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Norwegian Cruise Line Issues COVID-19 Business Update - Quick Facts

Norwegian Cruise Line Holdings Ltd. (NCLH) said it expects to report a net loss on both a U.S. GAAP and adjusted basis for the quarter ended March 31, 2020 and the year ending December 31, 2020. The company noted that, if the temporary suspension of sailings is further extended, its liquidity and financial position would likely continue to be significantly impacted.

As of April 17, 2020, approximately half of the guests who have had their voyages cancelled have requested cash refunds. Advanced bookings for the remainder of 2020 were meaningfully lower than the prior year with pricing down low-single digits, the company said.

At March 31, 2020 the company's cash and cash equivalents were $1.4 billion and Norwegian Cruise Line believes it was in compliance with all debt covenants.

Mark Kempa, chief financial officer, said: "We will not only benefit from the actions taken to strengthen our liquidity profile but will also benefit from a period of reduced capital expenditures with no newbuild deliveries until at least mid-2022. We will continue to evaluate all additional options to enhance liquidity."

The company has identified approximately $515 million of capital expenditure reductions, including: $345 million, or a nearly 70% reduction of non-newbuild capital expenditures for the remainder of 2020.

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