics, and the launch of the first ship in our Breakaway class, Norwegian Breakaway, will undoubtedly be remembered as one of the seminal years in Norwegian’s 47-year history,” said Kevin Sheehan, president and chief executive officer.  “The hard work of 25,000 Norwegian team members, all with a keen focus on our vision and mission, has been the catalyst for reaching these milestones, reporting solid financial performance in a challenging year for the industry and positioning the Company for measured, disciplined growth” continued Sheehan.

For the full year 2013, the Company reported Adjusted EPS of $1.41, which is above the top range of the Company’s guidance and a 45.4% increase from 2012 Adjusted EPS of $0.97.  Adjusted Net Income for the year was $295.8 million compared to $173.1 million in 2012.  On a GAAP basis, net income and diluted earnings per share were $101.7 million and $0.49, respectively, the difference primarily relates to the prepayment and refinancing of certain credit facilities and the redemption of certain of the Company’s senior notes in connection with the Company’s initial public offering and refinancing activities.