Thank you. Effective May 18, 2020, FCCs from either our 2020 Suspended Sailings or Peace of Mind FCC are transferable. W9 Tax document form. Steve Wieczynski -- Stifel Financial Corp. -- Analyst. Thank you for joining us for our first quarter 2023 earnings and business update call. Theyjust revealed what they believe are thetenbest stocksfor investors to buy right now and Norwegian Cruise Linewasn't one of them! The financing also covers older supplies associated with preparing certain newbuilds to enter service, as well as related financing premiums. The two ships that will signal the moment when the entire Norwegian Cruise Line fleet is operational again are Norwegian Sun and Norwegian Spirit. Yeah, and, Robin, just to just to add to that, you know, we did try to communicate last quarter and over the course of many investor meetings that when we said historical occupancies, we didn't say that they were going to be exactly the same. The value of the original Future Cruise Credit will now be added to the new Future Cruise Credit at 100% of its original value, plus 125% of any amount paid by the guest on the cancelled sailing. Frank, well, congratulations on absolutely an amazing career. As we have stated previously, the second quarter will complete our occupancy ramp-up. The only exception is if the current owner is requesting to transfer back to the original owner that the FCC was issued to. Our next question is from Robin Farley with UBS. Thanks, Harry. We combined with our ongoing efforts to maximize profitability on our existing fleet, including by delivering consistent year-over-year moderate yield growth. PLUS receive a bonus credit to save on hotels, get 24/7 expert Future Cruise Credit & COVID advice & find the best deals - all in one place. In terms of this gap of 3%, does that reflect what we're going forward? And in our last earnings release, we had called out that we had increased our contractual commitments by 1.2 billion euro. Pre-booked and pre-paid shore excursions So. Our next question is from Steve Wieczynski with Stifel. Norwegian's Future Cruise Credit (FCC) is credit that you can use for your next Norwegian cruise. Currently, eight out of the seventeen ships sailing for Norwegian Cruise Line eight ships are not operational. Before turning the call over to Q&A, I'd like to leave you with some key takeaways which you can find on Slide 18. So, while on the surface it may appear that there is a -- it is a bit softer than Q1. But things are looking very, very healthy from our perspective in terms of the overall consumer demand for cruise. Adjusted EBITDA is still expected to be in the range of 1.8 billion to 1.95 billion, with the high end of our targeted range representing record adjusted EBITDA for the company. Effective from the 29th July 2020 the below values are rewarded in Future Cruise Credits: So, three ships in one year will mean that much more of a halo effect for our company to leverage. We've hopefully demonstrated confidence to the market that we've achieved step one of that. What happens to CruiseNext certificates that were used on a cancelled reservation? As we execute on this plan, we expect to see a dual benefit of not only emission reductions, but also cost savings from reduced fuel consumption. One day later, Norwegian Jade will return to service from a homeport that is not used too often, Panama City, from where she will offer Panama Canal cruises. So, I just want to point out that that's not necessarily a change from last quarter. This website uses cookies. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Korea We are implementing solutions for efficiency today; innovating for future solutions, including with our investment to modify two of our future newbuilds to create methanol-ready configurations; and are committed to collaborating with our stakeholders and partners along the way. I just want to comment that when Frank goes on cruises in retirement, he doesn't pay, so he won't be contributing to that world cruise number you saw earlier. And, of course, as we buy air tickets for over a million guests a year, we have some really good systems and efficiencies to leverage the best prices out there. As Harry noted, we continue to evaluate all opportunities to accelerate revenue and improve operating efficiencies and are taking deliberate actions to improve our margins, while maintaining the exceptional guest experience and superior service levels our brands are known for. Purchased onboard credits I mean, is there any net cruise costs changes or net yield changes that we should be thinking through? I wanted to dig a little bit more into the regional setup. The cruise line has extended this period again; FCCs are now valid through December 31, 2022. We'll be taking delivery of a ship in the third quarter and fourth quarter. Norwegian Cruise Line said the following in a letter to travel advisors: As we continue to focus on ways to support the guest experience, we have decided to extend Future Cruise Credits (FCCs) to ensure your guests have the opportunity to enjoy the best vacation possible when they sail. Thank you, Mark. It's a little less close in demand there as we are booked further in advance. And, hopefully, over the next few quarters, we can continue to prove that and further build confidence that we're leveraging our scale to the best of our ability. Invest better with The Motley Fool. Mesmerising beach & city stays in over 200,000 hotel & resort properties worldwide. . This represents a 15% decrease as compared to the average of $187 in the second half of 2022. We've covered a lot today, so I'll conclude our commentary here and open up the call for your questions. What happens if the cancelled booking had a previous FCC applied? So, look, I think bottom line, we continue to sequentially improve our cost structure. As I said, those are fixed, so we have very efficient financing going forward. Got it. Moving on to costs, adjusted net cruise cost, excluding fuel per capacity day, is expected to average approximately $159 for the full year, slightly better than our prior guidance. Our next question is from Brandt Montour with Barclays. Thank you. Don't rely on the cruise line to keep track of your credit; bookmark, print or save the email with your future cruise credit information so you have everything you'll need -- or your agent needs -- when you're ready to rebook. Congrats, Frank and Harry. Jessica John -- Vice President, Investor Relations, ESG, and Corporate Communications. No, you will have to apply your Future Cruise Credit to a future cruise onboard Norwegian Cruise Line. Photo packages. Thanks for taking my question. Each submission request will be individually handled and responded to. IMPORTANT: To learn more about how to prepare your clients for sailing please visit the pre-cruise requirements page at www.ncl.com/prepare-for-your-cruise/2021 for all required documents and protocols. Is SoFi Stock a Buy Now? I'll -- it's Harry. Note: Suspended Sailings and Peace of Mind FCCs are valid for sailings through December 31, 2022. 7/27/2022. Please proceed with your question. Only the entire and full original value of Peace of Mind and suspended sailing FCCs worth 100% of the fare paid, as well as the bonus 25% or 50% FCCs, are eligible for transfer. Booksafe Travel Protection will be issued as a separate additional Future Cruise Credit worth the value of the travel protection plan paid. So, we said last quarter that we wanted to be prudent in terms of our guidance. The new booking must be made within one year of the cancellation date. And lastly, we feel comfortable with our liquidity position and are committed to prioritizing restoration of our balance sheet in the coming years. With this significant achievement, we have also nearly closed the occupancy gap versus 2019 levels. Adjusted EBITDA was nearly $40 million higher than our guidance at approximately $234 million in the quarter. ATAS Travel Accreditation No: A11156. A credit card dispute was filed for the charges. Get expert advice, insider tips and more. What is your current final payment policy and schedule? You know, both Q2 pricing and yields are exactly in line with where we thought they were going to be. Government Fees and Taxes Shifting our attention to the backdrop that makes me so optimistic for what lies ahead, Slide 7 outlines our current positioning and the key catalysts we see now and on the horizon. Mark, you sort of gave us quick update and sort of sequential improvement on the dollar basis throughout the year. No, guests will receive the full value of their winning bid within the FCC and can apply that towards the sailing and category of their choice. And then, just as a follow-up, great to hear that you guys are happy with your book for the all-important sort of summer in the Mediterranean. During the first months of the pandemic in 2020, Norwegian Cruise Line issued thousands of FCCs to guests who saw their cruises canceled. This reflects the rapid execution of cost savings initiatives identified and implemented last year, some of which were realized earlier than anticipated. Yes, a good way to be sure to redeem the full amount is to consider a cabin upgrade, book an ocean view instead of an inside cabin or treat yourself to a balcony instead of an ocean view stateroom. Vince Ciepiel -- Cleveland Research Company -- Analyst. Can I make a new booking before I receive my Future Cruise Credit and will this be applied after I booked. OK, thank you. This insurance Future Cruise Credit will be valid for one year from date of issuance and only applicable towards insurance for all published sailings through Dec 31, 2022 (There is an additional Free at Sea Package charge per person based on the booking) As government regulations evolve, our health and safety protocols will evolve as needed to ensure compliance. In terms of the export credit agency financing, yes, so we obtained financing for 1.7 billion euro. And I'm just trying to reconcile that with the seasonality that we used to see in your business with the 3Q costs usually being pretty elevated given, you know, more exotic itineraries. Many cruise fans opted for the credits instead of cash refunds in order to treat themselves to longer sailings or cabin upgrades down the road, courtesy of the cruise line. The sail-by date had always been December 31, 2022, so it is only the effective date when guests must apply their credit that has been extended. Now if you happen to have more Amex NCL $150 back offers on a number of cards (or other offers like 15,000 Membership Rewards points) when you spend $500 you could load in one of these to your cruise account. Future Cruise Credits issued in, for example, June 2020 would have expired in July of 2021; for that reason, Norwegian Cruise Line had already extended the booked by date to January 31. Mark Kempa -- Executive Vice President, Chief Financial Officer. My Future Cruise Credit is provided and supported globally by International Cruise & Excursion Gallery, Inc., I.C.E Europe Ltd., I.C.E Vacations Asia Pacific PTY LTD, and ICE Vacation Center India Private Limited. CruiseNext deposits applied to a reservation cancelled under our Peace of Mind policy will not be reissued. All future cruise credits must be redeemed within one year from issue date and can be used for sailings departing on or before December 31, 2022. Yeah, so, definitely, we are planning -- you know, we are funding all of our existing debt maturities this year from cash on hand and organic cash flow. Cancellation penalties will be withdrawn from the FCC amount if applicable and remaining balance will be attached to guest's profile. So, you're spot-on there. W9 Form. The last time we spoke regarding the debt maturity, the intention was to use cash flow from operations this year to pay off the existing ECA loans. Complete the on-board survey. Any unused portion of the credit will be forfeited after the expiration date. Once added to your profile, Future Cruise Credit can then be applied to any existing booking or newly created booking. Reservation must be within the final payment period. These ships will further elevate and cement Oceania Cruise's leading position in the upper premium cruise space. If you have booked any shore excursions, beverage packages, or other pre-cruise purchases, you will receive a refund to the original form of payment. An email from the current FCC owner requesting the transfer to be made must be included when submitting the transfer request via https://www.ncl.com/case-submission Insurance FCCs and 10% bonus FCCs are not transferrable Once the transfer takes place, the receiving guest is now the owner and the previous owner cannot request a transfer back. And then, secondly, if I have my notes correctly, for the 1.4 billion term loan, it's going to be either pushed out or amended and extended. And then, changing gears a little bit, can you just remind us of how much of your new ship spend is already financed and locked in as we think about rates? There is no opportunity for the export credit agencies to change those rates. I look forward to continuing to partner with Harry in his new role as we work to capitalize on the momentum we are experiencing in order to maximize value for all of our stakeholders. Future cruise credit (FCC) is a bit like store credit from a cruise line. Thanks. FCCs from either suspended sailings or Peace of Mind cant be converted into another currency. Transfers And any, you know, color just on the cadence of bookings that you've seen year to date, maybe relative to pre-COVID levels. Pricing and yield are both expected to increase in the second half of the year, with the fourth quarter exhibiting the strongest growth versus 2019. My name is Paul, and I will be your operator. And there's two choices. Both the conference call and presentation will be available for replay for 30 days following today's call. But if, you know, Mark, if we look at Slide 13, I mean, look, you basically destroyed every guidance target that you laid out back in February for the first quarter. And there's always going to be some variable variability in there, but nothing that overly concerns us. Read Also: Norwegian Cruise Line Holdings Is First to Opt-In to Voluntary CDC Guidelines. But, overall, we believe that our air strategy is the right thing to do, given our strategic itinerary deployment. The guests -- the passenger load occupancy is a function of what we talked before, having less third and fourth guests on board. It works like a store credit for a cruise, so it can be redeemable towards a cruise fare of a future booking. Overall, our cost levels typically tend to remain the same. Hey, good morning, everybody. My FCC is equal to or greater than the sailing I want to book, so why do I still owe money? FCCs have a set monetary value that can be applied towards the purchase of a new cruise vacation. So, in order to preserve cash for the long term and given the very efficient rates, we simply decided to finance more. We expect this metric to continue to show modest sequential improvement each quarter for the remainder of 2023 as seen on Slide 8. Instead of getting the amount refunded to your credit card, you may be issued a certificate you can use towards your next Norwegian Cruise Line sailing. Thank you. As government regulations evolve, our health and safety protocols will evolve as needed to ensure compliance. How can I see my Future Cruise Credit balance. Posted 2 hours ago. Proceed with your question. Our next question is from Patrick Scholes with Truist Securities. In addition, any of these items will also be added if booked through Norwegian Cruise Line; Flight arrangements, Hotel and Cruise Tour packages, Shore Excursions booked and pre-paid, Prepaid service charges, Beverage or Dining gratuities (if part of FAS Promotion selection), Essentials, Booksafe Standard or Platinum Travel Protection. Making the world smarter, happier, and richer. It's really spread out over the course of the next three to five -- it's spread out, you know, I don't want to say radically, but relatively radically across all of the remaining newbuilds, excluding Norwegian Viva and Vista, which we just took delivery of, of course. Does Norwegian's Peace of Mind apply to me? And I see no risk around that because there's just simply not an opportunity for the institutions to do that. As Slide 5 shows, Harry has a broad range and depth of experience that makes him one of the premier executives in the industry. Our next question is from Conor Cunningham with Melius Research. What is not included in the future cruise credit (FCC) are; Travel Protection. Adjusted net cruise cost, excluding fuel per capacity day, is expected to be approximately $159 in the second quarter, a further improvement versus the prior quarter as additional savings initiatives are realized. What is even more exciting is that this is just the first of three newbuilds that we have in the pipeline this year, with Norwegian Viva and Regent Seven Seas' Grandeur joining the fleet later this year. Good morning, Dan. Air purchased through Norwegian Cruise Line Announcing Our 2023 Cruisers' Choice Award Winners! Our first question is from Dan Politzer with Wells Fargo. Over the next few months, I will be speaking with travel partners, team members, destination representatives, the investment community, and a whole host of constituents, while working closely with our executive team to fine tune our planning vision for the future, and I look forward to sharing details with you. You know, we touched on this already in our prepared remarks, but we are laser focused on delivering our '23 guidance and financial goals. The top-voted question we received this quarter was, what are the three main action points the company will take to ensure growth in the year ahead? You know, we use all types of tools in terms of automation, even AI to predict when the best time to book a flight is. Given their very efficient financing structures made possible to the unique nature of the industry's interconnected financing ecosystem, new ships are able to contribute immediately and are expected to be meaningful drivers of the company's future earnings growth and margin expansion. Image source: The Motley Fool. And have you seen any impact to export credit rates given the broader credit crunch? And I think the tail end of your question was whether or not we're booked there currently. Thank you, Harry, and good morning, everyone. This consists of approximately 700 million of cash and cash equivalents, nearly 600 million of availability under our revolver, and our 650 million undrawn commitment. The FCC has been partially applied to an active and existing reservation. Hotel purchased through Norwegian Cruise Line Yes. This is Mark. To find out more, please. What if I booked my cruise with a travel agent and received a Future Cruise Credit? By continuing to browse the site you agree to our use of cookies.