Menu
banner-ANIMATION
A+ A A-

Royal Caribbean reports second quarter earnings and increases full year guidance

  • Written by Teijo Niemelä
  • Category: Top Headlines

Royal Caribbean Cruises Ltd. has reported US GAAP and Adjusted Earnings per Share ("EPS") of $1.71 for the second quarter. This represents EPS growth of nearly 60% over same time last year. Better than anticipated performance in the second quarter combined with favorable booking trends are driving an increase in the Company's full year Adjusted EPS guidance to a range of $7.35 to $7.45.

Key highlights – second quarter 2017 results

– US GAAP and Adjusted Net Income was $369.5 million or $1.71 per share. Last year, US GAAP Net Income was $229.9 million or $1.06 per share and Adjusted Net Income was $235.2 million, or $1.09 per share in 2016.
– Gross Yields were up 10.2% on a Constant-Currency basis (up 8.7% As-Reported). Net Yields were up 11.5% on a Constant-Currency basis (up 9.9% As-Reported).
– Gross Cruise Costs increased 1.2% on a Constant-Currency basis (0.6% As-Reported). Net Cruise Costs ("NCC") Excluding Fuel were down 0.9% on a Constant-Currency basis (down 1.4% As-Reported).

Full year 2017 forecast

– Adjusted EPS is expected to be in the range of $7.35 to $7.45 per share.
– Net Yields are expected to increase 5.5% to 6.0% on a Constant-Currency basis, up approximately 6.0% on an As-Reported basis.
– NCC Excluding Fuel are expected to be up approximately 1.0% on a Constant-Currency and As-Reported basis.

"Our brands are executing beautifully, keeping the business in an exceptionally strong position," said Richard D. Fain, chairman and CEO. "Strong close-in demand for cruise bolstered the quarter, and we see further uplift for the balance of the year, positioning us well for the Double-Double and beyond."

Second quarter results

US GAAP and Adjusted Net Income for the second quarter 2017 was $369.5 million or $1.71 per share, compared to US GAAP Net Income of $229.9 million or $1.06 per share and Adjusted Net Income of $235.2 million, or $1.09 per share in 2016.

Gross Yields were up 10.2% on a Constant-Currency basis. Net Yields on a Constant-Currency basis increased 11.5%, exceeding prior guidance due to strong close-in demand driving higher pricing and occupancy.

Gross Cruise Costs increased 1.2% on a Constant-Currency basis. Constant-Currency NCC Excluding Fuel decreased 0.9%.

Bunker pricing net of hedging for the second quarter was $527 per metric ton and consumption was 324,000 metric tons.

Full year 2017

The company updated full year Adjusted EPS guidance to a range of $7.35 to $7.45, a $0.30 increase at the midpoint versus previous guidance. Bookings continue to be very robust.

The company's booked position for the remainder of 2017 continues to set new records. Looking further ahead, the company's booked position for the next twelve months is also strong, up on both rate and volume, versus the same time last year. Net Yields for the year on a Constant-Currency basis are expected to increase 5.5% to 6.0%, up relative to prior guidance due to the better results in the second quarter as well as stronger trends for the balance of the year.

NCC Excluding Fuel are expected to be up approximately 1.0% on a Constant-Currency basis for the year.

"Demand has remained strong, and we have captured the related revenue opportunity," said Jason T. Liberty, executive vice president and CFO. "These demand trends and continued cost discipline have resulted in the highest second quarter earnings in company history and have put us in position for another record year and achieving our Double-Double targets."

Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects 2017 EPS to be in the range of $7.35 to $7.45 per share.

Third quarter 2017

Constant-Currency Net Yields are expected to be up 4.0% to 4.5% in the third quarter of 2017. Strong demand trends for Europe and North America products are driving improvement over an already strong previous year. NCC Excluding Fuel are expected to be up approximately 4.0% on a Constant-Currency basis.

Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects third quarter Adjusted EPS to be approximately $3.45 per share.

Lindblad takes delivery of National Geographic Quest

  • Written by Teijo Niemelä
  • Category: Top Headlines

Lindblad Expeditions’ National Geographic Quest, the line’s first new build in the history of the company, commenced her inaugural voyage on July 29 as she set sail from Juneau. "The most state-of-the-art expedition ship designed and purpose-built in the U.S., she departed with very excited guests for an 8-day expedition exploring Southeast Alaska," the company said in a statement.

Sven Lindblad, CEO and President of Lindblad Expeditions, commended the team on the achievement, “You all must feel a deep sense of pride and accomplishment, you have all worked tirelessly to make this possible, and are a part of history having played an important role in the building and launch of the most sophisticated and beautiful ship built in the U.S. in decades.”

The 100-guest National Geographic Quest will operate on the popular “Exploring Alaska’s Coastal Wilderness” expedition through August 26, and will finish off the Alaska season with a “Treasures of the Inside Passage: Alaska and British Columbia” departure on September 2, 2017.

The ship will then remain in the Pacific Northwest for a series of new voyages between Seattle and Vancouver, with stops in the San Juan Islands, Victoria, Alert Bay, and more far reaching stops in British Columbia’s channels and fjords. Beginning in December 2017, she will reposition and operate expeditions in Costa Rica and Panama before kicking off a series of new voyages in Belize and Guatemala starting in February, 2018.

Azamara Club Cruises appoints Carol Cabezas Chief Operating Officer

  • Written by Teijo Niemelä
  • Category: Top Headlines

Azamara Club Cruises has appointed Carol Cabezas to Chief Operation Officer.

Carol has been a part of the Royal Caribbean team for the last 17 years. During her time with the parent company she has held a variety of leadership roles across sales, finance and revenue management. Most recently, Carol served as Vice President of Investor Relations for Royal Caribbean Cruises LTD. Prior to that, Carol was AVP of National and Strategic Accounts, North America for Celebrity Cruises where she also served as Director of Sales Planning earlier in her career.

“Carol is no stranger to the Royal Caribbean family and we know she will be an incredible asset to Azamara,” said Larry Pimentel President & CEO of Azamara Club Cruises. “She brings expertise across a variety of important channels and we look forward to elevating the brand through strategic planning and ideas coming from our internal leadership team.”

As COO for Azamara Club Cruises, Carol will be responsible for the full range of operations of the cruise line including sales, marketing, revenue, finance deployment and shipboard operations.

“It’s an exciting time to join the Azamara family,” states Carol Cabezas. “The Azamara product and offerings are unique in the cruise space and I welcome this opportunity to be a part of the evolution of the brand.”

Prior to her career at Royal Caribbean Cruises LTD, Carol was an Associate Consultant at PricewaterhouseCoopers in the Dispute Analysis and Corporate Recovery team.

Carol holds a Masters in Finance from University of Miami and Bachelor degrees in Finance and Accounting from Stern School of Business at New York University.

CBR 1/2017 CONTENTS

CBR 3/2016 CONTENTS

CBR 2/2016 CONTENTS