Income tax benefit lifted NCLH first quarter net income, operating income fell

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 09 May 2019 09 May 2019

A significant income tax benefit in the first three months of this year lifted net income of Norwegian Cruise Line Holdings Ltd (NCLH) well above the level of the same period last year, but operating income fell.

Net income amounted to $1181 million in January-March 2019 compared to $103.1 million in the same period last year. A tax benefit of $33.8 million compared to a tax expense of $2.5 million in the corresponding period in 2018 lifted the fresh figure.

Operating income decreased to $158.8 million from $167.0 million as cruise operating expenses increased to $826.6 million from $768.1 million. Revenues rose to 1.40 billion from $1.29 billion.

Earnings per share rose to $0.54 from $0.45, according to US GAAP, the company said in a statement.

“We were pleased to enter the year in a record booked position, which when combined with a solid WAVE season and record results for the first quarter, paved the way for an increase to our full year Adjusted EPS outlook that now exceeds the high-end of our previous guidance range, and would result in yet another year of double-digit Adjusted EPS growth," said Frank Del Rio, president and chief executive officer of NCLH.

“Our modest in-year capacity growth of less than 3%, coupled with continued robust global demand for our portfolio of brands allowed us to focus on driving pricing as evidenced by our first quarter topline beat, our record wave season pricing and higher net yield growth expectations for the remainder of the year.”

Revenue increased 8.5% to $1.4 billion compared to $1.3 billion in 2018.  These increases were primarily attributed to the addition of Norwegian Bliss to the fleet, along with strong growth in organic pricing across all core markets and robust onboard spending.  Gross Yield increased 2.8%. Net Yield increased 4.1% on a Constant Currency basis and 3.2% on an as reported basis.

Total cruise operating expense increased 7.6% in 2019 compared to 2018, primarily due to an increase in Capacity Days.  Gross Cruise Costs per Capacity Day increased 2.4%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 3.6% on a Constant Currency basis and 3.0% on an as reported basis.

Fuel price per metric ton, net of hedges increased to $461 from $448 in 2018.  The Company reported fuel expense of $98.3 million in the period.

Interest expense, net increased to $73.5 million in 2019 from $59.7 million in 2018. The increase in interest expense reflects additional debt in connection with the delivery of Norwegian Bliss in 2018, Project Leonardo financing, as well as higher interest rates due to an increase in LIBOR. 

Also included in 2019 were losses on extinguishment of debt and debt modification costs of $6.1 million in connection with refinancing of certain of our credit facilities.

Other income (expense), net was an expense of $0.4 million in 2019 compared to an expense of $1.7 million in 2018. In both periods, the expense was primarily related to losses on foreign currency exchange. 

“In the quarter we had an income tax benefit of $33.8 million compared to an income tax expense of $2.5 million in 2018.  In 2018, we implemented certain tax restructuring strategies that created the ability to utilize the net operating loss carryforwards of Prestige, for which we had previously provided a full valuation allowance. As a result, we recorded a tax benefit of $35.7 million in connection with the reversal of substantially all of the valuation allowance,” NCLH said.

AmaWaterways' revolutionary newbuild, AmaMagna, enters service

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 09 May 2019 09 May 2019

AmaWaterways today released highly anticipated images of its revolutionary new ship – AmaMagna – celebrating its arrival as she set sail on an inaugural voyage from Vilshofen, Germany to Budapest, Hungary. The brain child of AmaWaterways’ president and co-founder Rudi Schreiner, AmaMagna surpassed guests’ expectations on embarkation day with the highest level of luxury and generous personal space of any ship on the rivers. The first-ever photos of AmaMagna’s public spaces showcase the stunning design and elegant décor of a multi-level lounge and Main Restaurant, which features floor-to-ceiling windows. They also provide a first look at new dining venues – the Al Fresco Restaurant (pictured right) and Jimmy’s (pictured below), the latter of which is named in honor of the late Jimmy Murphy, one of AmaWaterways’ original co-founders and co-owners.

“Dreams are fueled by an individual’s passion but usually accomplished through the creativity and hard work of many,” said Schreiner. “This ship represents a labor of love for so many people who contributed groundbreaking ideas, as well as a lot of hard work that was done by the team to bring my dream project to reality.”

At an exclusive Oktoberfest welcome event in Vilshofen, Captain Jan de Bruijn, Cruise Manager Dragan and Hotel Services Manager Guido greeted AmaMagna’s first guests, many of whom were loyal AmaWaterways cruisers anxious to be among the first to experience the newest member of the family. Equally excited were first-time river cruisers like Barry Blake, traveling with the High Country Charity Foundation/Elk River Club group from Minnesota, who remarked “WOW! The ship is beyond believable. We had dinner at The Chefs Table last night…exquisite!”

“The delighted reactions of our guests and travel partners when they embarked on this cruise is genuinely rewarding,” said Kristin Karst, executive vice president and co-founder. “With the choice of four distinct dining venues, five bars, elegant lounges and exceptional accommodations, AmaMagna has been designed for those seeking a fresh, contemporary and dynamic take on river cruising. This beautiful ship has a direct appeal to ocean cruisers, who are accustomed to the luxury of expansive personal space and a wide variety of leisure activities during their vacation.”

AmaMagna is twice the width of traditional river cruise ships, yet welcomes only 20% more guests, allowing generous personal space - with more than half of the 98 staterooms designated as suites measuring between 355 and 710 sq. ft. All staterooms and suites are appointed with stylish décor and natural wood accents. The suites feature full outside balconies, open seating areas and luxurious bathrooms, complete with double sinks and walk-in showers. Six Grand Suites (474 sq. ft.) and an Owner’s Suite (710 sq. ft.) provide even more amenities with separate seating areas and sizable bathrooms complete with spa-like bathtubs.

The ship also provides enhanced entertainment offerings with an onboard cinema and amenities, including a large boutique; an expansive Zen Wellness Studio, complete with a large exercise area offering group classes focused on stretching, cardio and core strengthening and spin classes led by a professionally trained Wellness Host, a juice bar and two massage rooms, along with manicure, pedicure and hair services; and a sun deck with a large heated pool, relaxing whirlpool and sky bar. All sun deck facilities are easily accessible via an innovative pop-up elevator serving all four decks.

Exclusive to AmaMagna, guests may take advantage of a new Concierge Golf Program, providing the opportunity to experience four top-level golf courses in Hungary, Slovakia, Austria and Germany while enjoying the magic of river cruising. AmaMagna’s itineraries include Romantic Danube, Melodies of the Danube and Christmas Markets on the Danube.

AmaMagna will be officially christened by her godmother, respected travel expert and Emmy Award-winning television host, Samantha Brown, during a July 11 christening ceremony in Grein, Austria.