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Norwegian Cruise Line Q1 Adj. Loss Wider Than Estimates, But Revenue Beats

Norwegian Cruise Line Holdings Ltd. (NCLH) reported Thursday that its net loss for the first quarter was $1.88 billion or $8.80 per share, compared to net income of $118.16 million or $0.54 in the prior-year quarter.

The latest quarter's results include a non-cash impairment loss of $1.6 billion primarily related to goodwill and tradenames.

Adjusted loss for the quarter was $0.99 per share, compared to adjusted earnings of $0.83 per share in the year-ago period.

Revenue for the quarter decreased 11.2 percent to $1.25 billion from $1.40 billion last year.

On average, analysts polled by Thomson Reuters expected the company to report loss of $0.31 per share for the quarter on revenues of $1.18 billion. Analysts' estimates typically exclude special items.

"In recent weeks, we have taken decisive action to significantly strengthen our financial position in response to the COVID-19 global pandemic, including our highly successful and oversubscribed $2.4 billion gross simultaneous quad-tranche capital raise announced last week. We believe this capital raise, coupled with other ongoing liquidity-enhancing initiatives, makes us well-positioned to weather an unlikely scenario of over 18 months of suspended voyages," said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line.

Norwegian Cruise Line noted that as with the broader travel and leisure industry, it has experienced rapid and significant impacts related to the COVID-19 global pandemic, including significant softness in near-term demand and an elevated rate of cancellations for existing bookings.

However, the company saw demand for cruise vacations particularly beginning in the fourth quarter 2020 accelerating through 2021, with the company's overall booked position and pricing for 2021 within historical ranges.

In April, Norwegian Cruise Line had withdrawn its financial outlook for fiscal 2020 due to the uncertain environment related to the COVID-19 pandemic.

The company now expects to report a net loss on both a U.S. GAAP and adjusted basis for the second quarter ending June 30, 2020 and the year ending December 31, 2020.

The Street expects the company to report a loss of $1.74 per share for the second quarter and loss of $3.97 per share for the full year.

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