Company Becomes First Major Cruise Operator to Return Entire
Pricing Strength Continues for all Future Periods
Operating Cash Flow Slightly Positive in March
“Last week we reached the biggest milestone yet in our Great Cruise Comeback as Norwegian Spirit, the last ship in our fleet to resume sailing, welcomed guests on board in Papeete, Tahiti. The herculean effort to restart our fleet would not have been possible without the incredible fortitude of the entire Norwegian team and the unwavering support of our key partners and stakeholders around the world,” said
Great Cruise Comeback Update
The Company completed its phased fleet relaunch on
By the end of the first quarter of 2022 the Company had 85% of its capacity operating. Occupancy in the first quarter of 2022 was 48% primarily reflecting the impact of Omicron which caused operational challenges and disruptions, including additional travel restrictions, increased health-related protocols and certain port closures. During the surge, the Company continued to follow its core go-to-market strategy and did not discount-to-fill in order to boost near-term load factors. As the booking impacts of Omicron and the conflict in
The
The Company reached a significant financial inflection point in March with Operating Cash Flow turning slightly positive. The Company also expects Operating Cash Flow to be positive for the second quarter of 2022.
Improving Public Health and Regulatory Environment
In recent months, the Company has seen a significant improvement in the global public health and regulatory environment. In March, the
All voyages across the Company’s three brands continue to operate under its robust science-backed SailSAFE health and safety program which will evolve along with the public health environment. The Company also follows applicable local protocols at the ports and destinations it visits. As a result of its stringent protocols, the Company has seen COVID-19 prevalence rates vastly lower than what has been experienced on land during the pandemic.
Booking Environment and Outlook
The quarter began with net bookings, particularly for close-in voyages, negatively impacted by the Omicron surge, which began to improve in mid-January. This momentum was temporarily disrupted as the Company experienced elevated cancellations, primarily for itineraries in the Baltic region, in the immediate weeks following the start of the
As a result of the temporary setbacks from Omicron and the
The Company’s advance ticket sales balance, including the long-term portion, increased
Liquidity, Cash Burn and Financial Recovery Plan
The Company continues to take proactive measures to enhance liquidity and financial flexibility in the current environment and optimize its balance sheet. As of
As part of its financial recovery plan, the Company raised approximately
The Company's monthly average cash burn for the first quarter of 2022 was approximately
“I am incredibly proud of the significant progress we have made to-date in our operational and financial recovery, demonstrating our Company’s resilience as we navigate the evolving public health environment and geopolitical conflicts,” said
1 See “Terminology” and “Non-GAAP Financial Measures” below for additional information about Net Yield.
2 Cash burn rates include ongoing ship operating expenses, administrative operating expenses, interest expense, taxes, debt deferral fees and expected non-newbuild capital expenditures and excludes cash refunds of customer deposits as well as cash inflows from new and existing bookings, newbuild related capital expenditures and other working capital changes. The first quarter 2022 cash burn rate reflects the deferral of debt amortization and previously agreed to newbuild related payments.
First Quarter 2022 Results
GAAP net loss was
Revenue increased to
Total cruise operating expense increased 266.1% in 2022 compared to 2021, primarily due to the resumption of cruise voyages. The increase in 2022 reflects higher payroll, fuel, and direct variable costs of fully operating ships. Cost for certain items such as food, fuel and logistics also increased due to inflation. Additionally, in 2022, there was an increase in repair and maintenance costs, including planned Dry-docks.
Fuel price per metric ton, net of hedges, increased to
Interest expense, net was
Other income (expense), net was income of
Outlook
As a result of the COVID-19 pandemic, most recently fueled by the Omicron variant and the effects of the
The following reflects the Company’s expectations regarding fuel consumption and pricing, along with accompanying sensitivities.
Second Quarter 2022 | Full Year 2022 | |||||
Fuel consumption in metric tons | 220,000 | 895,000 | ||||
Fuel price per metric ton, net of hedges | ||||||
Effect on Adjusted EPS of a 10% change in fuel prices, net of hedges |
(1) For the remainder of 2022
As of
2022 | 2023 | ||||||
% of HFO Consumption Hedged1 | 30% | 15% | |||||
Average USGC Price / Barrel | N/A | ||||||
Average | |||||||
% of MGO Consumption Hedged | 51% | 32% | |||||
Average Gasoil Price / Barrel | |||||||
Total % of Consumption Hedged | 41% | 24% |
(1) USGC derivatives were de-designated for accounting purposes in the fourth quarter of 2020. Both our USGC and Brent derivatives represent economic hedges and may be designated or re-designated as accounting hedges in the future.
Anticipated non-newbuild capital expenditures for full year 2022 are expected to be approximately
Interest Expense, net is expected to be approximately
Company Updates and Other Business Highlights:
Environmental, Social and Governance (“ESG”)
- Committed to pursue net zero emissions by 2050 across the Company’s operations and value chain. To support its path to net zero, the Company has also committed to develop short- and near-term greenhouse gas reduction targets. Learn more here.
- Published first
Task Force on Climate-related Financial Disclosures (“TCFD”) Report which provides critical transparency to stakeholders. View the full report here: 2021 TCFD Report. - President and CEO
Frank Del Rio signed the CEO Action pledge for Diversity & Inclusion inMarch 2022 , further demonstrating commitment to advancing diversity, equity and inclusion in the workplace.
Fleet and Brand Updates
- Announced world famous superstar pop icon and "American Idol" judge
Katy Perry will serve as the godmother to Norwegian Cruise Line’s newest ship, Norwegian Prima and be the headline entertainer for the ship’s christening ceremony. Learn more here. Norwegian Cruise Line launched the cruise industry’s first NFT collection, open for auction and sale, and sold a collection of six NFTs to celebrate the launch of the cutting-edge Norwegian Prima Class. The NFTs were created byManuel Di Rita , widely known as "Peeta," the Italian artist who designed the hull art on the Norwegian Prima and her sister vessel Norwegian Viva. All proceeds from the NFT auction and sales will be donated toTeach For America . Learn more here.Oceania Cruises set a new single-day booking record onMarch 2, 2022 with the launch of its 2024 Around the World in 180 Days voyage and its Grand Voyages in theAsia-Pacific region , surpassing the previous record set inSeptember 2021 by almost 12%. Learn more here.- Celebrated the float out of Oceania Cruises’ newest 67,000-ton, 1,200-guest ship Vista at the Fincantieri shipyard in Sestri Ponente,
Italy . Vista will debut inApril 2023 . Learn more here. - Announced Oceania Cruises’ Riviera and Marina to undergo stem-to-stern re-inspiration in 2022 and 2023 as part of the
Oceania NEXT program. Learn more here. Regent Seven Seas Cruises marked the return of its entire fleet to service onMarch 26, 2022 .
Other Highlights
- Activated Company’s
Crew Relief Fund and is providing ongoing communications and logistical support and counseling to Ukrainian and other team members impacted by theRussia -Ukraine conflict. Also pledged an additional$100,000 to Save the Children’sUkraine Crisis Relief Fund . - Announced the signing of a Memorandum of Agreement to develop berthing and upland facilities in
Whittier, Alaska in partnership with theHuna Totem Corporation . The privately funded development project will consist of a marine vessel docking facility able to berth vessels from the Company’s three brands, along with related structures including a cruise ship terminal and facilities for rail and bus access. Learn more here.
Conference Call
The Company has scheduled a conference call for
About
Terminology
Adjusted EBITDA. EBITDA adjusted for other income (expense), net and other supplemental adjustments.
Adjusted EPS. Adjusted Net Loss divided by the number of diluted weighted-average shares outstanding.
Adjusted Gross Margin. Gross margin adjusted for payroll and related, fuel, food, other and ship depreciation. Gross margin is calculated pursuant to GAAP as total revenue less total cruise operating expense and ship depreciation.
Adjusted Net Cruise Cost Excluding Fuel.
Adjusted Net Income. Net income, adjusted for non-cash compensation expense and any potential impacts associated with financing activities.
Adjusted Net Loss. Net loss adjusted for supplemental adjustments.
Berths. Double occupancy capacity per cabin (single occupancy per studio cabin) even though many cabins can accommodate three or more passengers.
Capacity Days. Berths available for sale multiplied by the number of cruise days for the period for ships in service.
Constant Currency. A calculation whereby foreign currency-denominated revenues and expenses in a period are converted at the
Dry-dock. A process whereby a ship is positioned in a large basin where all of the fresh/sea water is pumped out in order to carry out cleaning and repairs of those parts of a ship which are below the water line.
EBITDA. Earnings before interest, taxes, and depreciation and amortization.
EPS. Diluted loss per share.
GAAP. Generally accepted accounting principles in the
Gross Cruise Cost. The sum of total cruise operating expense and marketing, general and administrative expense.
Net Cruise Cost Excluding Fuel.
Net Yield. Adjusted Gross Margin per Capacity Day.
Occupancy Percentage or Load Factor. The ratio of Passenger Cruise Days to Capacity Days. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.
Operating Cash Flow. Net cash provided by (used in) operating activities.
Passenger Cruise Days. The number of passengers carried for the period, multiplied by the number of days in their respective cruises.
Non-GAAP Financial Measures
We use certain non-GAAP financial measures, such as Adjusted Gross Margin, Net Yield,
As our business includes the sourcing of passengers and deployment of vessels outside of the
We believe that Adjusted EBITDA is appropriate as a supplemental financial measure as it is used by management to assess operating performance. We also believe that Adjusted EBITDA is a useful measure in determining our performance as it reflects certain operating drivers of our business, such as sales growth, operating costs, marketing, general and administrative expense and other operating income and expense. Adjusted EBITDA is not a defined term under GAAP nor is it intended to be a measure of liquidity or cash flows from operations or a measure comparable to net income (loss), as it does not take into account certain requirements such as capital expenditures and related depreciation, principal and interest payments and tax payments and it includes other supplemental adjustments.
In addition, Adjusted Net Loss, Adjusted Net Income and Adjusted EPS are non-GAAP financial measures that exclude certain amounts and are used to supplement GAAP net loss and EPS. We use Adjusted Net Loss, Adjusted Net Income and Adjusted EPS as key performance measures of our earnings performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparison to our historical performance. In addition, management uses Adjusted EPS as a performance measure for our incentive compensation during normal operations. The amounts excluded in the presentation of these non-GAAP financial measures may vary from period to period; accordingly, our presentation of Adjusted Net Loss and Adjusted EPS may not be indicative of future adjustments or results.
You are encouraged to evaluate each adjustment used in calculating our non-GAAP financial measures and the reasons we consider our non-GAAP financial measures appropriate for supplemental analysis. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to the adjustments in our presentation. Our non-GAAP financial measures have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Our presentation of our non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our non-GAAP financial measures may not be comparable to other companies. Please see a historical reconciliation of these measures to the most comparable GAAP measure presented in our consolidated financial statements below.
Cautionary Statement Concerning Forward-Looking Statements
Some of the statements, estimates or projections contained in this release are “forward-looking statements” within the meaning of the
Investor Relations & Media Contact | |
(305) 468-2339 InvestorRelations@nclcorp.com |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
(Unaudited) | ||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||
Three Months Ended | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenue | ||||||||||||||
Passenger ticket | $ | 342,455 | $ | 166 | ||||||||||
Onboard and other | 179,485 | 2,934 | ||||||||||||
Total revenue | 521,940 | 3,100 | ||||||||||||
Cruise operating expense | ||||||||||||||
Commissions, transportation and other | 87,958 | 9,033 | ||||||||||||
Onboard and other | 32,550 | 1,259 | ||||||||||||
Payroll and related | 240,727 | 82,138 | ||||||||||||
Fuel | 135,509 | 42,603 | ||||||||||||
Food | 39,516 | 6,308 | ||||||||||||
Other | 199,153 | 59,514 | ||||||||||||
Total cruise operating expense | 735,413 | 200,855 | ||||||||||||
Other operating expense | ||||||||||||||
Marketing, general and administrative | 296,207 | 203,195 | ||||||||||||
Depreciation and amortization | 179,076 | 170,316 | ||||||||||||
Total other operating expense | 475,283 | 373,511 | ||||||||||||
Operating loss | (688,756 | ) | (571,266 | ) | ||||||||||
Non-operating income (expense) | ||||||||||||||
Interest expense, net | (327,685 | ) | (824,441 | ) | ||||||||||
Other income (expense), net | 38,120 | 27,243 | ||||||||||||
Total non-operating income (expense) | (289,565 | ) | (797,198 | ) | ||||||||||
Net loss before income taxes | (978,321 | ) | (1,368,464 | ) | ||||||||||
Income tax expense | (4,393 | ) | (1,728 | ) | ||||||||||
Net loss | $ | (982,714 | ) | $ | (1,370,192 | ) | ||||||||
Weighted-average shares outstanding | ||||||||||||||
Basic | 417,734,591 | 329,377,207 | ||||||||||||
Diluted | 417,734,591 | 329,377,207 | ||||||||||||
Loss per share | ||||||||||||||
Basic | $ | (2.35 | ) | $ | (4.16 | ) | ||||||||
Diluted | $ | (2.35 | ) | $ | (4.16 | ) | ||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||||||
(Unaudited) | |||||||||||
(in thousands) | |||||||||||
Three Months Ended | |||||||||||
2022 | 2021 | ||||||||||
Net loss | $ | (982,714 | ) | $ | (1,370,192 | ) | |||||
Other comprehensive income (loss): | |||||||||||
Shipboard Retirement Plan | 2,476 | 98 | |||||||||
Cash flow hedges: | |||||||||||
Net unrealized gain (loss) | 39,304 | (73,037 | ) | ||||||||
Amount realized and reclassified into earnings | (7,502 | ) | 21,838 | ||||||||
Total other comprehensive income (loss) | 34,278 | (51,101 | ) | ||||||||
Total comprehensive loss | $ | (948,436 | ) | $ | (1,421,293 | ) | |||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(Unaudited) | |||||||||||
(in thousands, except share data) | |||||||||||
2022 | 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 2,136,840 | $ | 1,506,647 | |||||||
Short-term investments | — | 240,000 | |||||||||
Accounts receivable, net | 544,961 | 1,167,473 | |||||||||
Inventories | 141,956 | 118,205 | |||||||||
Prepaid expenses and other assets | 390,753 | 269,243 | |||||||||
Total current assets | 3,214,510 | 3,301,568 | |||||||||
Property and equipment, net | 13,532,399 | 13,528,806 | |||||||||
98,134 | 98,134 | ||||||||||
Tradenames | 500,525 | 500,525 | |||||||||
Other long-term assets | 1,909,924 | 1,300,804 | |||||||||
Total assets | $ | 19,255,492 | $ | 18,729,837 | |||||||
Liabilities and shareholders' equity | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | 1,009,741 | $ | 876,890 | |||||||
Accounts payable | 91,786 | 233,172 | |||||||||
Accrued expenses and other liabilities | 1,097,828 | 1,059,034 | |||||||||
Advance ticket sales | 1,977,325 | 1,561,336 | |||||||||
Total current liabilities | 4,176,680 | 3,730,432 | |||||||||
Long-term debt | 12,563,518 | 11,569,700 | |||||||||
Other long-term liabilities | 1,007,692 | 997,055 | |||||||||
Total liabilities | 17,747,890 | 16,297,187 | |||||||||
Commitments and contingencies | |||||||||||
Shareholders' equity: | |||||||||||
Ordinary shares, | |||||||||||
outstanding at | 419 | 417 | |||||||||
Additional paid-in capital | 7,537,111 | 7,513,725 | |||||||||
Accumulated other comprehensive income (loss) | (250,808 | ) | (285,086 | ) | |||||||
Accumulated deficit | (5,779,120 | ) | (4,796,406 | ) | |||||||
Total shareholders' equity | 1,507,602 | 2,432,650 | |||||||||
Total liabilities and shareholders' equity | $ | 19,255,492 | $ | 18,729,837 | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(Unaudited) | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended | |||||||||||||||
2022 | 2021 | ||||||||||||||
Cash flows from operating activities | |||||||||||||||
Net loss | $ | (982,714 | ) | $ | (1,370,192 | ) | |||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
Depreciation and amortization expense | 195,464 | 183,808 | |||||||||||||
Gain on derivatives | (19,779 | ) | (18,687 | ) | |||||||||||
Loss on extinguishment of debt | 188,433 | 621,894 | |||||||||||||
Provision for bad debts and inventory obsolescence | 1,294 | 4,329 | |||||||||||||
Gain on involuntary conversion of assets | - | (418 | ) | ||||||||||||
Share-based compensation expense | 32,792 | 26,601 | |||||||||||||
Net foreign currency adjustments | (4,126 | ) | (5,141 | ) | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable, net | 618,853 | (2,648 | ) | ||||||||||||
Inventories | (24,141 | ) | (2,351 | ) | |||||||||||
Prepaid expenses and other assets | (632,610 | ) | (406,807 | ) | |||||||||||
Accounts payable | (136,767 | ) | 6,626 | ||||||||||||
Accrued expenses and other liabilities | (25,587 | ) | 35,341 | ||||||||||||
Advance ticket sales | 417,877 | 75,634 | |||||||||||||
Net cash used in operating activities | (371,011 | ) | (852,011 | ) | |||||||||||
Cash flows from investing activities | |||||||||||||||
Additions to property and equipment, net | (165,284 | ) | (136,350 | ) | |||||||||||
Purchases of short-term investments | - | (205,000 | ) | ||||||||||||
Proceeds from maturities of short-term investments | 240,000 | - | |||||||||||||
Cash paid on settlement of derivatives | - | (4,642 | ) | ||||||||||||
Other | 4,940 | 2,726 | |||||||||||||
Net cash provided by (used in) investing activities | 79,656 | (343,266 | ) | ||||||||||||
Cash flows from financing activities | |||||||||||||||
Repayments of long-term debt | (935,444 | ) | (870,396 | ) | |||||||||||
Proceeds from long-term debt | 2,073,175 | 1,161,672 | |||||||||||||
Common share issuance proceeds, net | - | 1,558,412 | |||||||||||||
Proceeds from employee related plans | 2,557 | 1,089 | |||||||||||||
Net share settlement of restricted share units | (11,961 | ) | (16,043 | ) | |||||||||||
Early redemption premium | (172,012 | ) | (611,164 | ) | |||||||||||
Deferred financing fees | (34,767 | ) | (25,742 | ) | |||||||||||
Net cash provided by financing activities | 921,548 | 1,197,828 | |||||||||||||
Net increase in cash and cash equivalents | 630,193 | 2,551 | |||||||||||||
Cash and cash equivalents at beginning of the period | 1,506,647 | 3,300,482 | |||||||||||||
Cash and cash equivalents at end of the period | $ | 2,136,840 | $ | 3,303,033 | |||||||||||
NON-GAAP RECONCILING INFORMATION | |||||||||||||
(Unaudited) | |||||||||||||
The following table sets forth selected statistical information: | |||||||||||||
Three Months Ended | |||||||||||||
2022 | 2021 | ||||||||||||
Passengers carried | 191,150 | — | |||||||||||
Passenger Cruise Days | 1,429,446 | — | |||||||||||
Capacity Days | 2,978,353 | — | |||||||||||
Occupancy Percentage | 48.0% | ||||||||||||
Gross margin and Adjusted Gross Margin were calculated as follows (in thousands): | |||||||||||||
Three Months Ended | |||||||||||||
2022 | |||||||||||||
Constant | |||||||||||||
2022 | Currency | 2021 | |||||||||||
Total revenue | $ | 521,940 | $ | 522,774 | $ | 3,100 | |||||||
Less: | |||||||||||||
Total cruise operating expense | 735,413 | 737,768 | 200,855 | ||||||||||
Ship depreciation | 166,656 | 166,656 | 159,631 | ||||||||||
Gross margin | (380,129 | ) | (381,650 | ) | (357,386 | ) | |||||||
Ship depreciation | 166,656 | 166,656 | 159,631 | ||||||||||
Payroll and related | 240,727 | 240,721 | 82,138 | ||||||||||
Fuel | 135,509 | 135,509 | 42,603 | ||||||||||
Food | 39,516 | 39,622 | 6,308 | ||||||||||
Other | 199,153 | 201,179 | 59,514 | ||||||||||
Adjusted Gross Margin | $ | 401,432 | $ | 402,037 | $ | (7,192 | ) | ||||||
NON-GAAP RECONCILING INFORMATION | |||||||||||||
(Unaudited) | |||||||||||||
Gross Cruise Cost, | |||||||||||||
Three Months Ended | |||||||||||||
2022 | |||||||||||||
Constant | |||||||||||||
2022 | Currency | 2021 | |||||||||||
Total cruise operating expense | $ | 735,413 | $ | 737,768 | $ | 200,855 | |||||||
Marketing, general and administrative expense | 296,207 | 297,565 | 203,195 | ||||||||||
Gross Cruise Cost | 1,031,620 | 1,035,333 | 404,050 | ||||||||||
Less: | |||||||||||||
Commissions, transportation and other expense | 87,958 | 88,186 | 9,033 | ||||||||||
Onboard and other expense | 32,550 | 32,550 | 1,259 | ||||||||||
911,112 | 914,597 | 393,758 | |||||||||||
Less: Fuel expense | 135,509 | 135,509 | 42,603 | ||||||||||
Net Cruise Cost Excluding Fuel | 775,603 | 779,088 | 351,155 | ||||||||||
Less Non-GAAP Adjustments: | |||||||||||||
Non-cash deferred compensation (1) | 699 | 699 | 905 | ||||||||||
Non-cash share-based compensation (2) | 32,792 | 32,792 | 26,601 | ||||||||||
Adjusted Net Cruise Cost Excluding Fuel | $ | 742,112 | $ | 745,597 | $ | 323,649 | |||||||
(1) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense. | |||||||||||||
(2) Non-cash share-based compensation expense related to equity awards, which are included in marketing, general and administrative expense and payroll and related expense. | |||||||||||||
NON-GAAP RECONCILING INFORMATION | |||||||||
(Unaudited) | |||||||||
Adjusted Net Loss and Adjusted EPS were calculated as follows (in thousands, except share and per share data): | |||||||||
Three Months Ended | |||||||||
2022 | 2021 | ||||||||
Net loss | $ | (982,714 | ) | $ | (1,370,192 | ) | |||
Non-GAAP Adjustments: | |||||||||
Non-cash deferred compensation (1) | 1,012 | 1,003 | |||||||
Non-cash share-based compensation (2) | 32,792 | 26,601 | |||||||
Extinguishment and modification of debt (3) | 188,433 | 674,019 | |||||||
Adjusted Net Loss | $ | (760,477 | ) | $ | (668,569 | ) | |||
Diluted weighted-average shares outstanding - Net loss and Adjusted Net Loss | 417,734,591 | 329,377,207 | |||||||
Diluted loss per share | $ | (2.35 | ) | $ | (4.16 | ) | |||
Adjusted EPS | $ | (1.82 | ) | $ | (2.03 | ) | |||
(1) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses are included in payroll and related expense and other income (expense), net. | |||||||||
(2) Non-cash share-based compensation expenses related to equity awards are included in marketing, general and administrative expense and payroll and related expense. | |||||||||
(3) Losses on extinguishments and modifications of debt are included in interest expense, net. | |||||||||
NON-GAAP RECONCILING INFORMATION | |||||||||
(Unaudited) | |||||||||
EBITDA and Adjusted EBITDA were calculated as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
2022 | 2021 | ||||||||
Net loss | $ | (982,714 | ) | $ | (1,370,192 | ) | |||
Interest expense, net | 327,685 | 824,441 | |||||||
Income tax expense | 4,393 | 1,728 | |||||||
Depreciation and amortization expense | 179,076 | 170,316 | |||||||
EBITDA | (471,560 | ) | (373,707 | ) | |||||
Other (income) expense, net (1) | (38,120 | ) | (27,243 | ) | |||||
Other Non-GAAP Adjustments: | |||||||||
Non-cash deferred compensation (2) | 699 | 905 | |||||||
Non-cash share-based compensation (3) | 32,792 | 26,601 | |||||||
Adjusted EBITDA | $ | (476,189 | ) | $ | (373,444 | ) | |||
(1) Primarily consists of gains and losses, net for fuel swaps not designated as hedges and foreign currency exchanges. | |||||||||
(2) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense. | |||||||||
(3) Non-cash share-based compensation expenses related to equity awards, which are included in marketing, general and administrative expense and payroll and related expense. |
Source:
2022 GlobeNewswire, Inc., source