Norwegian Cruise Line Holdings Ltd. has recently released its 10-K report, providing a detailed insight into its operations and financial performance. The company operates under the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands, offering a wide range of itineraries across various destinations, including Scandinavia, the Mediterranean, Alaska, and the Caribbean. The report highlights the impact of the COVID-19 pandemic on the company's operations, with a complete suspension of cruise voyages from March 2020 until July 2021, gradually resuming full operation of its fleet in May 2022.
The 10-K report delves into the company's financial presentation, categorizing revenue from cruise and cruise-related activities as "passenger ticket" revenue or "onboard and other" revenue. It details the seasonal nature of the company's revenue, historically strongest during the Northern Hemisphere’s summer months. The report also provides a breakdown of cruise operating expenses, including commissions, transportation, payroll, fuel, food, and other costs.
Furthermore, the report discusses critical accounting policies, particularly ship accounting and asset impairment. It outlines the company's approach to ship depreciation, residual value estimation, and capitalization of ship improvement costs. The report emphasizes the reliance on estimates, judgments, and assumptions in the preparation of consolidated financial statements, highlighting the potential impact of changes in these factors on reported financial results.
The market has reacted to these announcements by moving the company's shares -1.9% to a price of $18.73. For the full picture, make sure to review Norwegian Cruise Line's 10-K report.
