On July 31, 2024, Norwegian Cruise Line Holdings Ltd (NCLH, Financial) released its 8-K filing reporting financial results for the second quarter ended June 30, 2024. Norwegian Cruise Line is the world's third-largest cruise company by berths, operating 32 ships across three brands—Norwegian, Oceania, and Regent Seven Seas—offering both freestyle and luxury cruising. The company sails to around 700 global destinations and has 13 passenger vessels on order through 2036.
Performance and Challenges
Norwegian Cruise Line Holdings Ltd (NCLH, Financial) reported a record second-quarter revenue of $2.4 billion, an 8% increase compared to the same period in 2023. This performance was driven by strong revenue growth and continued focus on cost reductions and efficiencies. However, the company faces challenges such as high fuel costs and the impact of dry-dock days on capacity.
Financial Achievements
The company achieved a GAAP net income of $163.4 million, or EPS of $0.35, surpassing the analyst estimate of $0.29. Adjusted EBITDA grew 14% to $587.7 million, exceeding the guidance of $555 million. Adjusted EPS increased by 33% to $0.40, compared to $0.30 in the second quarter of 2023, also beating the guidance of $0.32.
Key Financial Metrics
Occupancy was 105.9% for the quarter, slightly above guidance, and total revenue per Passenger Cruise Day increased approximately 2% compared to the second quarter of 2023. Gross margin per Capacity Day was up 7% versus 2023 on an as-reported and Constant Currency basis. Net Yield growth beat guidance by 200 basis points, increasing over the prior year by approximately 6.3%.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $2.4 billion | $2.2 billion |
| GAAP Net Income | $163.4 million | $86.1 million |
| Adjusted EBITDA | $587.7 million | $514.8 million |
| Adjusted EPS | $0.40 | $0.30 |
Balance Sheet and Cash Flow
As of June 30, 2024, the company had total debt of $13.4 billion and net debt of $12.8 billion. Net leverage improved to 5.9x, achieving the year-end goal six months early. Liquidity stood at $2.7 billion, consisting of $594.1 million in cash and cash equivalents and $1.2 billion of availability under the undrawn Revolving Loan Facility.
Outlook and Guidance
For the full year 2024, Norwegian Cruise Line Holdings Ltd (NCLH, Financial) increased its Net Yield guidance on a Constant Currency basis to approximately 8.2% from 7.2%. Adjusted EBITDA guidance was raised by $50 million to approximately $2.35 billion. Adjusted EPS guidance was increased by $0.11 to $1.53.
"2024 continues to be an exceptional year in terms of our financial performance, as evidenced by our strong second quarter results which exceeded guidance across the board," remarked Harry Sommer, president and chief executive officer of Norwegian Cruise Line Holdings Ltd.
For more detailed information, readers can access the full 8-K filing.
Explore the complete 8-K earnings release (here) from Norwegian Cruise Line Holdings Ltd for further details.
