Norwegian Cruise Line Holdings Q2 2024 10-Q Filed

TL;DR

NCLH filed its Q2 10-Q. Financials look steady, stock comp details released.

AI Summary

Norwegian Cruise Line Holdings Ltd. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial figures and stock compensation plan information are presented, alongside details on common stock and exchangeable senior notes.

Why It Matters

This filing provides investors with a detailed look at Norwegian Cruise Line's financial health and operational status during the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — The filing contains standard financial disclosures for a public company, but the cruise industry can be subject to external risks like economic downturns or health concerns.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 2024-08-08 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Norwegian Cruise Line Holdings Ltd. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 0001513761 (company) — Central Index Key for Norwegian Cruise Line Holdings Ltd.
• 7665 CORPORATE DRIVE (address) — Business and mailing address
• MIAMI (location) — City for business and mailing address
• FL (location) — State for business and mailing address
• 33126 (zip_code) — ZIP code for business and mailing address
• 305-436-4000 (phone_number) — Business phone number

FAQ

Key Financial Figures

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

Filing Documents

• nclh-20240630x10q.htm (10-Q) — 2142KB
• nclh-20240630xex31d1.htm (EX-31.1) — 13KB
• nclh-20240630xex31d2.htm (EX-31.2) — 13KB
• nclh-20240630xex32d1.htm (EX-32.1) — 8KB
• 0001558370-24-011514.txt ( ) — 9389KB
• nclh-20240630.xsd (EX-101.SCH) — 54KB
• nclh-20240630_cal.xml (EX-101.CAL) — 53KB
• nclh-20240630_def.xml (EX-101.DEF) — 265KB
• nclh-20240630_lab.xml (EX-101.LAB) — 386KB
• nclh-20240630_pre.xml (EX-101.PRE) — 378KB
• nclh-20240630x10q_htm.xml (XML) — 2028KB

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 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 39

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 5. Other Information 40 Item 6. Exhibits 40

SIGNATURES

SIGNATURES 42 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Revenue Passenger ticket $ 1,602,076 $ 1,478,474 $ 3,061,890 $ 2,687,315 Onboard and other 770,416 727,018 1,501,817 1,340,116 Total revenue 2,372,492 2,205,492 4,563,707 4,027,431 Cruise operating expense Commissions, transportation and other 501,039 506,855 937,249 916,539 Onboard and other 171,707 161,880 303,743 281,577 Payroll and related 330,578 308,220 674,859 612,375 Fuel 174,964 164,242 372,698 359,110 Food 77,046 87,770 161,754 183,736 Other 199,421 154,643 391,875 310,691 Total cruise operating expense 1,454,755 1,383,610 2,842,178 2,664,028 Other operating expense Marketing, general and administrative 353,771 352,222 716,240 688,235 Depreciation and amortization 222,405 197,115 445,334 391,905 Total other operating expense 576,176 549,337 1,161,574 1,080,140 Operating income 341,561 272,545 559,955 283,263 Non-operating income (expense) Interest expense, net ( 178,472 ) ( 177,692 ) ( 396,649 ) ( 348,949 ) Other income (expense), net 1,896 ( 8,043 ) 20,033 ( 16,998 ) Total non-operating income (expense) ( 176,576 ) ( 185,735 ) ( 376,616 ) ( 365,947 ) Net income (loss) before income taxes 164,985 86,810 183,339 ( 82,684 ) Income tax benefit (expense) ( 1,549 ) ( 694 ) ( 2,550 ) 9,479 Net income (loss) $ 163,436 $ 86,116 $ 180,789 $ ( 73,205 ) Weighted-average shares outstanding Basic 434,807,434 424,178,775 430,805,477 423,421,203 Diluted 513,589,734 461,075,240 468,078,473 423,421,203 Earnings (loss) per share Basic $ 0.38 $ 0.20 $ 0.42 $ ( 0.17 ) Diluted $ 0.35 $ 0.20 $ 0.41

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 June 30, 2024, we had 32 ships with approximately 66,400 Berths. The Company expects to add thirteen additional ships to our fleet from 2025 through 2036. We have four Prima Class Ships on order with currently scheduled delivery dates from 2025 through 2028. We have one Allura Class Ship on order for delivery in 2025. We also have orders for two new classes of ships: four Oceania Cruises ships with deliveries scheduled from 2027 through 2031 and two Prestige Class Ships with deliveries scheduled in 2026 and 2029. The orders for two of the new class of Oceania Cruises ships currently scheduled for delivery in 2030 and 2031 are expected to be cancelled and replaced with orders for four Norwegian Cruise Line ships of a new class with expected delivery dates from 2030 throu