The company said its cumulative booked position for the remainder of 2023, including an approximately 18% capacity increase, continues to be at record levels and higher pricing.
Adjusted net loss was $127.7m, or a loss of 30 cents per share, lower than the guidance for a 45-cent/share loss and Wall Street's 40-cent/share loss expectation. GAAP net loss was $159.3m, or 38 cents per share.
Total revenue of $1.8b was higher than Wall Street's $1.75b expectation.
NCLH met or exceeded all guided metrics for the quarter.
101.5% occupancy
Occupancy improved to 101.5%, above the 100% guidance.
Total revenue per passenger cruise day increased approximately 17.5% as-reported and 18.3% in constant currency, compared to the same period in 2019.
Total cruise operating expense has increased in 2023 compared to 2022, due to the full resumption of voyages, which resulted in higher payroll, fuel and direct variable costs of fully operating ships. Costs for certain items were also impacted by lagging inflationary pressures.
In Q1 gross cruise cost per capacity day was $298 as-reported and $301 in constant currency, while adjusted net cruise cost excluding fuel per capacity day of $161 in constant currency was better than guidance of $165 because certain efficiencies and cost savings from the company’s ongoing margin enhancement initiative were realized earlier than anticipated.
Q2 and full-year 2023 guidance
'We continue to experience healthy demand across the board as evidenced by our record booked position as well as robust onboard revenue generation,' said Harry Sommer, president and CEO-elect (he'll officially assume the roles July 1 when Frank Del Rio retires).
Full year guidance remains unchanged at net per diem growth in the range of 9% to 10.5% and net yield growth in the range of 5% to 6.5%, both on a constant currency basis and compared to 2019.
Full year 2023 adjusted EPS guidance improved to approximately 75 cents/share, in line with Wall Street's forecast, reflecting first quarter outperformance partially offset by higher anticipated fuel costs and foreign exchange for the remainder of the year.
For Q2, adjusted EPS is projected as approximately 25 cents, under the 28-cent consensus.
Occupancy projections
NCLH's phased occupancy ramp-up is expected to be complete in the second quarter at approximately 105%. As planned, this is slightly lower than Q2 2019, reflecting the company’s strategic shift to longer, more immersive itineraries. Full year 2023 occupancy, which reflects the phased voyage ramp-up, is expected to average 103.5%, consistent with prior guidance.
Strong consumer demand
On the heels of a very strong wave season, NCLH said it continues to experience strong consumer demand. Cumulative booked position for the remainder of 2023 is ahead of 2019 levels inclusive of the company’s approximately 18% capacity increase, at higher pricing.
As of March 31, the advance ticket sales balance was a record $3.4b, approximately 26% higher than the prior quarter and approximately 60% higher than Q1 2019. Onboard revenue generation remains 'robust,' and the company continues to focus on increasing its pre-cruise since this typically results in higher overall spending.
Liquidity
As of March 31, NCLH's total debt position was $13.1b and liquidity was approximately $1.9b, consisting of $701m in cash and cash equivalents, nearly $600m of availability under a revolving loan facility and a $650m undrawn commitment. The company also has an incremental $300m unsecured and undrawn commitment through Jan. 2, 2024, which becomes available to draw on Oct. 4, 2023.
In April the company increased its export-credit agency backed commitments by approximately €1.7b to finance improvements, changes and modifications to certain newbuilds, owners’ supplies associated with preparing these ships to enter service and related financing premiums.
These changes include the previously communicated modification and enlargement of the last four Prima-class vessels which will increase their gross tonnage by up to 20% compared to Norwegian Prima and Norwegian Viva. This also includes modifications to create a methanol-ready configuration for the final two Prima-class ships.
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