Norwegian Cruise Line Holdings Reports First Quarter 2020 Financial Results

Revenue decreased 11.2% to $1.2 billion compared to $1.4 billion in 2019. Gross Yield increased 1.6% primarily due to increased onboard spending. Net Yield decreased 12.3% on both an as reported basis and Constant Currency basis on a decrease in Capacity Days of 12.6%. The decrease in Net Yield was primarily due to an increase in protected commissions and credit card fees recognized in the quarter as a result of cancelled sailings announced through quarter end. The decrease in Capacity Days was primarily due to the cancellation of sailings in 2020 to stem the spread of COVID-19, partially offset by the addition of NORWEGIAN ENCORE and SEVEN SEAS SPLENDOR to the fleet.

GAAP net income (loss) was $(1.9) billion or EPS of $(8.80) compared to $118.2 million or $0.54 in the prior year. These results include a non-cash impairment loss of $1.6 billion primarily related to goodwill and tradenames. The Company reported Adjusted Net Income (Loss) of $(211.3) million or Adjusted EPS of $(0.99) compared to $181.8 million or $0.83 in the prior year. These results include adjustments of $1.7 billion primarily consisting of expenses related to impairment losses, non-cash stock-based compensation and amortization of intangible assets.