Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 10:00 am ET


Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) Q2 2020 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning, and welcome to the Norwegian Cruise Line Holdings Second Quarter 2020 Earnings Conference Call. My name is Michelle, and I will be your operator. [Operator Instructions]

I would now like to turn the conference over to your host, Ms. Andrea DeMarco, Senior Vice President of Investor Relations, Corporate Communications and ESG. Ms. DeMarco, please proceed.

Andrea DeMarco

Thank you, Michelle, and good morning, everyone, and thank you for joining us for our second quarter 2020 earnings call. I'm joined today virtually by Frank Del Rio, President and Chief Executive Officer of Norwegian Cruise Line Holdings; and Mark Kempa, Executive Vice President and Chief Financial Officer. Frank will begin the call with opening commentary, after which Mark will follow to discuss results for the quarter before handing the call back to Frank for closing remarks. We will then open the call for your questions.

As a reminder, this conference call is being simultaneously webcast on the company's Investor Relations website at We will also make reference to a slide presentation during this call, which may also be found on our Investor Relations website. Both the conference call and presentation will be available for replay for 30 days following today's call.

Before we discuss our results, I'd like to cover a few items. Our press release for second quarter 2020 results was issued this morning and is available on our Investor Relations website. This call includes forward-looking statements that involve risks and uncertainties that could cause our actual results to differ materially from such statements. These statements should be considered in conjunction with the cautionary statements contained in our earnings release. Our commentary may also reference non-GAAP financial measures. A reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our earnings release and presentation.

With that, I'd like to turn the call over to Frank Del Rio. Frank? [Technical Issue]

Mark A. Kempa

Did we lose Frank?

Frank J. Del Rio

I'm sorry, I had you on mute. I will begin from the top. Thank you, Andrea, and good morning. I hope that everyone joining us today as well as your loved ones are healthy and safe. Similar to our previous earnings call in May, today, we will provide a business update on the progress of our response to the COVID-19 global pandemic.

I'd like to start off by putting the current no-sail situation into perspective. In the last five months, our company and the cruise industry at large has experienced more adversity than at any other time in our 50 plus year history. The negative effect the cruise industry faces from the COVID crisis eclipses that of 9/11, the Great Recession and any other stress test scenario that once imagination has ever modeled combined.

Looking back, it would have been unimaginable for us to foresee that today, five months after the initial suspension of service, which was declared on March 13, that our entire 28 ship fleet would still be at a complete standstill. Motor anchored in ports around the world