Norwegian Cruise Line Reports Positive Quarterly Results


Norwegian Epic

Norwegian Cruise Line has reported its results for the quarter ended Sept. 30, 2011.

Operating income for the quarter improved 18.3 percent to $162.7 million from $137.6 million and adjusted EBITDA increased 13.4 percent to $210.0 million from $185.2 million primarily driven by strong revenue performance across the fleet. Net revenue grew 4.6 percent to $491.6 million from $469.8 million in 2010 as a result of an increase in net yield of 3.8 percent, or 2.3 percent on a constant currency basis. The increase in net yield was driven by higher ticket pricing.

Benefits realized from ongoing business improvement initiatives coupled with non- recurring expenses in the third quarter of 2010 related to the launch of Norwegian Epic resulted in a decrease in net cruise cost per capacity day of 2.0 percent, or 2.8 percent on a constant currency basis, after considering a 17.9 percent increase in the price of fuel to $598 per metric ton from $507 in 2010. Excluding fuel expense, net cruise cost per capacity day decreased 5.3 percent, or 6.2 percent on a constant currency basis.

“A strong summer season resulted in solid top-line growth in the quarter,” said Kevin Sheehan, president and CEO of Norwegian Cruise Line. “Pricing was up across the fleet despite several voyages being impacted due to tropical weather conditions in the Northeast and Caribbean.”

Interest expense, net of capitalized interest, increased to $49.9 million in the quarter compared to $46.2 million in 2010 due to higher average interest rates in the period resulting from the issuance of $250 million in senior notes in November of 2010. Net income for the quarter improved to $110.2 million on revenue of $666.6 million compared to $93.0 million on revenue of $634.1 million in 2010.

Quarter Highlights and Updates

Norwegian Breakaway and Norwegian Getaway were selected as names for Norwegian Cruise Lines' newest ships through a contest with USA Today. Over 230,000 entries were submitted as possibilities. Norwegian Breakaway is scheduled to be delivered in April 2013 followed by her sister ship, Norwegian Getaway, in April 2014. Soon after the announcement of the ship names, the first steel was cut for Norwegian Breakaway at Meyer Werft in Papenburg, Germany, marking the ceremonial beginning of construction.

In early October, NCL announced the homeport, inaugural summer itinerary and hull artist for Norwegian Breakaway. Norwegian Breakaway will homeport year-round in New York City beginning in May 2013, initially sailing seven-day voyages to Bermuda. Pop artist and New York resident Peter Max will be designing the signature hull art for Norwegian Breakaway. NCL also announced its “Cruise Like a Norwegian” advertising campaign.


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