NCL Reports Q4 and Full Year Earnings

Norwegian Cruise Line Holdings Ltd. today reported financial results for the fourth quarter and full year ended December 31, 2018, as well as provided guidance for the first quarter and full year 2019.

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Full Year 2018 Highlights

  • The Company generated GAAP net income of $954.8 million or EPS of $4.25.  Adjusted Net Income was $1.1 billion or Adjusted EPS of $4.92.

  • Company beat full year Adjusted EPS expectations by $0.07, and surpassed the midpoint of its initial February 2018 Adjusted EPS guidance by $0.37, despite a $0.07 impact from unfavorable fuel prices.

  • Total revenue increased 12.2% to $6.1 billion. Gross Yield increased 3.4%.  Net Yield increased 3.5% on a Constant Currency basis, exceeding the Company’s initial February 2018 guidance by 150 basis points.

  • Achieved record gross Adjusted EBITDA Margin of 31.3%.

  • Adjusted ROIC increased to 11.0% from 10.1% the prior year.

  • Reached year-end Net Leverage target of low three times.

  • Authorized $1 billion, three-year share repurchase program and embarked on meaningful capital returns to shareholders by opportunistically repurchasing approximately $665 million shares under previous and current program. Approximately $600 million remains available under current authorization.

  • Record-breaking introduction of Norwegian Bliss, the first cruise ship specifically designed with features and amenities for the ultimate Alaskacruising experience.

  • Broke ground on new, state-of-the-art passenger terminal at PortMiami.
Norwegian Pearl departing Miami ©CruiseInd
Norwegian Pearl departing Miami 11/4/2016

Full Year 2019 Highlights

  • Company’s 2019 booked position at all-time high entering the year and at higher pricing.

  • Net Yield growth guidance on a Constant Currency basis for full year and first quarter 2019 of 3.0% to 4.0% and approximately 2.5%, respectively.

  • Norwegian Joy to join record-breaking sister ship, Norwegian Bliss, in Alaska in spring 2019.

  • Norwegian Encore, the fourth and final ship in the tremendously successful Breakaway Plus Class, will join the fleet in the Caribbean in the fourth quarter.

  • Company reaffirms expectations to achieve its Full Speed Ahead 2020 targets provided at its 2018 Investor Day. 

“The team at Norwegian Cruise Line Holdings delivered a breakout year in 2018, once again generating industry-leading record financial performance.  Strong global demand for our portfolio of brands, the successful, record-breaking introduction of Norwegian Bliss and the flawless execution of our demand creation strategies drove our fifth consecutive year of double-digit earnings per share growth,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd.  “Building on this momentum, we entered 2019 in the best booked position in our Company’s history, with pricing above prior year’s record levels.  The strong start to this year’s WAVE season, coupled with our moderate in-year capacity growth and our solid booked position across our three brands, has us well-positioned to continue driving price throughout the year and into 2020, where we will also benefit from the first full year of sailings from Norwegian Encore and the addition of Regent’s Seven Seas Splendor.”