Viking Holdings Ltd(VIK) - 2024 Q4 - Annual Report

Financial Performance - Total revenue for the year ended December 31, 2024, was $5,333,882, an increase of 13.2$4,710,493 in 2023[341]. - Net income attributable to Viking Holdings Ltd for 2024 was $152,331, compared to a net loss of$1,850,572 in 2023[341]. - Adjusted EBITDA for 2024 was $1,348,302, up from$1,090,322 in 2023, reflecting a significant recovery in operational performance[343]. - ROIC for 2024 improved to 40.8%, compared to 26.7% in 2023, indicating enhanced efficiency in generating operating income relative to invested capital[346]. - Adjusted Free Cash Flow (FCF) for 2024 was $1,726,154, representing a conversion rate of 128.0$0.36 for 2024, compared to a loss of $4.42 per share in 2023[341]. - Total revenue for the year ended December 31, 2024 increased by$623.4 million, or 13.2%, to $5,333.9 million from$4,710.5 million in 2023[353]. - Viking River segment revenue increased by $313.1 million, or 13.4$2,654.4 million for the year ended December 31, 2024, compared to $2,341.3 million in 2023[356]. - Viking Ocean segment revenue increased by$250.8 million, or 12.9%, to $2,196.0 million for the year ended December 31, 2024, compared to$1,945.2 million in 2023[357]. Operational Insights - The operating capacity for Viking River, Viking Ocean, Viking Expedition, and Viking Mississippi is projected to be 12% higher for the 2025 season compared to the 2024 season[307]. - The company strategically manages its fleet to optimize occupancy and reduce operating costs based on early booking insights[317]. - The company expects seasonality trends in revenue and profits to continue, with the majority of revenue historically earned in the second and third quarters[320]. Shareholder Information - The company completed its IPO on May 3, 2024, issuing 11,000,000 ordinary shares at a price of $24.00 per share, resulting in net proceeds of$243.9 million[310]. - The company had 442,721,700 total ordinary and special shares outstanding as of December 31, 2024[315]. - The number of weighted-average ordinary shares outstanding (diluted) increased to 366,709 in 2024 from 221,936 in 2023[341]. - As of December 31, 2024, there were options outstanding for 2,128,724 ordinary shares with a weighted average exercise price of $15.81, and 1,343,777 restricted share units (RSUs) outstanding[460]. - The 2018 Equity Incentive Plan has reserved 54,600,000 ordinary shares for issuance, with approximately 18,706,701 shares remaining available for future issuance as of December 31, 2024[461]. - The 2024 Employee Share Purchase Plan (ESPP) has reserved 4,680,000 ordinary shares for issuance, with annual increases starting in 2025[474]. Debt and Financing - The average indebtedness for the four quarters of 2024 was$6,503,078, a decrease from $8,574,041 in 2023[348]. - Total debt obligations as of December 31, 2024, amounted to$5,480.993 million, with future interest payments totaling $1,499.488 million[382]. - The company entered into a credit agreement for a five-year Revolving Credit Facility in an aggregate principal amount of$375.0 million in June 2024[372]. - The company has secured financing for its new ocean ships, with a total contract price of $4,753.5 million for 10 ships scheduled for delivery between 2025 and 2030[398]. Impairment and Valuation - The company recognized a$28.6 million impairment for river vessels in Russia and Ukraine in Q1 2022, reducing their carrying value to zero due to operational uncertainties[424]. - An additional impairment of $13.3 million was recognized in Q2 2022 for the Viking Legend and Viking Prestige vessels, also reflecting their carrying values exceeding fair values[425]. - No impairment indicators were identified for vessels and ships as of December 31, 2024, and no impairment loss was recognized for the years ended December 31, 2024 and 2023[422]. - The estimated recoverable amount for the vessels in Russia and Ukraine was determined to be zero, reflecting the oldest vessels in the fleet and lower historical operating results[424]. Employee and Governance - The company’s executive team includes experienced professionals with backgrounds in finance, operations, and marketing, contributing to strategic decision-making[432]. - The company’s board of directors comprises members with extensive experience in law, finance, and the maritime industry, enhancing governance and oversight[442]. - Total compensation for directors and executive officers for the year ended December 31, 2024, was$304.9 million, primarily related to equity awards that vested upon the IPO[453]. - The board of directors currently consists of eight members, with specific rights for principal shareholders to designate nominees[489]. - The Audit Committee includes members who qualify as independent directors and meet financial literacy requirements[493]. - The company has adopted a clawback policy compliant with NYSE Listing Rules, allowing for reduction or recoupment of incentive-based compensation[486]. - The Compensation Committee is responsible for setting the compensation program for executive officers and monitoring incentive plans[495]. - The company has entered into a collective bargaining agreement with the Norwegian Seafarers' Union and the Associated Marine Officers' and Seamen's Union of the Philippines for certain employees on its ships[501]. - No U.S. employees are subject to collective bargaining agreements, and the company maintains a generally good relationship with employees and unions[501].