Royal Caribbean Reports First Quarter Results

Press Release
Monday, April 23, 2012

Royal Caribbean Cruises Ltd. reports better than expected financial results, updates 2012 guidance

KEY HIGHLIGHTS

Results For the First Quarter of 2012:

  • Net income was $47.0 million, or $0.21 per share, versus $78.4 million, or $0.36 per share, in 2011;
  • Net Yields increased 7.0% on a Constant-Currency basis (+6.4% As-Reported). Net Cruise Costs ("NCC") excluding fuel increased 5.7% on a Constant-Currency basis (+5.1% As-Reported);
  • Consistent with prior guidance, approximately 350 basis points of the Net Yield improvement and approximately 500 basis points of the NCC excluding fuel increase during the quarter related to previously announced deployment initiatives and changes to the company's distribution system.

As expected, booking activity has continued to gradually improve over the last several months. Since the company's earnings announcement on February 2, 2012, the price of oil has risen which, at current levels and net of hedging, would increase bunker expenses $0.15 per share for the year.

 Second Quarter 2012:

  • Net Yields are expected to increase 4% to 5% on a Constant-Currency basis (+2% to + 3% As-Reported). Earnings per share are expected to be within a range of ($0.05) to $0.05.
  • Full Year 2012:
    • Net Yields are expected to increase 2% to 5% on a Constant-Currency basis (+1 to +4% As-Reported). Earnings per share are expected to be within a range of $1.80 to $2.10.

"First quarter results were satisfactory given the difficult and uncertain operating environment and we continue to see gradual improvement in the demand for our great vacations," said Richard D. Fain, chairman and chief executive officer. Fain continued, "We did not expect the impact of the tragedy to be long term and we are seeing evidence the effects are waning."

As announced in the company's February 2, 2012 earnings release, Net Yields and NCC's this year are being influenced by two unique factors:

Firstly, the company made some changes related to its International distribution system in 2011 which carry on into 2012 and will increase yields. The changes also increase expenses, but the bottom line impact is not material.

Secondly, the company has increased its commitment in certain deployment initiatives which increase revenues but also increase related expenses. For example, China represents a strategic market initiative the company is augmenting significantly.

These factors are referred to collectively throughout this release as "deployment initiatives and changes to the company's distribution system" and unless otherwise noted, are reflected in the company's forward guidance. Also announced in February, these factors are expected to increase Net Yields by approximately 200 basis points and NCC excluding fuel by approximately 300 basis points for

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

3Si Group Launches Offshore Division

3Si Group, whose global portfolio of marine safety products and services covers commercial, leisure and military markets, has announced the formation of 3Si Offshore,

Canadian Frigates Get a Radar Upgrade

German navigation system manufacturer Raytheon Anschütz has completed factory acceptance tests and delivery of 12 sets of navigation radars for the Canadian Navy’s Halifax-class frigates.

ISS Appoints Holmes as VP, Cruise Solutions

Inchcape Shipping Services (ISS) said it is embarking on a plan to develop its cruise business with the appointment of Grant Holmes as Vice President, Cruise Solutions.

Finance

Timing in Doubt on Hapag-Lloyd IPO

German container shipping group Hapag-Lloyd has taken further steps in preparation of a stock market listing and has mandated more banks for the move, but it remains

Asia Tankers-VLCC Rates Will See More Volatility

VLCC market to be "hot" in Q4 -VLCC broker. Freight rates for very large crude carriers (VLCCs) face a roller-coaster ride on uncertain cargo volumes and vessel

HII Wins $109.4mln U.S. Navy Contract

Huntington Ingalls  has received a $109.4mln contract modification to carry out support services for the U.S. Navy’s nuclear submarines.   The company will work to engineer,

Passenger Vessels

ISS Appoints Holmes as VP, Cruise Solutions

Inchcape Shipping Services (ISS) said it is embarking on a plan to develop its cruise business with the appointment of Grant Holmes as Vice President, Cruise Solutions.

Palmer Johnson Yatchs Shuts Sturgeon Bay, Moves to Europe

Luxury yacht manufacturer Palmer Johnson Yachts is closing its production facilities in Sturgeon Bay because of dwindling sales and competition from overseas.   In

MN 100: Elliott Bay Design Group

The Company: Elliott Bay Design Group (EBDG) is a Seattle-based, employee-owned enterprise with offices in New Orleans and Ketchikan that provides full-service naval architecture,

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.5225 sec (2 req/sec)