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Norwegian Cruise Line Holdings Reports Financial Results for Year 2014

World Travel – Cruise Lines

Open Eyes Opinion {source: NCL}

Norwegian Cruise Line Holdings Reports Financial Results for the Fourth Quarter and Full Year 2014

NCL the Company Reports Strong Growth in Adjusted EPS of 61% | Acquisition of Prestige Cruise Holdings Completed in Fourth Quarter | Integration On Track with Identified Synergies of $50 Million

Miami   –    Feb,  2015

Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH) (NCL Corporation Ltd., “Norwegian Cruise Line Holdings”, “Norwegian” or “the Company”),  reported financial results for the quarter and year ended December 31, 2014, and provided guidance for the first quarter and full year 2015.

Reported results for the quarter and year ended December 31, 2014 include the results of the recently acquired Prestige Cruise Holdings, Inc. (“Prestige Cruise Holdings”, “Prestige”) beginning on the closing of the acquisition on November 19, 2014. Due to the abbreviated period of consolidation of Prestige’s results, certain metrics are presented both on an as reported basis and on a basis excluding the results of Prestige (“Norwegian Stand-alone”).

Full Year 2014 Highlights

– Acquisition of Prestige Cruise Holdings, parent company of Oceania Cruises and Regent Seven Seas Cruises, diversifies Company’s product portfolio

– Adjusted EPS improvement of 61.0% (64.5% on a Norwegian Stand-alone basis)

– Adjusted Net Yield increase of 4.8% (3.3% on a Norwegian Stand-alone basis)

– Revenue increase of 21.6% to $3.1 billion

– Introduction of Norwegian Getaway, Norwegian Cruise Line’s first year-round, Miami-based ship in over a decade

Company Updates and Other Business Highlights

In November 2014, the Company completed the acquisition of Prestige Cruise Holdings for total transaction consideration of $3.025 billion in cash, stock and the assumption of debt. Additionally, contingent cash consideration of up to $50 million would be payable to Prestige shareholders upon achievement of certain 2015 performance milestones. The Company issued $680 million in senior unsecured notes in a private placement to fund a portion of the purchase price along with related fees and expenses.

At the time of the acquisition the Company announced cost synergies in the $25 million range. The Company is reiterating this level for 2015, having identified synergies in the consolidation of office operations, insurance costs, port fees and shore excursion concessionaire contracts. In addition the Company has so far identified revenue synergies of $15 million exclusively from opportunities in onboard revenue, for a first year synergy figure of at least $40 million, which is embedded in the Company’s guidance. The same items that constitute this $40 million synergy in 2015, equate to approximately $50 million in 2016.

In December 2014, an incident on board Oceania Cruises’ Insignia resulted in the cancellation of certain voyages. Repairs on the vessel are on schedule for a return to service in March 2015. The impact of this incident has been included in the Company’s first quarter and full year 2015 guidance.

In 2014 the Company continued its tradition of recruiting strong leaders with extensive experience both inside and outside of the cruise industry. With over 20 years of experience in the cruise industry, Frank J. Del Rio assumed the role of President and Chief Executive Officer of Norwegian Cruise Line Holdings after founding and leading Oceania Cruises and later Prestige Cruise Holdings through over 10 years of growth and a preeminent position in the upscale cruise segment.

Drew Madsen joined the Company in October 2014 as President and Chief Operating Officer of the Norwegian Cruise Line brand. Mr. Madsen brings with him over 30 years of experience in the hospitality and consumer products industries.

In December 2014, Jason Montague was appointed President and Chief Operating Officer of Prestige, overseeing both the Oceania Cruises and Regent Seven Seas Cruises brands. Mr. Montague previously served as Chief Financial Officer of Prestige.

 Upcoming Fleet Additions

Norwegian Cruise Line

The line welcomes its largest ship and the first ship in its Breakaway Plus class fleet, Norwegian Escape, in October 2015. The line announced an exclusive partnership with Margaritaville Holdings LLC to bring to sea for the first time the popular dining concept Jimmy Buffet’s Margaritaville along with the 5 O’Clock Somewhere Bar. Recently announced dining and entertainment concepts include venues from Iron Chef Jose Garces and the Michael Mondavi Family and productions of Broadway shows After Midnight and Million Dollar Quartet.

Oceania Cruises

In November 2014 the Company announced the purchase of Ocean Princess, the 684-passenger sister ship to the line’s Insignia, Regatta and Nautica, to be delivered in March 2016. The ship will be relaunched as Sirena after a 35-day, $40 million refurbishment that will bring her accommodations and offerings up to the standards of an Oceania Cruises vessel. The total investment in Sirena equates to approximately $180,000 per Berth and represents an exceptional potential ROI when considering the upper premium per diems the ship will garner as part of the Oceania Cruises fleet. Sirena is expected to welcome her first guests in April 2016.

Regent Seven Seas Cruises

Designs and offerings of the line’s upcoming newbuild, Seven Seas Explorer, were revealed to the public for the first time in January 2015. Billed as the most luxurious ship ever built, the 750-berth Seven Seas Explorer will house the line’s first ever Regent Suite, a 3,875-square foot suite with built-in spa retreat and glass enclosed viewing area, along with classic Regent dining venues such as Compass Rose, La Veranda and Prime 7. Explorer set both single day and first week reservation records after sailings opened for sale to Seven Seas Society members in January.


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