Norwegian Cruise Line Holdings has barely surpassed analysts' estimates as it continues to operate deep into the red as a result of Covid-19.
The New York-listed owner of 28 cruiseships on Thursday posted a $1.4bn net loss for the first quarter, compared to a $1.9bn deficit for the same period last year.
The Frank Del Rio-led company's adjusted results came in at a loss of $669m versus a $211m deficit for the first three months of 2020.
The Miami-based cruise major reported a $2.03 loss per share for the first quarter, squeaking by Wall Street consensus of $2.05 loss per share but falling well below the year-ago loss per share of $0.99.
The adjusted loss included $702m of adjustments consisting mostly of costs related to rebuying exchangeable notes maturing in 2026 from L Catterton.
The private-equity firm bought the $400m in notes in May 2020, shortly before Norwegian appointed L Catterton chief executive Scott Dahnke to its board of directors.
Plummeting revenue
Norwegian's revenue for the first quarter plummeted year-over-year to $3.1m versus $1.2bn in 2020 due to the complete suspension of voyages.
Despite the negative numbers, chief executive Del Rio is looking forward to resuming cruising in the US in early July.
"As for the resumption of cruises from the US, we continue to engage in dialogue with the US Centers for Disease Control and Prevention," he said in a statement.
On 5 April, Norwegian submitted a plan to restart cruising from US ports on 4 July and asked the CDC to lift the CSO.
Norwegian is also offering voyages originating from ports overseas as part of its Great Cruise Comeback programme that requires mandatory vaccinations for all guests and crew.
"With our SailSafe programme, we believe we can provide a uniquely safe and healthy experience which exceeds all other vacation options available on land or at sea," he said.
The comeback initiative offers Norwegian Cruise Line seven-day cruises to the Greek Isles beginning 25 July, the Caribbean on 7 August and the Mediterranean Sea in September.
Oceania Cruises will resume cruising with itineraries starting in Copenhagen on 29 August, and Regent Seven Seas Cruises will start sailing from the UK on 11 September.
As of 31 March, Norwegian had $1.3bn of advance ticket sales, including about $850m in future cruise credits.
Debt in the billions of dollars
Debt totalled $12.2bn while cash on hand amounted to $3.5bn, thanks to a slew of fundraisers that included a $1.6bn equity offering in March.
Norwegian also issued $1.1bn of senior unsecured notes consisting of $575m of 5.875% senior unsecured notes due 2026, plus a further $525m of 6.125% senior unsecured notes due 2028.
Monthly average cash burn for the first quarter was around $170m. The company expects it to reach about $190m per month as it prepares for a return to service this summer.
Norwegian's shares, which trade on the Nasdaq stock exchange under the ticker symbol NCLH, declined 2.7% to $29.05 in Thursday morning's pre-market trading on Wall Street.
