Loading...
Docoh

Norwegian Cruise Line (NCLH)

Participants
Andrea DeMarco VP, IR and Corporate Communications
Frank Del Rio President and CEO
Mark Kempa EVP and CFO
Andy Stuart President and CEO of Norwegian Cruise Line
Harry Curtis Instinet
Felicia Hendrix Barclays Capital
Jared Shojaian Wolfe Research
Thomas Allen Morgan Stanley
Steven Wieczynski Stifel Nicolaus
Brandt Montour JPMorgan
David Beckel Bernstein
Vince Ciepiel Cleveland Research
Tim Conder Wells Fargo
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good morning, and welcome to the Norwegian Cruise Line Holdings Fourth Quarter and Full-year 2018 Earnings Conference Call. My name is Liz, and I will be your operator. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions for the session will follow at that time. [Operator Instructions] As a reminder to all participants, this conference call is being recorded. to conference like host, to now Ms. would turn over the your I President and Investor DeMarco, of Andrea Vice Relations Corporate Communications. Ms. DeMarco, please proceed.

Andrea DeMarco

Good will Officer to XXXX of well our call Norwegian Kempa, President the President begin and full-year and Officer to Frank which of Liz. follow the joining guidance before opening Executive Del Line. will quarter Rio, joined Chief Vice you, back call discuss Frank morning, after Cruise commentary, Chief for thank Executive the Frank Stuart, and as Andy Thank Executive provide as with and you some today Cruise us by for for Officer; remarks. earnings for handing Line fourth Chief and Mark full-year results XXXX closing and Norwegian Financial President quarter call. I'm everyone, for Holdings; Mark

call then open will We the your for questions.

the Web a this webcast conference call is simultaneously being www.nclhltdinvestor.com. Relations company's on at As Investor reminder, site

to during make Web will slide found conference today's Both our for call. Investor days be for XX this also may replay call a be the available We call, site. presentation Relations which following will on also references and presentation

items. like our discuss a Before we to cover results, I'd few

earnings results involve release that this statements risks fourth results includes with and our Web differ the Relations contained in should conjunction press that available from to full-year on be release. Investor materially These statements was statements cautionary and uncertainties morning, cause XXXX Our with quarter issued our is such call actual considered our and site. in forward-looking statements. could This

over financial contained and most Frank financial that, Del Frank? earnings measures. and in other like presentation. the directly also Rio. associated reference comparable reconciliation A comments call are turn non-GAAP of to may I'd release to With our disclosures the measure GAAP Our

Frank Del Rio

like their several key The year you, be on to our milestones of around dedication for only million in the X.X moments vacation of appear highlights book report record to slide XX,XXX-plus I the I their recognize while Line hospitality with XXXX guests that seven started later to the Norwegian a organization I'd in achieved. accomplishments exceptional And and a don't and across is members in about commentary. described delivered four and in XXXX to my seas I'll We even few who results, sailed started passion for XX our and world breakout discuss experiences record book as providing ahead a myself, aboard morning notable just and want last good contributions presentation. remarkable position. Cruise to am year. the far more at The XXXX pleased ships to in Thank take what XXXX, of our we Andrea, which the thank team too a and accompanying everyone. Holdings get can position that and team world-class better.

including and ticket pricing indeed But Bliss was premiums our new across at build build the expectation we last be record XXXX net A we can achieved highs please slightly a strong already net income, GAAP par is XXXX, and which notably, wonder, revenue, Bliss described as inaugural net have you some per demand, surpassed seen equal in lead destination if XXXX, of season. per which that month the have the that metrics that performance of April, earnings her surpassed than major an and yield year. continue with and yield robust with share, margin, in were the for EBITDA, high for driver revenue milestone, and by new shy $X the performance higher ever pricing, revenue with yields where other When in XXXX all outperformance. only spend introductions. ticket extraordinary, history ticket successful might the note billion, the along earnings months her instead, debut, of with only onboard markets, was In to extraordinarily industry billion shattered be launched metrics, EBITDA highest adjusted our this wide experienced one-year on several well margin. and And records adjusted a was performance Norwegian financial than all and launch we along industry. adjusted follow-up key adjusted that and seldom source in what her past expectations. to share demand reaching anticipated where worry brands just we these and For expectations a stronger $X beginning and across most are most growth onboard in all and in Norwegian's propelled of onboard net

consecutive growth helped net of slide day. growth. shown and continued financial as on see industry onboard, As margin which total EBITDA on on a led over hard-fought six, of of and we in growth, our growth track growth yield adjusted XX%, just lengthy performance. record five revenue This in in but XXXX, slide per consecutive net had X.X%, and our double-digit per you an in EBITDA past net with earnings can year-over-year yield also growth, and of our marked not adjusted of strong earnings seven, net extend ticket, XX.X% share These year capacity only the and year expansion. fifth And decade capacity sixth year highs

our last three-year ever than our We meaningful progress which in two are With out day, Full towards left years we stated targets, targets. more XXXX our achieving achieving confident plan also made Speed in our May. at set Ahead we investor

remembered of as a significant made certainly other memorable. terms breakout XXXX be that so will financial But were year this performance, there year. In also events

investment. Bliss, the in profitable what Line Norwegian ownership reached of with main Global Norwegian ship the concluding its of front, in important took one milestone successful including brand's the Holdings, On exited Apollo mentioned, history. XX-year firm's most Management, exit undoubtedly And vintage we've stake we sponsors, our of I'd Norwegian the was delivery pre-financial previously an crisis which XX-year most Cruise as

demand for We her summer. and noted, second continue coming especially this see previously for to in the her as Caribbean, Alaska sailings season strong

position of into condition our We classic pricing, in we where OceaniaNEXT, at sailing more we on XX% and just have one-third company. during of puts best a now strong book year-end of brands into Seven Cruises each pricing this out milestones allowed meaningfully XXXX, is and operational witnessed in beyond. including prices are Cruises capitalize end the to three From demand sailing, at together cycle, substantially from the Regent now our strengthened the optimize spilling which vessels, all overall the which strong XXXX. underlying higher along build, positioning all it in in has our complete long-term the with at multifaceted company's new and booking across experiencing continue better brands also The brand's all the next over at in a point, wave and have curve higher well which we across and entered observed for position markets a us vantage early strategy Seas Oceania positions still higher to booked inventory this fleet highest also in to joins does XX% is performance touch financial the years. a for in standing program better strength record be and And while the not laid to and us launch price season, of foundation in strong is approximately move achievement as XXXX the These time than driving company history XXXX and and over curve than record has our and to we is ticket near-term initiatives, than Norwegian we and resulted the year-end which And XXXX as last source line XXXX, seem the This which has late our XXXX. the the at meaningful on prices at of of we did year remaining with later. experiencing. us the and for XXXX year have achievements depreciation booked extending impressive re-inspiration there an with last inventory, XXXX four ambitious launched to will Encore, November. upon I taken This nearly balance advanced X% booking booking year previous robust is booked booking brands, sales the

industry state who economic are yield cover for prospects, with cycle, and the still which Mark in confidence gives our the his are and we Our the of concerned about consumer, vacationing therefore commentary, higher-than-average growth. about company's those XXXX, where the concerned particularly capacity will of everyone those in guidance

the period increase in the booked XX-month Bliss, date to Norwegian just to example, Encore history. Joy, increase continues and months, span Encore for in and capacity, is XX be Bliss' in well a it brand, Norwegian documented, of history. brand's capacity Norwegian priced in representing making any at the in and three while so completely highest of stellar pricing, Norwegian Norwegian long Holdings. Norwegian introduced months delivering Alaska half largest launched the in far essence, only is by best to fears the our vessels, Mexican ship absorb as with overcapacity Caribbean introduction sales X,XXX-passenger XX% well as performance brand's to typical a successful do of to and Our But pertain they things. absorption Joy's that a nine Line strong capacity Riviera, demonstrates that Cruise three to should also deployment This or still window to any ship a dispel be as and able least

demand indeed and disciplined industry-leading competitive purposely go-to-market publicly we management sophisticated and which strategy proposition, our quality reasons, spend, very that revenue results. generate for not drive discuss much First, practices and retail financial smart do and marketing

where brands, strong the of than future future with Oceania drive which ability domestically enjoying less bodes pricing capacity that pricing record a can our third, of marks to absorb first attractive higher. are many well our X%, profitably and capacity four-year increases power own. deploy of while moderate their as mentioned to Regent I the XXXX stretch a there globally, continuing position additions. Meanwhile, markets, underserved earlier, of brands the Second, for un-served capacity both growth and CAGR book very And in remain and company and

of ever stronger of marketing the three which of introduction booked ships refurbishment before than R-class that for So under Splendor and the they Regent the have extensive earlier received are the for initiative will to their by an Oceania well that in year sailings, build base program. four XXXX these Seas now even a Seven brands are include full-year OceaniaNEXT pivoting the sailings XXXX, the

long-term, wars, recent brands. government especially a mix the remain consumers, as versus we and American benefit indications disruptions, and confident an fear market sourcing which despite that strategic both focus Turning such volatility, Brexit enjoy given to North shutdown, on of and uncertainty, from consumers all-important trade stock the other global national our outsized consumer, short-term in and short are our

also are several fronts. on benefiting other We

and our our the best and more First, consumers communicate sizeable early marketing and more has strategy three agents the benefits booking have investments of recognizing go-to-market travel brands to to the value. wonders of get made we guests and the highest to

of of next the In locking booked cruises And window cruise elongated into number Our their is in them another before meaningful their ship. increases one our XXXX, current reducing this. our who while marketing-related finishing cruises future three guests brands point cost. in booking future experienced data sale proof of all is even onboard of the

things of shift to are we continued Second, the consumer experiences. material spent from from benefiting

in While see spending confidence the year. are has continues further as we surpass onboard as mixed up, experience remained record of revenue levels just we been to seeing of economy the retail bag as booking And the their we are consumer third, strong. the in prior cruises confidence has data, sector the current equal seeing a

by growth pricing growth worldwide organization At in our joining and Lastly, Norwegian the booking hone includes which increase well foundation Joy with blockbuster guest heightened same strong. as on capacity consecutive marketing core replaced the year's digit on accelerate. their Norwegian lastly, introduction Europe continues in await the Jewel. second driven of to strong markets demand allows she pleased further XX% record us Encore. very In all level. to highest and that Alaska of this strategy yielding expanded is above to best the And deployment that global guest the with continue was capacity, prominence. last the region booking Norwegian teens XXXX smaller to expect season has the we in are our regardless in sourcing industry attention the building focuses another which performance higher remain at three we Joy compared leverage and year pricing prices And in brands we brought our guest nine-month to Norwegian while the environment defined Joy's our time, mid in XXXX of best to late the is and window. reposition with Alaska, double sales to solid as our Norwegian despite vessels year with our her Caribbean condensed own the Bliss the market brand. we business Norwegian despite

For the Cruise -- taking historically historic XXXX Holdings is Line Norwegian shape.

onboard. Our strong a and position, a the book out willing more record is in the record confident most further increase successful consumer call further is performance. I'll year North I that and would of profitable to at willing the and to Mark American more discuss discuss Mark? to call longer start with our a turn spend our to It like capacity over absorption the market, the the term to like results to initiatives. more encore in of sounds return all the end But an of guidance now and to detail. making to me book

Mark Kempa

to Frank. XXXX guidance the highest yield and by in mentioned and report and presentation cruise and in Adjusted another XXXX full-year net quarter begin currency earnings you, Unless I on be metric per our revenue my record the a the commentary on color call. of fourth will for $X.XX. cost I'll capacity generated pleased data on constant noted, where XXXX. quarter net fuel company adjusted excluding by commentary, and which Throughout history. trends have I am basis. our fourth quarter commentary Andrea exceeded one to first we booking followed referring results compares the expectations the with close with full-year Thank my otherwise and quarter slide EPS earlier its $X.XX

on A was can the driven see below the of onboard beat impact exceptionally $X.XX from line items. to $X.XX Slide expect exchange from foreign outperformance by interest below $X.XX XXXX we revenue and on and reverse which ticket and strong strong advanced As our close And metrics. you the our yield revenue. bookings X, well-priced the revenue obligation in impact a will benefit line other in fluctuating rates of reported for sales and benefit

performance related by well which compensation of ship offset partially All were expense. higher operating as expenses as

guidance increased across yield prior driven versus Turning major as was X.X% points. streams. strong to close Slide by The or strong basis basis and XX on in net well-priced, all by beat an X, X.X% reported exceptionally year outperforming bookings, revenue onboard revenue

our garnered new points basis growth Excluding brand net which capacity, related itinerary quarter operations X.X%, from been approximately average of Bliss, to would optimization the have the excludes Norwegian initiative. in the the from fourth quarter, our benefit China above Norwegian yields revenue which corporate yield XX approximately dilution NCLH

Turning an increased X.X% to prior costs cost adjusted basis. fuel on net year and excluding as cruise X.X% versus reported

fuel an hedges netted total came $XXX. at per consumption Our in expectations offset prices fuel versus in which increase expense fuel line as savings within ton metric

of achieved adjusted strong the XXXX our delivered highest performance. record yet and XX.X% to to in prior even full-year of in record adjusted XX%. from earnings year XX.X% and digit another Both double a revenue the up were financial our we year results, a expanded and and history Turning ROIC we margin finish

mid-point the guidance comes XX% $X.XX unfavorable result full-year from XX, X% grew Turning per a earnings to February. above This of fuel $X.XX or to last issued prices. full-year initial impact share slide adjusted our despite

reported our demand to expected year board stronger X.X% Other priced Cuba or revenue. financial continued grow Norwegian of sailings, basis over include The record XXXX, for by versus record products Our line prior the season and on on key Revenue contributed $X.X the to for X.X% guidance prior introduction XX demand performance billion. exceeded guidance. an Bliss and well the strong portfolio is up successful the top in Norwegian full-year breaking of in yielding than sailing for as metrics reaching our net from high which year, XX% the European Bliss, points. strong close a yield mid-point the grew from demand beat additional benefited basis -- of

new entering Brand reported which points basis approximately Shipping yield increased or on Excluding decreased And our tail wind net substantial X.X% are capacity, increased in full-year well the our the China pricing hedge XX excluding as XXXX since from have operations. dilution prior growth on as hedges from fuel from would to position Norwegian minimized QX excludes to price approximately X.X% declines. year. basis. basis, pricing net X.X%. to cruise expected fuel approximately the X.X% fuel lag a nominally capacity Adjusted is an percent net the, increase revenue been note call It's cost, of the in ton, per metric $XXX as to of any market overall at important pump full-year $XXX last

With the introduction with encore and of annual to the partially offset dry for the Joy. dock nation positioning along re Norwegian XX approximately fleet of day the Norwegian by Bliss late November

XXXX of is direct the our Frank slide earlier, stretch I'll to capacity As to company. and you four deployment first XX, review some for year year mentioned highlights. a growth moderate

For Norwegian debut Caribbean capacity a the of and year, is little the a in our the which third encores includes region. Bliss over in

in Joy's to XX% share deployed Alaska's and in region. share we low in six ships of redeployment increase teens approximately a in capacity decrease summer. as that Europe increases equates is deployment Norwegian capacity While Norwegian the the result the in which region our APAC up in to peak

year is positioning of Norwegian with re dry Alaska. enters who Joy deployment -- decreases the dock similar share to before prior quarter to First of exception

amortization will with brands. and all sister to across be million expectations range XXXX in fuel $X.XX of make core Norwegian trends call, seen an enhancements, over net her Joy's of for EPS approximately strong and onetime on for associated growth both X% share. the full-year at the been depreciation per prior offset a a continued which to non-cash the $X.XX in a exchange last prices markets at have includes we record-breaking unfavorable ship Norwegian which rates, Bliss. year or write-off approximately XX, full-year foreign at expected partially $X.XX rates, three earnings XX better tailwind approximately mid-point. This of all for resulting the adjustment Looking booking our Adjusted Since have is slide than in decrease by interest even has in

discussed, is high primarily in XXXX of for result range a previously factors. the single our earnings As digit growth expectations four

First, capacity X.X%. of we have moderate your approximately in growth

lacking are with we Second, XX%. of earnings extremely financial adjusted in XXXX strong performance growth

we up lastly, annual When of XXXX from marginal Bliss Third, of to excludes late and and XX upcoming in due revenue will Encore operations. associated This yield and for NCLH dry are cruise service an extended X.X% the the average be XXXX to are month initiative corporate X% days and or move with revenue in Due fuel cost. of in increase Norwegian Concurrently, itinerary to benefit out days, out deliveries. net joy. involved Adjusted delivered to of already initiative of due costs Norwegian offset Norwegian when dock X.X% Riviera. incurring to and carry days, guidance in Norwegian And the launches basis. costs to metrics the Norwegians growth Bliss's our versus deployments the in marketing to little Joy Mexican cost XXXX, and This associated higher capacity X% the corporate Incremental one associated her and the and to Encore, on Norwegian of system-wide sailing Norwegian total below top both difference net due is the skews X%. China unit results and basis offset basis. be which and expense to Splendor the reposition which -- ship performance the year in XX approximately dry vessels increase be approximately or to inaugural X% from our higher Seattle launch X.X% a dry sailings two optimization increase on complete prior NET for in as yield approximate year primarily will the needle. and average activities. of repositioning with Joy is for X.XX% are Seven expected service it robust including fewer inaugural excluding X.XX% your marketing and expected points Seven the yields dock as cost excluding to incremental Seas year costs in Splendor. associated is dilution yields does the to Encore's XX-day we timing itinerary on marketing in Sea reported yields an only which reported by dock, Encore from capacity are contribution with early revenues, above Caribbean substantially costs optimization Joy an by to partial garnering is XXXX minimal

price ton XXX,XXX Looking $XXX of of net metric tons. at fuel with expected consumption expense, be metric fuel we anticipate per our approximately hedges to

into strategically and continued have to now We they're XXXX. and NGO on XXXX hedging for layer additional hedges XXXX,

a yield total have balance our of consumption for we XX% net the are key XXXX. keep at and for XXXX. As mind and XX%, growth. in the cadence There XXXX, result, hedged looking to few a When of XX% of items XXXX fuel currently

the yield into the season. a well China lowest of result second the quarter as first Norwegian Joy's as be to final winter quarter low-priced is during quarter the primarily growth holiday expected sailings shift as The Easter

Joy's docks be six lapping inaugural expect redeployment net impact from from tougher will to scheduled for as growth quarters well the the and the yield of We Bliss's region dry North three for brands. high Norwegian consistent, season to offset yielding relatively the as the Oceana as America remaining comps Norwegian

in of field dock cost the to crews the Joy. docks, due mainly and on tail expected timing highest dock the quarter end dry occurring vessel prior dry Norwegian to quarter, the zero scheduled expected the second growth net to to at primarily the per day, one cadence an dry third excluding be dry As year. is for repositioning the is the be the quarter Oceana with highest quarter of capacity compared for docks of a QX to due

expectations look quarter, first on a Slide Net take as or increase our is reported to on for XX. be expected yield let's X% the found approximately an Now X.X% basis. at which holiday the period comes headwinds shift for well of the This Norwegian break the which final into price spring second China from sailings sailings. the as despite quarter premium as growth includes Joy's Easter can

Excluding net our This capacity brand which sailing the above prior top new corporate garnering average yield the Caribbean, the year. on is expected in benefit from Norwegian growth in the Norwegian is Bliss, while yields NCLH to growth X%. X% comes be of approximately

Turning is excluding to on to cruise costs, up cost reported be adjusted or basis. net fuel expected X.X% as approximately an X%

of our fuel fuel we expense, metric expected of approximately with hedges metric to for As tons. net ton consumption price per XXX,XXX $XXX, be anticipate

the quarter a we planning net a resulting our be of of discussed benefit into shifted expected by expected approximately $X.XX increase account approximately year. from on benefit previous a line, QX initiatives the to first EPS Taking one-time which from $X.XX, a all to for over call, offset below XX% Looking the prior QX tax loss, has this exchange partially and is expect $X.XX. as to adjusted in $X.XX be it's

towards we our earlier, made provided we that XXXX, significant full Investor achieving Frank ahead XXXX our Day. speed in As progress targets mentioned at

billion to times to our X.X million expected we've XX% X approximately adjusted returned better digit XX%, XXX adjusted and of balance on see Slide X.X sheet targeted reported than of EPS capital double increased delivered can of our one-third XX, you ROIC our to shareholders. growth for As to

our total cash of shares to Looking generation continues we repurchase current $XXX at returning our on our extremely million we under remain accelerate of approximately and worth slide to authorizations. and previous XXXX, capital shareholders. meaningful repurchased XX, In a focused

remaining a our current $XXX three-year have on million billion, X authorization. We

Our goal our strategy, to while flexibility. to maintaining a balanced have approach maximum is capital allocation

to that, Frank with board, commentary. With dividend. a the closing our We potential for hand back over continue initiation I'll the call of explore to

Frank Del Rio

and drive the focused to we we Mark. XXXX much you, just long-term investments story. make sustainable Well, our success sizable returns that as Thank focused are even as earlier on reinforce on I my our continue higher. to commentary on to future want

tonnage with to approximately and berths and XX number of nine ships XXXX, ship for region continue with brands, a quality over these growth for capacity the for state-of-the-art number and Oceana invest us financed XX,XXX new for We capacity interest come which our new three announced to two, bill the low rates. three recently to from delivery increase XX% in best-in-class at to our our one, growth years years provide featuring brands us expands program orders measured the current historically Number new give new fleet next level. orders all

a fleets new elevating ship Cuba three-and our a in our which Oceana also Edge, We ship in continue my Norwegian to as four-day invest I refurbishment comprehensive existing undergoing condition, of earlier Sky the offering market. program in Bahamas saw next that penultimate good initiative has and commentary in mentioned Norwegian the in the left as in

we've great last destination Alaska straight completion not new in infrastructure the with exciting we Bahamas IT Cruise in to investing of leverages Today, XXXX. make that specific We closer Freedom, to private enhance or our latest state important K a at terminal that construction new in under guests at guest her and the point will Port-related in but And island. dedicated a launch. technologies late of investing Encore a strategically continue facing We'll experience partnership Cruise the to innovative ready of more Encore's and lot meaningfully get technology on platform including news be we wearables. on debut will and state-of-the-art as very developments Miami continue ground. develop covered with have proximity Norwegian technology Port the Freedom and least, port location

can you key which find takeaways some provided slide we So on XX.

delivered record-setting of results financial breakout we and driven the with Looking XXXX by Norwegian exceptional strong back, demand Bliss. year a performance in

creditor, position deliver are XXXX intermediate our And XXXX. on book the to term, of targets. behalf our a support. with the least, and whether a we and or of I'll guest another like I'd open XX,XXX stakeholders for valued trust to agent On look confidence strong on continued our to Looking Operator? pace speed record-breaking but employees not and in questions. travel deliver ahead a year all last for our full that we of build partner, you shareholder, And ahead a to our vendor, thank are call

Operator

with Del Harry you, [Operator Mr. Our first comes Instructions] from Thank Rio. Instinet. Curtis question

is line open. Your now

Harry Curtis

the ahead cadence very likely a had Good continue less your because couple ahead, could versus the next need I of to not your you to level, well pushing forward results. questions. given price, discuss sell. going record fleet being morning strong so are balancing this Frank, that it had everyone, filling year is if you and booking just you behind math the strategy

we So should balance between what is forward to occupancy? look price versus pushing the

Frank Del Rio

Good morning, Harry.

load is good commentary. in in very, shape we stated the and our XXXX both XXXX So very as for

So on price. can We're we XXXX XXXX. we're higher and in price focusing everywhere both pushing

I say for optimal the You any elongate time and saw booking raise curve the X% booking push booking same can the curve business. what curve at that's is, I'm out, the time but year-over-year, sure I good always that our and not price

had cabins think be we while overall, brands. still a to across will three fill lot prices raising on of I emphasis So the all

Harry Curtis

its could renovation you renovation fleet sizeable the legacy exit for Very follow-up is XXXX? for the the your XXXX legacy year you question vis-à-vis describe and competitiveness additional any another is if of fleet good. then as beyond And XXXX significant spend need

Frank Del Rio

walked our end lifting done entire now Regent vessel 'XX, possible as one that product out the in in of industry think will the behind dry can through don't as our on focus consumers be just fleet required And is Sky. is And completely as the that's pay The of in the Norwegian at good a well, coincidence more after tail it. yields of will we will of literally how I she that continual class, best 'XX. day as to We to has been that tell heavy record at maintain of you dry be and one end by we OceaniaNEXT consumers And new. prior mentioned the finished dock are I docks and has we're leading well times calls us for several are just something one Spirit. to the phenomenon our that Norwegian strategy result it's willing two core 'XX, our is in a going I The but came Yes, she vessels. industry 'XX. last behind program was are us last refurbished. see I offering that any the very our

Harry Curtis

XXXX So look the in pretty that free flow bottom should line cash then? your measurably is

Frank Del Rio

It will more It capacity. will capacity. have our yields. a we'll increased very in our XXXX will year because sizable performance, be because of

each. months ship each We is new our I operating be will of have Splendor. highest of one the two them yielding the roughly what XX them new in suspect And vessels, fleet, Regent

It's of well cash we yes, accelerate. one way billion during XXXX as our is to to target mentioned or track that the free shareholders our comments, to expect $X.X other. we're to we achieve So part returning on flow that. our something of up prepared And

Harry Curtis

That's great, everyone, thanks much. very

Frank Del Rio

you. Thank

Operator

from Our Hendrix next question with comes Barclays. Felicia

open. now is line Your

Felicia Hendrix

morning. good Hi,

almost all like prepared detailed very remarks through my blew questions. Your

Frank Del Rio

Did we miss one?

Felicia Hendrix

Sorry?

Frank Del Rio

Did one? miss we

Felicia Hendrix

few. a missed You

Frank Del Rio

Oh.

Felicia Hendrix

was if of thing things kind that down going more some changed was first of could first first last talk gave. we was perception it's quarter if reported, The to your at was a was wanted that than And what been yield back the -- look quarter if call. where you dial be you muted for consensus because you talk I of about your and wondering since bit about kind guidance better the came the to then. clearly net into the guidance. So I regarding you just there to outlook your

you're kind color better that pricing great. of what walk kind has happened us and just to that just stronger, give until I you markets, been Frank, now I us then clear would in So from if getting but to say understand through some strength about mean, be of think us that, very could help wondering, the the

Mark Kempa

doing and strong. and when strip the half the is We're Yes. quarter industry. think underlying is of in fleet of organic coming seeing she's it's point guiding capacity operating the to X.X% in markets. is all a all Caribbean, And across for we've Felicia, but Mark, is Caribbean pricing overall result in the a of fantastic. our just been that's about what I this Bliss seeing markets. We're a related you the new that first the strong out

seeing good just operate. business we're So everywhere we

Felicia Hendrix

period in your no? to think as with my I a again if getting even actually short be I that seems you guidance. as point But mean, have been guess -- back is reported go time, you the in what to came to I that of stronger we was high Because it view when the wasn't number thought

Mark Kempa

inventory in well. and strong revenue onboard on our Yes, seeing strong we're as pricing we're trends remaining our significantly seeing

profit up. that's helping So

together So when nice, creating us. momentum you that a put for healthy it's

Felicia Hendrix

I to just seeing created you region, capacity consumer of good there, terms concerned lot year cannibalizing think and in general you the wondering with but ships effect there. supply you Alaska about that think you this that's over do know obviously, be to well has just you like, Alaska, mean, halo Joy then Great. with in Frank, other the made Joy think a -- are of community Alaska the we're a in hardware and do your the guys do lift or increases really going which is have And investment there I on and I'm that do But there? points might like Bliss entire new demand will the

Frank Del Rio

is in for think -- in than for Even think the possibly short of to has go-to, row overshadow that to for capacity. created Not own strength the to of the show Jewel even excitement window now doing do better Alaska. a double-digit must-have can goes a to your are for and go -- everything but vessel families. has ever. you People hard list us, know, to Alaska built bucket in brand. they able our row on the are It's able years Felicia, There's Alaska It's a people third small industry. more for But become say, know two just in destination families. And season. region, It's to a Joy ships certainly hardware especially going. being I have us vessels. been top of growth to you it of and excitement in Norwegian on obviously these the only Bliss be region, two a our the region certainly, our years deploy

destination love of Alaska. millennials the think I and environmentally outdoors oriented the

it, going capacity next -- we'll -- have more I lot do think year, it in that hope it's in So region. moderate growth got XXXX, but that and for a I and think is much I

Felicia Hendrix

Great. Thank much. you so

Frank Del Rio

Thank you.

Mark Kempa

you. Thank

Operator

next Shojaian from Research. Wolfe comes Jared question with Our

now is line open. Your

Jared Shojaian

for Hey, questions. my taking Thanks good morning everyone.

Bliss your was comments just I from price the to ability ago. Frank, to surprised some hold hear and year pretty on in your So cases, raised it a

at then, much year. you've have from guess I your tailwind baked of X% in in from how of you you if Bliss, much So to of you and out baked How tailwind baked also parse for a guide X% in a all Joy yield the the redeployment? can tailwind a

Mark Kempa

is Jared. Mark. hi, Yes, This

So, not in we said, there's inaugural first guided where in garnered is you when Bliss; doing fantastic she's X% a of above Bliss as many X% -- that. year-over-year. analyzing year, in let's or her she to booking is can months which That we cases the we at address she and also many say lot what said

have shore a is you down, that slight some plus for that Bliss tailwind really essentially so tailwind knocks year. the So

dry-dock I of itinerary is, a the out annualized had we you XXXX, and said it at think the parse as this number. and $X.XX redeployment way a whole most, And if accretion in that's clean as $X.XX 'XX. it's or all two-thirds you with Joy, you costs, you that going $X.XX of best look on think with is an say, it redeployment, ticket the That said pull was then gets the far kind she onboard say As to I about you back around be that all to $X.XX. to $X.XX are, it's guess, accretion. we year to revenue say which operating only And revenue; the of in about to And let's about accretion.

compare you that a it's against approximately what our when of So point yield it, $X.XX. -- is

points quarter around of about to capacity service, the get it XX days you and we the with for of the X% You for lower the gets zone. year out are then basis being in tailwind yield

X% to our our really every So with of at is growing year. our fleet X% line underlying we organic in what growth expectations target

Jared Shojaian

Thank drydock And on XXXX, to you've side, know from the et the it ask side, comments. helpful. it's early you some shaping just of you to analyzing I'm and on cost with I given That's about Encore tailwinds you. spend, about a and have marketing yield then up well, talking seems to but going And, anyways, several your XXXX And and the little the cetera. or really be got and Splendor be Joy. lapping tailwinds

than environment it could costs So year just a assume unreasonable to is here? macro of assuming better from yields kind and a look that XXXX normal steady

Mark Kempa

it's we it a may but but it's Encore in early. great bit be see our to terms you the is, Yes, so accretive average. said our then, the 'XX with of system or at deceleration from so given necessary front to basis, Caribbean. bring have we book And looking best this it's that Encore on that cost cost Caribbean Splendor the to But an core will look well believe looking Encore ramp that's in assuming stage year. is she's in still launch a to again, by But the necessarily our make that some early in doing bill some the too annual yields, commitment. one steady cost, 'XX new on environment ship, Bliss the is macro this as up way her think to on somewhat at always seen coming offset on forward, We going corporate be yes, just to premium we've time requirement yields going of certainly I that's don't to

Jared Shojaian

Okay, you very Thank helpful. much. very

Operator

comes from Thomas with Morgan Allen question next Our Stanley.

Your open. line is

Thomas Allen

Hey good morning.

are source that of there all? talked Europe One seeing from a macro of the uncertainly customers, your bit little you given about weakness peers at just

Frank Del Rio

make we Yes, require, U.K. that lot unlike sourced peers, work. of our has national been don't But little where a business brands things down. up locally whole to have and

percentage business. Our that our of business is than from Europe of bit half a internationally little less comes source total

just relying Europe strong lot a business for But domestic little for itineraries sell demand Yes, so not to our our source is a Europe vessels. that can So doing again, we're whole probably be Europe better? could. on Europe

to ships, strategy in seeing for on two last that we're years, we as going consecutive we be selective focused best only the can frankly have prices we so price. Europe years, our for for XX our been demand raise more with raising and the resource Europe business quite hone cash are We products prices we've XX% source what over and now able two in we customer's over on are and

we said it I or American the a prices different as German us source price are a before a for so raise or market on our accordingly. cruises in book we because we Brit where And there's to whether point the parity

on the so to. private key think for European of as differences have others may I we our some of that's to And that have as rely one us the and market simply peers don't much

Thomas Allen

Thanks, And free on air how far helpful. focus on progressing? as Thanks. promotion -- that as quarter, last any updates and

Mark Kempa

makes hard It's we're focusing received. to with happy as sense to value value, free well then shore Wi-Fi, very Hi, from some how price continue we further package, the package, we that pricing where I'll this. promotion, and value definitely have We've see very and something sense product. the away deployment we we've beverage on we've the that dining take makes out to add it a the and strong that demonstrating one. with to been from excursion really the to has been program an airs hold It's the been toolbox it and been opportunity so keep prize move this that away and our can the along times it's it in be not able in add use tends at that use longer inventory tool a where more story our in it of one over pricing

it continue like strategically to it we'll you if this. and you'll place for make So sense see

Operator

Steven comes from question of Next with Stifel. Wieczynski the line Instructions] [Operator

is Your line open. now

Steven Wieczynski

Good morning.

enhancements -- now think a there and still I at $X.XX it So currently earnings Mark, talk drive that estimate wondering help fits. of around in if like getting guys XXXX I given out some about range was you marketplace? demand how in and good that patterns the Is that outside the pretty could could on the be you Norwegian pricing I'm us currently that fleet that are that seems about additional range think strong talked where I but guess you would guess, you about what

Mark Kempa

early $X.XX our was seeing most it really to still point redeployment at Yes, exceed premature. and other you the try patterns initiated our say are that think I it's we this give number but I that Joy booking we're that it's the that but that signs, we're forecast educated and I we that we you early, always best think on to it's confident know is guess in think a bit great great

Steven Wieczynski

And second estimate and the around XXX. to you. got XXX then corner consumption at I question Okay, the would we tons of compare be look fuel of full-year first then consumption if guess,

that the thinking consumption well also we last how XX what quarters over Assume in in think in up anything that the if maybe big consumption about should step know XX XXXX next couple Thanks. there's about as consumption or just and should driving then be you months. be around might pretty we wondering

Mark Kempa

we day delivered to on a for X% see the in comes across zone in being big and to I capacity consistent to as with X% Joy Bliss the first down words as expect apologize comes you the she some portion the prop to know of which analyze we XXXX, as that I have who dock said consumption the that an Bliss. if board the what think ships repositions escalation deliver. possibly we then took And again in per to Joy Asia. our dry going we would we the the quarter year larger Atlantic, and which know is that you to well. out later we come in out in normalize aim is would I is be look we our I took X% think And be we our as consumption repositioning, X% of encore sorry if I'm tour forward consumption out in XX --

Operator

with JPMorgan. Montour Brandt from comes question next Our

Your line is now open.

Brandt Montour

taking appreciate the questions. morning Good everyone, you

away still so just to believe enough deploy plan thinking reaching it is plans ask the I to year all Thanks. on is market lot was if I the know spirits next last July. I way the a the your sense, China changed want regarding that technician that So how the about and

Mark Kempa

Yes, always Brandt, is highest say of you times yielding to know the number it yield. driver itinerary Asia. to one vessels many the me will you be deployed year itineraries looking trip at as We're round heard

last. will Joy what the the part have with statement evaluating line you do. market. Asia expected I go continue anything question I different think your will of would and So slightly for we yes to performed a Spirit second seen in Chinese now but has that in is ply of in so a prepared all to far Her to deployment first but of the had was quarter heard never we ahead Alaska today the right the in XXXX regions thing and

Brandt Montour

else a much that year just if bit housekeeping on And of get as maybe little port Thanks. and up new what Great. how and just sense you year on wanted guidance you the I in CapEx is came a next and little there. following a for up, in apologize but already announced Alaska touched this CapEx this

Mark Kempa

similar new you our coming class. light really of so not is so six and addition for we five driven Leo ships recently additional builds the with to announced our lot that really that Oceania one that and and announced very a is Regent Miami Yes, our cruises increase to infrastructure an ported agreement The port for agreement. that's recall in and agreement around we two the asset additional Alaska, as the it's in CapEx on

around conjunction with planned technology other and investments infrastructure. we So make that to in that some further

Operator

from Our next with question a of comes Bernstein. David Beckel line

now is line open. Your

David Beckel

expecting can put in bit are a onboard that I are onboard this is basis? what spending a QX, place sort growth do to had you of or exactly expected but on and quick on year-over-year components you borders question follow of in up of about driving environment just the that more across in a on where stronger all function you beat there little provide terms robust mentioned just initiatives XXXX, you know than spending for on I more in color specific consumer

Mark Kempa

across Yes, so our I saw we trends of for streams. all quarter fourth great quarter

and think touch the key saying in in and been is point I earlier the we've is investing the this getting been booking So consumer cycle. we've

selling So more ahead, more we're we're bundling ahead.

happened fresh wallet. is a clean is consumer what the So a board wallet, with on coming

that our it's every So seeing channels really casino us. in across just We're helps channel. strength

signs of for X% As of look always positive. quarter in range know pivot January, to trends looking strong what outperform XXXX, or X% for and our continued early in growth so are the We're the you board February very there, typically seeing typical revenue. seeing try we good. on we Obviously, modeling to we're that's

David Beckel

Great. or about guess there, can could board up is the add remind just of mostly Norwegian If packaging is percentage prepackage what percentage plus on actually you your, us are ship? onboard a spend I I quick what passengers of verses follow

Mark Kempa

were probably but that of on specific Yes, half I details bundle I packaging the think in deal. of in this don't that are given our north part know we've guests or

Operator

question of Research. Vince comes the Our next line Cleveland with from Ciepiel

is line Your now open.

Vince Ciepiel

hedge going ahead for the could the of the now Good back to fuel thinking expenses, you to into at or Day morning. to the hedged increased which potential up year then wanted your is mentioned XQ next like from XX% circle schedule. XX% XQ Investor position that mix XXXX, that step I MGO release, release of the is and and looks still it

you XX% that on would thinking year, could I going a you think to be so change, about costs the bit you elaborate target fuel in that? current normally how are into XXXX, little

Mark Kempa

certainly. Yes,

XXXX MGL So for roughly still everything that, we know, see you XX% mix. are we targeting

significant coming technology. as our planned online our a that ships We the And have are investment range. coming date in online all within are scrubber

positive. that's So

it terms in our on and hedging down layered our proxy point were so, in And In layered particularly, hedging, what markets more we you 'XX. our we one gas we advantage which of almost guys last call and more for XX% November 'XX both or so oil Since seen XMGL. what it. at is have took fuel on

hedge able said we the to course some saw QX. but over there're of in obtain to and the in pricing. terms were that ramp dips that into the minimum we'll aim favorable we what that's always when going And market, of at we have XX% be our year, opportunistically strategy, up a So you

Vince Ciepiel

sailing it seeing bit the touch then And regional western maybe on XXXX improving coming throughout separately a could of what you a am and I pricing premium to like a seeing demand on for looks that you in has what are Caribbean the are just just on Caribbean there, at east. basis? thanks. as Great, just you 'XX? curious pricing and and Caribbean, the whole I was like your versus thoughts as sounds know for recovered what XXXX on a eastern

Andy Stuart

we Yes, it's are Andy. happy Caribbean. take with I'll Overall, that. very

Caribbean, overall. is As we up is up have comments, seen load in Pricing opening Frank the factor his the the said Caribbean. in acceleration in

in an has We of it course, Bliss, as deployment the are broadly And Alaska outstanding well seeing as across the region. been Caribbean in trade.

extremely the performed she east, so has And well. in

feel acceleration good see strong see at and don't hangover We and any the the Caribbean really we in Strong just So pricing, very about outlook. all. performance. load,

Frank Del Rio

time for question. Operator, think I more one have we

Operator

of line with Wells the Tim Conder from comes Fargo. question last Our

Your line open. now is

Tim Conder

itinerates to there you for little a this has in added bit of assuming circle, capacity, and you I and and obviously? maybe around But with Med demand? the what a Splendor see historically forth for been 'XX sales the on Thank high the you the seeing to in some do conclusion the in changes and you, shifting how the Frank, point of the the congrats on eastern and very have segment are industry. out the that and geopolitical that I What so particularly wanted year, your been are whole industry. know see back on coming slowly yielding no with in team at looking Med

Frank Del Rio

I off that back for Med, limit We higher ready all the somewhat talk in Med, for for to XX to And the am pricing Turkey has do XXXX. are key not XX years. that the the couple with when since this is is summer am eastern that to the than sailing in first Tim. pleased time to include you increasing the Med XX which XXXX, sailings I we the industry -- and -- sailing sailings coming Turkey. Yes. question, destination went tell about the Turkey eastern XXXX better the been last at loaded of we surrounding to

of seem the Mediterranean eastern want booking to Med back for cruises, these consumer the the So premium XXXX. the to eastern pay who is Northern to come price most to very that and one is well a American fact willing bodes

the are XX-XX know, sale you months and sale put itineraries As up date. before for actual developed sometimes

So waters. you test the

really And then takes it up. You what a see happens. you to ramp while

the go assuming the that not there eastern So in I eastern will industry along XXXX. point to deployments at this rest are Med, XXXX Med more other to we the reason probably with number increase expect or disruptions that no and of of the to the beginning in

So it's good news.

all as when of not if as Med good, the eastern is any itineraries. it's know you good best As the

increase forward to our able Tim. to presence looking So we Thank you, are being all there.

Tim Conder

little investments a having Mark, anticipate follow-up CapEx the detail, you me, enumerate more quick fleet? a all Then what rolled are Okay. you those here you in the to tech tech then when if for and just would, enhancements bit can the

Mark Kempa

Yes.

in. early investing it's think bit I to what a are say we

I all looking at are think aspects. we different

we some or are here. that look maybe we the voice intelligence we as doing for with capable features Encore said, we systems artificial down sure go want platforms make year. catch-up we integrating out our are technology as And and But As we forward we behind scenes the this rolling road. and the some our are to to later new handle looking forward, start

back already you what we but going the have house. radically more than surely but different slowly see not investments making are We anything announced. are of It's to

Tim Conder

Okay, you, great. gentlemen. Thank

Frank Del Rio

Thank you, Tim.

Frank Del Rio

everyone this support. And time and thanks morning for your continued

As team always, questions available the Bye-bye. best. will answer today. your the be All to later

Operator

call. conference today's concludes This

You disconnect. may now