Company’s Great Cruise Comeback Continues with Approximately 70% of Capacity Operating at Year End Across Company’s Three Brands; Full Fleet Expected to be Operating by Early Second Quarter
Net Booking Volumes Continue Sequential Improvement Post Omicron
Second Half 2022 Booked Position in Line with Strong 2019 and at Higher Pricing
“We launched our Great Cruise Comeback in late
Resumption of Cruise Operations
The Company continues to execute on the phased relaunch plans for its 28-ship fleet. Beginning in
As a result of Omicron-related disruptions, the Company now expects to have 85% of its capacity operating by the end of the first quarter of 2022 with the full fleet expected to be back in operation during the early part of the second quarter of 2022. In addition, the Company expects to reach a critical inflection point during the second quarter of 2022 with net cash provided by operating activities turning positive. Based on the current booked position and trajectory, the Company expects to have positive Adjusted Net Income1 for the second half of 2022.
All voyages across the Company’s three brands continue to operate under our robust science-backed SailSAFE health and safety program. As part of this program, our policy requires our entire crew and all guests age 12 and over be fully vaccinated. In addition, our comprehensive SailSAFE protocols include universal COVID-19 testing prior to embarkation. The Company’s stringent vaccination policy applies across all voyages on its three brands as the Company believes this is the safest way to operate in the current global public health environment. In 2021, the Company’s brands safely carried over 230,000 guests who had prevalence rates vastly lower than what has been experienced on land during the pandemic. These health and safety measures will be continuously evaluated and modified, with guidance from the
The Company has informed the
Booking Environment and Outlook
Net booking volumes at the beginning of the fourth quarter of 2021 continued to demonstrate substantial week-over-week sequential growth after the slowdown in booking activity caused by the Delta variant of COVID-19. Net booking volumes in the latter part of the fourth quarter of 2021 began to be negatively impacted by the Omicron variant of COVID-19, primarily for close-in voyages in the first and second quarters of 2022. In recent weeks, as the Omicron wave subsided, net booking trends have improved sequentially. As a result, the Company’s current cumulative booked position for the first half of 2022 is below the extraordinarily strong levels of 2019 at substantially higher prices even when including the dilutive impact of future cruise credits (FCCs), while booked position for the second half, when the full fleet is expected to be back in operation, is in line with the comparable 2019 period and at higher prices, also including the impact of FCCs. Booked position for each quarter compared to the comparable quarter in 2019 improves sequentially through the year. Booking trends for 2023 demonstrate continued strong demand for sailings in the medium and longer term with booked position and pricing meaningfully higher and at record levels when compared to bookings for 2020 in 2019.
The Company’s advance ticket sales balance was
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
The Company has taken the following additional actions to enhance its liquidity profile and financial flexibility since the end of the third quarter:
- In
November 2021 , the Company completed a series of balance sheet and cash flow optimization transactions. As a result of these strategic transactions, the Company reduced its annual interest expense, lowered leverage, extended the Company’s debt maturity profile and increased its liquidity. In addition, assuming the 1.125% exchangeable senior notes due 2027 that were issued then are settled entirely in cash, at the Company’s election, the Company will also benefit from a net reduction in its diluted shares outstanding of approximately 5.2 million shares2. For additional details on this transaction view the Company’s press release and investor presentation. - In
February 2022 , the Company raised approximately$2.1 billion through a series of debt transactions to further optimize its balance sheet. The proceeds from these transactions were used to redeem all of the outstanding 12.25% senior secured notes due 2024 and 10.250% senior secured notes due 2026, and are expected to be used to make principal payments on debt maturing in the short-term, including to pay any accrued and unpaid interest thereon, as well as related premiums, fees and expenses, in each case. In addition, in connection with these transactions, certain collateral was released, and debt maturities were extended.
The combined benefit of the above transactions is expected to result in annual cash interest expense savings of approximately
The Company's monthly average cash burn for the fourth quarter of 2021 was approximately
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. Future cash burn rate estimates also exclude unforeseen expenses. The fourth quarter 2021 cash burn rate and first quarter 2022 estimate reflect the deferral of debt amortization and previously agreed to newbuild related payments.
“Momentum continues building as we approach 85% of our capacity expected to be in operation at the end of the first quarter. We are keenly focused on executing our financial plan on the path to our next significant milestone as we expect to achieve positive Operating Cash Flow in the second quarter,” said
_________________________________
1 See “Terminology” and “Non-GAAP Financial Measures” below for additional information about Adjusted Net Income.
2 Actual number of shares issued upon settlement may differ.
Full Year 2021 Results
GAAP net loss was
Total revenue decreased 49.4% to
Total cruise operating expense decreased 5.0% in 2021 to
Fuel price per metric ton, net of hedges increased to
Interest expense, net was
Other income (expense), net was income of
Income tax expense was
Fourth Quarter 2021 Results
GAAP net loss was
Revenue increased to
Total cruise operating expense increased 246.7% in 2021 compared to 2020 as cruise voyages continued to resume in the quarter. In 2021, cruise operating expenses were primarily related to crew costs, including salaries, food and other travel costs as ships were prepared to return to service, fuel, costs related to health and safety protocols and other ongoing costs such as insurance and ship maintenance.
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, while the Company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty, it will report a net loss for the first quarter of 2022 and expects to report a net loss until the Company is able to resume regular voyages. As previously stated, based on its current trajectory and market and public health conditions, the Company expects to have positive Adjusted Net Income for the second half of 2022. The Company does not provide estimated future results on a GAAP basis because the Company is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of certain gains and charges. These items are uncertain and will depend on several factors, including industry conditions, and could be material to the Company’s results computed in accordance with GAAP.
The following reflects the Company’s expectations regarding fuel consumption and pricing, along with accompanying sensitivities.
Full Year 2022 | ||||
Fuel consumption in metric tons | 900,000 | |||
Fuel price per metric ton, net of hedges | ||||
Effect on Adjusted EPS of a 10% change in fuel prices, net of hedges |
As of
2022 | 2023 | 2024 | ||||||
% of HFO Consumption Hedged1 | 32% | 15% | - | |||||
Average USGC Price / Barrel | N/A | - | ||||||
Average | - | |||||||
% of MGO Consumption Hedged | 51% | 1 | 33% | - | ||||
Average Gasoil Price / Barrel | - | |||||||
Total % of Consumption Hedged | 42% | 24% | - |
(1) USGC derivatives were de-designated for accounting purposes in the fourth quarter of 2020 and first quarter of 2021. 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
Conference Call
The Company has scheduled a conference call for
About
About SailSAFE
About the
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 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
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.
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
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. For example, for the year ended
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 | Year Ended | ||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
Revenue | |||||||||||||||||||||
Passenger ticket | $ | 304,875 | $ | 7,817 | $ | 392,752 | $ | 867,110 | |||||||||||||
Onboard and other | 182,562 | 1,762 | 255,234 | 412,798 | |||||||||||||||||
Total revenue | 487,437 | 9,579 | 647,986 | 1,279,908 | |||||||||||||||||
Cruise operating expense | |||||||||||||||||||||
Commissions, transportation and other | 95,589 | 9,703 | 143,524 | 380,710 | |||||||||||||||||
Onboard and other | 32,196 | 2,789 | 54,037 | 85,678 | |||||||||||||||||
Payroll and related | 214,214 | 79,839 | 537,439 | 521,301 | |||||||||||||||||
Fuel | 125,921 | 42,472 | 301,852 | 264,712 | |||||||||||||||||
Food | 35,685 | 5,730 | 62,999 | 65,369 | |||||||||||||||||
Other | 214,094 | 66,459 | 508,186 | 375,291 | |||||||||||||||||
Total cruise operating expense | 717,699 | 206,992 | 1,608,037 | 1,693,061 | |||||||||||||||||
Other operating expense | |||||||||||||||||||||
Marketing, general and administrative | 273,632 | 186,564 | 891,452 | 745,345 | |||||||||||||||||
Depreciation and amortization | 182,978 | 162,903 | 700,845 | 717,840 | |||||||||||||||||
Impairment loss | — | — | — | 1,607,797 | |||||||||||||||||
Total other operating expense | 456,610 | 349,467 | 1,592,297 | 3,070,982 | |||||||||||||||||
Operating loss | (686,872 | ) | (546,880 | ) | (2,552,348 | ) | (3,484,135 | ) | |||||||||||||
Non-operating income (expense) | |||||||||||||||||||||
Interest expense, net | (950,020 | ) | (159,205 | ) | (2,072,925 | ) | (482,313 | ) | |||||||||||||
Other income (expense), net | 66,489 | (1,324 | ) | 123,953 | (33,599 | ) | |||||||||||||||
Total non-operating income (expense) | (883,531 | ) | (160,529 | ) | (1,948,972 | ) | (515,912 | ) | |||||||||||||
Net loss before income taxes | (1,570,403 | ) | (707,409 | ) | (4,501,320 | ) | (4,000,047 | ) | |||||||||||||
Income tax expense | (2,318 | ) | (31,524 | ) | (5,267 | ) | (12,467 | ) | |||||||||||||
Net loss | $ | (1,572,721 | ) | $ | (738,933 | ) | $ | (4,506,587 | ) | $ | (4,012,514 | ) | |||||||||
Weighted-average shares outstanding | |||||||||||||||||||||
Basic | 391,737,562 | 293,892,873 | 365,449,967 | 254,728,932 | |||||||||||||||||
Diluted | 391,737,562 | 293,892,873 | 365,449,967 | 254,728,932 | |||||||||||||||||
Loss per share | |||||||||||||||||||||
Basic | $ | (4.01 | ) | $ | (2.51 | ) | $ | (12.33 | ) | $ | (15.75 | ) | |||||||||
Diluted | $ | (4.01 | ) | $ | (2.51 | ) | $ | (12.33 | ) | $ | (15.75 | ) | |||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||
Net loss | $ | (1,572,721 | ) | $ | (738,933 | ) | $ | (4,506,587 | ) | $ | (4,012,514 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||||||||
Shipboard Retirement Plan | 98 | 40 | 393 | 345 | ||||||||||||||
Cash flow hedges: | ||||||||||||||||||
Net unrealized gain (loss) | (36,882 | ) | 112,030 | (110,379 | ) | (51,642 | ) | |||||||||||
Amount realized and reclassified into earnings | 16,689 | 19,817 | 65,017 | 106,670 | ||||||||||||||
Total other comprehensive income (loss) | (20,095 | ) | 131,887 | (44,969 | ) | 55,373 | ||||||||||||
Total comprehensive loss | $ | (1,592,816 | ) | $ | (607,046 | ) | $ | (4,551,556 | ) | $ | (3,957,141 | ) | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(Unaudited) | ||||||||||
(in thousands, except share data) | ||||||||||
2021 | 2020 | |||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 1,506,647 | $ | 3,300,482 | ||||||
Short-term investments | 240,000 | — | ||||||||
Accounts receivable, net | 1,167,473 | 20,578 | ||||||||
Inventories | 118,205 | 82,381 | ||||||||
Prepaid expenses and other assets | 269,243 | 154,103 | ||||||||
Total current assets | 3,301,568 | 3,557,544 | ||||||||
Property and equipment, net | 13,528,806 | 13,411,226 | ||||||||
98,134 | 98,134 | |||||||||
Tradenames | 500,525 | 500,525 | ||||||||
Other long-term assets | 1,300,804 | 831,888 | ||||||||
Total assets | $ | 18,729,837 | $ | 18,399,317 | ||||||
Liabilities and shareholders' equity | ||||||||||
Current liabilities: | ||||||||||
Current portion of long-term debt | $ | 876,890 | $ | 124,885 | ||||||
Accounts payable | 233,172 | 83,136 | ||||||||
Accrued expenses and other liabilities | 1,059,034 | 596,056 | ||||||||
Advance ticket sales | 1,561,336 | 1,109,826 | ||||||||
Total current liabilities | 3,730,432 | 1,913,903 | ||||||||
Long-term debt | 11,569,700 | 11,681,234 | ||||||||
Other long-term liabilities | 997,055 | 450,075 | ||||||||
Total liabilities | 16,297,187 | 14,045,212 | ||||||||
Commitments and contingencies | ||||||||||
Shareholders' equity: | ||||||||||
Ordinary shares, | 417 | 316 | ||||||||
Additional paid-in capital | 7,513,725 | 4,889,355 | ||||||||
Accumulated other comprehensive income (loss) | (285,086 | ) | (240,117 | ) | ||||||
Retained deficit | (4,796,406 | ) | (295,449 | ) | ||||||
Total shareholders' equity | 2,432,650 | 4,354,105 | ||||||||
Total liabilities and shareholders' equity | $ | 18,729,837 | $ | 18,399,317 | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(Unaudited) | |||||||||||||||
(in thousands) | |||||||||||||||
Year Ended | |||||||||||||||
2021 | 2020 | ||||||||||||||
Cash flows from operating activities | |||||||||||||||
Net loss | $ | (4,506,587 | ) | $ | (4,012,514 | ) | |||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
Depreciation and amortization expense | 758,604 | 739,619 | |||||||||||||
Impairment loss | — | 1,607,797 | |||||||||||||
Deferred income taxes, net | 78 | 12,765 | |||||||||||||
Gain on derivatives | (39,842 | ) | (8,501 | ) | |||||||||||
Loss on extinguishment of debt | 1,399,816 | 10,480 | |||||||||||||
Provision for bad debts and inventory obsolescence | 19,284 | 31,756 | |||||||||||||
Gain on involuntary conversion of assets | (9,486 | ) | (1,496 | ) | |||||||||||
Share-based compensation expense | 124,077 | 111,297 | |||||||||||||
Payment-in-kind interest premium | — | 19,349 | |||||||||||||
Net foreign currency adjustments | (9,865 | ) | 8,584 | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable, net | (1,159,998 | ) | 30,797 | ||||||||||||
Inventories | (37,481 | ) | 10,555 | ||||||||||||
Prepaid expenses and other assets | 24,004 | (89,528 | ) | ||||||||||||
Accounts payable | 152,026 | (21,419 | ) | ||||||||||||
Accrued expenses and other liabilities | 295,451 | (193,938 | ) | ||||||||||||
Advance ticket sales | 521,910 | (811,846 | ) | ||||||||||||
Net cash used in operating activities | (2,468,009 | ) | (2,556,243 | ) | |||||||||||
Cash flows from investing activities | |||||||||||||||
Additions to property and equipment, net | (752,843 | ) | (946,545 | ) | |||||||||||
Purchases of short-term investments | (1,010,000 | ) | — | ||||||||||||
Proceeds from maturities of short-term investments | 770,000 | — | |||||||||||||
Cash paid on settlement of derivatives | (23,496 | ) | (31,520 | ) | |||||||||||
Other | 12,295 | 2,703 | |||||||||||||
Net cash used in investing activities | (1,004,044 | ) | (975,362 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||
Repayments of long-term debt | (2,113,063 | ) | (892,481 | ) | |||||||||||
Proceeds from long-term debt | 2,601,317 | 6,075,090 | |||||||||||||
Common share issuance proceeds, net | 2,665,843 | 1,541,708 | |||||||||||||
Proceeds from employee related plans | 3,141 | 5,557 | |||||||||||||
Net share settlement of restricted share units | (16,687 | ) | (15,407 | ) | |||||||||||
Early redemption premium | (1,354,882 | ) | (1,376 | ) | |||||||||||
Deferred financing fees | (107,451 | ) | (133,880 | ) | |||||||||||
Net cash provided by financing activities | 1,678,218 | 6,579,211 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (1,793,835 | ) | 3,047,606 | ||||||||||||
Cash and cash equivalents at beginning of the period | 3,300,482 | 252,876 | |||||||||||||
Cash and cash equivalents at end of the period | $ | 1,506,647 | $ | 3,300,482 | |||||||||||
NON-GAAP RECONCILING INFORMATION | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
The following table sets forth selected statistical information: | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
Passengers carried | 174,517 | — | 232,448 | 499,729 | |||||||||||||||||
Passenger Cruise Days | 1,376,243 | — | 1,778,899 | 4,278,602 | |||||||||||||||||
Capacity Days | 2,675,353 | — | 3,376,703 | 4,123,858 | |||||||||||||||||
Occupancy Percentage | 51.4 | % | 52.7 | % | 103.8 | % | |||||||||||||||
NON-GAAP RECONCILING INFORMATION | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Gross Cruise Cost, | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
2021 | 2021 | ||||||||||||||||||||
Constant | Constant | ||||||||||||||||||||
2021 | Currency | 2020 | 2021 | Currency | 2020 | ||||||||||||||||
Total cruise operating expense | $ | 717,699 | $ | 717,086 | $ | 206,992 | $ | 1,608,037 | $ | 1,601,030 | $ | 1,693,061 | |||||||||
Marketing, general and administrative expense | 273,632 | 273,739 | 186,564 | 891,452 | 887,970 | 745,345 | |||||||||||||||
Gross Cruise Cost | 991,331 | 990,825 | 393,556 | 2,499,489 | 2,489,000 | 2,438,406 | |||||||||||||||
Less: | |||||||||||||||||||||
Commissions, transportation and other expense | 95,589 | 95,527 | 9,703 | 143,524 | 143,186 | 380,710 | |||||||||||||||
Onboard and other expense | 32,196 | 32,196 | 2,789 | 54,037 | 54,037 | 85,678 | |||||||||||||||
863,546 | 863,102 | 381,064 | 2,301,928 | 2,291,777 | 1,972,018 | ||||||||||||||||
Less: Fuel expense | 125,921 | 125,921 | 42,472 | 301,852 | 301,852 | 264,712 | |||||||||||||||
Net Cruise Cost Excluding Fuel | 737,625 | 737,181 | 338,592 | 2,000,076 | 1,989,925 | 1,707,306 | |||||||||||||||
Less Non-GAAP Adjustments: | |||||||||||||||||||||
Non-cash deferred compensation (1) | 905 | 905 | 666 | 3,619 | 3,619 | 2,665 | |||||||||||||||
Non-cash share-based compensation (2) | 35,103 | 35,103 | 30,288 | 124,077 | 124,077 | 111,297 | |||||||||||||||
Adjusted Net Cruise Cost Excluding Fuel | $ | 701,617 | $ | 701,173 | $ | 307,638 | $ | 1,872,380 | $ | 1,862,229 | $ | 1,593,344 | |||||||||
(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 expenses 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 | Year Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Net loss | $ | (1,572,721 | ) | $ | (738,933 | ) | $ | (4,506,587 | ) | $ | (4,012,514 | ) | |||
Non-GAAP Adjustments: | |||||||||||||||
Non-cash deferred compensation (1) | 1,003 | 992 | 4,012 | 3,967 | |||||||||||
Non-cash share-based compensation (2) | 35,103 | 30,288 | 124,077 | 111,297 | |||||||||||
Extinguishment and modification of debt (3) | 771,587 | — | 1,428,813 | 27,795 | |||||||||||
Amortization of intangible assets (4) | — | 1,510 | — | 9,831 | |||||||||||
Impairment loss (5) | — | — | — | 1,633,337 | |||||||||||
Non-cash interest on beneficial conversion feature and payment-in-kind premium (6) | — | 22,382 | — | 26,082 | |||||||||||
Adjusted Net Loss | $ | (765,028 | ) | $ | (683,761 | ) | $ | (2,949,685 | ) | $ | (2,200,205 | ) | |||
Diluted weighted-average shares outstanding - Net loss and Adjusted Net Loss | 391,737,562 | 293,892,873 | 365,449,967 | 254,728,932 | |||||||||||
Diluted loss per share | $ | (4.01 | ) | $ | (2.51 | ) | $ | (12.33 | ) | $ | (15.75 | ) | |||
Adjusted EPS | $ | (1.95 | ) | $ | (2.33 | ) | $ | (8.07 | ) | $ | (8.64 | ) | |||
(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 primarily included in interest expense, net. | |||||||||||||||
(4) Amortization of intangible assets related to the Acquisition of Prestige are included in depreciation and amortization expense. | |||||||||||||||
(5) Impairment loss consists of goodwill, trade name and property and equipment impairments. The impairments of goodwill and trade names are included in impairment loss and the impairment of property and equipment is included in depreciation and amortization expense. | |||||||||||||||
(6) Non-cash interest expense related to a beneficial conversion feature recognized on our exchangeable notes and additional payment-in-kind interest recognized upon transfer to the debt principal, which is recognized in interest expense, net. | |||||||||||||||
NON-GAAP RECONCILING INFORMATION | |||||||||||||||
(Unaudited) | |||||||||||||||
EBITDA and Adjusted EBITDA were calculated as follows (in thousands): | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Net loss | $ | (1,572,721 | ) | $ | (738,933 | ) | $ | (4,506,587 | ) | $ | (4,012,514 | ) | |||
Interest expense, net | 950,020 | 159,205 | 2,072,925 | 482,313 | |||||||||||
Income tax expense | 2,318 | 31,524 | 5,267 | 12,467 | |||||||||||
Depreciation and amortization expense | 182,978 | 162,903 | 700,845 | 717,840 | |||||||||||
EBITDA | (437,405 | ) | (385,301 | ) | (1,727,550 | ) | (2,799,894 | ) | |||||||
Other (income) expense, net (1) | (66,489 | ) | 1,324 | (123,953 | ) | 33,599 | |||||||||
Non-GAAP Adjustments: | |||||||||||||||
Non-cash deferred compensation (2) | 905 | 666 | 3,619 | 2,665 | |||||||||||
Non-cash share-based compensation (3) | 35,103 | 30,288 | 124,077 | 111,297 | |||||||||||
Impairment loss (4) | — | — | — | 1,607,797 | |||||||||||
Adjusted EBITDA | $ | (467,886 | ) | $ | (353,023 | ) | $ | (1,723,807 | ) | $ | (1,044,536 | ) | |||
(1) Primarily consists of gains and losses, net for forward currency exchanges and derivatives not designated as hedges. | |||||||||||||||
(2) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses are included in payroll and related expense. | |||||||||||||||
(3) Non-cash share-based compensation expenses related to equity awards are included in marketing, general and administrative expense and payroll and related expense. | |||||||||||||||
(4) Impairment loss consists of goodwill and trade name impairments. |
Source:
2022 GlobeNewswire, Inc., source