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All Leisure group reports deeper loss on extraordinary charges

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 30 July 2013 30 July 2013

All Leisure group, the UK based boutique cruise brand operator, has reported a deepening of loss for the first half of its financial year on the same period in 2012 on a number of extraordinary charges. Excluding these, the loss narrowed slightly, the company said in a statement.

Net loss for six months to 30 April deepened to £13.4 million from £11.2 million year on. However, the latest figure includes restructuring costs related to acquisition of Page & Moy, the tour operator, and relocation of group head office to new premises.

“Neither of these costs were included in the loss of £11.2m for the six months ended 30 April 2012. On a like-for-like basis the group result has improved to £9.7m loss, reflecting a year-on-year improvement in the Cruise Division,’ the company said.

“This is further improved by net £1.1m if the group's results are assessed prior to the year on year impact of gains and losses on certain derivative contracts which would result in an £8.6m loss,” All Leisure continued.

The improvement in cruise performance is due in no small part to the success of the strategy to de-risk the business. Highlights of the period under review include:

· Improved year-on-year cruise performance on a like-for-like basis;

· The successful integration of the Tour Operating Division which continues to perform strongly, based on the strength of forward bookings which will convert to revenue and profit in the second half of the year;

· Expensed £1.3m of a planned £1.5m of integration costs with significant synergistic savings being achieved through the reduction of senior management headcount;

· Cruise occupancy levels were 76% (2012: 74%);

· Undertook a substantial, planned dry dock of mv Discovery; and

· The group has hedged over 95% (2012: 95%) of its foreign currency requirements as well as over 30% (2012: 30%) of its projected fuel requirement.

Although the first half of 2013 has proved challenging due to a continued tough trading environment, the successful integration of the Tour Operating Division (previously Page & Moy) and subsequent restructuring program have placed the Group in a stronger position to maximise the benefits of the increase in year-on-year bookings that we are seeing for 2014. We have currently sold 95.6% of forecast escorted tour revenue and 97.8% of forecast cruise revenue for FY13.

Roger Allard, Executive Chairman of All Leisure, said: "It is regrettable that the recent mechanical problems with mv Voyager, tough trading conditions and unfavourable political events in Egypt will impact performance for the second half of 2013. However, despite this, I am extremely pleased to report that we are enjoying the benefits of introducing the Tour Operating Division into the Group, complementing our existing products and creating encouraging cross-selling opportunities.”

“Furthermore, I am excited for the future of the Group following the recent successful integration of Page & Moy and am confident of achieving in the region of £1.5m in full year overhead savings in 2014 following the closure of the Burgess Hill office and rationalisation of senior management within the Group.”

Shares in Norwegian fall sharply after interims

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 29 July 2013 29 July 2013

Shares in Norwegian Cruise Line Holding, parent company of Norwegian Cruise Line and NCL America, fell sharply on Nasdaq in New York where they are listed after the company had operated net loss on significantly higher financing costs in the second quarter, although operating profit continued to rise.

In early trade, the shares fell 3.23 % to $29.97, which valued the company at $6.11 billion.

Norwegian Cruise Line Holding went public at the end of last year and its shares have traded in the range of $24.16 and $32.93 since the floation.

Norwegian’s operating income continued to improve in latest quarter

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 29 July 2013 29 July 2013

Norwegian Cruise Line Holdings, parent company of Norwegian Cruise Line and NCL America, extended its streak of improving operating income in the second quarter, the Miami based cruise operator stated, although net result showed swing to a loss.

"While the addition of Norwegian Breakaway to our fleet was undoubtedly the highlight of the quarter, our strong results, which include our twentieth consecutive quarter of year-over-year Adjusted EBITDA growth, are equally as notable," said Kevin Sheehan, president and chief executive officer of Norwegian Cruise Line.

Operating income (EBITDA) increased to $95.4 million in the second quarter from $87.0 million in the same period last year.

"Other initiatives in the quarter, from the refinancing of certain credit facilities to further optimize our capital structure, to the enhancements carried out on Pride of America at her recent dry-dock, demonstrate our culture of leaving no stone unturned in order to add incremental value for our shareholders and enhance the cruise experience for our guests."

An increase in Capacity Days and improvement in Net Yield resulted in a 12.0% increase in Net Revenue in the quarter. The addition of Norwegian Breakaway to the fleet, partially offset by planned Dry-docks for Pride of America and Norwegian Pearl, contributed to the 8.2% increase in Capacity Days while improvements in both passenger ticket and onboard revenue resulted in a 3.5% (3.7% on a Constant Currency basis) increase in Net Yield.

Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 4.8% on both an as reported and Constant Currency basis over prior year due to the timing of planned Dry-docks along with inaugural and launch expenses related to Norwegian Breakaway. Fuel price per metric ton, net of hedges, was essentially flat to prior year at $686 compared to $684 in 2012.

Interest expense, net in the quarter exceeded prior year by $54.8 million primarily due to expenses totaling $70.1 million related to the refinancing of certain credit facilities and the redemption of the remaining balance of the Company's $350 million 9.5% Senior Unsecured Notes due 2018, the company said in a statement.

Norwegian in the red as financing costs soar

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 29 July 2013 29 July 2013

Norwegian Cruise Line Holdings, parent company of Norwegian Cruise Line and NCL America, has reported a deep loss for both the second quarter and first half of the year due to mounting financing costs, figures released by the company show.

In the second quarter, net losses amounted to $8.9 million compared to a profit of $36.0 million a year earlier. Revenues rose to $457.6 million from $416.2 million, but net interest expenses soared to $103.9 million from $48.9 million.

In the first half, the loss amounted to $103.2 million in a sharp reversal from a profit of $39.6 million a year earlier. Revenues increased to $816.5 million from $767.5 million, but again net financing costs increased far more, to $231.4 million from $95.0 million a year earlier.

Royal Caribbean announces second quarter results

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 25 July 2013 25 July 2013

Royal Caribbean today announced second quarter 2013 net income of $24.7 million, or $0.11 per share, versus a loss of ($3.7 million) or ($0.02) per share, in the second quarter of 2012. Included in the 2013 figures is a $0.05 per share impact related to the Grandeur fire and a $0.07 non-cash charge to correct an underestimate of the reward liability for its affinity credit card. Absent these two charges, earnings per share would have been $0.23 per share.

Net Yields on a Constant-Currency basis increased 2.8% for the quarter. Ticket revenue for the second quarter came in as expected, while on-board revenue outperformed expectations. Excluding the affinity card adjustment, Constant-Currency Net Yields in the quarter increased 3.9% versus the prior year.

NCC excluding fuel were better than anticipated and increased 2.3% on a Constant-Currency basis (1.5% excluding the impact from Grandeur). Costs were controlled across all areas of the business with hotel, vessel and administrative expense categories all performing more efficiently than expected.

Bunker pricing net of hedging for the second quarter was $697 per metric ton and consumption was 6,400 metric tons lower than expected at 333,600 metric tons.

Outlook for full year 2013

Constant-Currency yields are expected to increase 2% to 3% (approximately 3% excluding the affinity card adjustment). The main shortfalls versus prior guidance are the affinity card adjustment, China sailings due to the conflict between China and Japan, and a modest reduction in expectations for the Caribbean. Despite ongoing discounting in the region, the company's Caribbean forecast was only modestly impacted and demand remains solid. Europe continues to demonstrate year-over-year improvement, with net ticket yields expected to increase in the mid-single digits for the year. In aggregate, both pricing and booked load factors are higher for the second half of the year than at the same time last year.

Onboard revenues have benefited from improved U.S. consumer spending and the new onboard revenue venues the company has added through its revitalization efforts.

NCC excluding fuel are expected to be up 1% to 2% on a Constant-Currency basis. The company continues to focus on cost savings initiatives and has lowered the midpoint of its expense guidance by 100 basis points for the year.

Fuel costs are expected to be relatively unchanged from the company's original guidance despite the recent increases in oil prices due to hedging and energy conservation measures.

Additionally, the US dollar has continued to strengthen against the basket of currencies in which the company trades. The US dollar is 5% stronger than when the company first issued guidance in January, the effect of which is detailed in the table below.

Full year earnings per share are expected to be in the range of $2.20 to $2.30.