Norwegian Cruise Line Holdings Ltd. (NCLH) has reported a 15.46 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $61.91 million, or $0.27 a share in the quarter, compared with $73.23 million, or $0.32 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $91.15 million, or $0.40 a share compared with $86.67 million or $0.38 a share, a year ago.

Revenue during the quarter grew 6.79 percent to $1,150.78 million from $1,077.63 million in the previous year period. Gross margin for the quarter contracted 89 basis points over the previous year period to 37.45 percent. Total expenses were 89.60 percent of quarterly revenues, up from 87.82 percent for the same period last year. That has resulted in a contraction of 178 basis points in operating margin to 10.40 percent.

Operating income for the quarter was $119.73 million, compared with $131.28 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $260.61 million compared with $252.84 million in the prior year period. At the same time, adjusted EBITDA margin contracted 82 basis points in the quarter to 22.65 percent from 23.46 percent in the last year period.

"2017 is off to a solid start with strong first quarter results which include record revenue of $1.2 billion for the quarter," said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. "The operating environment has remained favorable with strong close-in demand for Caribbean sailings and strength in onboard revenue driving topline growth above expectations," continued Del Rio.

For the second-quarter 2017, On an adjusted basis, Norwegian Cruise Line Holdings Ltd. forecasts diluted earnings per share to be $0.95.

For fiscal year 2017, Norwegian Cruise Line Holdings Ltd. expects diluted earnings per share to be in the range of $3.79 to $3.89 on adjusted basis.

The company has spent $117.78 million cash to meet investing activities during the quarter as against cash outgo of $133.19 million in the last year period.

The company has spent $225.72 million cash to carry out financing activities during the quarter as against cash outgo of $157.97 million in the last year period.

Cash and cash equivalents stood at $219.79 million as on Mar. 31, 2017, up 41.92 percent or $64.92 million from $154.87 million on Mar. 31, 2016.

Working capital remains negative

Working capital of Norwegian Cruise Line Holdings Ltd. was negative $2,018.41 million on Mar. 31, 2017 compared with negative $2,097.17 million on Mar. 31, 2016. Current ratio was at 0.19 as on Mar. 31, 2017, up from 0.16 on Mar. 31, 2016.

Days sales outstanding were almost stable at 4 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 4 days for the quarter compared with 8 days for the previous year period. At the same time, days payable outstanding was almost stable at 8 days for the quarter, when compared with the previous year period.