Q2 2024 Norwegian Cruise Line Holdings Ltd Earnings Call Transcript
Key Points
- Norwegian Cruise Line Holdings Ltd (NCLH) exceeded guidance on all key metrics for Q2 2024, leading to an increase in full-year guidance for the third time this year.
- The company achieved a 14% growth in adjusted EBITDA and a 33% increase in adjusted EPS.
- Strong demand and robust pricing led to record-breaking advanced ticket sales and high guest satisfaction scores.
- NCLH successfully decreased net leverage by 1.5 turns six months ahead of schedule.
- The company is on track to achieve double-digit adjusted ROIC by year-end and has increased its adjusted EPS guidance for the full year to $1.53, a 120% increase over 2023.
- The cancellation of itineraries in the Middle East region resulted in a short resell cycle, although the company managed to offset this setback.
- Adjusted net cruise cost, excluding fuel, came in below guidance due to the timing of certain expenses that will now fall into the third quarter.
- Variable compensation expenses are higher due to better-than-expected business performance, disproportionately affecting the third quarter.
- The company faces ongoing challenges in managing inflationary pressures, although it has been able to offset these through cost-saving initiatives.
- There are concerns about the impact of rerouted Middle East sailings on Q4 2024, which comprised 10% of deployment and were disproportionately weighted to luxury brands.
Good morning, and welcome to the Norwegian Cruise Line Holdings second-quarter 2024 earnings conference call. My name is Donna, and I will be your operator. (Operator Instructions) As a reminder to all participants, this conference call is being recorded.
I will now turn the conference over to your host, Sarah Inmon. Ms. Inmon, please proceed.
Good morning, everyone. Thanks for joining us for our second-quarter 2024 earnings and business update call. I'm joined today by Harry Sommer, President and CEO of Norwegian Cruise Line Holdings; and Mark Kempa, Executive Vice President and CFO.
As a reminder, this conference call is being simultaneously webcast on the company's Investor Relations website at www.nclhltd.com/investors. Throughout the call, we will refer to a slide presentation that can be found on our Investor Relations website. Both the conference call and the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
