2018 Annual Report for Norwegian Cruiseline Holdings - 40

You are encouraged to evaluate each adjustment used in calculating our non-GAAP financial measures and the reasons we consider our nonGAAP financial measures appropriate for supplemental analysis. In evaluating our non-GAAP financial measures, you should be aware that
in the future we may incur expenses similar to the adjustments in our presentation. Our non-GAAP financial measures have limitations as
analytical tools, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP.
Our presentation of our non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by
unusual or non-recurring items. Our non-GAAP financial measures may not be comparable to other companies. Please see a historical
reconciliation of these measures to the most comparable GAAP measure presented in our consolidated financial statements below in the
"Results of Operations" section.
Summary of Significant 2018 Events
In March 2018, we repurchased approximately $263.5 million of NCLH's outstanding ordinary shares under our previously authorized threeyear, $500.0 million share repurchase program, exhausting the remaining authorization under the program. In April 2018, the Board of
Directors of NCLH approved a new three-year share repurchase program under which NCLH may purchase up to $1.0 billion of its ordinary
shares. We repurchased approximately $401.3 million of NCLH's ordinary shares under the Repurchase Program.
In April 2018, Norwegian Bliss was delivered.
In April 2018, we redeemed $135.0 million principal amount of the $700.0 million aggregate principal amount of outstanding 4.75% Senior
Notes due 2021.
As of December 31, 2018, the Sponsors no longer own any NCLH ordinary shares.
Executive Overview
Total revenue increased 12.2% to $6.1 billion for the year ended December 31, 2018 compared to $5.4 billion for the year ended
December 31, 2017. Gross Yield increased 3.4%. Net Revenue for the year ended December 31, 2018 increased 12.6% to $4.7 billion from
$4.2 billion in the same period in 2017 with an improvement in Net Yield of 3.7% and an increase in Capacity Days of 8.5%.
For the year ended December 31, 2018, we had net income and diluted EPS of $954.8 million and $4.25, respectively. For the year ended
December 31, 2017, we had net income and diluted EPS of $759.9 million and $3.31, respectively. Operating income increased 16.2% to
$1.2 billion for the year ended December 31, 2018 from $1.0 billion for the year ended December 31, 2017.
We had Adjusted Net Income and Adjusted EPS of $1.1 billion and $4.92, respectively, for the year ended December 31, 2018, including
$150.1 million of adjustments primarily consisting of expenses related to non-cash share-based compensation, amortization of intangible
assets, losses on the extinguishment of debt and certain other adjustments, compared to Adjusted Net Income and Adjusted EPS of $907.7
million and $3.96, respectively, for the year ended December 31, 2017. A 14.5% improvement in Adjusted EBITDA was achieved for the
same period, primarily due to the increase in net income and EBITDA. We refer you to our "Results of Operations" below for a calculation
of Net Revenue, Net Yield, Adjusted Net Income, Adjusted EPS and Adjusted EBITDA.

2018 Annual Report for Norwegian Cruiseline Holdings

Table of Contents for the Digital Edition of 2018 Annual Report for Norwegian Cruiseline Holdings