Royal Caribbean Reports Q3 2022 Earnings; Net Income of $33 Million

Royal Caribbean Reports Q3 2022 Earnings; Net Income of $33 Million

Anthem of the Seas in Liverpool, UK Photo Credit Spacejunkie2 (Flickr)

Royal Caribbean Group today reported third quarter 2022 Earnings per Share of $0.13 and Adjusted Earnings per Share of  $0.26.

Third quarter results were better than expected and above guidance for the quarter mainly due to higher load factors from strong close-in demand, further improvement in onboard revenue and better cost performance. The Group also introduced the Trifecta Program, a new three-year initiative designed to drive superior performance, according to a press release.

"Last quarter's better-than-expected performance was a result of the continued robust demand environment and strong execution by our teams," said Jason Liberty, president and chief executive officer of Royal Caribbean Group.

"The combination of our leading global brands, the best and most innovative fleet in the industry, our nimble global sourcing platform and the very best people have delivered a successful return of our business to full operations and positions us well to deliver record yields and adjusted EBITDA in 2023," added Liberty. "The Trifecta Program provides us with the financial coordinates we are looking to achieve over the next three years. As we have demonstrated in the past, we expect the formula of moderate yield growth, strong cost discipline, and moderate growth of our fleet will deliver a strong financial profile."

Business Highlights

• Load factors in the third quarter were 96% overall, with Caribbean sailings reaching almost 105%.
• Total Revenue in the third quarter was $3.0 billion, Net Income was $33.0 million and Adjusted EBITDA was $742.3 million.
• Booking volumes in the third quarter accelerated versus the second quarter of 2022 and remained significantly higher than booking volumes received in the third quarter of 2019 for all future sailings.
• For 2023, all quarters are currently booked well within historical ranges at record pricing.
• During the third quarter, the company addressed $5.6 billion of its 2022 and 2023 debt maturities, resulting in $0.1 billion and $2.1 billion of maturities remaining in 2022 and 2023, respectively.
• Based on continued strength in consumer demand and typical load factor seasonality, the company expects fourth-quarter load factors to be similar to the third quarter overall, and to reach triple digits by year-end.
• For the fourth quarter of 2022, based on current currency exchange rates, fuel rates and interest rates, the company expects to generate Total Revenue of approximately $2.6 billion, Adjusted EBITDA of $350 - $400 million and Adjusted Loss per Share of ($1.30) – ($1.50).
• The Trifecta Program is designed to achieve three important financial goals by the end of 2025: increasing Adjusted EBITDA per APCD to triple digits, increasing Adjusted EPS to double digits, and achieving ROIC in the teens, while in parallel returning to an investment grade profile and reducing carbon intensity by double digits as compared to 2019.

Third Quarter 2022

The company reported Net Income for the third quarter of $33.0 million or $0.13 per share compared to a Net Loss of $(1.4) billion or $(5.59) per share for the same period in the prior year. The company also reported an Adjusted Net Income of $65.8 million or $0.26 per share for the third quarter compared to an Adjusted Net Loss of $(1.2) billion or $(4.91) per share for the same period in the prior year.

Third quarter load factors were 96% overall and almost 105% for Caribbean Sailings. As expected, total revenues per passenger cruise day were flat as reported and up 1%  in constant currency versus the third quarter of 2019 despite the negative impact from the redemption of future cruise certificates (FCCs) and lower-than-average load factors on high-priced Europe itineraries.  

Gross Cruise Costs per APCD increased by 1% as reported and in constant currency, compared to the second quarter of 2022. Net Cruise Costs (NCC), excluding fuel, per APCD improved by 11% as reported and 10% in constant currency, compared to the second quarter of 2022. Gross Cruise Costs per APCD and NCC, excluding fuel, per APCD for the third quarter included $3.37 per APCD related to health protocols and one-time lagging costs related to the fleet ramp-up.

NCC, excluding fuel, per APCD for the fourth quarter is expected to be higher by low to mid-single digits compared to the fourth quarter of 2019, all on a constant currency basis. The company still expects to have transitory costs in the fourth quarter, but is expected to normalize as the company is nearing full occupancies, full crew staffing levels, and adapting protocols. The improvement is partially offset by inflationary and supply chain challenges, mainly related to fuel and food costs, which are expected to continue to weigh on costs through the rest of this year and through the first half of 2023.

Update on Bookings

Booking volumes in the third quarter were significantly higher than in the corresponding period in 2019, the company said.

This improvement in bookings was helped by the easing of testing and vaccination protocols which now align more closely with the broader travel industry, allowing everyone to enjoy a cruise vacation.

Guests continue to make their cruise reservations closer to sailing than in the past, resulting in about 50% more bookings in the third quarter for current year sailings when compared to the third quarter of 2019. 

While 2022 bookings remain strong and on pace to achieve occupancy targets, the most notable change has been a substantial acceleration in demand for 2023 sailings.

Booking volumes for 2023 doubled during the third quarter when compared to the second quarter and were considerably higher than bookings for 2020 sailings during the comparable period in 2019, the highest in company history.

As of September 30, 2022, the Group's customer deposit balance was $3.8 billion, reflecting typical seasonality as peak summer sailing deposits have been recognized in revenue. In the third quarter, approximately 95% of total bookings were new versus FCC redemptions.

Trifecta Program

The Trifecta Program is a three-year financial performance initiative designed to chart out the pathway back to superior performance with three main goals to be achieved by the end of 2025, the company said, including:

• Triple Digit Adjusted EBITDA per APCD, to exceed prior record Adjusted EBITDA per APCD of $87 in 2019.
• Double Digit Adjusted Earnings per Share to exceed the prior record Adjusted Earnings per Share of $9.54 in 2019.
• Return on Invested Capital ("ROIC") in the teens to exceed the prior record ROIC of 10.5% in 2019 through optimizing capital allocation and enhancing operating income; all while returning to an investment grade profile and reducing carbon intensity by double digits compared to 2019.

To achieve these goals, the company expects to execute its proven formula of moderate capacity growth, moderate yield growth, and strong cost controls, all while ensuring disciplined capital allocation, investing in the future and improving the balance sheet.

"Our brands, vacation offerings and fleet have never been stronger and we are well positioned for a continued step change in financial performance," said Liberty. "Our proven formula for success is unchanged as we grow capacity and, enhance profitability while seeking to deliver superior shareholder return."

Liquidity and Financing Arrangements

As of September 30, 2022, the Group's liquidity position was $3.1 billion, which includes cash and cash equivalents, undrawn revolving credit facility capacity, and a $700 million commitment for a 364-day term loan facility.

During the third quarter, the company took proactive actions to address $5.6 billion of 2022 and 2023 maturities, in addition to securing financing for the Silversea Endeavour acquisition:

• In August, the company issued $1.15 billion of 6.00% convertible notes due 2025 and used the proceeds to repurchase $800 million of its 4.25% convertible notes maturing June 2023 and $350 million of its 2.875% convertible notes maturing November 2023;
• In August, the company issued $1.25 billion of 11.625% unsecured notes due 2027 to refinance 2022 and 2023 debt maturities;
• In August, the company extended its existing commitment from Morgan Stanley for a $700 million delay draw term loan facility to August 2023;
• In September, the company amended its $554 million Term Loan (due October 2023) such that the aggregate outstanding principal balance is $502 million, with $30.0 million maturing in October 2023 and $472 million maturing in October 2024.
• In September, the company priced $1.0 billion of 8.25% secured notes and $1.0 billion of 9.25% guaranteed notes, both due 2029 and callable in 2025 to refinance $1.0 billion of secured notes and $1.0 billion of guaranteed notes, both due June 2023. The transaction closed in October.

"During the third quarter, we took a series of proactive actions to methodically address a significant amount of our 2022 and 2023 debt maturities," said Naftali Holtz, chief financial officer, Royal Caribbean Group. "Our strong near-term liquidity enables us to focus on continuing to improve the balance sheet as we seek to return to an investment grade profile."

Carnival Corporation Provides Business Update, Q1 Earnings

Carnival Corporation Provides Business Update, Q1 Earnings

Carnival Corporation has provided its first-quarter 2022 business update.

Highlights: 

• U.S. GAAP net loss of $1.9 billion and an adjusted net loss of $1.9 billion for the first quarter of 2022.
• First-quarter 2022 ended with $7.2 billion of liquidity, including cash, short-term investments and borrowings available under the company's revolving credit facility.
• For the cruise segments, revenue per passenger cruise day ("PCD") for the first quarter of 2022 increased approximately 7.5% compared to a strong 2019. This increase was driven by exceptionally strong onboard and other revenue.
• As of March 22, 2022, 75% of the company's capacity had resumed guest cruise operations.
• The company expects to have each brand's full fleet back in guest cruise operations for its respective summer season where it historically generates the largest share of its operating income.
• The company believes monthly adjusted EBITDA will turn positive at the beginning of its summer season.
• Since the middle of January, the company has seen an improving trend in weekly booking volumes for future sailings. Recent weekly booking volumes have been higher than at any point since the restart of guest cruise operations.
• The company announced that three additional ships are expected to leave the fleet in 2022 in connection with its ongoing fleet optimization strategy. In total, this represents the planned removal of 22 smaller-less efficient ships since the beginning of the pause in guest cruise operations.
• Building on the company's strong governance framework and its continued commitment to sustainability, the Board of Directors appointed the company's President and Chief Executive Officer Arnold Donald to the role of Chief Climate Officer.

First Quarter 2022 Results and Statistical Information

• For the cruise segments, revenue per PCD for the first quarter of 2022 increased approximately 7.5% compared to a strong 2019. This increase was driven by exceptionally strong onboard and other revenue.
• During the first quarter of 2022, as a result of the Omicron variant, the company experienced an impact on bookings for its near-term sailings, including higher cancellations resulting from an increase in pre-travel positive test results, challenges in the availability of timely pre-travel tests and the disruption Omicron caused on society overall during this time. Therefore, occupancy in the first quarter of 2022 was 54%, a 20% increase in guests carried over the prior quarter.
• Available lower berth days ("ALBD") for the first quarter of 2022 were 13 million, which represents 60% of total fleet capacity, increasing from 47% in the fourth quarter of 2021.

Carnival Corporation & plc President, Chief Executive Officer and Chief Climate Officer Arnold Donald noted: "Despite the impact of Omicron, guests carried grew by nearly 20 per cent in the first quarter compared to the prior quarter, while simultaneously increasing revenue per passenger cruise day and driving an improvement in adjusted EBITDA. We expect monthly adjusted EBITDA to turn positive by the beginning of our summer season as we build occupancy and return more ships to service."

Donald added: "We believe we have positioned the company well to withstand volatility on our path to profitability and have been working hard to resume operations as a stronger and more sustainable operating company, to maximize cash generation and to deliver double-digit returns on invested capital over time."

Despite the impact resulting from the Omicron variant during the first quarter, the company's adjusted EBITDA (see non-GAAP Financial Measures) improved due to its ongoing resumption of guest cruise operations. The company believes that adjusted EBITDA will continue to improve with the ongoing resumption of guest cruise operations and continues to expect improvement in occupancy throughout 2022 until it returns to historical levels in 2023. The company believes monthly adjusted EBITDA will turn positive at the beginning of its summer season.

The company ended the first quarter of 2022 with $7.2 billion of liquidity, including cash, short-term investments and borrowings available under the revolving credit facility. The company invested $400 million in capital expenditures (net of export credit facilities) during the first quarter of 2022, which included the delivery of three of the four larger-more efficient ships expected to be delivered in 2022. In addition, the Company repaid $500 million of debt principal and incurred $400 million of interest expense, net during the quarter.

Carnival Corporation & plc Chief Financial Officer David Bernstein noted, "We ended the first quarter of 2022 with $7.2 billion of liquidity. Looking forward, we believe we remain well-positioned given our liquidity and the continued improvement expected in adjusted EBITDA, along with the expected build in customer deposits, as we progress toward resuming full fleet operations."

Resumption of Guest Cruise Operations

Donald said: "Since resuming guest cruise operations, we delivered more than 2.2 million exceptional vacations while achieving historically high guest satisfaction scores. With 75 per cent of our capacity having resumed guest cruise operations, we are well on our way back to full cruise operations and we are planning to return the balance of the fleet by our summer seasons. Achieving these operational milestones while facing headwinds including Delta and Omicron variants and changing regulations and protocols —particularly at our scale— makes the efforts of our team, ship and shore, all the more impressive."

Donald continued, "In addition, we furthered our fleet optimization efforts by taking delivery of three larger-more efficient ships during the quarter, Costa Toscana and AIDAcosma, the company's fifth and sixth ships powered by LNG and Discovery Princess. We also announced the removal of another three smaller-less efficient ships, bringing the total to 22 ships, significantly reducing our rate of capacity growth. Upon returning to full operations, nearly 25 per cent of our capacity will consist of newly delivered ships, which we believe will expedite our return to profitability and improve our return on invested capital."

As of March 22, 2022, 75% of the company's capacity had resumed guest cruise operations as part of its ongoing return to service. The company's enhanced COVID-19 protocols have helped it become among the safest forms of socializing and travel, with far lower incidence rates than on land. The company expects to have each brand's full fleet back in guest cruise operations for its respective summer season where it historically generates the largest share of its operating income.

Upon returning to full cruise operations, the company's ongoing fleet optimization strategy combined with its LNG efforts and other innovative initiatives to drive energy efficiency is forecasted to deliver a 10% reduction in fuel consumption per ALBD and a 9% reduction in carbon emissions per ALBD on an annualized basis compared to 2019.

While the company will benefit from the removal of smaller-less efficient ships and the delivery of larger-more efficient ships, the company expects adjusted cruise costs excluding fuel per ALBD (see Non-GAAP Financial Measures) for the full year 2022, to be significantly higher than 2019. This is driven by a portion of its fleet being in pause status for part of the year, restart related expenses, an increase in the number of dry-dock days, the cost of maintaining enhanced health and safety protocols and inflation. The company anticipates that many of these costs and expenses will end in 2022 and will not reoccur in 2023. Additionally, the company expects to see a significant improvement in adjusted cruise costs excluding fuel per ALBD from the first half of 2022 to the second half of 2022 with a low double-digit increase for the full year 2022 compared to 2019.

The ongoing resumption of the company's guest cruise operations and the increased uncertainty given the current invasion of Ukraine, including its effect on the price of fuel, are collectively having a material impact on its business, including the company's liquidity, financial position and results of operations. The company continues to expect a net loss for the second quarter of 2022 on both a U.S. GAAP and adjusted basis. However, the company expects a profit for the third quarter of 2022. For the full year of 2022, the company expects a net loss.

Update on Bookings

Donald added: "Given the recent strengthening in booking volumes coupled with the closer-in booking patterns, we expect an extended wave season. In fact, we gained occupancy even in the month of March with fleetwide occupancy nearing 70 per cent and several sailings already exceeding 100 per cent."

Since the middle of January, the company has seen an improving trend in weekly booking volumes for future sailings. Recent weekly booking volumes have been higher than at any point since the restart of guest cruise operations. 

During the first quarter, the company increased its booked occupancy position for the second half of 2022, albeit not at the same pace as a typical wave season due to the Omicron variant. As a result, cumulative advance bookings for the second half of 2022 are at the lower end of the historical range. However, the company believes it is well situated with its current second half 2022 booked position given the recent improvements in booking volumes and its continued expectation that occupancy will build throughout 2022 and return to historical levels in 2023. Normalized for bundled packages, prices on bookings for the second half of 2022 continue to be higher, with or without future cruise credits ("FCCs"), as compared to 2019 sailings. 

Cumulative advanced bookings for the first half of 2023 continues to be both at the higher end of the historical range and at higher prices, with or without FCCs, normalized for bundled packages, as compared to 2019 sailings. (Due to the ongoing resumption of guest cruise operations, the company's current booking trends will be compared to booking trends for 2019 sailings.)

Total customer deposits increased to $3.7 billion as of February 28, 2022, from $3.5 billion as of November 30, 2021.

Carnival Has $7.9 Billion of Cash On Hand; 12 Months of Liquidity

Carnival Corporation said in a regulatory filing on Friday that as of July 31, 2020, the company had $7.9 billion in cash and cash equivalent balance available.

The nine-brand operation said earlier in July that during its pause in guest operations, the monthly average cash burn rate for the second half of 2020 is estimated to be approximately $650 million per month, which could give Carnival approximately 12 months of cash with ships out of operation.

Royal Caribbean Cruises Ltd posts $1.4bn Q1 loss

Royal Caribbean Cruises Ltd posts $1.4bn Q1 loss

Royal Caribbean Cruises Ltd has reported a net loss of US$1.4 billion for the first quarter of 2020.

The parent company of Royal Caribbean International, Celebrity Cruises, Azamara and Silversea paused all operations amid the global Covid-19 pandemic on March 13.

In a trading update today,  the company said the pandemic was expected to have hit production at shipyards, meaning delays to new-build Royal ships.

RCCL said the pandemic had led to the cancellation of 130 sailings, which equated to a 20% reduction on its planned sailings and was 17% down on last year’s programme.

The company posted a profit of $249.7 million in the first quarter of 2019 and said it expects to report an overall net loss in 2020.

RCCL withdrew its full-year trading guidance in March, and the update noted: “The magnitude, duration and speed of Covid-19 remain uncertain. As a consequence, the company cannot estimate the impact of Covid-19 on its business, financial condition or near or longer-term financial or operational results with reasonable certainty.”

It expects non-operating expenses of between $590 million and $610 million for the remainder of the year.

Bookings for the remainder of 2020 are “meaningfully lower” than 2019 with lower prices, RCCL reported but noted that before the pandemic took hold it was in “a strong booked position and at higher prices” than 2019.

Looking ahead, it said “the booked position for 2021 is within historical ranges when compared to the same time last year” with 2021 prices “up mid-single digits compared to 2020”. The company stressed it was “still early in the booking cycle”.

RCCL brands had offered customers booked on cancelled cruises either a cash refund or future cruise credit note and said that, as of April 30, 2020, approximately 45% of guests had requested cash refunds.

As of March 31, 2020, the company had $2.4 billion of cash in customer deposits.

RCCL estimates its cash burn to be, on average, in the range of approximately $250 million to $275 million per month while operations are suspended but noted it had “taken significant actions to enhance its liquidity, preserve cash and secure additional financing”. These included securing a $4 billion increase in financing and knocking $3 billion off its 2020 capital expenditure.

“We have taken swift and substantial actions to bolster our financial position by significantly reducing our operating and capital spend and leveraging our strong balance sheet to raise additional capital,” said Jason Liberty, executive vice president and chief financial officer.

As of April 30, 2020, the company had liquidity of approximately $2.3 billion all in the form of cash and cash equivalents, RCCL reported. And on May 19, 2020, it completed a $3.3 billion senior secured notes offering, improving its liquidity position by approximately $1 billion.

RCCL noted that as of May 19, 2020, the expected debt maturities for the remainder of 2020 and 2021, are $0.4 billion and $0.9 billion, respectively.

“Responding to the dramatic change in business conditions caused by COVID-19 has required focus, dedication, ingenuity and improvisation from all our people, and their efforts have been nonstop,” said chairman and chief executive Richard Fain. “We understand that when our ships return to service, they will be sailing in a changing world.  How well we anticipate and solve for this new environment will play a critical role in keeping our guests and crew safe and healthy, as well as position our business and that of our travel agent partners to return to growth.”

RCCL is due to complete its repatriation of crew members to their home countries, and said the company’s future focus now turns to four key principles:

• Ensuring the safety of guests and crew
• Proactively enhancing liquidity
• Protecting the Company’s brands, and
• Defining and preparing for a “new normal.”

Royal Caribbean Updates Measures Taken to Weather COVID-19 Pandemic

PHOTO: Anthem of the Seas' pool deck at sunset. (photo courtesy of Royal Caribbean International)

Royal Caribbean Cruises Ltd. (RCCL) on May 8 provided a business update on how it is shoring up liquidity, reducing expenses, and upgrading cleaning and disinfection protocols amid the Covid-19 pandemic.

“These are unprecedented times for all of us. Travel restrictions and stay-at-home orders are important to slowing the spread of the virus, but they have severely impacted our operations,” said Chairman and CEO Richard D. Fain. “We are taking decisive actions to prioritize the safety of our guests and crew while protecting our fleet and bolstering liquidity.”

RCCL brands – including Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises – have suspended operations through at least June 11. The corporation said continued disruptions to travel and port operations may result in further suspensions.

“Our top priority is to ensure the safety of our guests and crew during the suspension period and when we resume operations," Fain said. “The company’s fleet is now either in port or at anchor and we have developed strict protocols to protect our crew that is still on board our ships.”

RCCL also has arranging to shore up its liquidity and, as of April 30, had liquidity of approximately $2.3 billion in cash and cash equivalents. On May 4, the company increased the 364-day senior secured credit facility and drew $150 million, further enhancing the company’s liquidity profile.

“Since late January, we have undertaken several proactive measures to mitigate the financial and operational impacts of COVID-19,” said Jason T. Liberty, executive vice president and CFO. “Our focus is on bolstering liquidity through significant cost-cutting, capital spends reductions, and other cash conservation measures. In addition, the company is considering additional financing sources. We continue to evaluate all options available to us to further enhance liquidity.”

To reduce expenses, RCCL has significantly reduced ship operating expenses, including crew payroll, food, fuel, insurance and port charges.

The company reduced its workforce by about 26 per cent, eliminated or significantly reduced marketing and selling expenses for the remainder of 2020, and suspended travel and instituted a hiring freeze.

“The company estimates that its average ongoing ship operating expenses and administrative expenses is approximately $150 million to $170 million per month during the suspension of operations,” the business update said. “The company may seek to further reduce this average monthly requirement under a prolonged non-revenue scenario.”

The company also has identified approximately $3 billion and $1.4 billion of capital expenditure reductions or deferrals in 2020 and 2021, respectively. Shipyard operations have been impacted, so there will be delays of new ships previously planned for delivery in 2020 and 2021.

The company estimates its cash burn to be, on average, in the range of approximately $250 million to $275 million per month during a suspension of operations.

At the beginning of 2020, RCCL was looking at a strong booking pattern at higher prices than the previous year.

“Given the impact of Covid-19, booking volumes for the remainder of 2020 are meaningfully lower than the same time last year at prices that are down low-single digits,” the RCCL statement said. “Due to the suspension in sailings, booking trends reflect elevated cancellations for 2020 and more typical levels for 2021 and beyond. Although still early in the booking cycle, the booked position for 2021 is within historical ranges when compared to the same time last year with 2021 prices up mid-single digits compared to 2020.”

As of March 31, the company had $2.4 billion in customer deposits. This includes approximately $800 million of future cruise credits related to voyage cancellations through June 11. The company also continues to take future bookings for 2020, 2021 and 2022, and receive new customer deposits and final payments on these bookings.

The company previously withdrew its first-quarter and full-year 2020 guidance. “The magnitude, duration and speed of Covid-19 remain uncertain. As a consequence, we cannot estimate the impact of Covid-19 on our business, financial condition or near- or longer-term financial or operational results with reasonable certainty, but we expect to incur a net loss” for the first quarter and the 2020 fiscal year, “the extent of which will depend on the timing and extent of our return to service.”

Meanwhile, the company has been developing a plan to address the health challenges posed by Covid-19. It includes enhanced screening, upgraded cleaning and disinfection protocols, and plans for social distancing.

RCCL continues to work with the Centers for Disease Control and Prevention, global public health authorities, and national and local governments to enhance measures to protect the health, safety and security of guests, crew and the communities visited when operations resume.

Under stress, NCL Holdings hit a liquidity grand slam

Arnie Weissmann (left) and Frank Del Rio at Travel Weekly's CruiseWorld in 2018. Photo Credit: Jamie Biesiada

In the first of two parts of a wide-ranging interview with Travel Weekly editor in chief Arnie Weissmann, Norwegian Cruise Line Holdings CEO Frank Del Rio gave the back story on closing a $2.4 billion round in tough times. Part 2: Del Rio on relaunching and the importance of travel advisors in cruising’s recovery. 

On March 13, Norwegian Cruise Line Holdings CEO Frank Del Rio learned that to stem the spread of Covid-19 on cruise ships, the Centers for Disease Control and Prevention (CDC) had issued a no-sail order, effectively halting cruising out of U.S. ports.

No cruising, no revenue. No revenue, no assurance of the liquidity needed to survive for an unknowable amount of time. “I knew our world was going to change,” Del Rio told Travel Weekly in an interview on Thursday.

Del Rio sees the journey from potential ruin to bountiful liquidity as a testimony to the resiliency of cruising and NCLH’s unique position in the cruising ecosystem.

On Wednesday, Del Rio finished what would be considered a remarkable round of funding even during the best of times. His underwriter, Goldman Sachs, told him it was the first simultaneous “quad” it had seen: releasing a private placement memorandum and at the same time announcing three different kinds of public capital. And, as icing on the cake of the $2.23 billion initially announced, an oversubscription in each tranche triggered what Wall Street calls a “greenshoe” event, allowing additional shares to be sold, bringing the total above $2.4 billion.

What should have been an unqualified grand slam was temporarily dampened when some investors and media noticed two sentences in a 59-page public filing on Tuesday which seemed to disclose “substantial doubt” about the company’s ability to continue “as a going concern,” and another warning that, should investment not be forthcoming, “it may be necessary for us to reorganize our company in its entirety, including through bankruptcy proceedings.”

The language, Del Rio said, was a “mandatory, technical accounting reporting requirement that our auditor, Price Waterhouse, was required to issue in conjunction with the offering memorandum.” Though the details the following day about the success of the offering would render the point moot, NCL stock dropped 22% the day before the full scope of the investments were announced.

The $2.4 billion, combined with $1.1 billion in cash the company already had, “probably gives us the biggest liquidity cushion -- the longest runway -- of any company in the cruise space,” Del Rio said. “I challenge you to find another company in any industry that can say that they can withstand a 100% cessation of operations with zero revenue for more than 18 months.”

When this is all over, Del Rio asserts, “Norwegian will be one of the survivors, one of the success stories. This was truly a team effort. Yesterday I addressed them all, and it was a very emotional moment because what was being saved was a great institution. We invented the cruise industry more than 50 years ago and I would be damned if, under my watch, that was going to change.”