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Additionally, as part of this refinancing, we expect to repay our $250 million 9.75% senior secured notes due 2028, our highest interest rate debt. As a result of the ongoing conflict in Israel and the Red Sea, the Company cancelled and redirected all calls to Israel during the fourth quarter of 2023. As a result, Occupancy was 99.2% for the fourth quarter of 2023, and full year Occupancy was 102.9%, in line with guidance.
About NCLH
The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Norwegian Cruise Line Holdings has a better ROE than the average (17%) in the Hospitality industry. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.55 in profit. With a variety of superb restaurants and no set dining times, you can enjoy our wide selection of up to 28 specialty and complimentary dining options on your schedule. A three-course meal awaits you however, whenever, and with whoever you want at our three main dining rooms. Starbucks® cafes and kiosks are now available fleetwide so you can start your day in your favorite way.
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That’s what has made us World Travel Award’s “World’s Leading Cruise Line” and “North America’s Leading Cruise Line” five years in a row. In 1977, the company purchased Great Stirrup Cay, becoming the first cruise line to offer a private “out island” experience. When you step aboard any of the small and luxurious ships in the Oceania Cruises’ fleet, you will be immersed in a refined and unforgettable voyage. Oceania Cruises is renowned for its gourmet culinary program and richly diverse itineraries. The number of passengers carried for the period, multiplied by the number of days in their respective cruises.
Luxurious Private Island Destinations
We use Adjusted Net Income (Loss) and Adjusted EPS as key performance measures of our earnings performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparison to our historical performance. In addition, management uses Adjusted EPS as a performance measure for our incentive compensation. The amounts excluded in the presentation of these non-GAAP financial measures may vary from period to period; accordingly, our presentation of Adjusted Net Income (Loss) and Adjusted EPS may not be indicative of future adjustments or results.
Ships in fleet
We set ourselves apart with our young modern fleet, robust growth profile and innovative, best-in-class product offerings. Newbuild-related capital expenditures, net of export credit financing, are expected to be approximately $0.2 billion, $0.6 billion and $0.6 billion for the full years ending December 31, 2024, 2025 and 2026, respectively. Net newbuild-related capital expenditures for the fourth quarter of 2023 were $98 million including the delivery of Regent Seven Seas Grandeur in November and are expected to be approximately $40 million for the first quarter of 2024. The new pier development at the Company's private island in the Bahamas, Great Stirrup Cay, is slated to break ground in summer 2024 and be completed by late 2025 with an investment of approximately $150 million. The new pier will be constructed to simultaneously accommodate two large vessels of the Company's current and future ship classes.
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In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. Only Norwegian Pride of America sails year-round from Honolulu and takes you to 4 islands in 7 days. The best way to experience Alaska is with the youngest fleet cruising the Last Frontier. Visit the Old Continent with "Europe's Leading Cruise Line" 13 years running.
Norwegian Cruise Line Holdings to Hold Conference Call on Fourth Quarter and Full Year 2023 Financial Results
Mackenzie Financial Corp Cuts Holdings in Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) - MarketBeat
Mackenzie Financial Corp Cuts Holdings in Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH).
Posted: Sun, 21 Apr 2024 10:20:41 GMT [source]
The following reflects the foreign currency exchange rates the Company used in its first quarter and full year 2024 guidance. “Throughout the year, we successfully implemented measures to rightsize our cost base. This consists of approximately $402.4 million of cash and cash equivalents, $1.2 billion of availability under our Revolving Loan Facility and a $650 million undrawn backstop commitment. In March 2024 we expect to refinance our $650 million backstop commitment, replacing the secured commitment with an unsecured commitment.
We utilize Adjusted Gross Margin, Net Yield, and Net Per Diem to manage our business on a day-to-day basis because they reflect revenue earned net of certain direct variable costs. We also utilize Net Cruise Cost and Adjusted Net Cruise Cost Excluding Fuel to manage our business on a day-to-day basis. In measuring our ability to control costs in a manner that positively impacts net income (loss), we believe changes in Adjusted Gross Margin, Net Yield, Net Cruise Cost and Adjusted Net Cruise Cost Excluding Fuel to be the most relevant indicators of our performance. Gross margin adjusted for payroll and related, fuel, food, other and ship depreciation. Gross margin is calculated pursuant to GAAP as total revenue less total cruise operating expense and ship depreciation.
The Company currently has hedged approximately 53% and 21% of its total projected metric tons of fuel consumption for 2024 and 2025, respectively. The following table provides amounts hedged and price per metric ton of heavy fuel oil (“HFO”) and marine gas oil (“MGO”). The following reflects the Company’s expectations regarding fuel consumption and pricing, along with accompanying sensitivities. Fuel price per metric ton, net of hedges, decreased to $726 from $755 in 2022.
For example, for the year ended December 31, 2022, we incurred $12.1 million related to restructuring costs or charges. We included this as an adjustment in the reconciliation of Adjusted Net Income (Loss) since the expenses are not representative of our day-to-day operations; however, this adjustment did not occur and is not included in the comparative period presented within. We believe that Adjusted EBITDA is appropriate as a supplemental financial measure as it is used by management to assess operating performance. We also believe that Adjusted EBITDA is a useful measure in determining our performance as it reflects certain operating drivers of our business, such as sales growth, operating costs, marketing, general and administrative expense and other operating income and expense.
Total revenue was up approximately 34% in the fourth quarter versus 2019. Net Yield growth was approximately 8.2%, or 8.6% versus 2019 on a Constant Currency basis, in line with guidance. That cash can come from retained earnings, issuing new shares (equity), or debt.
The Company repaid $1.9 billion of debt in 2023, which included the pay down in full of our $875 million Revolving Loan Facility. [1] Norwegian Cruise Line Holdings Ltd. expects a four-ship Norwegian Cruise Line (NCL) order to replace a separate, effective, two-ship order for Oceania Cruises initially placed to secure availability with the shipyard. The four-ship order for NCL is still being finalized and is subject to financing. Delivery for the second Oceania Cruises ship is contractually scheduled for the fourth quarter of 2028, but may be delayed to 2029. The Company has obtained export credit financing with favorable terms to fund 80 percent of the contract price of each of the two Oceania Cruises and Regent Seven Seas Cruises ships, subject to certain conditions. The ship orders for Norwegian Cruise Line remain subject to financing, currently underway.
