Norwegian Cruise Line Holdings (NCLH), a cruise line operator, swung to a net profit for the quarter ended Jun. 30, 2014. The company made a net profit of $111.62 million or $0.54 a share in the second-quarter against a loss of $8.84 million or $0.04 a share in the last year period.
Adjusted earnings per share came in at $0.58 a share, when analysts expected $0.57 a share.
Revenue during the second-quarter grew 18.85 percent to $765.93 million from $644.43 million in the last year period.
The company disclosed operating income of $148.59 million, compared with $95.39 million in the last year period.
"This quarter marks the first full quarter with both Breakaway-class ships in operation," said Kevin Sheehan, president and chief executive officer of Norwegian Cruise Line.
"Along with Norwegian Epic, these newer, premium, earnings-rich ships now comprise a little over a third of our capacity and contributed to the doubling of earnings in the quarter" continued Sheehan.
The company expects the third quarter net yield to be in the range of 2.25 - 2.75%. It anticipates adjusted earnings per share at $1.05 to $1.10 for the third quarter.
For full year, the company expects net yield to be in the range of 3 - 3.5%. It anticipates adjusted earnings per share at $2.20 to $2.35 for full year.
Cash Flow
Norwegian Cruise Line Holdings has generated cash of $519.11 million from operating activities during the first half, up 105.36 percent or $266.33 million when compared with the last year period. The company has generated 36.30 cents of operating cash flow in every sales dollar for the first half, up from 21.57 cents in the same period last year.
The company has spent $787.57 million cash to meet investing activities during the first half, as against cash outgo of $759.02 million in the last year period. It has made net capital expenditure of $787.57 million during the first half, which was higher by 3.76 percent or $28.55 million, from a year ago.
The company has generated cash of $275.47 million from financing activities during the first half, down 49.32 percent or $268.11 million, when compared with the last year period. It has borrowed net of $374.31 million through debt during the first half. It has spent net of $77.00 million on repurchase of common stocks.
As on Jun. 30, 2014, the company's cash balance stood at $63.48 million, down 23.37 percent or $19.36 million from Jun. 30, 2013.
Working Capital
Norwegian Cruise Line Holdings' working capital remained negative at $1169.68 million on Jun. 30, 2014, compared with negative $970.06 million on Jun. 30, 2013. It registered a decrease in current ratio to 0.15 as at Jun. 30, 2014 from 0.17 on Jun. 30, 2013.
Debt Position
Norwegian Cruise Line Holdings has witnessed an increase in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $3502.25 million, up 9.75 percent or $311.04 million, from Jun. 30, 2013.
The company's total debt was 47.88 percent of total assets as on Jun. 30, 2014, compared with 48.44 percent on Jun. 30, 2013. It has witnessed a decline in debt to equity ratio to 1.29 on Jun. 30, 2014 compared with 1.34 on Jun. 30, 2013.
Shares of the company rose $0.36 or 1.11 percent to close at $32.76 on Monday.