Norwegian Cruise Line Holdings (NCLH) risk factors, FY2024 10-K

Other

1. 01If our results of operations and financial performance do not recover as planned, we may not be in compliance with maintenance covenants in certain of our debt facilities
2. 02We anticipate that we will need additional financing in the future, which may not be available on favorable terms, or at all, and our outstanding exchangeable notes and any future financing may be dilutive to existing shareholders
3. 03Our indebtedness, and the agreements governing our indebtedness, may limit our flexibility in operating our business and a substantial majority of our assets are collateral under our debt agreements
4. 04The impact of volatility and disruptions in the global credit and financial markets could increase our counterparty credit risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees
5. 05Any potential impairment of our trade names or goodwill could adversely affect our financial condition and operating results
6. 06Unavailability of ports of call may materially adversely affect our business, financial condition and results of operations
7. 07We rely on scheduled commercial airline services for passenger and crew connections. Increases in the price of, or major changes, significant delays and disruptions, or reduction in, commercial airline services has, and could in the future, disrupt our operations
8. 08Global events and conditions, including terrorist acts, armed conflicts, acts of piracy, and other international events impacting the security of travel or the global economy, or threats thereof, could adversely affect our business
9. 09Public health crises have had, and may in the future have, a significant impact on our financial condition, results, operations, outlook, plans, goals, growth, reputation, cash flows, liquidity, demand for voyages and share price
10. 10Adverse incidents involving cruise ships may adversely affect our business, financial condition and results of operations
11. 11Our business depends on maintaining and strengthening our brand to attract new customers and maintain ongoing demand for our offerings, and a significant reduction in such demand could harm our results of operations
12. 12A failure to keep pace with developments in technology could impair our operations or competitive position
13. 13Changes in fuel prices and the type of fuel we are permitted to use and/or other cruise operating costs would impact the cost of our cruise ship operations and our hedging strategies may not protect us from increased costs related to fuel prices
14. 14Mechanical malfunctions and repairs, delays in our shipbuilding program, maintenance and refurbishments and the consolidation of qualified shipyard facilities could adversely affect our results of operations and financial condition
15. 15Conducting business internationally may result in increased costs and risks
16. 16Our failure or inability to recruit or retain qualified personnel or the loss of key personnel or employee relations issues may materially adversely affect our business, financial condition and results of operations
17. 17Our executive officers and other members of senior management have substantial experience and expertise in our business and have made significant contributions to our growth and success. The loss of services of one or more of these individuals could materially adversely affect us
18. 18Impacts related to climate change may adversely affect our business, financial condition and results of operations
19. 19Our inability to obtain adequate insurance coverage may adversely affect our business, financial condition and results of operations
20. 20Litigation, enforcement actions, fines or penalties could adversely impact our financial condition or results of operations and damage our reputation
21. 21We rely on third parties to provide hotel management services for certain ships and certain other services, and we are exposed to risks facing such providers. In certain circumstances, we may not be able to replace such third parties or we may be forced to replace them at an increased cost to us
22. 22Fluctuations in foreign currency exchange rates could adversely affect our financial results
23. 23Our expansion into new markets and investments in new markets and land-based destination projects may not be successful
24. 24Overcapacity in key markets or globally could adversely affect our operating results
25. 25Our use of artificial intelligence (“AI”) technologies may present business, compliance, and reputational risks

Risks Related to the Regulatory Environment in Which We Operate

1. 26Changes in tax laws, or challenges to our tax positions could adversely affect our results of operations and financial condition
2. 27our business, financial condition and results of operations could be materially adversely affected. We expect global tax reform will continue to evolve over the coming years and will continue to monitor these developments
3. 28Our ability to comply with economic substance requirements in certain jurisdictions and increased costs associated with our efforts to comply may have a negative impact on our operations

Risks Related to NCLH’s Ordinary Shares

1. 29Shareholders of NCLH may have greater difficulties in protecting their interests than shareholders of a U.S. corporation
2. 30NCLH does not expect to pay any cash dividends for the foreseeable future
3. 31Provisions in NCLH’s constitutional documents may prevent or discourage takeovers and business combinations that NCLH’s shareholders might consider to be in their best interests