Good morning and welcome to the Norwegian Cruise Line Holdings Second Quarter 2015 Earnings Conference Call. My name is Amanda, and I will be your operator. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer, and instructions for that session will follow at that time. As a reminder to all participants, this conference call is being recorded. I would now like to turn the conference over to your host, Ms. Andrea DeMarco, Senior Director of Investor Relations. Ms. DeMarco, please proceed.

Thank you, Amanda. Good morning, everyone, and thank you for joining us for our second quarter earnings call. I'm joined today by Frank Del Rio, President and Chief Executive Officer of Norwegian Cruise Line Holdings, and Wendy Beck, Executive Vice President and Chief Financial Officer. Frank will begin the call with opening commentary, after which Wendy will follow with commentary on the results for the quarter as well as provide updated guidance for 2015, before turning the call back to Frank for closing words. 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 www.nclhltdinvestor.com, and will be available for replay for 30 days following today's call. Before we discuss our results, I would like to cover just a few items. Our press release with second quarter 2015 results was issued this morning and is available on our Investor Relations website. I would also like to review information about forward-looking statements and the use of the non-GAAP information as a part of this call. The company's comments today may include statements about expectations for the future. Those expectations are subject to known and unknown risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by these expectations. The company cannot guarantee the accuracy of any forecast or estimates and will undertake no obligation to update any forward-looking statements. If you would like more information on the risks involved in forward-looking statements, please see the company's SEC filings. In addition, some of our comments may reference non-GAAP financial measures. A reconciliation of the most directly comparable GAAP financial measures and other associated disclosures are contained in the…

Thank you, Mr. Del Rio. Our first question comes from Felecia Hendrix from Barclays. Your line is open.

Hi, good morning, and thank you. Frank, just to kind of hop on to your closing comments and Wendy's closing comments, at the beginning of your remarks you called 2016 a breakout year. You guys put in the release and in the prepared remarks about your strong bookings for next year. You're going to have a new ship. You're changing out your milk runs. You're growing internationally. So I'm just assuming that by calling 2016 a breakout year, you mean that all of these items will manifest themselves. So I wanted to just make sure I was understanding that properly and maybe you could talk about some things that you see going forward additionally. And I think previously you had talked about perhaps beating that $5 goal? Thanks. Frank J. Del Rio - President & Chief Executive Officer: Thank you, Felecia. Yeah, by breakout year, I meant it in a very positive way. The 30% better book revenue is very healthy. It comes from both load factor improvement and pricing improvement. And we continue to see very strong onboard spend especially on our newer vessels. And as we stated in the release, we continue to see that double-digit premium of the newer vessels versus the legacy vessels. So, the Escape is booking well. The Explorer is booking phenomenally well, as is Sirena on the Oceania side. We've upped our synergies for 2015. That doesn't mean that we're giving up on finding additional opportunities. They're there. But as I'd mentioned earlier, we want to close the book on synergies, the define number and focus more on an ongoing business. So it just looks very, very strong, Felecia. The industry is strong. You've seen our colleagues also report strength and so there's a lot to be optimistic about.

Can you touch on that $5 goal? Frank J. Del Rio - President & Chief Executive Officer: Yeah, it's still the goal. And not only is it the goal, but I think we feel more confident than ever that we're going to get there. So, still a year away or more than a year away. We're focused on 2016 and 2016 looks very, very strong, which hopefully will lead to even a stronger 2017.

Okay, great. Thanks.

Our next question comes from the line of Harry Curtis from Nomura. Your line is open.

Hi, good morning. Can you talk more specifically about your outlook for the Caribbean next year? What kind of supply growth do you expect overall for the area, and what kind of pricing you would hope to get on your same-store fleet? Wendy A. Beck - Chief Financial Officer & Executive Vice President: Okay. So first off, Harry, on our deployment, our Caribbean capacity for the full year 2015 is at 41% and next year it will grow to 43%. And Frank, do you want to address the pricing? Frank J. Del Rio - President & Chief Executive Officer: Yeah, it's a bit early, Harry to give you a whole lot of color on pricing, but as I said a little earlier to Felecia's question, we're seeing 2016 strength both in load factor and in pricing.

Specifically what I was after is on the supply growth, I appreciate your capacity, your mix going up, but there are some concerns that after a year in 2015 where we actually have a tailwind on supply overall in the Caribbean that it's actually going to go up 4% or 5% next year. Is that a number that's consistent with what you're expecting? Wendy A. Beck - Chief Financial Officer & Executive Vice President: No, we're anticipating 2%...

Okay. Wendy A. Beck - Chief Financial Officer & Executive Vice President: ...for the supply growth. Frank J. Del Rio - President & Chief Executive Officer: Industry-wide.

Okay. And then, just quickly touching on China, can you give us a sense of a little more color on what your plans are in China? There seems to be an evolution of how you fill ships in China. As you look into putting capacity there, are you likely to fill ships or a ship with partners? Are you planning on building out a marketing and sales force? Just a little more color on your plans there would be great? Frank J. Del Rio - President & Chief Executive Officer: That would be premature. We have not announced that we're going to China yet and so I'd rather stay away from answering specific questions. Time will come for us to make that call. But I agree that China is a different model than the rest of the world, although it is beginning to move more towards FIT bookings and the charter model. But it's been successful. I think you've heard the other lines several times now mention how their most profitable ships, their high yielding ships are based in China and everything that we have seen indicated that is correct and so we want in on that action. And like I said earlier, things are going well with our review and our assessment of the potential of China and Asia in general. And so, we will make the decision to go or not go earlier than we once thought. And I like to leave it at that for now.

So last question is, it sounds like there is room for the possibility of your capacity going in before 2017, it's a possibility. Frank J. Del Rio - President & Chief Executive Officer: Not before 2017. If we decide to go to China, our ships will not arrive there in 2016 and 2017 at the earliest if we decide to go.

Okay. That's great. Thanks.

Our next question comes from Steve Wieczynski from Stifel. Your line is open. Steven M. Wieczynski - Stifel, Nicolaus & Co., Inc.: Hey, good morning, guys. So, Frank, you talked about in the release earmarking certain synergy savings for reinvestment and you just barely glanced over it in your prepared remarks. Can you maybe help us think about what you're targeting in terms of some of those reinvestments? Frank J. Del Rio - President & Chief Executive Officer: Yeah, on prior calls we've said that we're going to invest in the onboard product, primarily in improving menus and we believe the way to a person's heart is through their stomach and so we want to make our food offerings the best they can be. We're also going to be investing monies in additional marketing to coincide with the new ad agency that we've contracted with. We want to keep the momentum going throughout 2016. Remember there's a new vessel coming on the Norwegian brand for 2017. And so, we believe that a combination of sales and marketing initiatives, primarily for the Norwegian brand, but some for the Prestige brand as well combined with an improvement in the onboard food product for the Norwegian brand is the overwhelming majority of that reinvestment. Steven M. Wieczynski - Stifel, Nicolaus & Co., Inc.: Okay, got you. Then second question with regards to your book to load position for the remainder of the year. We've heard your competitors out there saying they're in the best position they've ever been. Is that a similar type of story that you guys are in at this point as well? Frank J. Del Rio - President & Chief Executive Officer: Yes. We've said for some time now that we're in a better book position for the next six quarters over the last two quarters of the year and all of next year than we were at this time last year. Steven M. Wieczynski - Stifel, Nicolaus & Co., Inc.: Okay, great. Thanks, guys.

Our next question comes from the line of Robin Farley from UBS. Your line is open.

Great, thanks. Two sort of housekeeping items and then just a question about your forward guidance, for Q2, just looking at a couple of the add-backs, can you just give more color around there was, I guess $11 million of expenses related to the Prestige acquisition last year that fell in this quarter and it looks like this is separate from accounting changes and separate from severance. So I was just wondering what that is. Wendy A. Beck - Chief Financial Officer & Executive Vice President: Sure. I'll handle that. So about two-thirds of the $10.9 million is related to termination and break fees, for example, a large item in there is the breaking the casino contract that Prestige had, so that we could bring it in-house and handle the casino similarly to how we've handled Norwegian and successfully grown it through the years. And the other third is related to integration costs and SOX compliance to really get Prestige SOX-compliant. But also as we integrate all of our programs together, we've got a big push here that we've got to have that done by the end of the year.

Okay. Great. And then, on the fuel expense – and you guys talked about why that may be going up – I just want to clarify. Is the $10 million higher fuel cost that's from the EPA rescinding waivers, is that the same $10 million that you call out in the add backs that loss of $10 million related to fuel swap hedge contracts or are those two different expenses? Wendy A. Beck - Chief Financial Officer & Executive Vice President: Yeah. They're actually two different expenses. It happens to be the same number. So I don't know if you want me to clarify anything more on that, but there actually is some offsets in there too. So we've got a loss of $10 million related to the certain hedge contracts, and then we also have had $9.4 million that's related to the Explorer exchange that's offsetting that. So that's in there. And then we also have the $10 million for the MGO fuel cost because we're going to have to now burn the more expensive fuel towards the back half of the year. So it just happens to be similar amounts.

Okay. But that $10 million in higher fuel cost – that's just going to run through your regular operating expense? Wendy A. Beck - Chief Financial Officer & Executive Vice President: That's correct. And then the other thing to note is that, there is additional amounts that we'll actually see in 2016 and 2017, but that will mitigate. So it will be an additional $15 million in fuel expense into 2016 and $10 million into 2017. Three of the ships that are getting scrubbers put on them will actually be online by the second half of next year – actually in the first half before we get to June. And so, then it starts to taper down and then the remaining scrubbers will go out into 2017.

Okay, great. That's helpful. Thank you. And then, just my last question. Frank, you mentioned the $5 a share in EPS, still the goal for 2017. Is it still fair to say that – you have talked about potential upside to that coming from additional Prestige synergies like you announced today and if there is share repurchase at some point between now and then, those things would be kind of incremental to the $5. Is that still how we should think of it? Frank J. Del Rio - President & Chief Executive Officer: Yeah. And don't forget that of all the synergies we've talked about, we've never ascribed a single penny to improved pricing from a new go-to-market strategy that as we said earlier we see a 30% increase in revenue – book revenue year-over-year. So that also can be very much accretive to that basic $5. And my guess is that that would be the highest potential area to the $5 would be how much more pricing – ticket pricing we can see on the Norwegian brand because of the new strategy. Wendy A. Beck - Chief Financial Officer & Executive Vice President: And the other thing that I would add in is that – that also assumes $790 million in debt pay downs, so we've got that money out there as we message numerous times to either pay down debt or buy back shares. So, we've got some options there.

Okay, great. Thank you very much.

Our next question comes from Tim Conder from Wells Fargo Securities. Your line is open.

Thank you. Just a couple here. Relating to the fuel, Wendy, and the expiration of the hedges or the falling out of those, is the net of that plus any incremental hedges that you've layered on to, is that what we're seeing in your hedge percentage guidance here that you outlined in the press release? Wendy A. Beck - Chief Financial Officer & Executive Vice President: Yes. So the hedge percentage actually goes down because now it's the remainder that is left in, that's getting hedge accounting, that percentage is related to the HFO that we will actually burn for the remainder of the year and so that's the cause of it going down. You will not see that change, so it's now at 48% for 2015, 54% for 2016. And you probably have noticed that we've layered in some additional hedges in the back two years, now moving up to 44% in 2017. But the change down is purely related to the de-designation of our accounting hedges.

Theoretically, could you continue to put more hedges on – although they may not qualify as of yet until you get some of the other scrubbers online and then we can see that percentage jump? Wendy A. Beck - Chief Financial Officer & Executive Vice President: Yes, definitely for the outer years we could do that if we chose to.

Okay. And then, some others in the industry provided some, I guess, waiting by quarter or directional wait, I should say by quarter and by the year on your FX. Is there anything that you guys could provide there either here on the call or in the filing or follow-up? Wendy A. Beck - Chief Financial Officer & Executive Vice President: Well, so the first thing I would say is just as a reminder, roughly 15% of our currency is coming in from foreign source. It has shifted a little bit. So we used to say that of that 15%, 10% was euros; that's gone down to about 8% now and the pound has actually moved up a little from 5 % to 6% with the remainder being Australian currency. And then, Tim, were you looking for sensitivities?

I guess, just the more the waiting by quarters, where you had the exposure or ranking maybe by quarters and then you just kind of gave it for the year. But by quarters any – just sort of how we should think about the cadence of the ranking by quarters. Wendy A. Beck - Chief Financial Officer & Executive Vice President: Yeah, so third quarter definitely would be the highest and then fourth quarter obviously we're moving a lot into the Caribbean. And then as far as cadence, I can tell you on a full year basis, $0.01 change on the yield impact for the euro would be 4.3 bps. The pound is about 2.0 bps, Canadian 3.5 bps, and Australian at 2.1 bps.

Okay. And then Frank, one of the things that you outlined in the Analyst Day was an objective and a goal to really push to source more Canadians, similar to what Prestige had been doing, but source more for the Norwegian brand. Just maybe an update on that. Does that seem like a pretty good size pocket of opportunity relative to what others were doing in the industry? Frank J. Del Rio - President & Chief Executive Officer: Well, relative to what the Prestige brands had done in Canada, the Norwegian brands had underperformed. And so we have geared up in Canada and are beginning to see positive results. Our international source business, and you can include Canada in that broad international space, is improving. So we like what we see in the international expansion. And we're glad that we've made those investments. It's beginning to pay off.

And then, lastly you talked about your 30% booked revenue increase for 2016 on a year-over-year basis. Can you say just in absolute terms how much of your capacity you have booked for 2015 and then any color if you would on 2016 on an absolute basis? Frank J. Del Rio - President & Chief Executive Officer: You want to know what our occupancy is for 2015.

Yeah, just as a percent of capacity for 2015, how much were you booked at this point for the full year, granted part of the year is already done? Frank J. Del Rio - President & Chief Executive Officer: That's something that we normally don't give out, especially not by brand. But we like very much where we are. We're substantially complete. Especially the Oceania and Regent brands which are booked much further out than the Norwegian brand does. So that's about all I can tell you about that. And for 2016, we're really excited because it's throughout the year and to have a 30% bump year-over-year within only 11% increase in capacity just gives you a feel for how robust the business is coming in and it's been that way for several months. This is a slow steady build up. And we're seeing slow steady buildup both in load and in price.

Okay. No, definitely great metrics. Thank you, sir.

Our next question comes from Joel Simkins from Credit Suisse. Your line is open. Christie Fredericks - Credit Suisse Securities (USA) LLC (Broker): Hi. This is actually Christie on for Joel. And I just wanted to ask how you're thinking about opportunities in Cuba, should this open up to U.S customers, and how quickly you'd move to dedicate capacity there? Frank J. Del Rio - President & Chief Executive Officer: Yes, so I'm very much involved in our Cuba strategy. We believe that once Cuba opens up totally, it's going to be a real windfall for the industry. Everyone is excited about China and I believe that Cuba can have a similar positive impact on the industry as a whole given its proximity to the United States and given that the Caribbean as a whole represents some 40% of the industry's deployment. We have applied for our OFAC license from the Department of U.S. Treasury. We've applied for our Commerce Department export license and are waiting to hear the positive results. And we've also engaged the Cuban government in the discussions necessary to obtain their permission as well. I don't know the timeline for any of those three licenses to come through, but I am hopeful that they will happen before the year is out. In terms of how quickly we can deploy a vessel, suddenly vessels – the availability of vessels comes into play, given how far in advance we're booked. As I stated earlier up 30% of book revenue for the following year. So I don't have an answer for you. It's going to be a nice problem to have to find a vessel that you move from an existing deployment to Cuba. By definition, given the infrastructure limitations, it looks like the first vessel that would go to Cuba would most likely come from the Oceania fleet as opposed to the large vessels or the larger vessels of the Norwegian fleet. So it's still very much a project that's in progress. This is very new to a lot of people both in the U.S. and in Cuba. And – but we're hopeful that, as I said earlier, the applicable permissions from both governments come soon. And then, we'll have an interesting dilemma on our hands of what vessel to deploy to Cuba and from where. Christie Fredericks - Credit Suisse Securities (USA) LLC (Broker): Okay, great. Thanks.

Our next question comes from Steven Kent from Goldman Sachs. Your line is open. Lara A. Fourman - Goldman Sachs & Co.: Good morning. This is Lara stepping in for Steve. I was just wondering what – in terms of the discount to sell and market-to-sell strategy and kind of transitioning from one to the other, is that contributing to any of your 2016 bookings being up 30%? And then, also my second question was just if you could give us some color on how the Breakaway bookings look in the fourth quarter and early next year as well as Anthem enters the New York City market. Thanks. Frank J. Del Rio - President & Chief Executive Officer: You can never attribute any broad market move to any one particular action, but I do believe that on the broadest scale that the new go-to-market strategy focusing on value, not necessarily low price, taking prices up steadily over time, the strong messaging in the consumers – to consumers and travel agents alike, that this is a great deal, that travel agents are earning higher commissions on, because of higher pricing. It all works together and helps elongate the booking curve. So one of the things that we're seeing is part of that 30% increase in revenue is an elongation of the booking curve into 2016 quite significantly. So we're very happy about that. And in terms of Breakaway, Breakaway is doing great. She's behaving much like she behaved in prior years. Her pricing is up. The onboard spend, at least, through the month of July this year is double digits percentage wise, better than the core fleet. So Breakaway loves New York and New Yorkers love Breakaway.

Our next question comes from the line of Jaime Katz from Morningstar. Your line is open.

Hi, good morning. I'm curious now that your study on Asia or the Far East seems to be wrapping up. Is there any early read-throughs that you guys are willing to share with us from that? And then, now that you guys are opening an office in Sydney, how are you thinking about the sourcing strategy outside of the earlier discussion on Canada longer term maybe from some of these other markets? Thanks. Frank J. Del Rio - President & Chief Executive Officer: In terms of sourcing, I don't think it was any change. Remember that Norwegian has after delivery of Escape three more vessels coming, one in 2017, one in 2018, and one in 2019. So we need to expand all our channels. Don't want to take anything for granted. We want more demand, that's going to push up yields. And so, we think that Australia is an underserved market for the Norwegian brand and are excited to be able to open up our own office there to service all three brands and that we're able to recruit a very talented experienced executive to head up that office. In terms of Asia, the read-through is that other cruise lines have been successful in Asia. It's no longer a startup market, if you will. I think some of our competitors are now celebrating close to 10 years of being in China. And given that the Norwegian fleet has now grown or will have grown by 2019 to 17 vessels, it's time for us to take a look and deploy some of our tonnage there which we hope to be able to make that decision like I said in short order.

Thank you.

Our next question comes from James Hardiman from Wedbush. Your line is open.

Hi, good morning. Thanks for taking my call. I was hoping you could talk a little bit about the trend you're seeing with respect to onboard yields as compared to ticket yields. I guess a couple of different things here. One, should we be backing out the entirety of the deferred revenues from the ticket or is some of that onboard? Secondly, are you still seeing European customers balk a little bit with respect to onboard spending just given the currency situation? And third as more of your brands move towards bundling traditionally onboard products and services into the ticket price, how should we think about where that shows up in your income whether it's booked or onboard? Thanks. Wendy A. Beck - Chief Financial Officer & Executive Vice President: Okay, great. So first off, no, you don't want to be backing out the deferred revenue. We actually show that in the adjustments to add it back in to show what the real revenue power is of the company as opposed to how you have to account for it in the acquisition. Regarding our onboard revenue, in general, we've been seeing very robust onboard revenue in the company. If you segregate out the European-sourced customers, it's down but it's marginal and overall we're seeing strong onboard revenue throughout our fleets. And then, regarding how we account for it, we're allocating that on a retail value. So if you're selling the bucket, it's being allocated equally based on the retail values to both ticket and onboard on a GAAP basis.

That's helpful. And just so I understand, the deferred piece -- I'm sorry, I didn't mean to back it out, add it back. Do I add it back 100% to ticket? Or is it split between ticket and onboard? Wendy A. Beck - Chief Financial Officer & Executive Vice President: It's to ticket. Good question.

Okay. And then, I guess last question for me and ultimately this should be just math, but you've got a lot of moving pieces here given the acquisition and everything else. How should we think about the implied yield growth and cost growth in the fourth quarter? Again, we should have the pieces here to get to those numbers. But on a combined company basis, are yields accelerating in the fourth quarter versus 3Q and how should we think about costs? Wendy A. Beck - Chief Financial Officer & Executive Vice President: Yeah, so clearly taking our full year and you can get to the implied numbers. But they are accelerating in Q4. Q4 in the prior year was a weaker quarter for us. But you will see some nice yield growth in our Q4 this year. You guys can all back into the numbers.

And what's... Frank J. Del Rio - President & Chief Executive Officer: ...duration in Q1. As the go-to-market strategy takes a hold and greater percentage of the bookings come as a result of that new strategy as opposed to legacy strategy for old bookings, the pricing improves and accelerates into the future. So Q1 is better than Q4 and Q2 is better than Q1, et cetera.

Got it. Wendy A. Beck - Chief Financial Officer & Executive Vice President: And the other thing I would say is I would stay focused on the constant dollars, I mean, there has definitely been a shift with currency fluctuating the way it has this year that we're really – to really look at our true results. We're saying look more at the constant dollar. The other thing is on the net cruise cost based on the guidance in Q3, the implied number for net cruise cost is down from where it is at Q3 to get to our full year number.

Got it. Frank J. Del Rio - President & Chief Executive Officer: We have time for one more question, please.

Our final question comes from Assia Georgieva from Infiniti Research. Your line is open.

Good morning. Thank you for taking my question. Frank, if I may, I'd like to go back to your characterization of 2006 being a breakout year. We have investment in international sales infrastructure obviously and the itinerary diversification. This latter factor, in the past and the Norwegian Sun comes to mind, had become a little bit of an issue when that ship went to Alaska, because travel agents were slow to embrace a new vessel that they weren't as familiar within that market. Do you think we may see a little bit of hesitation with Norwegian Star? And as part of that, is the expectation for 2016 more on yield or on EPS as well? Thank you so much. Frank J. Del Rio - President & Chief Executive Officer: Look, remember we took our lowest yielding seven-day product, which was our winter ship out of Houston and that's the one that's going to Asia for the Western market. So our risk reward factor is high. That's where marketing comes in. I think we're much more of a marketing focused company today than we might have been before and therefore we will make sure that our past guests who we are going to rely on quite a bit to fill these vessels in Asia, because of the pent-up demand. They've been on our Norwegian fleet across the world. They haven't been to Asia with us. The high producing travel agents not just in the U.S., but around the world who have been asking us to go to Asia. So no – and remember, one more thing, Asia, it is a seasonal deployment. So, there's a lot of pent-up demand that wants to go to Asia over a 4.5 to 5 month period of our lowest yielding product that it replaces. So, I think it all points up very positively. And I'm sorry, but I didn't get your second question.

On 2006 (sic) [2016] (1:02:09), should we be looking towards yield or yield and EPS being breakout metrics? Frank J. Del Rio - President & Chief Executive Officer: Well, I think both.

Okay. Frank J. Del Rio - President & Chief Executive Officer: Yeah. If yields are up, your EPS better be up.

Well, given an infrastructure investments, that was a little bit of a concern of mine. Thank you so much for taking my question, both of you. Frank J. Del Rio - President & Chief Executive Officer: Okay. Wendy A. Beck - Chief Financial Officer & Executive Vice President: Thank you. Frank J. Del Rio - President & Chief Executive Officer: Thank you. Thanks, everyone, for your time and support. As always, we'll be available to answer your questions later today. All the best. Bye, bye.

This concludes today's conference call. You may now disconnect.