NCL Holding has reported net income of $3.4 million on revenues of $166.7 million for Norwegian Cruise Line (NCL) for the third quarter ended Sept. 30, 1996, compared to net income of $7.5 million on revenues of $215.2 million for the same period last year.
According to NCL, the earnings were adversely affected in the third quarter by approximately $2.5 million due to the scheduled drydocking of the Norway.
NCL also reported 823,664 passenger days and a load factor of 99.7 percent for the third quarter of this year, compared to 870,472 passenger days and a load factor of 106.4 percent for the third quarter oflast year.
For the nine-month period, NCL posted a net income of $23.7 million after the effect of refinancing, and a net loss of $9 million before, compared to a net loss of $25.5 million for the same period last year.
The company was refinanced on April 25, 1996 by replacing 13 percent notes with new bank financing and equity. Also, NCL closed down its Royal Cruise Line division and the Norwegian Crown was transferred to NCL, but according to NCL, the lead time in the market to transfer the vessel has been longer than anticipated leading to a reduction in load factor and prices.
The Board of Directors forecasted a weak fourth quarter for NCL due to heavy discounting.
Also, this November/December, NCL is moving its 650 shoreside employees into a new building and expects increased productivity.
NCL To Reposition
While an initial public offering (IPO) for NCL in the works, strategic changes will also soon be announced that will reposition the cruise line in the market.
"We will create a discernably different cruise alternative during 1997 and 1998," said Bruce Nierenberg, Executive Vice President at NCL. "We will flnd new places to go and enhance our on board product."