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Another Loss at NCL

ShipShape4me

By ShipShape4me,
in Norwegian Cruise Line

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Planer's Edge

Planer's Edge

Posted
Posted

Sorry, but this article sounds like good things to me. Improvements from previous years because they are still digging out from the failed policies of the Colin Veitch era. The interest hits seem to be the biggest drag on their profits, much like our own economy here in America.

 

But, then again there are certain people that find anything bad about NCL to be exhilarating. :(

 

PE

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ZumbaBabe

ZumbaBabe

Posted
Posted

It sounds like they couldn't afford the interest on their loan for the Epic. Why build a new ship if you can't afford to pay for it? Not to mention it's really built for a european community. It certainly wasn't built for families. Those seperate bath and shower areas are not appealing to Americans or families.

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hill6

hill6

Posted
Posted

As an accountant I need to say that there are non cash related matters that you do not see in the net loss. There are items such as depreciation and amortization which how they write down new equipment/ships as they are placed in service. They probably do have a profit but those items threw them to have negative income.

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Single Cruiser

Single Cruiser

Posted
Posted

:confused:It's an improvement year on year and greater yield per berth despite having extra berths to fill..

 

That to me sounds like the concept and plan is working..

 

The lose is due to management of loans used to build Epic..

 

And ever since the lending to American home-owners who defaulted on their loans the interest rates for banks lending have shot up!!

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coaster

coaster

Posted
Posted
It sounds like they couldn't afford the interest on their loan for the Epic. Why build a new ship if you can't afford to pay for it? Not to mention it's really built for a european community. It certainly wasn't built for families. Those seperate bath and shower areas are not appealing to Americans or families.

 

Epic was ordered under the Colin Veitch era. The new regime did the best they could by paying a hefty penalty to keep a sister ship from being completed. They are also left to fill this ship and pay the oversized mortgage on it. It will be quite a challenge for many years to come. Not sure how it could be handled any better. The many promotional emails from NCL regarding specials that only apply to Epic tell me two things. They are doing a great job promoting this ship, yet are struggling to fill it. The Epic just does not have the mass market appeal of other ships in the NCL fleet.

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smeyer418

smeyer418

Posted
Posted

Earnings Before Interest, Taxes, and Depreciation

A measure of a company's ability to produce income on its operations in a given year. It is calculated as the company's revenue less its expenses (such as overhead), but including its tax liability, interest paid on debt, and depreciation. It is important to note that EBITD does not account for one-off or otherwise unusual revenues and expenses, only recurring ones. Depreciation is excluded because it is a deduction from profit that does not have to be paid in cash and is thus not useful for determining cash on hand. EBITD represents cash available to pay off creditors in the event of liquidation, and, as such, it is closely watched, especially when the company has little amortization.

 

It means that the company had a net positive income from operations. if the interest payments are high a bankruptcy would not result in liquidation of the company but merely wiping out the interest receiving creditors-or more likely changing them into equity owners.

 

How much interest payments are to the owners of NCL itself? This is not a really poor financial and it shows improvement from last year as well...

 

http://www.sec.gov/Archives/edgar/data/1318742/000119312511123635/d6k.htm

 

here is/are the actual financials....

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scapino

scapino

Posted
Posted
It sounds like they couldn't afford the interest on their loan for the Epic. Why build a new ship if you can't afford to pay for it? Not to mention it's really built for a european community. It certainly wasn't built for families. Those seperate bath and shower areas are not appealing to Americans or families.

 

The same reason that most countries keep spending money that they don't have

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crusinmama06

crusinmama06

Posted
Posted
Not to mention it's really built for a european community. It certainly wasn't built for families. Those seperate bath and shower areas are not appealing to Americans or families.

 

I see you are going on your first cruise, so I'll go easy on you. ;) The Disney ships have a split bathroom and shower and its always been in their marketing as a "plus" for families. If the Epic has the same thing, how can that be bad? Is Disney not built for families?

 

As far as NCL losing money, I wish the Epic wasn't sitting in the Med during the Summer. They have "hot deals" on it when it should be getting top dollar here in the states. :rolleyes:

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mitsugirly Great Review Rare

mitsugirly

Posted
Posted
Note to Self: Book another cruise to help out NCL.

 

No problem with that.

 

I've done just that as well and will be waiting to book the 2 new ships when they emerge as well. :D

 

As for the bathrooms...I LOVE THEM! I feel they are perfect for families. No more waiting on someone to get out of the shower so that someone can use the restroom. Someone else can be getting ready while another is in the shower. I couldn't think of a better design. :)

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radzer0

radzer0

Posted
Posted

The epic is in a port where other HUGE ships pull away from it. If it was at a smaller market that could fill it I think it would do great. Im sure new orleans market could fill it easily. But as far as the river trip, etc. I dont know if it would help me in the long run. But it would deff put a hurting on carnivals ship here which people go on because its the largest. Not because its the best one here.

 

BTW, this isnt me saying the epic should come to neworleans. Id like to see the pearl here year round since there getting rid of the ship i prefer (spirit)

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mitsugirly Great Review Rare

mitsugirly

Posted
Posted

 

BTW, this isnt me saying the epic should come to neworleans. Id like to see the pearl here year round since there getting rid of the ship i prefer (spirit)

 

What do you mean they are getting rid of the Spirit?

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sdmike

sdmike

Posted
Posted
Not to mention it's really built for a european community. It certainly wasn't built for families. Those seperate bath and shower areas are not appealing to Americans or families.

 

Wrong, unlikely, and wrong/questionable

 

It was built for the Caribbean market primarily, they most certainly considered their passenger mix when designing the cabins, and many of us (including the 11 from 10 to 75 that stayed in 3 balcony cabins) love the bathroom layout. I'm not being a cheerleader, I'm just pointing out that you should be careful to not confuse your opinion with facts.

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luddite

luddite

Posted
Posted

This MIGHT be a situation similar to pro baseball and football teams.

Owners of those outfits always claim to be losing their,errrr, a....., err, hmmmm, shorts. Then, when one comes up for sale, there's a line out the door of poor saps who are willing to drop a half a billion on one of those losing ventures.

 

I'm sniffing accounting tricks from the same sort of fellows who can make an elephant disappear up it's own a, errrr....,hmmmm, oh yeah, ...trunk.

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coaster

coaster

Posted
Posted
I've done just that as well and will be waiting to book the 2 new ships when they emerge as well. :D

 

As for the bathrooms...I LOVE THEM! I feel they are perfect for families. No more waiting on someone to get out of the shower so that someone can use the restroom. Someone else can be getting ready while another is in the shower. I couldn't think of a better design. :)

 

 

I believe the split design is better. However, they use real doors on Disney and don't have semi-transparent glass doors like NCL.

 

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