Norwegian Cruise Line Holdings Reports Strong Third Quarter 2024 Financial Results

Core Insights - Norwegian Cruise Line Holdings reported record third quarter revenue of $2.8 billion, an approximately 11% increase year-over-year, driven by a 4% capacity growth [2][5] - The company exceeded third quarter guidance across all key metrics and raised full year guidance for the fourth time, projecting strong demand and pricing [5][4] Financial Performance - GAAP net income for the third quarter was $474.9 million, a 37% increase compared to the same period in 2023, with earnings per share (EPS) rising 34% to $0.95 [2] - Adjusted EBITDA grew 24% to $931 million, surpassing guidance of approximately $870 million [2] - Adjusted EPS increased by $0.24, or 31%, to $0.99, exceeding guidance of $0.92 [2] Cost Management - Gross Cruise Costs per Capacity Day were approximately $314, while Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $155, better than the guidance of $156 [2] - The company’s focus on margin enhancement led to improved operating costs, with a gross margin per Capacity Day up 19% year-over-year [2] Debt and Leverage - Total debt stood at $13.4 billion, with net leverage improving to 5.58x, a reduction of approximately 1.75x from December 31, 2023 [2][9] - The company successfully issued $315 million of senior notes due 2030, using proceeds to redeem existing notes due 2024 [2][11] 2024 Outlook - Full year 2024 Net Yield guidance increased to approximately 9.4% from 8.2%, driven by strong demand across all brands [4] - Adjusted EBITDA guidance for 2024 was raised to approximately $2.425 billion, reflecting better-than-expected third quarter results [4] - The company expects to end 2024 with net leverage around 5.4 times, a reduction of nearly two turns compared to 2023 [4][11] Booking Environment - The company reported an occupancy rate of 108.1% for the third quarter, with full year 2024 occupancy expected to average approximately 105.0% [8] - Advance ticket sales reached a record high of $3.3 billion, approximately 6% higher than the same period in 2023 [8] Capital Expenditures - Non-newbuild capital expenditures for the third quarter were $140 million, with full year 2024 expected to be approximately $575 million [20] - Newbuild-related capital expenditures for the third quarter were approximately $108 million, with expectations of $59 million for the fourth quarter [21] Company Updates - Norwegian Cruise Line introduced a new brand positioning with the 'More At Sea' package, enhancing guest benefits [22] - Oceania Cruises launched 'Your World Included™', featuring updated amenities for guests starting from October 1, 2024 [22]