NCLH - Earnings call transcript Q4 2024 | Norwegian Cruise Line Holdings Ltd.

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Operator

Good morning, and welcome to the Norwegian Cruise Line Holdings Fourth Quarter and Full Year 2024 Earnings Conference Call. My name is Maria, and I will be your operator. [Operator Instructions] As a reminder to all participants, this conference call is being recorded.

I would now like to turn the conference over to your host, Sarah Inmon. proceed. please Ms.Inmon

Sarah Inmon

Harry and Vice us Maria, XXXX everyone. you and today Thank and Norwegian CEO Thank Line and Cruise our good Chief fourth joining Holdings; by joined I'm on update Kempa, year President quarter for and business of Executive you, Mark call. morning, Sommer, President and earnings Officer. full Financial

the call company's this a conference is being webcast reminder, Relations Investor on website. As simultaneously

this reference call to XX can a be We call, will during website. conference which today's found presentation the available also and our on call. make days following for be slide will for Both replay presentation

we Before few like a cover items. I begin, would to

and with Our website. our fourth considered forward-looking that materially call in conjunction actual our quarter statements statements in press includes the this statements. release. This statement differ to be results our risks from could release cause morning such contained that earnings available These cautionary and is results uncertainties involve year on full XXXX and was with issued should

may financial also non-GAAP measures. reference comments Our

most call the Sommer. earnings With directly release I'd presentation. GAAP turn and other financial to Harry associated in disclosures and reconciliation A that, to like our over measure to are the contained comparable Harry?

Harry Sommer

and to . Sarah, morning, share you, and good to year today pleased results. XXXX Thank our everyone. quarter be here I'm full exceptional fourth

Oceania's our and experience offering am ships to and Norwegian remain our product our about particularly experiences, the I on vision vacation we and more. XXXX, laser-focused in I'm groundbreaking better XXXX, with having to guest Aqua Throughout the of thrilled debuting Allura. and our enhancement innovations excited guests

when the up points net led the year to adjusted beating control EBITDA. margins results in with financial and meeting combined once again revenue yield, almost and with strong our guidance, XXX cost for our resulted initiatives, record line disciplined record outstanding Our drove throughout top performance which has execution on basis

the the supporting firmly Course this strategy that achieve paying position targets initiatives demonstrate off financial May. past our that introduced The XXXX sustainability are These results to us and and track Charting on we

to in Our strategy and achievements Charting the our XXXX. transformational experience its guest better guided more have our with vacation Course vision

historic program. through our by fleet underpins of begin strategic on product, people, the key my remarks growth highlights pillars our strategy, framework our and I'll Charting long-term and on progress across and across pillars X expansion we announced our brands, delivered today a Course. initiatives walking sustainability Under built which each set significant of and X financial performance, platform X targets ambitious the

Lastly, the I cost will I'll turn call all guest the our ROI maintaining return for comment call on on we scores, disciplined to continue record ROX management, detailed to provide the like who our XXXX. demand to offerings return of as while [ investment environment it, then and of and will and experience or over and balancing more satisfaction our outlook discuss on Mark, commentary ] results drive

XXXX. The want in driving cultural business, all shipboard. we in shoreside the value us to and of foundation has for of an behind emphasize introduction remarkable has transformation I mindset our X, achieve results enabled been Slide shift our This the both a on our Starting across as our force sets organization. to anchors success prioritize how behaviors aspects

Course And Our objectives, successful meaningful we that the our Charting these of demonstrates culture with team when we embraced members enthusiasm. can strategy change. align the [indiscernible] have our business create our changes with

am to XXXX, ahead that have journey. confident will we the look cultural our built I transformational foundation I continue accelerate As to

XXXX. in brand we particularly achieved I'm X. of Moving significant proud enhancements to the Slide

guests brand position with a Lines more, For Sea. more to example, providing Experience more at largest love while more they more Line. This NCL's we out Norwegian and vacationing campaign Norwegian with brand, variety, Cruise value of repositioning Cruise more successfully elevated new offerings, rolled commitment our what for underscores

with itineraries as well our as and offerings. additional of made bandwidth of now call and exciting Internet. our expanded significantly also and rollout fleet new the ports important and improving dining the WiFi, shore entertainment excursion We investments across in onboard Starlink speed guest example reliability prime of A the We've fleet-wide completed experience. also enhanced as activities options as well onboard is

with partnership what League Martin, Aramco our we Regent's Hockey our XXXX, the commitment partnership aligning during guests value. and that with the One year, brands, myriad including enhance formed of Formula team. product During our strategic the enhancements partnerships other initiatives, underscore to among Norwegian's Aston National with These offerings

real last our history to highlight XXXX. of in place, long-term to on during comprehensive driven to creating growth other capacity outsized growth newbuild and orders our announced April, top And most want earnings Historically, our Flipping Slide we platform with long-term growth. customers pillar X, and both measured order for revenue achievements our stakeholders. up value in significant our has our continue the are set existing in I

innovation of disciplined we us total while across further and continue and outsized outstanding allowing are scale to With capacity significantly set XX measured strengthen experiences significantly growth. guest growth, revenue to on to all brands to X experiences drive leverage order, guest our a and offerings our and continuing commitment maintain allowing us and ships enhance earnings our to to

improved to class entertainment, on experience as the dining X-bedroom our wait that Celebration in April our in activities at fleet, thrills coaster XXXX XXXX, a and are with innovative debuting brand-new services, introduce deck, and game state-of-the-art April plus attraction Aqua a the to of chip new world-class Prima for our can't enhanced in first-ever including sea. Revolution, Aqua than as sail suites rush combines excited zone evolution [ full a to standards our Norwegian an duplex show, roller will ] set the groundbreaking larger slide attractions, innovative especially experiences, next-generation Aqua which Slidecoaster, a fuel we [ Looking the inaugural vessel to ] Prima [indiscernible], represents XX% vessels the be and hybrid have will tribute and X I such Prince along efficiency. Class, other first the guest of the and a larger spa water of Prince, with of entertainment immersive amenities a reimagined new Class

She's truly breathtaking.

July, featuring a reintroduction our -- are of which of favorite crowd venues lounges anticipating known OceanIa world-class to cruising, that sophisticated the our eagerly crafted we course, Additionally, commitment suites, with is signature French debut guests. in Cruises Allura and of signing the the exemplifies upscale magnificent designer is our introduction Oceania vessel Jacques, meticulously including for, restaurant this

me significant Finally, Great private our at let investments Stirrup highlight Cay. some in particularly island strategy,

in to for experience. scheduled one making are in We game new our critical enhancement at [ late will X-ship strategic year our This XXXX. a guest of a highest changer rated investment ] open be ports

over supported the the late deployment in anticipate to welcoming X guests we a by approximately a in increase upgrade, guests million significant that more island XXXX With XXXX, visited a 'XX. in beginning infrastructure [ the ] shift and to XXX,XXX from Caribbean

guest from further make this well targeted premier this positions the both enhance to us and returns experience Looking to financial investments destination. ahead,

island ensuring experience and as the an committed guests. cornerstone our unforgettable Caribbean for a exceptional are to We of establishing our offering,

now me fourth pillar, to Let exceptional our turn performance.

outstanding strategic and significantly city demand key generated that the we up combined factors: sets advancements record projections upwardly I in As XXXX am record proud even stemmed revenue, surpassing management. to market initial cost Charting well revised to experiences, in report results own year. target. This yield from strong XXXX, us and and execution, throughout and growth teams, X, shipboard vacation X EBITDA the record our Course achieve with record net the shown year our delivering from on Slide execution shoreside disciplined initiative throughout our repeatedly adjusted

Mark year. our record would our commentary will by provide outstanding underscore across While in of only XXX consumer XXXX, the results February Net a cruise. surpassing increased some spend for highlight This shortly, execution financial [ XX% basis brands to ]. for onboard strong strong detailed and yield the initial our itineraries positioning guidance achievements more like demand points. strong complemented and by reflects overperformance also but These all I not validate strength

with further of align benchmark, yield low to mid-digit performance accept growth. growth While to we XXXXs set algorithm exceptional historic growth our

cost accomplish our this to announced aiming targets, maintain cost-saving our in we able I'm management to experience. rigorous while goal Today, organizational maintaining unit XXXX. proud were through February, through flat ambitious cost our Last that excellent guest fundamental we culture report shift a to and

spread achieved approximately our an XXXX. is basis the point our excluding as XXX impact and Our dry unit particularly dock in net cost, between yield we performance noteworthy

to throughout guest as of strategic the from waste to XXXX. impressive and The just this from momentum purchasing But and through building more delivering us we algorithm beyond. our created And enhance and palpable guest XXXX X results all have in and planned. has importantly, are been as this excitement are efficiencies, able do foundation these that remain results increased experiences for demonstrate the reporting we beginning. strategic move more XXXX's on and elimination initiatives satisfaction committed cost containment organization, initiatives brands record our with we the

basis achieve clearly our ratio EBITDA nearly show full under sheet. that progress Charting ] The direction basis XXX XX%. to by decreased XXXX significant and capabilities. adjusted improved balance while both our [ Course net to making to to we are validates expanded X X.Xx, XXX adjusted Our points on leverage our strengthening track points ROIC execution and margin Notably, metrics targets strategic on our These XX.X%, just operational turns our

our environmental Moving through and key positive to pillars: recognition communities, and program X Award Slide for operating impact, Sail we safely, social integrity. MSCI. an leader Gold continues empowering X. corporate A Sustain and In Sustainability rating XXXX, and including drive reducing entire strategy its with efforts, sailing & our from underpins to impact received people strengthening our the ESG environmental notable

We Seattle site U.S. first to Tier the power our at XX% in Port East made on the with partnered shore Coast. of XX cruise our nearly power and major blends invest also by progress significant when continuing now we've shore half biodiesel end fleet Miami infrastructure with tested of this launch capabilities to the to fleet of almost the season first equipped appropriate with XX% We're were connect year. the shore with during in connect installation XXXX available. of the is targeting Fort to Operationally,

Slide drove to pleased our exceptional year, the demand net X. X%. the delivered portfolio fourth execution up strategic Switching Throughout quarter, robust across our yield outstanding through customer results. report this to demand I'm in continued environment which

as for the into summer the at remain next ahead, optimal sailings demand continues months and impressive XXXX with XX the Alaska. we for momentum particularly book Europe Looking position in

pricing X.X% the despite and fundamentals for net 'XX strong are a and growth drive these dollar caused full of we year on drybacks X%. headwinds will Based QX, timing yield by increase which strong in of projecting U.S.

With go that, I'll more hand to results the Mark? over call financial Mark to over detail. in

Mark Kempa

everyone. fourth period net cruise ex Thank commentary in position. are net day you, focus My will adjusted Unless comparisons per currency financial yield are XXXX Harry, XXXX. and financial quarter results, and today on in XXXX good and our basis and our XXXX morning, noted, capacity a guidance to metrics same XXXX otherwise cost fuel and constant the

$XXX, growing begin guidance, point Let by fourth cruise net XXX guidance ending on fourth basis strong strength above and XX. our yield compensation increased driven brands was results variable was with outperformance due our came driven as Once the geographies mainly performance. net X%. fuel, in me to results ahead spend. quarter our onboard strong Slide Adjusted of well cost, again, across at quarter with slightly The as quarter ex by

cruise healthy decreased have the million, our cost guidance. drove this adjusted ex $X our benefits fuel the initiatives. top Excluding of adjusted line strong of year-over-year would $XXX cost dry combination EBITDA of transformation and net dock and The demonstrating control exceeding impact,

ticket foreign rates. Finally, million income million reminder was to revalue included quarter as an denominated move, that EPS which the sales foreign $X.XX, approximately for adjusted both rates that our exchange currencies. foreign advanced or A net $X.XX in are and exchange adjusted or debt we $XXX due $XX of benefit

ultimately a quarter fourth P&L. the realized the these in appears in the a is advanced through when benefit income, as are impact ticket headwind future this periods While net sales

Now moving XX. our year results Slide XXXX record full on to

this performance. net to exceptional year. year prior Let our delivered results line top with me XX% increasing start with compared yield We

cost highest This growth results, history. the the our in same management company's we last disciplined commitments our the further beginning made yield represents net at of that the At strong delivered time, year. solidifying

the when increased adjusted net ex impact in Our capacity year. to dry per during XXXX dock $XXX cost day cruise excluding fuel only the $X

This result was achieved to due strong our variable compensation despite higher performance.

net extremely focus an I to would continue beyond. have we Excluding ex of delivering fuel year-over-year. this, initiatives during to to cost made significant while the enhancement am margin have our decreased and and still progress experience, this base proud in streamline year the commitment our our exceptional we guest adjusted cruise demonstrating and cost expect XXXX our

a full EBITDA in our billion, the strong came just growth over leverage in X initiatives As which adjusted came while during over adjusted at at $X.XX, cost net driving to our result down EPS just and FX, an billion, $X.XX approximate year, $X.XX X.Xx. the of from flow yield our came $X in at includes and benefit operating turns cash savings

Charting us our well operational the successful XXXX while our capitalizing our demand financial the on to positions targets. market, Course path in strong execution demonstrates achieve which along performance XXXX exceptional Our

ahead we to are look committed continued this focus XXXX, drive. As maintaining we and with to momentum

Moving to XX. Slide

you Let projecting of walk with to coming X.X% just net our starting down XXX%. the growth In is rate through yield this occupancy The we first be outlook, and growth are X.X%. over pricing year-over-year, quarter, X% at me in the of XXXX underlying drivers expected growth quarter. of are

we Norwegian Caribbean the in dry large prior our during have Europe call, from ships, to docks discussed earnings for are and that we Bliss Norwegian As quarter. X the repositioning Breakaway

dry these vessels during repositioning lower regions result, we naturally Caribbean. have established future, in the a As have operating will sailings XX% shipyards we quarter. agreements closer to with our Caribbean typical core going in capacity a repositioning deployment lengthy need perform that To forward. factor increase allow address These the us the challenges than a docks sailings in in days the those to in reducing load have the for sailings

Diem the challenging comparison, of delivered We first driving we to we typically in the XX%, exceptional of XXXX. pricing a growth growth XX% this load This sailings growth. with of 'XX, increase expect comparison. faced per net lower as along is year-over-year yield prices typical In generate a given Turning pricing. lower challenging X.X% to quarter net notable particularly first to itineraries. repositioning quarter that compared Despite factors,

growth normalized, quarters last X% we net the on looking to X.X%, growth. our finally, back deployments at of by X pricing And where expect the X.X% yield XXXX, of a capacity grow healthy more to driven are strong

net Turning cruise to fuel. adjusted cost ex

$X dry related costs of impact increased and dock quarter. growth the capacity X.X%, QX expect We days which includes in an of

cost fuel Excluding due remainder net costs with inflation is than this, of adjusted below expected cruise cost year which of our the Norwegian delivery ex associated is to for the be up higher the X.X%, growth and Aqua. to

cost full Our our year will meaningful dry net we as adjusted dock going cost no normalize forward unit impacts on comparisons. anticipate cruise growth

in adjusted come million and to EBITDA adjusted expect $X.XX. at We EPS $XXX at

capacity rates more at is is brand This margins brands at now us Chief our yields modest be Looking net our recent Luxury brands from full by our strong across growth performance growth largest of growth officer forward. well going that the growth. and with approximately enhance to other X%. yield are mainly year, appointment positions absorbing expected The these to driven outsized

approximately X.X%, approximately more which into to long-term mentioned. X of the expect moderation that strong core our are in line Driving to quarter throughout quarters, the at I X.X%, in yield factors our in per reflect cadence primarily a business subsequent algorithm. projected previously first better year, growth net grow the net which we growth operations by The due temporary with diem driven of is

into ex XXXX, across change X% to year the on and fuel this Turning net office's sustainable rates. to after and is strategic This in and our well intend grow This guest X.XX%, of culture unit momentum by that but low execution. our inflation to cost efficiencies growth organization our cost we are testament anticipated below impact implement success experience. the which a cost adjusted transformation identify control is only do growth disciplined and cost not ongoing XXXX driven initiatives, to cruise targeting to our continue by continue Building strong unit costs. a performance comes

efforts for just These come. structural they are to years value will short-term generate represent fixes, that changes not

the throughout to costs Now you give of on the want timing year. I some detail

As decline from we period year-over-year impacts I only the Aqua. a the is as where in face capacity previously as mentioned, related well dry and quarter comparison first docks days of delivery the

focus spread core cost reach performance the XXX our X our strong our the quarters for For this quarters to the and we discipline. expect last targets. our on XXXX essentially remainder represent efficiency of while reflecting our of yield unit Charting year long-term continued Course The unit approximately and costs, basis have commitment significantly our between points. business, net demonstrating will These better and to flat the exceeds algorithm cost

savings is setting up to well for yield FX expecting Charting adjusted be to result adjusted EBITDA from EPS approximately our of net initiatives XXXX are a of to the the from $XX and year As EPS Adjusted an also both Similar and of expected $XX the $X.XX FX or EBITDA, both which headwind fuel. targets. million adjusted net Course strong $X.XX us million headwind and fuel. cost growth, we $X.XX full is an and includes billion, achieve year approximately

efficient to basis EBITDA on operational with points XX. and margins cost top our enhancements structure XXX Slide Moving XX.X%. significant margin to The growth improving adjusted on XXXX, line in of margins more strong combination a almost drove

approximately achieve of us our continue the target margins XX%. Charting to our we position XX%. XXXX, reaching Course XXXX For approximately margin to strengthen, will well expect These improvements

we management in strengthening March XXXX, backstop In to important debt our rate million balance and sheet. at sheet repaid $XXX our made I liability Slide of secured secured the XX, from refinancing the XXXX, X.XX% unsecured time. profile. in senior began On commitment due notes and discuss debt highest balance our We and maturity strides

$XXX We unsecured at XXXX, notes remaining with balance continued notes X.XX% in maturity. million December due of due September of with the of with the $XXX the paid million refinancing XXXX,

notes X.XX% in secured X $X.X billion with and year, successfully ] debt of of to of this our $X.X of were a to we unsecured portion XXXX. X/X due recently, debt used billion unsecured refinance January million $XXX [ More due which issued notes replace XXXX,

these our structure tenure facility We terms. Through also further and transactions, trajectory. strategic strengthening optimized capital its utilization, have with our $X.X credit growth revolving billion, while supporting our we improved our upsized to collateral extended

rating also both and Moody's are agencies with positive ratings recently our of The a with taking notice progress our S&P upgrading outlook. credit

to on reduction. track Slide leverage of been Moving company XX. its delivering record the has leverage net on

our reduced turns the we net X XXXX, ending During leverage at full X.Xx. year

confident making amortization by this cash scheduled are going organic generation We and on front progress meaningful we our continue payments. can forward, driven

track leverage to the focus temporarily target Looking continued remains expect leverage shareholders achieve after better many I comes to the the better. deleveraging on we the years to to that quarter or Xx bring on create delivery our of the ending X.Xx come. company am increases XXXX, confident to value or strengthen XXXX our approximately the Xx due approximately net demonstrates at for And net in Aqua of to sheet our balance year mid-Xs. down to This in first our will further March, and in

to remarks. that, for it closing With I'll Harry turn back

Harry Sommer

Thank Mark. you,

financial Charting recognize the Course operational and to once take to on improved we the XX%. EBITDA basis XXX at Adjusted full by turns leverage about that our XXX declined moment during adjusted made X points targets. key margin want just ROIC again to progress I up XX, XXX% net points. Adjusted EPS approximately Slide basis at Looking ended significant grew a our $X.XX, XXXX

over guest provide to work vacations what employees possible These exceptional It of accomplish results a at can set staff, a designed team, drive with shareholder and executable plan backed dedication outstanding experience. witness the to outstanding memorable our and meaningful an targets a our an tirelessly with were extraordinary straightforward based XXXX XX,XXX made our on truly who in to guests we great value. and value performance-driven experienced clear is At together. by Investor results this Day work through side-by-side an team at we back May, honor strategy management culture

I our expected Charting will momentum future. execution our more will XXXX strong will our towards targets in bright course look strategy than in our and we line the to progress the continue now our to I operator. these forward move portion is on are XXXX, XXXX we confident that ever and continue our to With I question-and-answer as the of is what bring delivering am Given to and working results. towards back hand that, call,

Operator

[Operator Instructions]

from first Our with Goldman . Dove Lizzie question comes Sachs.

Elizabeth Dove

My on is first question bookings color.

if luxury the on comment and brands be which biggest some the I little cadence made about wondering and through XQ bit a And different deeper geographies did XQ. the the color, You that. can expand you capacity could appreciated, you may talk and growth. give of go some with a lagging just bit Curious best different about brand but performing a brands of just about the if anything then you

Harry Sommer

Lie, you year. the we're booking with of think been both and first reasonably we've and months question. pace X seeing for happy QX the our the in I for that Listen, thank

us has for think for referenced I happy this we're have period prepared year. for the Alaska, with which that and remarks outperformed summer in particularly really Europe we our

little think referenced better, brand are liked luxury in just but a would that bit remarks, fact and little we we I the nothing have by is in brand, prepared performing than our that the a again, major. brands slower NCL our exchange

a one to huge not It's shift from another.

we are say bookings where and I'll think goes. steady be, she to as I need them

Elizabeth Dove

more growth yield versus cost of pull a the of like Perfect. we that started being the different then those just be is way, then kind actual results And Or of million how much upside curious I'm than to about like of should in obviously, thought and up it Or initially cost ended $XXX putting of out thinking. than kind that? between of you a past, thinking so overachievement kind bigger you've XXXX, delta talked how and better XXXX a savings? that? there helpful. you forward and much is the growth That's kind back between about much

Harry Sommer

and then well, have turn some the many yes, you I give so [indiscernible] I'll it I'll Yes, for some broad more specifics on this cost guess, to questions, over answer. savings, So Mark question. good color,

kudos little The more have a good specific. the We a little ].... come quicker to as progresses, obviously we on entire this means the [ in cultural 'XX want a our what year and and I which seriously give bit to management cost let a and start and be you measured overachieving staff reasonable for they expectations. savings And with change forward I'll the bit initially plan. than thing. knew expected, as initial would me Mark, that taking Let out for is comment I pull

Mark Kempa

really continue Look, million been fuel, overachieve efficiency We for in in we and program the said, X.XX did continue year at opportunities question. Lizzie, that both to net fact on consistent. to X. you cost a years. our $XXX that we in demonstrated We we've 'XX. see ex over look that's pretty points. guidance thanks I 'XX X we're That of targeted some and guiding the harvest And accelerate think cruise when or

points a generally that actually in you context, put X%, that. where guiding X% below is think around to are So couple of to inflation about we if

we where good So we about are. feel

really is As efficiencies, we the without around impacting experience. guest more gain more the all and doing streamlining quarter, gaining I more we're and say premise everything that. on every confidence And

Harry Sommer

X I usually enough. comments like that point can't have don't I question. emphasize on to X

referenced we X a to starts guest I make the It And we is follow, which are that's is This get guests, can doesn't about on prepared financials. experience weekly right of and testament with guests. at start the if top happy product this. of basis This And in Mark voyage-by-voyage starts that point the I each financials XXXX stay that our satisfaction follow think sure scores on guest . results my with to. importance. brands. have we our the remarks that record something extraordinary diligently made we with guests.

Operator

Our next Brandt with Montour question . comes Barclays. from

Brandt Montour

helpful rates. first at quarter looks rest commentary guys XQ healthy an curious like But You X.X guide, I'm XXX point for occupancy ] are year and XXX of you quarter are first [ for respectively, ex the ] guys gave the [ some XXXX. X pricing X.X through loss on ] [ the which penciling XQ in the your versus versus why

Just or that's curious an mix you if there's opportunity issue for guys? a if

Harry Sommer

QX, spoke I the repositioning dry in would we issues say, to cruises. with dock and

So I to dry in in with cruises fill that. occupancy the well. of repositioning those imagine, hope the as what not February that's with tend the and surrounding rates as impacts may self-explanatory dock, January happened to and from rates Obviously, transatlantic and which cruises on lots children, cruises the you

slides Caribbean basis, Asia, example, we rest we as quarter, of more the include have for it But for other shift Africa prior as million XX% to bit basis, long-term discussed, guests we're in shifting I XXX,XXX was in GSE, a is guests transitioning I issue, there the a to actually is from, talked to XX% X% X of the think a mix And from about Pacific from although on there's deployment. to itineraries, up think total of our our we one presentation actually way slight our year 'XX, this 'XX. where and of a

in Joy now X, less also Alaska a is Alaska family employed on ship because they're of we've length. XX Norwegian a longer bit which also runs, larger doing runs, And has our mix the our a night longer

account change that of entirety in for those small think I the you changes mix X in occupancy see. the So

Brandt Montour

just you some cycle if I helpful. effected are around 'XX. of seeing strong Obviously you more that also Maybe double-click multiparter, into filtering sort guys U.S. easier you're And booking last election, demand, super or -- -- then hear of is of part any year, media of That's obviously, sort -- had if post from just 'XX recent late just you some seeing then could this that But the a events mean geopolitical to follow-up, were hesitation the was it good any particularly in into in saw you concerns Europe. there on Harry, that. comps? And pre geopolitical bookings? third change behavior? that

Harry Sommer

So yes, question there. follow-up X-part

for Yes, Let me soft all. comps wouldn't particularly cover we year. had last them say I that

last year, a across think yield a there's if growth can I any reflected really in to I XX% where all up softness think we geographies. performance ended growth get XX% itinerary. with good you don't yield

well the offer, see. for doing marketing, So the product, acceptance year, of reflection fact experiences that we're great we Europe is customer just I to that think, good is happy a this a for absolutely good which

necessarily pre post election election, of XXX behavior was one of but a think and extraordinary is we out normal since the But or seen on. terms questions, occurred. move has really challenging week years, positive patterns. since every so weeks, it we've the In I election answered negative that's sorry, that. X don't worry the as about of have week then, I Nothing

Operator

Wieczynski from comes question next Our Stifel. with Steve

Steven Wieczynski

on quarter. a strong Congratulations fourth

So Europe, Harry the you're of for we through there think about quarter So thinking think the It help if or about fourth is, maybe But part expecting on a the to commentary kind you're seems the of growth of actually look, latter there the the maybe is demand upside that I'm just quarter. -- yield guidance that side a than plus kind how potential load maybe a second get And like us we middle X.X% higher so trying year. about bit year, for. the as little Mark, in as I think onboard little a we X.X% to part the around of That's on board? lot factors just probably of understand for that. stronger of based to number looking the probably Alaska, of guess were things kind here what about that's we you gave

Harry Sommer

especially yield We of off growth back we feel there's the guidance we number think extraordinary a yet that that that provided confident are The X.X% performance a cost we in haven't coming represents wouldn't year numbers very X last with deliver. necessarily a of performance, I in. quarters the year. believe in. on it's that that the X.X% growth the can we imply we strong factored upside

minutes we XX original after just guidance here guidance. not gave I'm give to new

at department In a and is spend, terms they they we to it. us of more of onboard want want. guests They provide of have and what takes provide gladly more pay which look for guests guests databased want philosophy our what what a here

So clear goes just sort want organization. with it's of finance-driven customer-driven made, and is not the be a comment this organization. first this I I to is a -- This not

extent can the we deliver that your revenues. whether case crew the or side, in the we higher of side question, the generate it's can to on onboard extraordinary products, And

the and exceptional obviously, take onboard is reflects that guests team We day in it and that way an a verticals an different then them at look to delivering way have out they sure the have of we a and in do day that value... revenue XX in our entire all make we're pricing

Steven Wieczynski

how being X of are very now of in, maybe thinking decent Okay. wondering around you're you've kind maybe retirement to at XX about the call a given. And coming then ships got question, a capacity to over years things spread age next, a handful have that it, of that let's let's And second look your growth. question of fleet, your I you XX bigger evenly range. it, If years Harry, amount side capacity call picture out. XX But obviously, the online

you is starting to guys So that something are contemplate?

Harry Sommer

the look point from oldest just out there. market is Yes. Obviously, that But at I'll are we our fleet and 'XX what out in our 'XX. ships always

even to get them our yet or of beyond. we XX years believe And perhaps have years. none XX can So reached ships

there we be So you if to ship bit have considering room before retirements. there, of more still a is little aggressively will,

been also have very We aggressive.

believer well blessings coming ships product stood ships the basis, the is how maintained. in are well I our up. they visit on our a and them investing CEO, after of older in which huge a extraordinarily of even to on I'm our previous with very fleet, was pleased the One have in regular

there's So think open. we anything coming. eye of But I course, don't keep our that imminent always

Mark my to think I wants comments. to add

Mark Kempa

now that. that desire is, our in indicating structurally, question you of I us vessels. just that and -- be when start at puts around to in it allows we're actually road that and of around January, we our that to around occurred strategy -- some our think of down and can But some look path. Again, the remarks Steve, we prepared we in think, position disposing that the I activities where explore revolver should position us not on a that related that And set Yes. a collateral,

we think the I up So had best before, now have much than into the for outcome. we more flexibility but sets well it future us

Steven Wieczynski

figure trying And Yes. was to Okay. . out. that's what Mark, I

Operator

Wells Fargo. comes Dan Politzer Our next from with question

Elizabeth Dove

I strong follow different demand way. Caribbean maybe Europe given versus tailwind supply-demand can wanted dynamics just on markets. I the relates talk you seemingly -- if providing and of and a a as some of question bit different the the strong in to would mean ongoing FX those How that's up there it and maybe in ask demand? to dollar classify and you impact also about

Harry Sommer

season, seeing even when Europe back entire to summer started the summer in have going been demand We've 'XX last the for booking. strong would booking

particularly dollar. it's related to think U.S. don't I So the strong

is -- I the of the just in out I the marketing that guests. and mentioned get previous have one think messaging as that offering to product our good of, we we we it great reflective questions,

So change Caribbean. strengthened as since much I the has that election versus really dollar seen the haven't U.S.

QX. to point our out the called in Europe and very of so Alaska, that really, at I'll deployment. Listen, part during we're gets It happy. least is just Caribbean obviously, really summer, But about X% a out down we've small

in It we're that's of we and summer, because our out that deployment and well a just the what reflect Europe happy -- with. focused necessarily combined point doesn't Alaska to the fact over weakness. I So a didn't basis, on particularly Caribbean necessarily point and half on they're

Mark Kempa

you -- the ticket think guests most their the Dan, our -- dollars majority And I U.S. vast our and about purchasing comments of as cruise in they're that their excursions. in of with the around dollars, think dollar, as are U.S. spending

dollar, think from overall those per with group as But way a benefit the Other other. huge see we're there of I or stronger a if feeling do impact our that So stronger an I one good the around that didn't could today the some markets. think yes, said, the minor be share it's than while I earnings remiss remind don't result driver a fact, that I be dollar. would we in

Daniel Politzer

obviously Got current some if taxation I been it. That on you industry. lately of cruise there's from of administration makes comment, could don't opine but kind to of anything the the takes sense. look, some And headlines risked. know And you there's then to what could of on the income and code. us on through of whether puts even could or relates lesson . this history that the a tax be maybe your exposure operating level talk it extent area

Harry Sommer

about I'm I'll call but come this under lesson, first into environment. questions the the to would happy a thing Secretary tax thing earnings ] an little the how the cruise [ action the back. Listen, up is XXX It's and funny over think history stay ] complicated many had with for we while change. with Commerce really really, legislative that require obviously line comments has this since reported [ to current

ships you on our would the for of are mean short they waters, really pieces and complexity variety, this in to U.S. moving the our are or our complexity and relatively many the time will, and how to it's us of business, the amount hard what speculate considering if Now deployment of us.

So what's we'll some that won't. point on I'd I to administration. coming then. are didn't of clarity be I be things over will remiss more if out of on, time, there'll I and positive see that the going the But Perhaps say out

sustained was fleet, push be that's as Northern things are for and an available. of for the and as our benefit can XXXX. with and XX going Russia in our I St. Europe, being be summer potentially Middle of based the Petersburg example. between X/X that positive the we that think region. have St.Petersburg In available to take X/X of world, Summer a for season, from the Russia If I to in us company, disproportionately East without in deployment, that I'll in become in fleet a our 'XX region Ukraine based think 'XX significant we all And this could piece tailwind ships

reasons. as human a So for I purely of humanitarian hope course, peace being, for

opportunity bring the for the trying can this the provide administration to are of X we cruise As of summer pro summer here operator, the us unique for for a We're think long for work or is peace the the if doing that very regions. of 'XX. and term, to 'XX, a we those not summer 'XX in

Daniel Politzer

] [ the number That's the really helpful questions. unders of . perspective. And on hopefully, you guys hit

Operator

. with Our Citi. next question James comes Hardiman from

James Hardiman

would of that from think this of you've on, it onetime-ish. occupancy think A seem lot us color Brendt's headwind more that year, occupancy. earlier question quick feels the suggest I -- it follow-up on was A sort I given to the yield

go-forward And What's we XXXX. XXXX rate, as beyond? mid-XXX to does maybe did occupancy be you I going you and roughly So in about I like that 'XX. XXX% XXXX, look think in what the like? But range mean, That's might in add. that did look in XXX

Harry Sommer

that It's shorter more things. little little look a us less more deployment. we We'll Caribbean way general tailwind the XXXX, I for little at is think a Asia/Africa/Pacific think, I have have may correct a to guidance to a early We'll occupancy for have but comment deployment. little in XXXX, deployment, a on give a Caribbean mild

our for to about, talked ramp-up, we of GSC. As visitors example,

it for to exactly tailwind I be. much into is coming that it expect by fair to a So me would premature how comment but think . mild 'XX, be would

James Hardiman

it's you Totally there. it. for these the then same have Got the along And obviously, are lines, Course but Charting guys out early do targets XXXX, fair. pretty that

Obviously, a XXXX about earnings get to for anything out? just a in And that's if reaccelerates Great earnings else sounds opportunities. you've Cay that coming capacity is it's Or at below-the-line growth like that to would you the question XX% there's Occupancy I calling way. guide little of look bit be XX% else ask to out? any if bit. benefit. know better. Stirrup is Obviously, going got didn't accelerating what the XXX call there that Let a growth. be about [ so I Is XXXX, worth which should sort online, ] me

you've you're the 'XX. So where gap guiding 'XX just sort of and targeted bridge between where

Harry Sommer

FX you referenced clearly, in actually well, 'XX know at comment. don't adjust today, I the dollar appreciate on for continue we I'll XX% about and improvement talked 'XX. we in the that year-over-year EPS a EPS But his if to rate at specific Mark general comment you expect, expect that commentary, out change to FX-adjusted a is. the And to make point it's basis. I'll from of it the increase represented XX% in least an don't then U.S.

earnings to But actually, a So growth, moderate general, than that will, algorithm earnings and higher go targets believe our all will delevering capacity that allow not XXX% yield us growth, and growth -- I'll bar. achieve would sheet 'XX make strong The the back you lower the XXXX. flows, a growth we be with our Charting to 'XX in bar low lead cash balance to growth margins, improving to sub-inflationary if cost mid-single-digit Course

Operator

with next Vince Cleveland Ciepiel . question comes Our Research. from

Vince Ciepiel

might capacity you percentage you way the maybe And from yield bit than passengers what in I 'XX? want targets. 'XX. maybe Great Stirrup? stopping know envision potential previous higher Great to any it And come be up Stirrup. don't I right, benefit do It to a see that if of number to million frame X little back in catch I there the would sounds

Harry Sommer

finalized So is now our talked completely passengers hear correctly. did yes, about higher that deployment. X had in 'XX, slightly that you than we've what Yes, we million previously 'XX as

on scheduled you giving next X and one? to have numbers. I help just latest that we're can guests the year. Mark, me you we're million believe over accurate most So

Mark Kempa

Yes, over X million guests.

Harry Sommer

represent, think this So 'XX comment it yield going premature XX% say, Cay. wouldn't. benefit. at guests there, a on It'll include again visit didn't our on a Stirrup worth would any I comment would if for we obviously, we me little to won't guidance. of bit was be Great But all

Mark Kempa

going we to product us to that's do keep in ] customer. in are most that the allow what completing fourth sold pier actually the this year. is far [ Vince, mind, is importantly, announced so what to of the we've the deliver quarter And that we've And

So I to more have one 'XX, too could about bit pier. it's simply premature with brand there in again, But an agree overall think in benefit but I talk will we be will that adding Harry, be just throughput yield tailwind. from FY number a a the what

Vince Ciepiel

that on was what the could of peace helpful and opening things on faster thoughts how Sea 'XX for lift lot comments 'XX opportunity be numbers, got of or to for point? That's earlier Petersburg. East more up way I things kind to adjust. could a that mean quantify a at to if what Red could St. a that this Middle thought helpful. mean Any And Or then quickly any Is there could there? better, hoping

Harry Sommer

Yes.

where So ships I positioned there north think you unlike have I exactly already. Europe, of have we XX right. it mean

us Petersburg So if adjust would opening it it itineraries I'm not saying for take and of reasonable it but would be to to it advantage be in St. happen. easy, was when to

or our will like XX of have fleet And something clearly, also ships 'XX, in there. we X/X

is missed East if a deployment we bit the longer-term between there's even the winter. more in program 'XX, 'XX complicated little positioned ships where of summer and Middle that's in part the we tailwind So a because opportunity

'XX as deployment I the suggest. So item would advantage opening our to be Eastern would Sea, you you of more with a term, short Red likely that of change in we not a take agree Middle

Operator

. [Operator question Research. Melius next Cunningham with comes Instructions] Our Connor from

Conor Cunningham

versus an doing Just Just trying may utilize bit this that, to going position there's Can about the you're back last to better. that the It opportunity like book changes management. price? to little it bit year? commentary. was seems understand better in you there under just inventory be I a some little just impression what talk a year

Mark Kempa

we've better said say revenue every our our to improvements, and part of we quarter, I continued continue to are management make while what get we business. normal year, think technology is every we improving yes, believe at low-cost better no. And what that's and we've what Look, Yes, systems. day-to-day

focus we on out, quarter. something It's that's process. So a after never-ending week week quarter in,

sweeping we're revenue we've I is that more doing refinement existing know, as as well sort a As think of processes don't art an of is much some of change. But It's our technology. improvement science. and continuous indicated you it management and

Conor Cunningham

partnerships And was just Okay. I you've the hoping and then on highlighted you of whatnot. That's the efforts with marketing lot touch could changes. demographic a in deck And helpful.

to seeing to some how new So and as brand? to understand influx . are cruise trying an change Just campaigns new you marketing ROIs of you stuff. the the on like

Harry Sommer

question. for point way the I anything another. thank to meaningful I or one can't you

to upper commentary funnel, believe are gave work [indiscernible] revenue mix X today. the have on data with that the have brands. team have question. that of management new of the abilities we thing of day a day same same our X happy marketing have the We're constantly I'll guests. systems get mix We're we looking new scientists lower on But continue funnel to it's I to the of happy our that Mark at with that We across continuous efforts roughly we best to mid-funnel the our we optimize time out, for Maria, all last direction and in cruise, going.

Operator

Okay.

Our last question is from Robin Farley with UBS.

Robin Farley

had I bit detail. think of a think last given bookings, on little quarter's your more I call, color you forward a you -- little on

of same said in that price load year. at that? quarters or compared of and Or had any Could difference us quarter kind of a last those last in give sense kind factor of you the think quarter? you is I each how is was there higher XXXX that a to than in

Mark Kempa

on think higher or at I than Look, quarter pricing. every higher question. is the for rather Thanks focusing load

whether think believe we answer book are is, a our we best us commentary the are to on booked what XX-month is, I based XX- at we is basis. in question on position. or And position think our our better I or resounding for yes, that the it's optimal optimal XX-

on the out focused are customer. best delivering economics We of the

not focused anything us you thinking in of that. But versus monitor any like between the position want obviously, Yes, we are minutia optimal necessarily or about on that. records sort quarter. We to best be our each

change focusing change simply important no thinking outlook. that no or on optimal we So is believe and -- forward what in in our really range.

Robin Farley

quick follow-up totally a then And Okay. on just Great. different a topic.

river I will business. thoughts just answer know what sort your about the think official of [ I but get to cruise probably ] be, your

the time. existing . first been your mostly that. going your and your be focused really a your but sheet official focus core do on to assume on just in I business of your looking to balance I have lot you at for that business, and get And others things thoughts is want Some

Harry Sommer

for the you thank Robin, question.

right. exactly that's think I

of most book We the that order, robust have, I being next the the decade. industry one out ships for XX this on delivered in with order think, a extends year, cruise books X

putting do are we financial all what what about to experience. We we passionate it do do very about And continuing and behind are very because do. we we passionate deliver our a today delivering we that. performance We're well, guest can efforts outstanding by

other that want them. and something But do very else, with that are to there company, I strategy for leave If our our happy direction. brands we with are current

very you all be to a once around So joining I you day day want We'll follow-up to for again, and have wonderful today. any have. everyone questions thank answer to us day. may Thank much, all

Operator

your concludes today's participation. This Thank for conference. you

time. this at lines your disconnect may You

Norwegian Cruise Line (NCLH) 27 Feb 252024 Q4 Earnings call transcript