Acquisition expense drives loss at Norwegian Cruise Line Holdings

Norwegian
Cruise Line Holdings reported a $21.5 million loss for the first quarter, driven
primarily by “transaction- and integration-related costs” of its acquisition of
Prestige Cruise Holdings.

In the
2014 first quarter, before the $3.03 billion purchase of Prestige (parent of Regent
Seven Seas Cruises and Oceania Cruises) Norwegian had net income of $51.7
million.

Revenue
for this year’s first quarter was $938.2 million, up from $664 million prior to the
merger.

Norwegian
said operating income in the quarter was $60.3 million, down from $73.1 million
a year earlier.

After
excluding a slew of merger-related expenses, Norwegian reported adjusted net
income of $62.6 million in the 2015 first quarter, up from $49.5 million a year
earlier.

Norwegian
raised the level of synergies it expects from the merger to $75 million in
2015, including $30 million in revenue synergies and $45 million in cost
synergies. Previously, it said synergies would total $40 million. Of the total,
Norwegian said it will reinvest $20 million, yielding net synergies of $55
million for 2015.

It said it expects merger synergies to amount to $115 million in 2016.