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.
A 13.4% improvement in Net Revenue was the result of the addition of Norwegian Breakaway to the Company’s fleet, along with an increase in Net Yield of 4.3% (or 4.2% on a Constant Currency basis) from higher ticket pricing and onboard spend, partially offset by three incremental scheduled Dry-docks.
Adjusted Net Cruise Cost excluding Fuel per Capacity Day increased 3.6% (or 3.4% on a Constant Currency basis) mainly due to the aforementioned Dry-docks along with inaugural and other newbuild launch-related expenses. The Company’s fuel price per metric ton, net of hedges, was $675 compared to $664 in 2012 while fuel consumption per Capacity Day decreased 3.3% in the period.
Interest expense, net for the year was $282.6 million and included $160.6 million in charges related to the aforementioned prepayments and refinancing of certain credit facilities and redemption of certain of senior notes. Excluding these charges interest expense, net was $122.0 million compared to $189.9 million in the prior year.
Fourth Quarter 2013 Results
The Company reported fourth quarter 2013 Adjusted EPS of $0.19 on Adjusted Net Income of $40.5 million compared to $0.04 and $5.6 million, respectively, for the same period in 2012. Net income and diluted earnings per share on a GAAP basis were $36.1 million and $0.17, respectively.
Net Revenue for the period increased 19.3% from the addition of Norwegian Breakaway to the Company’s fleet and a 4.8% increase in Net Yield (4.7% on a Constant Currency basis), partially offset by a Dry-dock for Norwegian Sky. Adjusted Net Cruise Cost excluding Fuel per Capacity Day increased 7.6% primarily due to the Dry-dock in the period and the acceleration of certain scheduled repairs and maintenance that the Company performed in the fourth quarter. Fuel price per metric ton, net of hedges, decreased 6.6% to $649 from $695.
Interest expense, net decreased to $24.6 million from $47.7 million in 2012, benefitting from the aforementioned financial transactions.