Norwegian Cruise Line Q3 2020 Earnings Report
Key Takeaways
Norwegian Cruise Line Holdings reported a decrease in revenue to $6.5 million compared to $1.9 billion in 2019 due to the complete suspension of voyages in the quarter. The company's GAAP net loss was $(677.4) million, or EPS of $(2.50), compared to $450.6 million, or $2.09 in the prior year. The Adjusted Net Income (Loss) was $(638.7) million or Adjusted EPS of $(2.35).
The U.S. Centers for Disease Control and Prevention issued a Framework for Conditional Sailing Order, replacing the No Sail Order, that will permit cruise ship passenger operations in U.S. waters under certain conditions.
Booking volumes since the emergence of the COVID-19 global pandemic remain below historical levels, there continues to be demand for future cruise vacations, particularly beginning for sailings operating in the second half of 2021 and beyond.
As of September 30, 2020, the Company had $1.2 billion of advance ticket sales, including the long-term portion of advance ticket sales, which includes approximately $0.85 billion of future cruise credits.
The Company's monthly average cash burn rate for the third quarter 2020 was approximately $150 million.
Norwegian Cruise Line
Norwegian Cruise Line
Forward Guidance
As a consequence of COVID-19, while the Company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty, it will report a net loss on both a U.S. GAAP and adjusted basis for the fourth quarter and the year ending December 31, 2020.