Florida court hearing today
Florida operations are scheduled to begin Aug. 15 with Norwegian Gem sailing from Miami. The company's request for preliminary injuction against Florida, which prohibits vaccine documentation, is set to be heard today by the US District Court for the Southern District of Florida. The ruling has no impact on sailings outside of Florida where the company's 100% vaccination policy in place without issue in every other port it sails from around the world.
NCLH said 2022 booking trends continue to be 'very positive,' with the overall booked position for 2022 meaningfully ahead of 2019’s record levels at higher pricing even when including the dilutive impact of future cruise credits.
Advance ticket sales
Advance ticket sales were $1.4bn, including approximately $800m of FCCs as of June 30.
Adjusted net loss was $714.7m, or $1.93 per share — better than Wall Street's $1.99 consensus — compared to adjusted net loss of $666.4m, or $2.78 per share in Q2 2020. US GAAP net loss was $717.8m, or $1.94 per share, compared to the year-ago GAAP loss of $715.2m, or $2.99 per share.
Revenue decreased to $4.4m compared to $16.9m in 2020.
Full fleet sailing by April 2022
'As we recommence operations, we are putting health and safety at the forefront with our robust, science-backed SailSAFE health and safety program, including our 100% vaccination policy which applies across all voyages on our three brands,' NCLH President and CEO Frank Del Rio said. 'We are ready and eager to welcome guests back on board and continue to see incredible strength in our booking trends for future cruises. Our team is working tirelessly to execute on our plan to return our full fleet to operation by April 2022 to capitalize on this unparalleled pent-up demand.'
NCLH has announced phased relaunch plans for all 28 ships across its three brands which began with Norwegian Jade on July 25 and continues through April 1, 2022. The first cruise to commence in the US is scheduled for tomorrow, with Norwegian Encore sailing to Alaska from Seattle. The company expects to have approximately 40% of its fleet operating by the end of Q3 and approximately 75% by year end, with the full fleet planned to be operating by April.
Cash flow positive during Q1 2022
CFO Mark Kempa forecasts operating cash flow to turn positive during Q1 2022.
As of June 30, NCLH's total debt position was $12.3bn while cash and cash equivalents were $2.8bn.
Higher cash burn
Q2 monthly average cash burn was approximately $200m, higher than guidance of approximately $190m and above the prior quarter, as the company prepared for a return to service this summer.
NCLH expects monthly average cash burn to increase to approximately $285m driven by the relaunch of additional vessels.
The Q2 rate and Q3 estimate also reflect the deferral of debt amortization and newbuild-related payments.