Norwegian Cruise Line (NCLH)

Andrea DeMarco Senior Vice President-Investor Relations, Corporate Communications and ESG
Frank Del Rio President and Chief Executive Officer
Mark Kempa Executive Vice President and Chief Financial Officer
Stephen Grambling Goldman Sachs
Brandt Montour JP Morgan
Steve Wieczynski Stifel
Patrick Scholes Truist Securities
Robin Farley UBS
Jamie Katz Morningstar
Vince Ciepiel Cleveland Research
Ivan Feinseth Tigress Financial
Call transcript
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Good morning, and welcome to the Norwegian Cruise Line Holdings First Quarter 2021 Earnings Conference Call. My name is Josh, 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 Vice Relations, of ESG. DeMarco, President Andrea Senior Investor Corporate and Communications Ms. DeMarco, please proceed.

Andrea DeMarco

joining of our with today by Thank will Executive Thank Del Rio, quarter good Officer. call and Chief Frank Frank Line earnings Frank us Executive Holdings; the discuss and call Financial for follow Officer XXXX joined you, the first Cruise for President I'm morning, Mark call. President will our which Norwegian Chief opening before Josh, and Vice you everyone. after back Mark for Kempa, commentary, handing closing financials to begin to remarks. and

your We will open then call for questions. the

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

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

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

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

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

Frank Del Rio

Thank you, everyone. good Andrea, and morning,

as and thus we the us environment safe. liquidity towards all well bolster the of of that year efforts as Comeback, ones your in and we've come the focus flexibility, of like international have the Cruise commentary cruising, our booking comeback resumption hope to to I our on if Over fleet Today, the our a our financial team and even remain shift where has to made as strength methodically focus starts our we time finally Norwegian our operation. that today, suspension progress Great call, this to healthy worldwide, always, to maximize overall you what I since the accelerated far loved our of from we joining and returned will voyages has ports. As pricing

three you on As can X, key plan our see to around is return Slide service centered phases.

will at we health mandatory strategy, which cornerstone, multi-layered I call. developed in more for detail in later its SailSAFE safety and touch including and guests vaccinations our on crew First, all the

and we restarting voyage and initial a last starting of this potential a we normally from Second, new outside two-pronged ports. summer. from with announced of engaged the active now within with initial approach our dialogue month both announced of remain resumption U.S. to cruises international cruising plan three U.S. embarking our And brands waters ports. voyages in have scheduled resumption All CDC regarding from both

several factors, travel our voyage Lastly cruising our July. port begin resumption of the global in return the as will details timing environment, on all-important X such Slide The which remainder the two-pronged fleet. is plan. openings, of of of will depend to the and the relaunch CDC. health public U.S., Outside further our phase restrictions long-awaited

with vessel better Caribbean as performing our Regent year we most despite Athens newest Seven our our Copenhagen Seas First start throughout from enough return cruising. with in international and in Splendor, all response and condensed Cruises in and Line Greek resuming guests, ports our booking Republic. Oceania with Jamaica prepare overwhelming from ports Seas and been Cruise three inaugural and to England, travel from to late new voyage home voyages support will resume beginning Seven the of and sailings has luxurious South and new Cruises are loyal the Norwegian partners Isles from will the August Dominican thank Hampton, even vessels the her sailing can't value stakeholders window. for I expected past their our our The than for Caribbean extremely resumption over and season. home patients September

continued has prior COVID-XX of which and our before voyages voyages we including below and the for the XXX% tool powerful cruising, and creating for sailings the As crew and resume and a revenue relaxing April to strategy U.S. just against authorization I for healthy submitted XXX% threshold. to U.S. of described, which fall The cruising burdensome voyages a requirements. ironclad testing in clarification XX% for that includes since Xa two alleviated on this industry requesting with for with and just guests of to pleased vaccination removal from we Phase technical of XX% we requirement the CDC points comprehensive fewer of has previously guidance, proposal path, the the outlined simulated And last for for CDC. our most rest voyages summer incorporate pain like some week, pathways guidance. hurdles the different the work to the resumption We crew. of vaccinated cruising original guests this CDC is to the and One one to costly threshold of restart the X, importantly, vaccination with vaccinated of a consistent for robust all its were more and dialogue of with turned for ports. its safety Even in the see CDC additional certain plan guidance, our to cruise into the fall vaccination short vaccines, crew non-vaccinated guests issued which clear

simulated a well, the issued certificate. on Phase and those and to for an more In addition, process not. that technical restricted voyages, whether we guidance the covers vaccinated apply includes numerous sailing CDC yesterday, and for voyages the for onerous voyages Xb need voyages X, application conditional and only which The guidance clarity for are restricted and would requirements manual simulated or as which to operations

appears but a bit guidance, bit than working first the Our through steeper a it is however, at glance, new originally and rockier expected. forward team the path is

goes for how urgent U.S. jeopardy. As given cold layup, acceptable to a the and from definitive in imperative long an potential need from up by with takes be CDC ship it and as midsummer stand a restart time is ports could agreement the

keep have has were cruising recent engage so in far today place are advocacy in businesses you send throughout with wind progress tweeted shown families, find a and States. of possible were willingness jobs, to the is constructive small cruise Ready, advocacy campaign, back, an However, been certainly XXX,XXX to over to elected Sail solve and they And your CLIA’s acceptable officials we the country. with efforts the Set, our at that industry efforts. industry. support us cruise is we who just going officials incredible the has CDC’s working time all to able our and officials undertaken of we forward. grassroots now supports the of have our encourage U.S. better due to you Thank and the to committed are platform throughout in path dialogue to part emailed the Through the to with The United which called, messages to XX or momentum than Safe we The made own in resume thousands ecosystem days help elected Sail the the positive ago. across to to

excuse cruising to out have your or you me, by by elected officials to encourage heard. I to XXXXX and voices reaching continue texting crews So your

robust unveiled a anywhere preventive sea. includes COVID-XX crew Healthy including combined on SailSAFE and if and believe we will safest mandatory developed for X, program, by safety Turning vacation that to testing the at health science-backed and all provide protocols, with Slide our option We one multilayered cornerstone. vaccinations of guests vaccinations universal land its or at dozens were not Sail Panel of, that the available which

successfully markets. of demand, of that international all most wave absence our indicator a agent considerably partners future six in net The trends extend restaurants, probably travel our than Wellness with virtual source on pent-up of booking Line volume Holdings and FDA conjunction can theme to including on we Former of hotels, protocols and the X including health SailSAFE the investment, demand Sail versus cruise beyond of season resorts, marketing our Perhaps Gottlieb. will have is Healthy expert continue our you Global advisors, all-important Norwegian work announced sectors, continuous which compliment the comprised cancellations full in the program. specific Dr. and with across Cruise demand compliment to continued see many bookings, featured improvement newly Slide arenas, airlines. of the theaters, we the brands, Council public Health quarter. our despite reductions the of experts those on X, Scott Slide lockdown provide scientific best chaired and our a SailSAFE expert of of more the and hospitality travel three by see Our ever is with for experienced and Commissioner, already in strongest our from and reopened doubling our history unorthodox developed Healthy council, was accelerated advice our which Panel vacations booking is industry’s this casinos, Panel the Sail generating well Shifting parks, implementation movie of the of SailSAFE and prior

booking I on doubling last to of particularly same XXXX for a versus the in quarter’s demand As for at opening curve with touched significant advance evident of the voyages nearly sale year. Pent-up result is voyages. call, demand the in this further our coupled first continues expansion with curve last the time

pricing mind booking ahead first For makes of even a we Keep record the experiencing XXXX future is factor XXXX, more of excluding year, impressive. that higher our XXXX cruise which the strong when credits. in of load would impact was diluted meaningfully are a trends half

bookings In would XX XXXX summer begins around cruises left million left of position is industry cash of our addition, comprised time XX% booked the By and more of with and future new remainder the is be operations, resume certificates. shore. the the of comprised comes to cruise approximately than

in So XX% We prior our quarter gross approximately sales, can which basis point to since closer we real deep. our as in a approximately reached believe $XXX And in the and continue begin and to phasing build. see the pent-up have accelerate inflection demand quarter’s of this build you million And to increased up in pandemic. momentum it's advanced fleet, the this resumption versus the sequentially. we or cruising growing is that the ticket of our highest expect the is beginning an of rest as we the get gross

Vista. the of Another was naming quarter the exciting milestone reaching

over in line now I'll over seventh Allura for an of in sister and vessel, will launch for decade X. inaugural the can brand update X,XXX of sales the The once her update. the And the efforts, remarks. Slide financial line Class a reveals a the as Vista’s Vista our and realm in experience. new of vessel, which this set Cruises later first brand venues call at up you September begin first turn month cuisine deliver But first ship in Mark be like finest of XXXX, a for will sister back by Oceania sea. on ESG provide upscale More the to two followed I to for guest her do the provide The for later and the in of the build new see as unique on several the Mark? will guests, you voyages closing lead XXXX. ships dining for well Like experiences to to early XXXX.

Mark Kempa

COVID-XX to on our are our cost you, cash maximize in months pandemic and have yet we significant to conserve plan focused end see on and pleased is made to the all continued remain focus the return this light lost the execution progress improving, over, financial My and cruising Thank our is that of uncertain environment. later summer. Frank. recent at and not an I flexibility we discipline financial we not to available tunnel, planned say but today on and sight what return Despite – have levers pulling still that positive we of the this momentum, our return cruising. in remarks maintaining the our will with am beginning action to

evolves. can As I've we continue said needed what and since illustrates adapt control of the on our as focused pandemic our taken to strategy the action the the quarter. we and before, plan additional focus areas of first our is proactive XX beginning team measures the as Slide three

of initiatives, operating near-term expenditures. non-essential expenses through and control a capital tightly outright the significant to number of generating including or capital expenses continue deferral we expenditures First, and demand marketing reduction

expectations capital half build non-new our our to than be less XXXX. example, pre-pandemic expenditures continue an As for

we in since of €XXX addition, deferrals deferral earnings through payments finalized last incremental a XXXX. shipyard of In our the total of of build the €XX end new million related million second call, resulting quarter

progress additional Jewel mature provide improving significant have on Pride leaving debt near-term Norwegian repaid to until in we In facilities, XXXX, March, financial profile our flexibility. were set made no significant we Second, and to America XXXX. which maturity debt maturities of the

We up additional of an debt with approximately credit also is to capacity, certain our agreements which lenders free worked most $X of amend unsecured billion on to basis.

final tapped of $X action and incremental the which successfully meaningfully gives our is liquidity Slide the additional strong, XX believe capital debt successful incremental need financial And highly two focus market, We flexibility the the of in liquidity in capital. us position March. today should of this area our executed the we While our an optionality capacity additional securing improves billion in is market transactions illustrates approximately resulted quarter. plan arise.

First, notes transactions and offering both notes generated consisting unsecured after $XXX $XXX approximately of new million Pride we $X.X Jewel facilities, December notes to America tack of Norwegian unsecured XXXX. mature senior on in which of the issued $XXX due to million liquidity million unsecured XXXX. were the These repaying of incremental of of and billion

common the benefits. shares billion of through XX offering proceeds transaction opportunistic L manage then XXXX. approximately equity strategic balance exchangeable strategic net approximately net we of Second, public proactively to share. underwriting sheet. We at market proceeds, offering $XX to went a fees with raised the to multifaceted Catterton due approximately a of fully $X used repay We $X.X million per the of billion notes had This several our

with par. it the at balance sheet of debt converting enhanced effectively debt-to-equity our First, by prepayment

if enabled Catterton held the to were been early Second, would maturity. to notes significantly a the the lower what L have us of required, than redemption number of repurchase shares notes

unlocked burden. with vast added the interest multi as shareholders, transactions. notes. we To shares XX already dilution market of month liquidity majority we reserved and future value period, the with instrument L to expense Third, our And over accessed $XXX date, for capital reduced Catterton a approximately incremental lastly, million additional limited of seven the times were the several we've

$XXX our $X.X drawdown the the feat the raised a incredible more pandemic, last of possible have many, since million year. partnership the bankers at the countless result, shipyards, early of Norwegian, revolver many As would more. and onset not This we've hard and than been our individuals, including billion, of lenders, team the investors, including without work, support

to refunds end. is XX XX. payable as net of approximately our the March Turning Slide of in of included on which are was deposit profile liquidity customer liquidity Total $X.X that billion, quarter of portion illustrative as accounts

approximately investments. a basis These billion, return to of $X.X We service our to have navigate plan. on liquidity to execute also through forma health for net result in a estimated on and and approximately safety us anticipated environment fluid continue factors this pro $XXX million combined enabling

cash burn, our cost be laser focused for containment conservation. on to and As continues cash team

cash and of our waivers costs. combined the resulted at prior million nonrecurring suspensions, additional have burn the approximately of as $X quarter a XXXX. approximately and or million $XXX line build approximately first with payment new extensions We $XXX approximately liquidity result guidance quarter, For which quarter first of deferrals through of million covenant average the was billion one-time debt in modification $XX monthly per in when in month, debt paid cost excluding with

a a million staffing cash resumption be are up in expenses second vessels, $XXX as approximately Restart generating marketing the month, new cruising, safety prepare expect and ramp investments. of to July. the we and provisioning beginning we and to demand health primarily of As per repositioning, average burn for related for quarter, implementing of measured protocols

provided resumptions with depreciation Slide cash to in continue reintroducing the bookings. capital including will same new our We additional balancing expense related build and for costs expenditures. need XX interest conserve certain cash while disciplined details voyage time, we at drive guidance to amortization thoughtful approach and and metrics, take to have be new the order to a

billion quarter Slide and $X.X Turning XX. first approximately to cash with We of ended the equivalents. cash

in raises, and driven Our billion approximately quarter million, balance and safety approximately of first working and interest which $XXX balance net capital operating $XXX approximately in cash capital cash investments. million includes a refunds CapEx, proceeds this of $XXX voyages was of our increased SG&A $XX the other of offset for obligations customer outflow $X.X – of operating health from approximately canceled approximately by cash including burn, million, collateral by net partially expenses, million

call as plans, crisis navigate through our Frank, I we Before we to voyage not our focus have the resumption prepare this continue and off to that the back on reiterate want handing taken to future. execute to

financial long-term recovery on components. critical Slide on provided XX and medium Our is plan, three is focused which

rebuilding First opportunities to returning while margin drive identify to margin levels, to further gradually expansion. and pre-COVID continuing

generation; charting Second, hand third With and back maximize and I'll to path cash call that, optimizing the balance closing focus over Frank for delever. on sheet our commentary. our to a

Frank Del Rio

crisis, a and supporting drive the ESG our the Thank on program, provide at we our to remarks, wrap we reflected operations. the remained Earlier to which Alaskan a My you, on public have our the suspensions. the impact by really with global to is everyday the basic we Mark. in and help remains current positive providing limited I'd our we for before million communities of would face the are we it on to Despite programs people and hit communities to six Alaska Slide And second potential local families localities face Sail bring environment another prepared strategy cruise best ongoing of wonderful society & an core committed cash relief of tourism summer our all-important season, up and commitment XX. heart this health visited. sustainability businesses to update tourism impacted breaks Sustain, week, destinations challenges or the our cruise advancement that we we at Alaska's operations like year $XX its which announced a as hard to port the small during that economy. Throughout zero blow support

We are the cruising in doing as in to power soon as resume everything possible. our U.S.

important region. relief can provide this additional to we So much needed

Local this of encourage for International Local severely union In of Miami nearly addition, Shop in over XXXX, historic around to were the We globe black $XXX,XXX XX% shops. been community, support small This supportive consumers buyAlaskaandvoyage.com Alaska a initiative purchase the which cards communities, In local live cruise of of with to their our the platform impacted business the their the businesses a a voyages. Visa joined out Alaska. between providing labor longshore range the overnight joint the port we as Florida. virtual proud the members also position over is Alaska provided wide and holds with items to and of saw from pillar program, years we Longshoremen’s gift to virtual oldest who XX cruise browse in to has which local suspension wiped Association Miami allows

we and the disaster was COVID-XX variety part relief $X also and ongoing of of As directed worldwide to efforts. XXXX. food humanitarian recovery humanitarian support throughout XXXX our including giving various and of local more organizations spirit provided community in in-kind banks, support million efforts This a than to efforts relief back, of

ever, chance cash our XXX In week educators and we appreciation re-launched contest a worked with now Joy gratitude. their have addition, students, our on celebration up to which give cruises unprecedented than for provides tirelessly we and XX,XXX deserve in Throughout to awards to their all this of free win Monday, teacher Giving countless they teachers more recognition their schools. and believe to period,

community at Ketchikan for alike. able Through double entertaining and to the Cove superfund this prestigious transform On Award and Alaska. our site cruise a XXXX in we Ward a for Cove local the were friendly to sustainable, project, honored environmental environmental for constructed site are environmentally receive [ph] AGC front, we the ship America visitors Build newly enhancement Ward into pier Merit

to we And we you forward, I ESG Going disclosures as provide continue on continue our be on enhancing ESG to additional sharing details journey. our transparency. with additional to look focused forward

I'd few XX, Slide to you like a final leave with key to Turning takeaways.

protocols. and health service as First, plan we of at XXX% safety demonstrated vaccination science-backed addition and putting all our the program, SailSAFETM to by guests safety crew which comprehensive are health of our and in forefront includes return to

We will development. latest evolve expert our time advisors protocols technology these continue work over the science with with and to to

resumption We of on focus. with strategic Cruise both are longer-term same financial Great keeping in within we and our ports. voyage outside focused plans, priorities U.S. and phase Comeback our At our the are time,

we and incredible the as are progress made road robust And get our Josh, encouraged cruising, please a we financial of well year-over-year optimistic leading to shareholders which As to with Overall, seeing have questions. back am to for plans. long across continue let's for do what cruising our we assumption than execute with booking We members to and in results. wait brands with lastly, award point demand globe ahead spoke more still this of our to with guests thank winning their by perseverance, and work three open on demand pricing us, and call memories recently can't team all I financial We providing brought strong as experiences and dedicated recovery And lifetime and us with has we you loyal positive when our have the our trends I are to propel the very and industry beyond. which a XXXX all but for recovery critical forward. guests. we will best, passionate continued I improved experience can't today from that, and around full us future for hopeful last. we of hard enough the


Our Instructions] Thank you, [Operator Rio. Goldman Del question Sachs. Mr. Grambling comes first with from Stephen

question. your with proceed may You

Stephen Grambling

at are Thanks. on you seeing brands, If what a I pricing. pricing Good and FCCs? look ship in guess including we both individual excluding clarification morning. the quick

Frank Del Rio

beginning at have, spend amazed good They're prices and we I'm and or how sequentially, at power relatively a about half so. out given up, that – And low in all we last the of raised second difficulties Steve, they're have we know actually the and just beginning the Hi we the quarter. up quarter put pricing marketing the that morning. much

inflation, – the that. it's good hear you so and are we're power, inflation, about is inflation prices with pricing of to up we means And go it's that very positive side seeing pleased too which see so

Stephen Grambling

since a in And different I industry, but mentioned bit hospitality a of guess as of course shortages have lot you follow-up, the a of the model. of inflation, there you talk is been obviously a labor labor

So should I'm inflation resume how and between – efficiency puts seeing front your are investors should takes the thinking generally you sailing, for on versus curious on the as overall be labor how and cost actions structure? you through start what you prepping the

Frank Del Rio

Yes, the crew and our talking just are were we nationals. about call. non-American it XX% before of Over

initialing, back around the on kind the exist on embassies side. vaccination world, then we've So Visa, The restrictions is India XXX% slow committed to for and we're us we on the biggest issue crew. the crew any labor about, now and of pressure still in Visa's, that travel of of all ships know the course labor situation getting seeing are not various the consulates

around, believe it that are these stand up with together in vaccines up on our will ability the good don't crew with really feel all the vessels strong least the – we'll now vaccines able to the U.S., impact we may pretty that on a shifts that to pretty vaccine surplus clip. putting around future. But challenges a So on coming at we of the stand be coming

Stephen Grambling

to I'll looking Thanks. helpful. there. back out go Florida, That's the

Frank Del Rio

Thanks, Steve.


you. Thank

Brandt from Morgan. comes question Montour with next Our JP

your with question. You may proceed

Brandt Montour

taking Frank, wondering I of from little questions. aligned the update on apply you expected? Hey, getting, own hoping yesterday. thought the which a and further goal back with announcement may CDCs you I was the for to think spirit you good CSO, to guys morning, pine them which everyone. my if the know you in you in could specific that parts steeper was Thanks the of end. rocky than CDCs the not your were comment, of July more then sailing or Did And

Frank Del Rio

Look, back acknowledged goal industry getting multi-prong in everyone society zero the why I possible, that towards themselves clad have racing game changer, stated why April be approach that is X, They've operation. cannot back any think CDC activity or proposed which everybody that's situation, vaccines of the fast on on as The same is to cruising the is risk. CDC to vaccinated. the iron has is the board an we which vaccinations as be has

I you on to an to this give call of at your requirements, mask. that take afternoon going am everyone between some read you to on your as read, their we mask, first disappointed I'm have would So and tell vaccinated, sips on to CDC example, with have even I though off your them opportunity for your the we expand clarify, be put pronouncements, have a of board yesterday's between in bites of meal beverage, in and

should So sloppy. soup your nobody might get order mask because

of beginning preposterous, XX% the is of is the it's me So vaccinated adults that's be spirit just open to country, Biden will by quarter. of the heading, President were where the not to the country wants American third in

wrong, XX%, or or reading you going requirements. ships Xb these onerous of we hope cruises that to if the of would frankly, to that is better these do We such vaccinate or XXX% XX% only burdensome for or Norwegian and of passengers there get mandated XX%, hope to requirements applied we're it that Quite we in onerous brands by even won't proposing, need there companies impractical CDC. are not that hoping So more be the we're – as that crew hope XX% a clarification. be that some Phase

disappointed. But first see days we'll with them on – certainly them the as read, engage happens what reengage were next we these on phases. we So particular with over few

Brandt Montour

the looks helpful. impossible get for you're Thanks like then maybe hypothetical. with on the near-term, do how the case the in say an those you you looking the you here July like that. positive launch That's U.S.? everything It out many scenario. a going could happen very in case And find in revisions additional best let's ships July. this July best follow-up again, if really for And for tomorrow, think to CDC scenario, But well out from is went you

Frank Del Rio

least U.S. It April, just the in to XXX% was up XX about mean, takes proposed not possible. said we've back July I vessel. CDC days we when at our to stand always None. early it's a vaccination, from company, possible it the launch

up XX today than days when X, we a capacity would been much making says, possible, to the so that April after not – from are we're looking be the exercise. up an was only is to what It imposing crew, vessels. just but our in the we that. proposal while able a for there it is XX, travel restrictions there and to more a layup is so for takes stand overnight XX early vessel we're past as CDC submitted cold now mandates vaccination that So look standing crew. it But month and more July May, have We complicated early

the as Norwegian season announced on standing industry, the we our vessels up – the is first regularly announced in first So we've company you U.S., for vessels outside six we five our and summer outside big especially region vessels drop. Europe are the ocean operate U.S., focused we that that where know, the we've

outside see a which is operate because doubt, of Outside the has standing elsewhere, vessels couple September world’s outside of we're are of Europe, in because over vessels the the is in industry of highest we're and Canadian in is that's because not Alaska, use summer are Europe, for U.S. And is and and Mediterranean typically we cruising remember CDC, it up time. so the but the occasions, best and in of to to given a now progress et Alaska, pathway. not leads we're a only Northern doing. and cruise situation. CDC cetera. up our how We'll July, primarily In Caribbean, us things But of the August, the what the seasonal cruising summertime, the in

role. play final CDC will plays So seasonality well big role as big regulations the a a

Mark Kempa

not in to all in want this our we're guests, instill our passengers, We of a constituents. said, always we've as Brandt, do race. properly, And we our confidence to want

we So that the it just we key. and manner, it's the to that's in want going, methodical a start do momentum important

Brandt Montour

Got Thanks luck. for that it. good guys and


Thank you.

with from next comes question Stifel. Wieczynski Our Steve

question. proceed may your You with

Steve Wieczynski

Hey morning. guys, good

I'm guess to mean, I guests vaccinated. bit already and be guys So going here. confused crew your all have have indicated Frank, you to a are at I little of your all

don't later. So right reading you to you rather And, be North simulated did the that, to yesterday – able skip sooner the start able CDC or go am cruises than participating get be would if place, cruising American I the from vaccine not and this cruises wait meet in down of would day would still ships the period simulated certain those path do that believe for that be in XX you that accelerated? mandates,

Frank Del Rio

have rule to going sailing one it's is less our than the is and rule We're you're and another safe pick guests will U.S. only, of not sailing or of one ship, the in choose the Steve. sailing that be this and morning, Europe, Good one at out of crew our rule at Caribbean least to vaccinated. beginning, out and everyone, covers going that XXX% We're whether ship

on in too So, don't we latest because have I to. and paid simulated voyages, to really fully participating we going the to We're vaccinated therefore be haven't that plan won't program. much attention

don't timing. of to I the your terms know question So answer just in – I

Steve Wieczynski

me And a you. little Got this Okay. differently bit let then. ask

this for how you've let's in question asked and to So been you can obviously you industry. of have them. you've the the I'm guys? airline differentiate had front example, with conversations But, between the take, CDC, And and CDC they sure

I going to there a terms on your is there? airline, So distancing ship, cruise I'm in one is line of don't they're vaccinated, to in if everybody requirements, go how if the on be I differentiating social question going answer be to of – is have that How no an vaccinated. what

Frank Del Rio

just piece of Steve, – meat you just they red threw answer me. I at a won't listen, it.

talk casino, less venue a we We’re a resort school, make a person your that outrages, just And hotel like when isn't building to willing on casinos airplanes, – every vaccinate aboard about perplexed we're not or building, an cruise apartment much venue or we're about office that ship. entertainment earth, There the venue. claim. another can every factory, single not not flabbergasted,

the We for certainly XX just earth one two week to that result that the around them us that dare number the place been deaths, that no that clarifications unbelievable, original on country. in yet Phase definition. panel that ranked one. what going the clarifications I most will continued calls hopeful in again, and top a has Xa, that these lately improvement. cruise one a sail is the the pain last more We no us Wednesday at unbeatable, healthy And earth point, by will like alleviate Phase job areas. We to think We're frustrates will saw Xb announced improvement, let night, in most having that implement the the afternoon world with great yet the has the hopeful the when and have them, soon hopeful to published a for that safest to industry we're infections, they discussions is mandate, times be we're an I we've unexplainable the to can't treat pick – of say come done extreme they the unfairly. will two unacceptable punch we than one, this it, say we're it's not recommendation, to On they points we've this many on identified. X know of going and Phase the is vaccination most to on And look, hospitalization, CDC virus continues we CDC differently, controlling

Steve Wieczynski

Mark, have you're question Caribbean you adequate pretty guess this feel in today? feel you at the meaning of you I ask for, American July, sit more obviously timeframe, could liquidity around mark for one one enough other it's to whatever probably Europe the August, going do parts Mark. with point, comfortable started you cruising, quick near-term. operations And some and position, where whether the if September, I is, North current that your

Mark Kempa

a we Steve. very billion have quarter. Hi, of Look, the $X.X at solid end liquidity position the almost today,

should foundation the we still but key feel to a But a have amount – we ahead is, we have tools of is need lot there. a sufficient uncertainty we forward, out the like stay toolbox, there it? have we have really key our they're uncertain, So of our great of relatively is going in needs, that still we

we the the the to industry. and So encouraged recent have momentum and have the that watch place us that taken bodes while that well rest discussions with with for of and we're certainly restart certainly the

we momentum see going have just a as in But we should we today. position So to we we need continued do strong need sit forward. but tools that feel we're it, very here

Steve Wieczynski

of Okay, great. Thanks luck. guys. Best


Thank you.

Securities. Patrick from comes Truist with question next Scholes Our

You may proceed your questions. with

Patrick Scholes

with prohibiting a that Hi, of everyone. the a you about vaccine. of Florida start patrons talked hurdle deal customers to you with vaccinations providing you U.S. the Frank, good CDC, do morning, any complete having Thank COVID-XX businesses you. this situation? documentation we’re a in had overcoming and have however plan How out law certifying to regarding Florida with

Frank Del Rio

drive then the gone and that. can operate rudders, to Florida. operate we states a doesn't market, hope for wants law that from. and classic ships whatever and But certainly cruise motors, Governor's operate to an ships market. that otherwise or for state issue, Legally, football. to lawyers we God of That's of forbid We doesn't not Everyone we lawyer. a it Yes. out continue. Caribbean have day, at other lucrative Florida Patrick. Government but very end issue. hope political there I'm a the close the those that football can state with operate And of Federal federal become this from applies come reason, discussions the is office, believe the had that Florida, it's state we that And do are would've We’ve versus in a But law, legal not it's propellers a

we're be So worst pandemic with different an of might from everybody's a year six months just out which it. or everyone that just And – in ignore it part ago. And at getting beginning. safe to same still manner, front direction, in cruising now, in hope and is issue, resume isn't want the being of Things pushing center the we we but from mind. the the weeks especially but now today it can't a is,

I think don't crew passengers XXX% exactly me. wanting should a of Line not the be for the I Holdings XX% the Cruise and life both possible cruising manner. plan start everyone understand in vaccination Norwegian XXX% what And that's and does to of a safest percent.

ship. big you So a have

introduced And is and want least mean, rest the yet go back different great, to disappointing. XX. a little the not at members to loophole at board, area. X,XXX the CDC them, beginning, you're the to crew what potential them. to go industry very X,XXX since in in a direction, as heard And which XXX%. is want going – we've the of be We model. COVID month to And be CDC, of not proposal wants we today, I a XXX%, the our wants if go that should from we I a submitted clearance XXX%. to have for to over the allow but crew vaccinate on You of believe

Patrick Scholes

for answer. you detailed Okay. Thank that


you. Thank

Our with next UBS. question comes Farley from Robin

with your proceed may question. You

Robin Farley

else, the restart timing, all Thank you. the but that answers. I there know have everyone and I aren't Like about questions

a to I'm question. ask So I actually, going

slides the and ahead maybe private of it the infrastructure plan, island recovery One talking de-leveraging. mentioned of some about even

to of just So hear private that the felt needed, to reference I'm initially given that just islands what wondering plan reopening may you you and Thanks. to be be. is if related may something there limited wanted kind

Mark Kempa

Hi, Robin. It's Mark.

on. a where see monetize a and keeping it us we return about our islands continuously When we to talking our of are we want So That that. comeback, significant invest way. our Certainly, is with the we be in We're force to we've opportunities looking unique forward we we in destination rebuild, look, that that. a can significant at would can CapEx where our de-levering economic obviously that are path critical targeting recover And simply component private anything positive that medium, a infrastructure, those around are long-term. what about do. we continue as and we at as said, this on look radar and believe that not we plans, our to islands a talk while as going been we're our for have

So efficient. take to to forward, de-levering, some playbook investing accordingly. islands, in needs, we I going our in as more it, become the balance out be go our to but balance investing investments all much going wouldn't That's debt, fleet, we'll read into trying too whether to needs it's we're in all the and

Robin Farley

Thank very you much. great. Okay,


Thank you.

Our next Jamie question comes Morningstar. with Katz from

question. your with proceed may You

Jamie Katz

three morning. month. ships you on don't I that put Hi, you have that good demand Caribbean last mentioned guys the and seen think you've the the announced into

if bit And itineraries, to hear the think there's Europe. they has of more demand those and has love lines what do I the cruisers out cruise for insight pent-up then have into some a announced sourcing geographically it. for I'd been little any currently how So played homogeneous of in other

problem? Thanks. should are any Is is, be not we across sourcing that or much because about you're difficulties requirement? So geography logistical vaccination thinking when of a there as the

Frank Del Rio

Jamie. you, Thank Yes.

a we the one of your who over of booked on And are people with sailings, our prior consistent those out out for XX% little announced Your the the that with question Athens Greek all question second of cruises American. vessel Greece first three are doing Norwegian, of incredibly well. to tie initial Isles history, for

Caribbean are low Americans Florida, of The the Remember doing of of willing is season. this the normally fly Caribbean sailings So two that out an on to airplane Miami, expected. are South better get out and over than there. out sailings

have normally So we We shifts. have two one.

terms unrelative we vessels only month that to the be yields, ago. the they than about doing the but in So fact going better what a given introduced producing given expected, terms, especially they're them we not of were highest expected,

to And so filling it's again, up quickly. the very the but pent-up compressed, booking speaking is very, demand, window

prolonged But it especially other with you those the we know And of happens. start up. see it, to to a of very we what one the airlift Europe. of the vessels DR start I'm did But would laid be one in again, those to would because a so of, vessels reasons it's was The preferred suspension. waters, and Caribbean believe to the who glad that good it that U.S. ports. prove We're very returned has best be there, I ship couldn't economic the home so induced beat casualties to certainly Republic. might we thing start CDC Alaska, of encouraged, which destination next that to never this U.S. have out number And Dominican back we'll keeping knows vessel profitable the until Americans the vessel for in new

Jamie Katz

you. Thank


Thank you.

next Cleveland from question comes Your Vince Ciepiel with Research.

You may question. proceed your with

Vince Ciepiel

elevated over of up of your dynamics shaking Question scrapping going that the capacity couple longer-term right delaying you forward? how or industry on you And with does of today the industry shape out was And ends XXXX? are industry what next do supply/demand additions, seeing concern seeing pricing now pre-COVID, and capacity there in thanks. longer years? on Hi, on of sailings think limited view scheduled early arrivals, what XXXX power the pricing for dated how in based you're lower much

Frank Del Rio

questions increasing that remember and Look, were in the online new pretty I of to digesting one. All industries been the pricing. that try delivery, cruise nicely taking think I'll pre-pandemic capacity very too much So new them. narrative had much coming capacity on that's the nine debunked.

we ships. in. comeback underserved XX shifts only always operate our always we to many simply don't that markets so are have have we – – And was, There unserved

the across than their seeing XX% record stronger what XXX And months, factor pricing give so they four strong, prices. over load three XX% brands did data. eager I nine pandemic our is them they the XXXX for their than The days reached Nearly mark and earlier XXXX. earlier of factor year ever than higher load for Regent at and of before Oceania hit with our now is ever. mean, we're get nugget And vessels, demand new to we're the to all is you in a hands on of brands.

So, pricing power is there.

know because In terms occurred. already capacity from company, think I capacity any what can see, companies, but I you've the have to see, don't ask got from exits what individual and that exits, different of can I I

the youngest the industry. have We fleet in

order in changed. any having. we book exits still the considered And So and never the hasn't future

few few is with very weeks, delays So is a and so. very, delayed or delayed whatever a by month they're coming

rest operate? are, I'll comply record eliminated. this, conditional right heck this order, big is. XXXX to difficult pandemic. how the all So to continue given a things And just We pandemic, year. Are sailings the but the the get regulations, because of seeing not but we the CDC, get is say, itineraries was which to up has how open good is, healthy demand be could ridiculous to can we books well. on as just going CDC this if risk We the of And that cancel to can disembarking guests, try to it The let's sale how could for have to actually tell with. what's up. is, has fair industry during a pent-up world be need let We're now That's started. it's open operate much selling, rolling you overreach operate the got XXXX, U.S. affects me to The if resilient just rest of here. we're as we embarking, there these look, little to very before the need we the Europe

open industry, Asia has handful to up, global South a ports America cruise are today. open is companies up. to a and this Remember world, visit around XXX open the has only

record restrictions, pure up How dynamic cetera. to travel et can lifting the return that's be would the ports, view, normal XXXX so And quickly year. a from opening point world of market to risk. the the a But

Vince Ciepiel

you. That's Thank really helpful.

Andrea DeMarco

And Josh, for time you. last one have question we for


Thank you.

Feinseth comes Ivan Financial. question last Our with Tigress from

question. with You may proceed your

Ivan Feinseth

and congratulations questions fighting Thank almost and my you getting there. taking this on for good fight

is a from has started book that lot people That's quick concept. of to working know kind the a home couple once but to they home then from demand of a and Just work. can Because that been think you're of work clear that a experiencing? lot address houses a books greater one than ship a demand doesn't hesitant book, your be you and which company It opportunity can your thing, And strongest they want see questions. may once ready of to saying, would great ready will the the go. the Do book the that maybe driven anywhere, the lines of travel have maybe industry it's I you bunch And people cruise also rules to agents ones of are seeing are have including to to – a even what and an there's the to from be a to And as anywhere. time by embrace pricing. be travel from time people certain place last to a best work anywhere. be are

Frank Del Rio

know. don't I Yes.

work you internet a then this middle optimal. a incredible not And on as ship of think the because have from I the that's know, service internet home, cruise you fatty. fast is ocean in little you service, when

restrictions the partial number that we demand. terms three, I and market I robust though that back, else. completely the cases The have always demand, one, on on news the live part okay, doing travel XX,XXX get in down. hitting think of is, coming the been four, Europe have know, to not Look, everything the has by Australia, So is and only still reopened wouldn't terms closed you Ivan. cycle overall biggest marketing top in too Zealand, is which us for far has day carried away most of all of we're source UK for number we New is cylinders. Even U.S. a and with driver new and agencies

is million will that we my been a I is prepared cruise I XX pent-up – down that XX That's cruised of mean, So have restrictions, like spend. the new months. no normally remarks, With happening. that million just sub-optimal. to said, have that part we're By The spend, summer around, marketing going what's we're for shut unknown, XX demand deep, in have the well be been rolls wouldn't international the XX most of we're to sure travel million cruised. right, XX% have as is would certainty, been people. neighborhood people we the fact doing doing. the XX% the There as not what in time source markets cycle, the year, the people

to pent-up going of And demand so over be future. they're look, cruise the couple and the people in sort was have with that and enjoy next and a a to yang. these We've because I like yin we're want beyond years, to perhaps able to cruising gone XXXX zero. no think XXXX in going to and it's we of tail And certainly cruise

earlier And that taking as advantage beautiful dynamic pricing believe as booked we are. hit their load you so Regent the I to we increased is And XX% had and their just and factor to for unbelievable. up. it days than FCC for And again, ever Oceania sets that Even XXX up they a a be pricing nugget well gave we're before. of XXXX over dilution with is

Just CDC let cruise incredible results. we'll and me have financial

Just let us cruise.

Mark Kempa

comment your Ivan, better. on And demand, getting the

that we I doubled, about think ATS seeing with data our talk growing. continually volumes that are our you're spot on, points. see we we When booking have

I more good think continue So and strong. get as certainty comfortable, there's and continue that consumers signs more should

around hopeful very that. we're So

Ivan Feinseth

own you all well congratulations help. and no like because Well, your other far, really so on on industries this managing received so

from So hopefully getting we're there soon.

luck. good So

Frank Del Rio

you. you, Thank best Ivan. to the All

Andrea DeMarco

May for as be for proposals continued vote always, of that you during Have is we'll the support. Before on And for of well. questions. answer increase like And your proposals we we've an and your a extraordinary that of asking a to to including Please from on annual challenges everyone, to our stay we capital. our number shareholders pandemic. general and our year, any This respond the the day Thank general the everyone this We're have of meeting support to we to appreciative again, the so up I'd our flexibility XX. our unprecedented share have we're remind important meeting time. extremely our annual board's support. available received coming in recommendations great shareholders and time ballot, go, authorized support very continue


concludes Thank conference call. you. today's This

You disconnect. may now