The strength of prices resulted in a 7.4% increase in the adjusted Net Yield for the fourth quarter for the combined company.
The record revenue figure resulted in a 27% increase in adjusted EPS for fiscal year 2015.
Strong revenue growth of over 30% is expected for the 2016 fiscal year.
Norwegian Cruise Line Holdings Ltd. (Nasdaq: NCLH) (together with NCL Corporation Ltd., "Norwegian Cruise Line Holdings", "Norwegian" or "the Company"), has reported its results for the fourth quarter and the full year ended December 31, 2015, as well as its outlook for the first quarter and the full year 2016.
Regarding the main news stories of the fourth quarter of 2015:
- Adjusted EPS growth was 42%. Adjusted net yield on a constant currency basis increased 7.4% (5.9% on an audited currency basis), primarily driven by strong price increases for same-fleet operations and a partial quarterly gain from the addition of the Norwegian Escape. Adjusted net yield on a constant currency basis increased 16.9% (15.2% on an audited currency basis). This marks the thirtieth consecutive quarter of adjusted EBITDA growth. Approximately 1.7 million shares were repurchased during the quarter, pursuant to the previously authorized three-year share buyback program. This includes inclusion in the NASDAQ-100 Index.
Regarding the main news of the 2015 fiscal year:
- The company reported adjusted EPS growth of 27%, a 39% increase in revenue, and a 3.7% increase in adjusted constant currency net yield on a combined company basis. Other notable news included the successful launch of the company's largest ship to date, the Norwegian Escape, and the announcement of a new ship designed specifically for the Chinese market, scheduled to debut in spring 2017.
Regarding the objectives and important news for the 2016 fiscal year:
- The strong booking volume continues into the promotional season, with promising initial trends for 2017. Strength in the Caribbean, Alaska, and Bermuda itineraries more than offsets weakness in the Mediterranean. Strong revenue growth is expected, with adjusted EPS increasing by approximately 30% and resulting in a four-year compound annual growth rate of approximately 40%. Adjusted net yield is expected to increase by approximately 4% on a constant currency basis and 3.5% on an audited currency basis. Adjusted ROIC is expected to reach double digits in 2016 and be on track to achieve the 14% target in 2018, doubling the Company's 2013 initial public offering value. Revenue is also expected to double the Company's 2013 initial public offering value.
Other relevant news from 2016 includes the following:
Two ships will be added to the fleet: Sirena will join Oceania Cruises in the second quarter, and the new Seven Seas Explorer will join Regent Seven Seas Cruises in the third quarter. Norwegian Cruise Line unveiled its new global brand campaign, "Feel Free." Finally, ship renovation programs were announced for Regent Seven Seas Cruises and The Norwegian Edge™ for Norwegian Cruise Line.
