Norwegian Cruise Line Holdings Ltd. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Norwegian Cruise Line Holdings Ltd. filed its Q1 2024 10-Q, detailing financial performance, stock compensation, and passenger data.</b>

AI Summary

Norwegian Cruise Line Holdings Ltd. (NCLH) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Norwegian Cruise Line Holdings Ltd. filed a 10-Q report for the period ending March 31, 2024. The filing covers financial data for Q1 2024. Key financial statement items include Retained Earnings, Common Stock, and Additional Paid-In Capital as of March 31, 2024. Stock compensation plans, including performance shares and time-based units, are detailed for management and employees. Passenger data and regional breakdowns for North America, Europe, Asia Pacific, and Other Countries are provided for Q1 2024 and Q1 2023.

Why It Matters

For investors and stakeholders tracking Norwegian Cruise Line Holdings Ltd., this filing contains several important signals. This 10-Q provides a quarterly update on Norwegian Cruise Line Holdings' financial health and operational performance, crucial for investors tracking the company's trajectory. The detailed breakdown of passenger numbers and regional performance offers insights into market demand and the company's ability to capture it across different geographies.

Risk Assessment

Risk Level: medium — Norwegian Cruise Line Holdings Ltd. shows moderate risk based on this filing. The company operates in the highly cyclical and competitive cruise industry, which is sensitive to economic downturns, geopolitical events, and health concerns, as evidenced by the detailed passenger data and regional performance metrics provided in the filing.

Analyst Insight

Investors should analyze the Q1 2024 financial results and operational metrics to assess the company's performance against prior periods and industry benchmarks.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-07 — Filing Date (Date the 10-Q was filed)
• 2024-01-01 — Q1 2024 Start Date (Reporting period for Q1 2024)
• 2023-01-01 — Q1 2023 Start Date (Reporting period for Q1 2023)

Key Players & Entities

• Norwegian Cruise Line Holdings Ltd. (company) — Filer of the 10-Q report
• 0001513761 (company) — Central Index Key for Norwegian Cruise Line Holdings Ltd.
• Miami (company) — Business and mailing address city
• FL (company) — Business and mailing address state
• 305-436-4000 (company) — Business phone number

FAQ

Risk Factors

• Industry Sensitivity [high — market]: The cruise industry is susceptible to various factors including economic conditions, geopolitical events, and health concerns, which can impact passenger demand and operational costs.
• Debt Management [medium — financial]: The company's financial leverage and ability to manage its debt obligations are critical given the capital-intensive nature of the cruise business.
• Operational Costs [medium — operational]: Fluctuations in fuel prices and other operating expenses can significantly affect profitability.

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q
• 2024-05-07: Filing Date — Date the 10-Q was officially submitted to the SEC

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a comprehensive overview of a company's financial performance during a specific quarter.)

Stock Compensation Plan

A plan that allows a company to grant stock options or other equity-based awards to employees and management. (Indicates how the company incentivizes and retains its key personnel.)

Key Financial Figures

• $0.001 — registered Ordinary shares, par value $0.001 per share NCLH The New York Stock E

Filing Documents

• nclh-20240331x10q.htm (10-Q) — 1559KB
• nclh-20240331xex10d6.htm (EX-10.6) — 39KB
• nclh-20240331xex10d7.htm (EX-10.7) — 45KB
• nclh-20240331xex31d1.htm (EX-31.1) — 13KB
• nclh-20240331xex31d2.htm (EX-31.2) — 13KB
• nclh-20240331xex32d1.htm (EX-32.1) — 8KB
• 0001558370-24-007014.txt (&nbsp;) — 7371KB
• nclh-20240331.xsd (EX-101.SCH) — 47KB
• nclh-20240331_cal.xml (EX-101.CAL) — 47KB
• nclh-20240331_def.xml (EX-101.DEF) — 232KB
• nclh-20240331_lab.xml (EX-101.LAB) — 338KB
• nclh-20240331_pre.xml (EX-101.PRE) — 328KB
• nclh-20240331x10q_htm.xml (XML) — 1401KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 35 Item 5. Other Information 36 Item 6. Exhibits 36

SIGNATURES

SIGNATURES 38 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Norwegian Cruise Line Holdings Ltd. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) Three Months Ended March 31, 2024 2023 Revenue Passenger ticket $ 1,459,814 $ 1,208,841 Onboard and other 731,401 613,098 Total revenue 2,191,215 1,821,939 Cruise operating expense Commissions, transportation and other 436,210 409,684 Onboard and other 132,036 119,697 Payroll and related 344,281 304,155 Fuel 197,734 194,868 Food 84,708 95,966 Other 192,454 156,048 Total cruise operating expense 1,387,423 1,280,418 Other operating expense Marketing, general and administrative 362,469 336,013 Depreciation and amortization 222,929 194,790 Total other operating expense 585,398 530,803 Operating income 218,394 10,718 Non-operating income (expense) Interest expense, net ( 218,177 ) ( 171,257 ) Other income (expense), net 18,137 ( 8,955 ) Total non-operating income (expense) ( 200,040 ) ( 180,212 ) Net income (loss) before income taxes 18,354 ( 169,494 ) Income tax benefit (expense) ( 1,001 ) 10,173 Net income (loss) $ 17,353 $ ( 159,321 ) Weighted-average shares outstanding Basic 426,803,519 422,655,215 Diluted 431,019,206 422,655,215 Earnings (loss) per share Basic $ 0.04 $ ( 0.38 ) Diluted $ 0.04 $ ( 0.38 ) The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents Norwegian Cruise Line Holdings Ltd. Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (in thousands) Three Months Ended March 31, 2024 2023 Net income (loss) $ 17,353 $ ( 159,321 ) Other comprehensive income (loss): Shipboard Retirement Plan 95 64 Cash flow hedges: Net unrealized gain (loss) 47,253 ( 18,475 ) Amount realized and reclassified into earnings ( 3,333 ) ( 9,874 ) Total other comprehensi

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Unless otherwise indicated or the context otherwise requires, references in this report to (i) the "Company," "we," "our" and "us" refer to NCLH (as defined below) and its subsidiaries, (ii) "NCLC" refers to NCL Corporation Ltd., (iii) "NCLH" refers to Norwegian Cruise Line Holdings Ltd., (iv) "Norwegian Cruise Line" or "Norwegian" refers to the Norwegian Cruise Line brand and its predecessors, (v) "Oceania Cruises" refers to the Oceania Cruises brand and (vi) "Regent" refers to the Regent Seven Seas Cruises brand. References to the "U.S." are to the United States of America, and "dollar(s)" or "$" are to U.S. dollars, the "U.K." are to the United Kingdom and "euro(s)" or "" are to the official currency of the Eurozone. We refer you to "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations— Terminology" for the capitalized terms used and not otherwise defined throughout these notes to consolidated financial statements. 1. Description of Business and Organization We are a leading global cruise company which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. As of March 31, 2024, we had 32 ships with approximately 66,400 Berths and had orders for five additional ships to be delivered through 2028. As of March 31, 2024, we had four Prima Class Ships on order with currently scheduled delivery dates from 2025 through 2028, and we had one Allura Class Ship on order for delivery in 2025. Subsequent to March 31, 2024, we announced anticipated additional newbuilds for our fleet. 2. Summary of Significant Accounting Policies Liquidity As of March 31, 2024, we had liquidity of approximately $ 2.4 billion, including cash and cash equivalents of $ 559.8 million and borrowings available under our $ 1.2 billion undrawn Revolving Loan Facility and $ 650 million undrawn commitment of senior unsecured notes issuable by NCLC less related fe