Exhibit 99.2

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION

 

The preliminary unaudited pro forma condensed consolidated financial information for the periods indicated gives effect to the acquisition by NCL Corporation Ltd. (“NCLC”), a subsidiary of Norwegian Cruise Line Holdings Ltd. (“NCLH”) on November 19, 2014, of Prestige Cruises International, Inc. (“Prestige”) as well as the related issuance of New Norwegian Debt and Share Issuance (the “Financing Transactions”), as defined below (collectively, the “Transactions”).

Concurrently with the acquisition, NCLC refinanced a significant portion of Prestige’s historical debt and borrowed an incremental $700.0 million under an amended existing facility, $350.0 million senior secured term loan facility under an incremental assumption agreement with existing or other lenders pursuant to the terms of the amended existing facility, and $680.0 million aggregate principal amount of 5.25% senior notes due 2019 (collectively, “New Norwegian Debt”). Additionally, NCLH issued 20,296,880 of ordinary shares (“Norwegian Ordinary Shares”) (in the “Share Issuance”).

The preliminary unaudited pro forma condensed consolidated balance sheet as of September 30, 2014 gives effect to the consummation of the Transactions as if they had occurred on that date. The preliminary unaudited pro forma condensed consolidated statements of operations give effect to the consummation of the Transactions as if they had occurred on January 1, 2013.

The pro forma information is preliminary, is being furnished solely for informational purposes and is not necessarily indicative of the combined financial position or results of operations that might have been achieved for the periods or dates indicated, nor is it necessarily indicative of the future results of the combined company. It does not reflect cost savings expected to be realized from the elimination of certain expenses and from synergies expected to be created or the costs to achieve such cost savings or synergies. No assurance can be given that cost savings or synergies will be realized. The pro forma adjustments contained in the preliminary unaudited pro forma condensed consolidated financial information are based on the latest available information and certain adjustments that management believes are reasonable. These preliminary unaudited pro forma adjustments include a preliminary allocation of the purchase price of Prestige to certain assets and liabilities based on fair value; however, the final allocation of the purchase price to acquired assets and liabilities will be based on a formal valuation analysis to be completed following the consummation of the Transactions. The actual results reported by the combined company in periods following the Transactions may differ materially from that reflected in this preliminary unaudited pro forma condensed consolidated financial information.

The preliminary unaudited pro forma condensed consolidated financial information presented is based on the assumptions and adjustments described in the accompanying notes. The preliminary unaudited pro forma condensed consolidated financial information gives effect to events that are (1) directly attributable to the Transactions, (2) factually supportable and (3) with respect to the statements of operations, expected to have a continuing impact on the combined company. The preliminary unaudited pro forma condensed consolidated financial information is presented for illustrative purposes and does not purport to represent what the financial position or results of operations would actually have been if the Transactions had occurred as of the dates indicated or what the financial position or results of operations would be for any future periods. The preliminary unaudited pro forma condensed consolidated financial information is based upon the respective historical audited and unaudited consolidated financial statements of NCLH and Prestige, and should be read in conjunction with (1) the accompanying notes to the preliminary unaudited pro forma condensed consolidated financial information, (2) the historical audited and unaudited consolidated financial statements and related notes included in NCLH’s Annual Report on Form 10-K for the year ended December 31, 2013 as updated by NCLH’s Quarterly Reports on Form 10-Q, (3) the historical audited and unaudited consolidated financial statements and related notes of Prestige, which are attached hereto as Exhibit 99.1 and (4) management’s discussion and analysis of financial conditions and results of operations included in NCLH’s Annual Report on Form 10-K for the year ended December 31, 2013 as updated by NCLH’s Quarterly Reports on Form 10-Q.

 

 
 

  

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

AS OF SEPTEMBER 30, 2014

(in thousands)

 

   NCLH
(As Reported)
   Prestige(a)    Pro Forma
Adjustments
   Pro Forma 
Assets                    
Current assets:                    
Cash and cash equivalents  $55,869   $274,850   $(232,783)(b)  $97,936 
Accounts receivable, net   25,936    6,708        32,644 
Inventories   51,263    12,173        63,436 
Prepaid expenses and other assets   57,568    58,452    9,690(c)   125,710 
Total current assets   190,636    352,183    (223,093)   319,726 
Property and equipment, net   6,319,933    2,053,281    168,418(d)   8,541,632 
Goodwill and tradenames   611,330    485,503    1,071,332(e)   2,168,165 
Other long-term assets   252,150    63,389    151,359(c)   466,898 
Total assets  $7,374,049   $2,954,356   $1,168,016   $11,496,421 
Liabilities and Shareholders’ Equity                    
Current liabilities:                    
Current portion of long-term debt  $381,565   $92,149   $55,903(f)  $529,617 
Accounts payable   99,884    11,691        111,575 
Accrued expenses and other liabilities   280,590    107,203    22,610(g)   410,403 
Due to Affiliate   36,928            36,928 
Advance ticket sales   504,057    470,469    (48,079)(h)   926,447 
Total current liabilities   1,303,024    681,512    30,434    2,014,970 
Long-term debt   3,082,346    1,437,579    984,323(f)   5,504,248 
Due to Affiliate   36,978    752,742    (752,742)(i)   36,978 
Other long-term liabilities   67,717    28,738    183,872(j)   280,327 
Total liabilities   4,490,065    2,900,571    445,887    7,836,523 
Commitments and contingencies                    
Shareholders’ equity:                    
Ordinary shares   206    136    (116)(k)   226 
Additional paid-in capital   2,826,395    309,212    533,276(k)   3,668,883 
Accumulated other comprehensive income (loss)   (58,479)   (61,575)   61,575(k)   (58,479)
Retained earnings (deficit)   166,490    (193,933)   122,046(k)   94,603 
Treasury shares   (82,000)   (55)   55(k)   (82,000)
Total shareholders’ equity controlling interest   2,852,612    53,785    716,836    3,623,233 
Non-controlling interest   31,372        5,293(k)   36,665 
Total shareholders’ equity   2,883,984    53,785    722,129    3,659,898 
Total liabilities and shareholders’ equity  $7,374,049   $2,954,356   $1,168,016   $11,496,421 

 

See accompanying notes to unaudited pro forma condensed consolidated balance sheet.

 

 
 

  

Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet

 

(a)Certain reclassifications have been made to the historical financial statements of Prestige to conform to NCLH’s presentation.

 

The following material reclassifications have been made to the Prestige historical financial statements (in thousands):

 

Reclassifications to Prestige Historical Financial Statements  As of
September 30,
2014
 
Reclassify in-transit credit card remittances from accounts receivable, net to cash and cash
equivalents
  $10,057 
Reclassify advertising paper from inventories to prepaid expenses and other assets  $1,710 
Reclassify spare parts from inventories to property and equipment, net  $8,168 
Reclassify tradenames from other long-term assets to goodwill and tradenames  $80,645 
Reclassify capital lease from accrued expenses and other liabilities to current portion of
long-term debt
  $2,492 
Reclassify capital lease from other long-term liabilities to long-term debt  $7,418 

 

(b)Represents estimated sources and uses of funds as follows (in thousands):

 

Sources of Funds:    
New Norwegian Debt  $1,730,000 
Total sources   1,730,000 
Uses of Funds:     
Purchase of Prestige–cash portion   1,108,798 
Refinancing of Prestige historical debt, including prepayment premium and accrued interest   744,683 
Estimated debt issue costs–New Norwegian Debt   45,540 
Estimated direct transaction fees and expenses   63,762 
Total uses   1,962,783 
Net use of historical cash  $(232,783)

 

(c)The composition of the pro forma adjustments is as follows (in thousands):

 

   Prepaid
Expenses
and Other
Assets
   Other
Long-Term
Assets
 
Historical deferred financing fees(1)  $(11,735)  $(47,756)
New deferred financing fees(2)   21,425    24,115 
Amortizable intangible assets(3)       175,000 
Pro forma adjustment  $9,690   $151,359 

 

 

 

(1)Financing fees related to the historical Prestige debt extinguished upon the consummation of the Transactions.

 

(2)Financing fees capitalized related to the New Norwegian Debt to be amortized in accordance with the term of the related debt, which is preliminarily expected to be 3 to 5 years.

 

(3)Intangible assets consist of customer relationships and backlog, which are preliminarily expected to be amortized over 3 and 1 year(s), respectively. The actual adjustment may differ materially based on the final determination of fair value.

 

 
 

  

(d)Primarily represents the estimated increase in the basis of the ships related to the preliminary valuation. The valuation of the ships considered the application of the market and cost approaches. The comparable sales method of the market approach is based on current market conditions and recent transactions of similar size vessels adjusted for the physical deterioration, and functional and economic obsolescence, if applicable. The cost approach recognizes that a prudent investor will pay no more for an asset than the cost to replace it new with an identical or similar unit of equal utility. The determination of the replacement cost is adjusted for physical deterioration, and functional and economic obsolescence, if applicable. Both methods were used in the estimation of the fair value of the ships and weighted on the relative appropriateness of each method given the specific facts and circumstances surrounding the ships including size, condition, current market conditions, comparison to other ships and other qualitative factors. The actual adjustment may differ materially based on the final determination of fair value.

 

(e)Under the purchase method of accounting, the total estimated consideration will be allocated to Prestige’s tangible and intangible assets and liabilities based on the final determination of the estimated fair values as of the effective date of the acquisition. The preliminary adjustment is calculated as follows (in thousands):

 

   As of
September 30,
2014
 
Calculation of Consideration:     
Purchase of Prestige–cash portion  $1,108,798 
Purchase of Prestige–equity portion(1)   847,801 
Contingent consideration   43,038 
Total consideration  $1,999,637 
Preliminary Allocation of Consideration:     
Total consideration  $1,999,637 
Prestige book value of net assets   (53,785)
Adjustments to net book values:     
Property and equipment, net   (168,418)
Amortizable intangibles   (175,000)
Prepaid expenses and other assets–deferred financing/offering fees   11,735 
Other long-term assets–deferred financing fees   47,756 
Accrued expenses and other liabilities   46,304 
Advance ticket sales   (48,079)
Due to Affiliate   (752,742)
Long-term debt   23,090 
Other long-term liabilities   140,834 
Adjustment to goodwill and tradenames   1,071,332 
Less: adjustment to tradenames   (524,355)
Adjustment to goodwill  $546,977 

 

 


(1)The 20,296,880 Norwegian Ordinary Shares issued in the Share Issuance were valued at $41.77 per share, which is the closing share price of the Norwegian Ordinary Shares as of November 18, 2014. A $0.10 change in the share price will result in a $2.0 million change in consideration.

 

 
 

  

(f)Represents the adjustment necessary to reflect the issuance of New Norwegian Debt and refinancing certain historical Prestige debt. The estimated net change in outstanding indebtedness results from the following (in thousands):

 

New Norwegian Debt  $1,730,000 
Refinancing of historical Prestige debt:     
Debt principal, net of discounts   (712,864)
Fair market value adjustment on assumed debt   23,090 
Net change in debt  $1,040,226 

 

The balance sheet classification is as follows:

 

Current portion of long-term debt  $55,903 
Long-term debt   984,323 
Net change in debt  $1,040,226 

 

(g)The composition of the pro forma adjustment is as follows (in thousands):

 

   Accrued
Expenses and
Other
Liabilities
 
Estimated assumed seller transaction fees  $23,840 
Accrued estimated transaction fees(1)   (15,730)
Unfavorable contracts(2)   22,700 
Other(3)   (8,200)
Pro forma adjustment  $22,610 

 

 

 

(1)Represents transaction fees accrued as of September 30, 2014 that are expected to be paid from the Financing Transactions.

 

(2)Short-term component related to unfavorable agreements assumed in the Transactions.

 

(3)Primarily relates to accrued interest paid at the consummation of the Transactions.

 

(h)Represents the pro forma adjustment to decrease advance ticket sales to the amount representative of the combined company’s future performance obligation. The advance ticket sales were valued using a version of the Income Approach, known as the Build-Up Method, to estimate the cost necessary to fulfill the obligation, including an allowance for a reasonable profit on the fulfillment effort. These costs were based on an assumption that a certain portion of operating infrastructure would be necessary to fulfill these obligations. The costs were summed and a reasonable profit was added on the fulfillment effort. These adjusted costs were then discounted to present value using a discount rate commensurate of the liability.

 

(i)The merger agreement required a pre-closing recapitalization of Prestige, wherein all outstanding Company Notes and Company Warrants (each as defined in the merger agreement) issued by Prestige were exchanged for newly-issued shares of Prestige common stock or shares of Class B common stock of Prestige prior to the consummation of the Transactions.

 

(j)Represents (1) $43.0 million related to the contingent consideration payout, (2) $142.3 million related to the long-term portion of unfavorable contracts and (3) the reversal of a $1.4 million deferred tax liability that was not incurred by the combined company. The contingent consideration was valued using various projected 2015 revenue scenarios weighted by the likelihood of each scenario occurring. The probability weighted payout was then discounted at an appropriate discount rate commensurate for the risk of meeting the probabilistic cash flows.

 

 
 

  

(k)The composition of the pro forma adjustments is as follows (in thousands):

 

 

   Ordinary
Shares
   Additional
Paid-in
Capital
   Accumulated
Other
Comprehensive
Income (Loss)
   Retained
Earnings
(Deficit)
   Treasury
Shares
   Non-controlling
Interest
   Total
Shareholders’
Equity
 
Elimination of pre-merger Prestige equity balances  $(136)  $(309,212)  $61,575   $193,933   $55   $   $(53,785)
Share Issuance(1)   20    847,781                    847,801 
Adjustment to non-controlling interest       (5,293)               5,293     
Prestige historical debt prepayment premium               (23,854)           (23,854)
Estimated transaction fees               (48,033)           (48,033)
Pro forma adjustment  $(116)  $533,276   $61,575   $122,046   $55   $5,293   $722,129 

 

 

 

(1)The 20,296,880 Norwegian Ordinary Shares issued in the Share Issuance were valued at $41.77 per share, which is the closing share price of the Norwegian Ordinary Shares as of November 18, 2014. A $0.10 change in the share price will result in a $2.0 million change in consideration.

 

 
 

  

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014

(in thousands)

 

   NCLH
(As Reported)
   Prestige(a)    Pro Forma
Adjustments
   Pro Forma(b)  
Revenue                    
Passenger ticket  $1,655,666   $859,185   $(c)  $2,514,851 
Onboard and other   681,306    146,404        827,710 
Total revenue   2,336,972    1,005,589        3,342,561 
Cruise operating expense                    
Commissions, transportation and other   374,716    270,758        645,474 
Onboard and other   172,780    39,659        212,439 
Payroll and related   321,386    50,991    (17,025)(d)   355,352 
Fuel   236,753    80,802        317,555 
Food   125,236    91,111        216,347 
Other   197,133    113,189    3,276(e)   313,598 
Total cruise operating expense   1,428,004    646,510    (13,749)   2,060,765 
Other operating expense                    
Marketing, general and administrative   263,584    151,198    (2,011)(f)   412,771 
Depreciation and amortization   188,885    68,605    12,036(g)   269,526 
Total other operating expense   452,469    219,803    10,025    682,297 
Operating income   456,499    139,276    3,724    599,499 
Non-operating income (expense)                    
Interest expense, net   (95,316)   (101,116)   33,152(h)   (163,280)
Other income (expense)   3,305    (8,387)       (5,082)
Total non-operating income (expense)   (92,011)   (109,503)   33,152    (168,362)
Net income before income taxes   364,488    29,773    36,876    431,137 
Income tax benefit (expense)   3,761    (426)   (258)(i)   3,077 
Net income   368,249    29,347    36,618    434,214 
Net income attributable to non-controlling interest   4,288        724(j)   5,012 
Net income attributable to Norwegian Cruise Line Holdings Ltd.  $363,961   $29,347   $35,894   $429,202 
Weighted-average shares outstanding                    
Basic   204,444,469         20,296,880(k)   224,741,349 
Diluted   209,992,647         20,296,880(k)   230,289,527 
Earnings per share                    
Basic  $1.78         (k)  $1.91 
Diluted  $1.75         (k)  $1.89 

 

See accompanying notes to unaudited pro forma condensed consolidated statements of operations.

 

 
 

  

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2013

(in thousands)

 

   NCLH
(As Reported)
   Prestige(a)    Pro Forma
Adjustments
   Pro Forma(b)  
Revenue                    
Passenger ticket  $1,815,869   $1,001,610   $(c)  $2,817,479 
Onboard and other   754,425    181,726        936,151 
Total revenue   2,570,294    1,183,336        3,753,630 
Cruise operating expense                    
Commissions, transportation and other   455,816    323,841        779,657 
Onboard and other   195,526    43,518        239,044 
Payroll and related   340,430    62,544    (22,700)(d)   380,274 
Fuel   303,439    101,690        405,129 
Food   136,785    115,409        252,194 
Other   225,663    114,332    801(e)   340,796 
Total cruise operating expense   1,657,659    761,334    (21,899)   2,397,094 
Other operating expense                    
Marketing, general and administrative   301,155    174,866    512(f)   476,533 
Depreciation and amortization   215,593    83,975    87,481(g)   387,049 
Total other operating expense   516,748    258,841    87,993    863,582 
Operating income   395,887    163,161    (66,094)   492,954 
Non-operating income (expense)                    
Interest expense, net   (282,602)   (141,094)   49,160(h)   (374,536)
Other income   1,403    13,209        14,612 
Total non-operating income (expense)   (281,199)   (127,885)   49,160    (359,924)
Net income (loss) before income taxes   114,688    35,276    (16,934)   133,030 
Income tax benefit (expense)   (11,802)   246    119(i)   (11,437)
Net income (loss)   102,886    35,522    (16,815)   121,593 
Net income (loss) attributable to non-controlling interest   1,172        205(j)   1,377 
Net income (loss) attributable to Norwegian Cruise Line Holdings Ltd.  $101,714   $35,522   $(17,020)  $120,216 
Weighted-average shares outstanding                    
Basic   202,993,839         20,296,880(k)   223,290,719 
Diluted   209,239,484         20,296,880(k)   229,536,364 
Earnings per share                    
Basic  $0.50         (k)  $0.54 
Diluted  $0.49         (k)  $0.53 

 

See accompanying notes to unaudited pro forma condensed consolidated statements of operations.

 

 
 

  

Notes to Unaudited Pro Forma Condensed Consolidated Statements of Operations

 

(a)Certain reclassifications have been made to the historical financial statements of Prestige to conform to NCLH’s presentation.

 

The following material reclassification adjustments have been made to the Prestige historical financial statements (in thousands):

 

Reclassifications to Prestige Historical Financial
Statements
  Nine Months
Ended
September 30,
2014
   Year Ended
December 31,
2013
 
Reclassify charter revenue to onboard and other revenue  $5,840   $18,779 
Reclassify the food component of payroll, related and food expense to food expense  $91,111   $115,409 
Reclassify other ship operating expense to other expense  $82,323   $98,062 
Reclassify loss on asset disposal from other expense to depreciation and amortization  $909   $146 

 

(b)The preliminary unaudited pro forma condensed consolidated statements of operations do not reflect an additional $71.9 million for estimated transaction costs, which consists of $23.9 million of estimated assumed seller transaction fees and $48.0 million in estimated transaction fees of NCLH, as these charges are not expected to have a continuing impact on the results of operations of the combined company. The pro forma financial statements do include $24.8 million of transaction fees that have been paid or accrued through September 30, 2014. Additionally, the preliminary unaudited pro forma condensed consolidated statements of operations do not reflect up to approximately $27.1 million of contingent payments that may be paid related to certain employment contracts.

 

(c)The preliminary unaudited pro forma statements of operations do not adjust, in arriving at pro forma results, the impact of the advance ticket sales adjustment to record unearned revenue at fair value in purchase accounting, which is considered non-recurring as the period affected is within twelve months of the transaction date.

 

(d)Represents an adjustment to reflect amortization of unfavorable contracts.

 

(e)Represents an adjustment to direct expense for certain spare parts that historically have been capitalized by Prestige, but would have been expensed pursuant to NCLH’s accounting policies.

 

(f)The composition of the pro forma adjustments is as follows (in thousands):

 

   Nine Months
Ended
September 30,
2014
   Year Ended
December 31,
2013
 
Service fee(1)  $(656)  $(875)
Third-party fees(2)   (2,052)   (1,079)
Non-cash stock compensation expense(3)   697    2,466 
Pro forma adjustment  $(2,011)  $512 

 

 

 

(1)Fees paid for services provided by a related party, which were cancelled upon consummation of the Transactions.

 

(2)Legal fees and other fees in connection with prior registration statements and other administrative services which will not impact the combined company.

 

(3)Estimated compensation expense for new NCLH share options partially offset by reversal of Prestige historical compensation expense related to stock options that vested upon the consummation of the Transactions.

 

 
 

  

(g)A summary of the pro forma adjustments to depreciation and amortization are as follows (in thousands, except useful lives): 

 

   Estimated
Fair
Value
   Historical
Book
Value
   Stepped-up
Basis
   Estimated
Useful
Life
(years)
   Nine
Months
Ended
September 30,
2014
   Year Ended
December 31,
2013
 
Depreciable assets:                              
Ships  $2,192,890   $2,025,405   $167,485    24–30    $49,337   $65,783 
Other property and equipment   28,809    27,876    933    3–12     2,895    3,860 
Total depreciable assets  $2,221,699   $2,053,281   $168,418        $52,232   $69,643 
Amortizable intangible assets:                              
Customer relationships  $110,000   $   $110,000    3   $27,500   $36,667 
Backlog   65,000        65,000    1        65,000 
Total amortizable intangible assets  $175,000   $   $175,000        $27,500   $101,667 
Total pro forma depreciation and amortization                      $79,732   $171,310 
Elimination of historical depreciation and amortization                       (67,696)   (83,829)
Pro forma depreciation and amortization adjustment                      $12,036   $87,481 

 

The allocation of purchase price presented herein is based on a preliminary valuation. The actual adjustment may differ materially based on the final determination of fair value. A change of 10% of the preliminary fair value of the ships would result in a change of $6.6 million in annual depreciation expense.

 

(h)Represents the pro forma interest expense, net adjustment to reflect the new debt structure. This adjustment is preliminary. The actual adjustment may differ materially based on the final determination of fair value. The composition of the pro forma adjustments for interest expense, net is as follows (in thousands):

 

   Nine Months
Ended
September 30,
2014
   Year Ended
December 31,
2013
 
Interest expense on New Norwegian Debt(1)  $(49,625)  $(67,059)
Amortization of fair value adjustment(2)   114    152 
Amortization of deferred financing fees(3)   (5,534)   (7,379)
Less: Prestige historical interest expense(4)   88,197    123,446 
Pro forma interest expense, net adjustment  $33,152   $49,160 

 

 

(1)Represents $1,730 million of New Norwegian Debt, which is comprised of $1,050 million of variable rate term loans and $680 million of 5.25% notes. The variable rate portion of the New Norwegian Debt has an estimated weighted-average interest rate of 3.0% per annum. The impact of a 0.125% change in LIBOR on the variable portion of the New Norwegian Debt would affect annual interest expense by approximately $1.3 million.

 

(2)Represents the amortization of the debt premium on the assumed debt facilities.

 

(3)Represents the amortization of deferred financing fees related to the issuance of the New Norwegian Debt.

 

(4)Represents historical interest expense related to the refinanced Prestige facilities and the outstanding Company Notes and Company Warrants (each as defined in the merger agreement).

 

(i)The pro forma condensed consolidated income tax provision has been adjusted for the expected tax impact of the pro forma adjustments at Prestige’s historical implied effective rate of 0.7% for the periods presented. A 1% change in the effective tax rate would result in a change in the tax expense or benefit of $0.4 million and $0.2 million for the nine months ended September 30, 2014 and year ended December 31, 2013, respectively. The effective tax rate of the combined company could be significantly different depending on post-acquisition activities.

 

(j)Represents the adjustment for the Share Issuance and the pro forma net income.

 

 
 

  

(k)The pro forma earnings per share calculation is as follows (in thousands, except share and per share data):

 

   Nine Months     
   Ended   Year Ended 
   September 30, 2014   December 31, 2013 
Pro forma net income  $434,214   $121,593 
Pro forma non-controlling interest   5,012    1,377 
Pro forma net income attributable  to Norwegian Cruise Line Holdings Ltd.  $429,202   $20,215 
           
Weighted-average shares outstanding:          
Basic:          
Norwegian – as reported   204,444,469    202,993,839 
Shares issued as consideration to Prestige shareholders (1)   20,296,880    20,296,880 
Basic – pro forma   224,741,349    223,290,719 
           
Diluted:          
Norwegian – as reported   209,992,647    209,239,484 
Shares issued as consideration to Prestige shareholders (1)   20,296,880    20,296,880 
Diluted – pro forma   230,289,527    229,536,364 
           
Pro forma earnings per share:          
Basic  $1.91   $0.54 
Diluted  $1.89   $0.53 

 

(1) Based upon the terms of the merger agreement.