News Review: Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)

Carlos Williams

I am Carlos Williams and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions.

I am the driving force behind News Perception with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Services” category.

Address: 1411 Tully Street Detroit, MI 48219, USA
Phone: (+1) 313-676-2812
Email: Carloswilliams@newsperception.com
Carlos Williams

MIAMI, October 7, 2019 – Shares of Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) gained 0.62% to $48.44. The stock grabbed the investor’s attention and traded 2.516M shares as compared to its average daily volume of 2.13M shares.

Norwegian Cruise Line Holdings Ltd. (NCLH) generated GAAP net income of $118.20M or EPS of $0.54 contrast to $103.20M or $0.45 in the prior year. Adjusted Net Income was $181.80M or Adjusted EPS of $0.83 contrast to $137.80M or $0.60 in the prior year. GAAP EPS and Adjusted EPS grew 20% and 38% over prior year, respectively.

Revenue increased 8.5% to $1.41B contrast to $1.30B in 2018. These increases were mainly attributed to the addition of Norwegian Bliss to the fleet, together 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.

Interest expense, net increased to $73.50M in 2019 from $59.70M 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 because of a boost in LIBOR.  Also included in 2019 were losses on extinguishment of debt and debt modification costs of $6.10M in connection with refinancings of certain of our credit facilities.

Other income (expense), net was an expense of $0.40M in 2019 contrast to an expense of $1.70M in 2018. In both periods, the expense was mainly related to losses on foreign currency exchange.

In the quarter we had an income tax benefit of $33.80M contrast to an income tax expense of $2.50M 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 formerly offered a full valuation allowance. As a result, we recorded a tax benefit of $35.70M in connection with the reversal of substantially all of the valuation allowance.

NCLH has a market value of $10.49B while its EPS was booked as $4.46 in the last 12 months. The stock has 216.61M shares outstanding. In the profitability analysis, the company has gross profit margin of 44.00% while net profit margin was 15.60%. Beta value of the company was 1.70; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 1.60.

Carlos Williams

Carlos Williams

I am Carlos Williams and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind News Perception with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Services” category. Address: 1411 Tully Street Detroit, MI 48219, USA Phone: (+1) 313-676-2812 Email: Carloswilliams@newsperception.com

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