ROYAL CARIBBEAN GROUP REPORTS 2022 RESULTS AND PROVIDES FORWARD GUIDANCE
Royal Caribbean Group (NYSE: RCL) reported a fourth quarter 2022 net loss of $(500.2) million or $(1.96) per share, an improvement from $(1.4) billion or $(5.33) per share the previous year. Adjusted loss per share was $(1.12), better than expectations due to strong pricing and lower costs. The company achieved a 95% load factor, with revenues of $2.6 billion and a positive Adjusted EBITDA of $409.3 million. For 2023, RCL forecasts record-breaking demand with bookings at historical highs, projecting adjusted earnings per share between $3.00 and $3.60. The outlook reflects continued cost management and recovery from pandemic impacts.
- Fourth quarter net loss improved to $(500.2) million from $(1.4) billion year-over-year.
- Adjusted EBITDA turned positive at $409.3 million.
- Record-breaking WAVE season with the highest booking weeks in company history.
- 2023 projected earnings per share range of $3.00 to $3.60 positions the company for strong financial recovery.
- Net loss of $(2.2) billion for the full year 2022 remains a concern.
- Increased net cruise costs (NCC) expected to rise by 4.5% to 5.5% compared to 2019.
"2022 was a pivotal year as we successfully returned our business to full operations and delivered memorable vacation experiences to 6 million guests," said Jason Liberty, president and chief executive officer,
"We are experiencing a record-breaking WAVE season, resulting in a booked position approaching previous record highs and at higher prices. This, along with the normalization of our booking window, provides the visibility for us to provide annual guidance, which is in line with our
Financial Highlights & Outlook
Fourth Quarter 2022:
- Load Factors were in line with guidance at
95% , withCaribbean sailings reaching100% , and holiday sailings close to110% . - Total revenues per passenger cruise day were up
3.5% as-reported and4.5% in Constant Currency, compared to the fourth quarter of 2019. - Total revenues were
, Net Loss was$2.6 billion or$(500.2) million per share, Adjusted Net Loss was$(1.96) or$(284.9) million per share, and Adjusted EBITDA was$(1.12) .$409.3 million
Full Year 2022:
- Load Factors were
85% overall, full fleet back in operation since June of 2022. - Total revenues were
, Net Loss was$8.8 billion or$(2.2) billion per share, Adjusted Net Loss was$(8.45) or$(1.9) billion per share, and Adjusted EBITDA was$(7.50) .$711.6 million
Full Year 2023 Outlook:
- The company is experiencing a record-breaking WAVE season, driven by strong demand. The seven biggest booking weeks in the company's history have occurred since the last earnings call in
November 2022 . - 2023 cumulative booked position remains well within historical ranges for all quarters and at record rates.
North America based itineraries are booked in line with 2019 for the full year, and ahead for the second quarter through the fourth quarter. - Net Yields are expected to increase
2.5% to4.5% in both as-reported and in Constant Currency versus 2019. Net Yields are expected to ramp up as load factors reach historical levels by late spring. - The company continues to successfully manage costs in a complicated environment with Net Cruise Costs (NCC), excluding Fuel, per APCD expected to increase
4.5% to5.5% as-reported and4.75% to5.75% in Constant Currency compared to 2019, a three-year old benchmark, and include approximately 210 basis points from lingering transitional costs (e.g. crew movement) and additional structural costs (e.g. full year operations of Perfect Day at CocoCay and the new Galveston terminal). - The company expects to exceed prior record Adjusted EBITDA, achieved in 2019.
- The company expects Adjusted Earnings per Share in the range of
.00 to$3 $3.60 .
First Quarter 2023 Outlook:
- Net Yields are expected to increase
0.5% to1.5% as-reported and1% to2% in Constant Currency compared to 2019, with load factors reaching100% and total revenues per passenger cruise day up in the mid-to-high single digit range in both as-reported and Constant Currency compared to 2019. - NCC, excluding Fuel, per APCD is expected to increase approximately
8.3% as-reported and approximately8.5% in Constant Currency, compared to 2019, including 320 basis points of lagging transitional costs, additional structural costs, and timing of expenses. - Adjusted Loss per Share is expected to be in the range of
–$(0.65) .$(0.85)
Fourth Quarter 2022 Results
The company reported Net Loss for the fourth quarter of 2022 of
Fourth quarter Load Factors were in line with guidance at
Gross Cruise Costs per APCD increased
"Fourth quarter results reflect the continued strong demand for our vacation experiences and our teams' ability to manage costs in a complicated environment while staying focused on delivering the best vacation experiences expected by our guests," said
The company recorded a loss contingency of
Full Year 2022 Results
For the full year, the company reported Net Loss of
Update on Bookings
The company is very encouraged about the demand environment for 2023. Booking volumes in the fourth quarter were significantly higher than the corresponding period in 2019, culminating in record booking weeks for the Group for both Black Friday and Cyber Monday. Momentum continues into early 2023 and the company is experiencing a record-breaking WAVE season. Overall, the seven biggest booking weeks in the company's history have occurred since the middle of
The cumulative booked position remains well within historical ranges at record rates and has improved significantly since November.
"Leisure travel strength continues as consumer spend is shifting towards experiences, with cruising remaining an attractive value proposition," said Liberty. "The quality demand trends further exhibit the strength of our brands and the growing propensity to cruise."
As of
Fuel Expense
Bunker pricing, net of hedging, for the fourth quarter was
The company does not forecast fuel prices and its fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. Based on today's fuel prices, the company has included
The company provided the following guidance for the first quarter and full year 2023:
FUEL STATISTICS | First Quarter 2023 | Full Year 2023 |
Fuel Consumption (metric tons) | 412,500 | 1,654,000 |
Fuel Expenses | Approx. | Approx. |
Percent Hedged (fwd. consumption) | 57.0 % | 55.0 % |
GUIDANCE | As-Reported | Constant Currency |
First Quarter 2023 | ||
Net Yields vs. 2019 | | |
Net Cruise Costs per APCD vs. 2019 | Approx. | Approx. |
Net Cruise Costs per APCD ex. Fuel vs. 2019 | Approx. | Approx. |
Full Year 2023 | ||
Net Yields vs. 2019 | | |
Net Cruise Costs per APCD vs. 2019 | ||
Net Cruise Costs per APCD ex. Fuel vs. 2019 | ||
GUIDANCE | First Quarter 2023 | Full Year 2023 |
APCDs | 11.2 million | 47 million |
Capacity change vs. 2019 | 14.0 % | 14.0 % |
Depreciation and amortization | Approx. | |
Net Interest, excluding loss on extinguishment of debt | ||
Adjusted EPS | ||
SENSITIVITY | First Quarter 2023 | Full Year 2023 |
100 basis pt. Change in LIBOR/SOFR | ||
Exchange rates used in guidance calculations | ||
GBP | ||
AUD | ||
CAD | ||
EUR |
Liquidity and Financing Arrangements
As of
During the fourth quarter, the company repaid
The company noted that as of
Capital Expenditures and Capacity Guidance
Capital expenditures for the full-year 2023 are expected to be approximately
Conference call scheduled
The company has scheduled a conference call at
Definitions
Selected Operational and Financial Metrics
Adjusted EBITDA is a non-GAAP measure that represents EBITDA (as defined below) excluding certain items that we believe adjusting for is meaningful when assessing our profitability on a comparative basis. For the 2022 and 2021 periods, these items included (i) other expenses, which includes the estimate of amounts payable in connection with ongoing Havana Docks litigation recorded in 2022; (ii) impairment and credit losses; (iii) restructuring charges and other initiative expenses; (iv) equity investment asset impairments; (v) net insurance recoveries related to the collapse of the drydock structure at the
Adjusted Net Income (Loss) is a non-GAAP measure that represents net income (loss) excluding certain items that we believe adjusting for is meaningful when assessing our performance on a comparative basis. For the 2022 and 2021 periods presented, these items included (i) gain or loss on the extinguishment of debt; (ii) the amortization of non-cash debt discount on our convertible notes; (iii) the estimated cash refunds expected to be paid to Pullmantur guests as part of the
Adjusted Earnings (Loss) per Share ("Adjusted EPS") is a non-GAAP measure that represents Adjusted Net Income (Loss) (as defined below) divided by weighted average shares outstanding or by diluted weighted average shares outstanding, as applicable. We believe that this non-GAAP measure is meaningful when assessing our performance on a comparative basis.
Available Passenger Cruise Days ("APCD") is our measurement of capacity and represents double occupancy per cabin multiplied by the number of cruise days for the period, which excludes canceled cruise days and cabins not available for sale. We use this measure to perform capacity and rate analysis to identify our main non-capacity drivers that cause our cruise revenue and expenses to vary.
Constant Currency is a significant measure for our revenues and expenses, which are denominated in currencies other than the
EBITDA is a non-GAAP measure that represents net income (loss) excluding (i) interest income; (ii) interest expense, net of interest capitalized; (iii) depreciation and amortization expenses; and (iv) income tax benefit or expense. We believe that this non-GAAP measure is meaningful when assessing our operating performance on a comparative basis.
Occupancy ("Load Factor"), in accordance with cruise vacation industry practice, is calculated by dividing Passenger Cruise Days (as defined below) by APCD. A percentage in excess of
Passenger Cruise Days represent the number of passengers carried for the period multiplied by the number of days of their respective cruises.
Gross Cruise Costs represent the sum of total cruise operating expenses plus marketing, selling and administrative expenses.
Net Cruise Costs ("NCC") and NCC excluding Fuel are non-GAAP measures that represent Gross Cruise Costs excluding commissions, transportation and other expenses and onboard and other expenses and, in the case of Net Cruise Costs excluding Fuel, fuel expenses. For the 2022 and 2019 periods presented, Net Cruise Costs and Net Cruise Costs excluding Fuel exclude (i) restructuring charges and other initiative expenses; (ii) the transaction and integration costs related to the
Gross Margin Yield represent Gross Margin per APCD.
Adjusted Gross Margin represent Gross Margin, adjusted for payroll and related, fuel, food, other operating expenses, and depreciation and amortization. Gross Margin is calculated pursuant to GAAP as total revenues less total cruise operating expenses, and depreciation and amortization.
Net Yields represent Adjusted Gross Margin per APCD. We utilize Adjusted Gross Margin and Net Yields to manage our business on a day-to-day basis as we believe that they are the most relevant measures of our pricing performance because they reflect the cruise revenues earned by us net of our most significant variable costs, which are commissions, transportation and other expenses, and onboard and other expenses.
For additional information see "Adjusted Measures of Financial Performance" below.
About
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release relating to, among other things, our future performance estimates, forecasts and projections constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited, to: statements regarding revenues, costs and financial results for 2023 and beyond, and expectations regarding credit profile. Words such as "anticipate," "believe," "could," "driving," "estimate," "expect," "goal," "intend," "may," "plan," "project," "seek," "should," "will," "would," "considering," and similar expressions are intended to help identify forward-looking statements. Forward-looking statements reflect management's current expectations, are based on judgments, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to, the following: the impact of contagious illnesses on economic conditions and the travel industry in general and the financial position and operating results of our Company in particular, such as: governmental and self-imposed travel restrictions and guest cancellations; our ability to obtain sufficient financing, capital or revenues to satisfy liquidity needs, capital expenditures, debt repayments and other financing needs; the effectiveness of the actions we have taken to improve and address our liquidity needs; the impact of the economic and geopolitical environment on key aspects of our business, such as the demand for cruises, passenger spending, and operating costs; incidents or adverse publicity concerning our ships, port facilities, land destinations and/or passengers or the cruise vacation industry in general; concerns over safety, health and security of guests and crew; further impairments of our goodwill, long-lived assets, equity investments and notes receivable; an inability to source our crew or our provisions and supplies from certain places; an increase in concern about the risk of illness on our ships or when travelling to or from our ships, all of which reduces demand; unavailability of ports of call; growing anti-tourism sentiments and environmental concerns; changes in
More information about factors that could affect our operating results is included under the caption "Risk Factors" in our most recent quarterly report on Form 10-Q, as well as our other filings with the
Adjusted Measures of Financial Performance
This press release includes certain adjusted financial measures defined as non-GAAP financial measures under
The presentation of adjusted financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with
A reconciliation to the most comparable
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||
(in thousands, except per share data) | |||||||
Quarter Ended | Year Ended | ||||||
2022 | 2021 | 2022 | 2021 | ||||
(unaudited) | (unaudited) | ||||||
Passenger ticket revenues | $ 1,702,457 | $ 617,393 | $ 5,793,492 | $ 941,175 | |||
Onboard and other revenues | 901,535 | 364,854 | 3,047,048 | 590,958 | |||
Total revenues | 2,603,992 | 982,247 | 8,840,540 | 1,532,133 | |||
Cruise operating expenses: | |||||||
Commissions, transportation and other | 392,752 | 134,645 | 1,357,008 | 207,562 | |||
Onboard and other | 146,329 | 61,164 | 596,554 | 116,946 | |||
Payroll and related | 306,673 | 307,838 | 1,287,801 | 838,088 | |||
Food | 202,763 | 89,771 | 653,139 | 164,389 | |||
Fuel | 292,694 | 166,264 | 1,072,567 | 385,322 | |||
Other operating | 441,231 | 375,822 | 1,647,267 | 945,205 | |||
Total cruise operating expenses | 1,782,442 | 1,135,504 | 6,614,336 | 2,657,512 | |||
Marketing, selling and administrative expenses | 444,358 | 503,055 | 1,582,929 | 1,370,076 | |||
Depreciation and amortization expenses | 360,595 | 333,366 | 1,406,689 | 1,292,878 | |||
Impairment and credit losses | 1,146 | 42,067 | 562 | 82,001 | |||
Operating Income (Loss) | 15,451 | (1,031,745) | (763,976) | (3,870,334) | |||
Other income (expense): | |||||||
Interest income | 14,092 | 3,456 | 35,857 | 16,773 | |||
Interest expense, net of interest capitalized | (431,610) | (283,767) | (1,364,162) | (1,291,753) | |||
Equity investment income (loss) | 26,936 | 1,575 | 56,695 | (135,469) | |||
Other (expense) income (for 2021, includes | (125,075) | (46,487) | (120,376) | 20,284 | |||
(515,657) | (325,223) | (1,391,986) | (1,390,165) | ||||
Net Loss | $ (500,206) | $ (1,356,968) | $ (2,155,962) | $ (5,260,499) | |||
Loss per Share: | |||||||
Basic | $ (1.96) | $ (5.33) | $ (8.45) | $ (20.89) | |||
Diluted | $ (1.96) | $ (5.33) | $ (8.45) | $ (20.89) | |||
Weighted-Average Shares Outstanding: | |||||||
Basic | 255,184 | 254,792 | 255,011 | 251,812 | |||
Diluted | 255,184 | 254,792 | 255,011 | 251,812 | |||
Comprehensive Loss | |||||||
Net Loss | $ (500,206) | $ (1,356,968) | $ (2,155,962) | $ (5,260,499) | |||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | (21,663) | 4,448 | 10,295 | 15,703 | |||
Change in defined benefit plans | 13,923 | 4,959 | 48,914 | 8,707 | |||
Gain (loss) on cash flow derivative hedges | 157,003 | (44,468) | 8,462 | 4,046 | |||
Total other comprehensive income (loss) | 149,263 | (35,061) | 67,671 | 28,456 | |||
Comprehensive Loss | $ (350,943) | $ (1,392,029) | $ (2,088,291) | $ (5,232,043) |
STATISTICS | |||||||
(unaudited) | |||||||
Quarter Ended | Year Ended | ||||||
2022 | 2021 (1) | 2022 | 2021 (1) | ||||
Passengers Carried | 1,746,130 | 703,177 | 5,536,335 | 1,030,403 | |||
Passenger Cruise Days | 11,052,960 | 4,031,495 | 35,051,935 | 5,802,582 | |||
APCD | 11,644,086 | 6,800,363 | 41,197,650 | 11,767,441 | |||
Occupancy | 94.9 % | 59.3 % | 85.1 % | 49.3 % |
(1) | Due to the elimination of the |
CONSOLIDATED BALANCE SHEETS | |||
(in thousands, except share data) | |||
As of | |||
2022 | 2021 | ||
(unaudited) | |||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 1,935,005 | $ 2,701,770 | |
Trade and other receivables, net of allowances of | 531,066 | 408,067 | |
Inventories | 224,016 | 150,224 | |
Prepaid expenses and other assets | 455,836 | 286,026 | |
Derivative financial instruments | 59,083 | 54,184 | |
Total current assets | 3,205,006 | 3,600,271 | |
Property and equipment, net | 27,546,445 | 25,907,949 | |
Operating lease right-of-use assets | 537,559 | 542,128 | |
809,277 | 809,383 | ||
Other assets, net of allowances of | 1,678,074 | 1,398,624 | |
Total assets | $ 33,776,361 | $ 32,258,355 | |
Liabilities and shareholders' equity | |||
Current liabilities | |||
Current portion of long-term debt | $ 2,087,711 | $ 2,243,131 | |
Current portion of operating lease liabilities | 79,760 | 68,922 | |
Accounts payable | 646,727 | 545,978 | |
Accrued interest | 388,828 | 251,974 | |
Accrued expenses and other liabilities | 1,071,129 | 887,575 | |
Derivative financial instruments | 131,312 | 127,236 | |
Customer deposits | 4,167,997 | 3,160,867 | |
Total current liabilities | 8,573,464 | 7,285,683 | |
Long-term debt | 21,303,480 | 18,847,209 | |
Long-term operating lease liabilities | 523,006 | 534,726 | |
Other long-term liabilities | 507,599 | 505,181 | |
Total liabilities | 30,907,549 | 27,172,799 | |
Shareholders' equity | |||
Preferred stock ( | — | — | |
Common stock ( | 2,832 | 2,827 | |
Paid-in capital | 7,284,852 | 7,557,297 | |
(Accumulated deficit) retained earnings | (1,707,429) | 302,276 | |
Accumulated other comprehensive loss | (643,214) | (710,885) | |
(2,068,229) | (2,065,959) | ||
Total shareholders' equity | 2,868,812 | 5,085,556 | |
Total liabilities and shareholders' equity | $ 33,776,361 | $ 32,258,355 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(in thousands) | |||
Year Ended | |||
2022 | 2021 | ||
(unaudited) | |||
Operating Activities | |||
Net Loss | $ (5,260,499) | ||
Adjustments: | |||
Depreciation and amortization | 1,406,689 | 1,292,878 | |
Impairment and credit losses | 562 | 82,001 | |
Net deferred income tax benefit | (21,576) | (42,979) | |
Loss (gain) on derivative instruments not designated as hedges | 99,985 | (1,492) | |
Share-based compensation expense | 36,116 | 63,638 | |
Equity investment (income) loss | (56,695) | 135,469 | |
Amortization of debt issuance costs | 148,790 | 125,116 | |
Amortization of debt discounts and premiums | 13,978 | 123,439 | |
Loss on extinguishment of debt | 93,810 | 138,759 | |
Changes in operating assets and liabilities: | |||
Increase in trade and other receivables, net | (234,348) | (181,707) | |
Increase in inventories | (73,792) | (34,527) | |
Increase in prepaid expenses and other assets | (153,196) | (152,071) | |
Increase in accounts payable | 74,657 | 188,518 | |
Increase (decrease) in accrued interest | 136,855 | (694) | |
Increase in accrued expenses and other liabilities | 215,981 | 235,446 | |
Increase in customer deposits | 1,007,129 | 1,426,647 | |
Other, net | (57,126) | (15,757) | |
Net cash provided by (used in) operating activities | 481,857 | (1,877,815) | |
Investing Activities | |||
Purchases of property and equipment | (2,710,063) | (2,229,704) | |
Cash received on settlement of derivative financial instruments | 52,550 | 44,492 | |
Cash paid on settlement of derivative financial instruments | (355,909) | (74,249) | |
Investments in and loans to unconsolidated affiliates | — | (70,228) | |
Cash received on loans to unconsolidated affiliates | 18,650 | 31,334 | |
Proceeds from the sale of property and equipment and other assets | 421 | 176,039 | |
Other, net | 6,585 | (22,423) | |
Net cash used in investing activities | (2,987,766) | (2,144,739) | |
Financing Activities | |||
Debt proceeds | 9,787,166 | 4,467,789 | |
Debt issuance costs | (251,888) | (201,698) | |
Repayments of debt | (7,728,568) | (2,296,990) | |
Premium on repayment of debt | (49,367) | (135,372) | |
Repayments of commercial paper notes | — | (414,570) | |
Proceeds from common stock issuances | — | 1,621,860 | |
Other, net | (16,370) | (442) | |
Net cash provided by financing activities | 1,740,973 | 3,040,577 | |
Effect of exchange rate changes on cash | (1,829) | (727) | |
Net (decrease) in cash and cash equivalents | (766,765) | (982,704) | |
Cash and cash equivalents at beginning of year | 2,701,770 | 3,684,474 | |
Cash and cash equivalents at end of year | $ 1,935,005 | ||
Supplemental Disclosures | |||
Cash paid during the year for: | |||
Interest, net of amount capitalized | $ 959,907 | $ 834,245 | |
Non-Cash Investing Activities | |||
Notes receivable issued upon sale of property and equipment and other assets | $ — | $ 16,000 | |
Purchases of property and equipment included in accounts payable and accrued expenses and other | $ 33,853 | $ 14,097 | |
Acquisition of property and equipment from assumed debt | $ 277,000 | $ — | |
Non-Cash Financing Activities | |||
Debt related to acquisition of property and equipment | $ 277,000 | $ — |
NON-GAAP RECONCILING INFORMATION | |||||||||||
(unaudited) | |||||||||||
Gross Cruise Costs, Net Cruise Costs and Net Cruise Costs excluding Fuel were calculated as follows (in thousands, except APCD and costs per APCD): | |||||||||||
Quarter Ended | Year Ended | ||||||||||
2022 | 2022 On a | 2019 | 2022 | 2022 On a | 2019 | ||||||
Total cruise operating expenses | $ 1,782,442 | $ — | $ 1,481,519 | $ 6,614,336 | $ — | $ 6,062,765 | |||||
Marketing, selling and | 444,358 | — | 414,707 | 1,582,929 | — | 1,559,253 | |||||
Gross Cruise Costs | 2,226,800 | 2,245,145 | 1,896,226 | 8,197,265 | 8,247,096 | 7,622,018 | |||||
Less: | |||||||||||
Commissions, transportation | 392,752 | — | 377,287 | 1,357,008 | — | 1,656,297 | |||||
Onboard and other | 146,329 | — | 129,527 | 596,554 | — | 639,782 | |||||
Net Cruise Costs including | 1,687,719 | — | 1,389,412 | 6,243,703 | — | 5,325,939 | |||||
Less: | |||||||||||
Restructuring charges and | 5,177 | — | 13,707 | 11,625 | — | 13,707 | |||||
Integration costs related to | — | — | — | — | — | 862 | |||||
Transaction costs related to | — | — | — | — | — | 1,186 | |||||
Costs, net of insurance recoveries, | — | — | 2,932 | — | — | 14,530 | |||||
Net Cruise Costs | 1,682,542 | 1,693,131 | 1,372,773 | 6,232,078 | 6,262,111 | 5,295,654 | |||||
Less: | |||||||||||
Fuel | 292,694 | — | 178,190 | 1,072,567 | — | 697,962 | |||||
Net Cruise Costs excluding Fuel | $ 1,389,848 | $ 1,400,436 | $ 1,194,583 | $ 5,159,511 | $ 5,189,542 | $ 4,597,692 | |||||
APCD | 11,644,086 | 11,644,086 | 10,401,177 | 41,197,650 | 41,197,650 | 41,432,451 | |||||
Gross Cruise Costs per APCD | $ 191.24 | $ 192.81 | $ 182.31 | $ 198.97 | $ 200.18 | $ 183.96 | |||||
Net Cruise Costs per APCD | $ 144.50 | $ 145.41 | $ 131.98 | $ 151.27 | $ 152.00 | $ 127.81 | |||||
Net Cruise Costs excluding Fuel per APCD | $ 119.36 | $ 120.27 | $ 114.85 | $ 125.24 | $ 125.97 | $ 110.97 |
(1) | Included within Marketing, selling and administrative expenses in our consolidated statements of comprehensive loss. |
(2) | Included within Total cruise operating expenses in our consolidated statements of comprehensive loss. |
NON-GAAP RECONCILING INFORMATION | |||||
(unaudited) | |||||
Gross Cruise Costs, Net Cruise Costs and Net Cruise Costs Excluding Fuel were calculated as follows (in thousands, except APCD and costs per APCD): | |||||
Quarter Ended | |||||
2022 On a | |||||
Total cruise operating expenses | $ 1,782,442 | $ — | $ 1,956,263 | ||
Marketing, selling and administrative expenses | 444,358 | — | 373,116 | ||
Gross Cruise Costs | 2,226,800 | 2,227,726 | 2,329,379 | ||
Less: | |||||
Commissions, transportation and other | 392,752 | — | 484,054 | ||
Onboard and other | 146,329 | — | 220,216 | ||
Net Cruise Costs including other costs | 1,687,719 | — | 1,625,109 | ||
Less: | |||||
Restructuring charges and other initiatives expense (1) | 5,177 | — | 4,573 | ||
Net Cruise Costs | 1,682,542 | 1,682,599 | 1,620,536 | ||
Less: | |||||
Fuel | 292,694 | — | 316,214 | ||
Net Cruise Costs excluding Fuel | $ 1,389,848 | $ 1,390,019 | $ 1,304,322 | ||
APCD | 11,644,086 | 11,644,086 | 11,564,662 | ||
Gross Cruise Costs per APCD | $ 191.24 | $ 191.32 | $ 201.42 | ||
Net Cruise Costs per APCD | $ 144.50 | $ 144.50 | $ 140.13 | ||
Net Cruise Costs excluding Fuel per APCD | $ 119.36 | $ 119.38 | $ 112.79 |
(1) | Included within Marketing, selling and administrative expenses in our consolidated statements of comprehensive loss. |
NON-GAAP RECONCILING INFORMATION | ||||||||
(unaudited) | ||||||||
EBITDA and Adjusted EBITDA were calculated as follows (in thousands, except APCD and per APCD data): | ||||||||
Quarter Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Net Loss | $ (500,206) | $ (1,356,968) | $ (2,155,962) | $ (5,260,499) | ||||
Interest income | (14,092) | (3,456) | (35,857) | (16,773) | ||||
Interest expense, net of interest capitalized | 431,610 | 283,767 | 1,364,162 | 1,291,753 | ||||
Depreciation and amortization expenses | 360,595 | 333,366 | 1,406,689 | 1,292,878 | ||||
Income tax (benefit) expense (1) | (362) | (10,910) | 4,153 | (47,167) | ||||
EBITDA | 277,545 | (754,201) | 583,185 | (2,739,808) | ||||
Other expenses (2) | 125,437 | 57,397 | 116,223 | 26,883 | ||||
Impairment and credit losses | 1,146 | 42,067 | 562 | 82,001 | ||||
Restructuring charges and other initiatives | 5,177 | 111 | 11,625 | 1,831 | ||||
Equity investment impairment (3) | — | 5,302 | — | 31,344 | ||||
Oasis of the Seas incident (4) | — | — | — | (6,584) | ||||
Pullmantur reorganization settlement (5) | — | — | — | 10,242 | ||||
Net gain related to the sale of the Azamara | — | 1,403 | — | (3,371) | ||||
Adjusted EBITDA | $ 409,305 | $ (647,921) | $ 711,595 | $ (2,597,462) | ||||
APCD | 11,644,086 | 6,800,363 | 41,197,650 | 11,767,441 | ||||
Net Loss per APCD | $ (42.96) | $ (199.54) | $ (52.33) | $ (447.04) | ||||
Adjusted EBITDA per APCD | $ 35.15 | $ (95.28) | $ 17.27 | $ (220.73) |
(1) | Included within Other income (expense) in our consolidated statements of comprehensive loss. |
(2) | Represents net non-operating income or expense. For 2022, primarily relates to our estimate of amounts that may be payable in connection with the ongoing Havana Docks litigation plus related legal fees and costs. Excludes income tax (benefit) expense, included in the EBITDA calculation above. |
(3) | Represents equity investment asset impairment, primarily for our investments in |
(4) | Represents net insurance recoveries related to the collapse of the drydock structure at the |
(5) | Represents estimated cash refunds expected to be paid to Pullmantur guests and other expenses incurred as part of the |
NON-GAAP RECONCILING INFORMATION | ||
(unaudited) | ||
EBITDA and Adjusted EBITDA were calculated as follows (in thousands, except APCD and per APCD data): | ||
Year Ended | ||
2019 | ||
Net Income attributable to | $ 1,878,887 | |
Interest income | (26,945) | |
Interest expense, net of interest capitalized | 408,513 | |
Depreciation and amortization expenses | 1,245,942 | |
Income tax expense (1) | 32,602 | |
EBITDA | 3,538,999 | |
Other income (2) | (8,089) | |
20,709 | ||
Restructuring charges and other initiatives expense | 13,707 | |
Oasis of the Seas incident (3) | 14,530 | |
Transaction and integration costs related to the 2018 Silversea acquisition | 2,048 | |
Non-controlling interest adjustment (4) | 35,965 | |
Adjusted EBITDA | $ 3,617,869 | |
APCD | 41,432,451 | |
Net Income attributable to | $ 45.35 | |
Adjusted EBITDA per APCD | $ 87.32 |
(1) | Included within Other income (expense) in our consolidated statements of comprehensive income (loss). |
(2) | Excludes income tax expense, included in the EBITDA calculation above. |
(3) | Represents incidental costs, net of insurance recoveries, related to the collapse of the drydock structure at the |
(4) | Adjustment made to exclude the impact of the contractual accretion requirements associated with the put option held by |
NON-GAAP RECONCILING INFORMATION | |||||||
(unaudited) | |||||||
Adjusted Net Loss and Adjusted Loss per Share were calculated as follows (in thousands, except per share data): | |||||||
Quarter Ended | Year Ended | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Net Loss | $ (500,206) | $ (1,356,968) | $ (2,155,962) | $ (5,260,499) | |||
Loss on extinguishment of debt | 77,361 | — | 93,810 | 138,759 | |||
Convertible debt amortization of debt discount (1) | — | 26,073 | — | 104,291 | |||
Pullmantur reorganization settlement (2) | — | — | — | 10,242 | |||
Impairment and credit losses | 1,146 | 42,067 | 562 | 82,001 | |||
Equity investment impairment (3) | — | 5,302 | — | 31,344 | |||
Oasis of the Seas incident (4) | — | — | — | (6,584) | |||
Restructuring charges and other initiatives expense | 5,177 | 111 | 11,625 | 1,831 | |||
Amortization of | 1,623 | 1,623 | 6,493 | 6,493 | |||
Net gain related to the sale of Azamara brand | — | 1,403 | — | (3,371) | |||
Net loss related to the elimination of the Silversea | — | 62,604 | — | 62,604 | |||
Litigation loss contingency (6) | 130,033 | — | 130,033 | — | |||
Adjusted Net Loss | $ (284,866) | $ (1,217,785) | $ (1,913,439) | $ (4,832,889) | |||
Loss per Share - Diluted | $ (1.96) | $ (5.33) | $ (8.45) | $ (20.89) | |||
Adjusted Loss per Share - Diluted | $ (1.12) | $ (4.78) | $ (7.50) | $ (19.19) | |||
Weighted-Average Shares Outstanding - Diluted | 255,184 | 254,792 | 255,011 | 251,812 |
(1) | Represents the amortization of non-cash debt discount on our convertible notes. |
(2) | Represents estimated cash refunds expected to be paid to Pullmantur guests and other expenses incurred as part of the |
(3) | Represents equity investment asset impairment, primarily for our investments in |
(4) | Amounts include net insurance recoveries related to the collapse of the drydock structure at the |
(5) | Represents the net loss related to the elimination of the |
(6) | Represents our estimate of amounts that may be payable in connection with the ongoing Havana Docks litigation plus related legal fees and costs. |
NON-GAAP RECONCILING INFORMATION | |||||
(unaudited) | |||||
Total revenues per PCDs were calculated as follows (in thousands, except PCDs data): | |||||
Quarter Ended | |||||
2022 | 2022 On a | 2019 | |||
Passenger ticket revenues | $ 1,702,457 | $ — | $ 1,784,458 | ||
Onboard and other revenues | 901,535 | 732,955 | |||
Total revenues | $ 2,603,992 | $ 2,629,801 | $ 2,517,413 | ||
PCDs | 11,052,960 | 11,052,960 | 11,057,419 | ||
Total revenues per PCDs | $ 235.6 | $ 237.9 | $ 227.7 |
NON-GAAP RECONCILING INFORMATION | |||||||||||
(unaudited) | |||||||||||
Gross Margin Yields, and Net Yields were calculated as follows (in thousands, except APCD and Yields): | |||||||||||
Quarter Ended | Quarter Ended | ||||||||||
2022 | 2022 On a | 2019 | 2022 | 2022 On a | 2019 | ||||||
Total revenues | $ 2,993,075 | $ — | $ 3,186,850 | $ 2,603,992 | $ — | $ 2,517,413 | |||||
Less: | |||||||||||
Cruise operating | 1,956,263 | — | 1,623,038 | 1,782,442 | — | 1,481,519 | |||||
Depreciation and | 355,085 | — | 320,295 | 360,595 | — | 321,762 | |||||
Gross Margin | 681,727 | 700,188 | 1,243,517 | 460,955 | 477,156 | 714,132 | |||||
Add: | |||||||||||
Payroll and related | 304,369 | — | 263,993 | 306,673 | — | 280,027 | |||||
Food | 194,966 | — | 149,621 | 202,763 | — | 147,903 | |||||
Fuel | 316,214 | — | 177,677 | 292,694 | — | 178,190 | |||||
Other operating | 436,444 | — | 342,170 | 441,231 | — | 368,585 | |||||
Depreciation and | 355,085 | — | 320,295 | 360,595 | — | 321,762 | |||||
Adjusted Gross Margin | $ 2,288,805 | $ 2,311,122 | $ 2,497,273 | $ 2,064,911 | $ 2,083,243 | $ 2,010,599 | |||||
APCD | 11,564,662 | 11,564,662 | 10,733,254 | 11,644,086 | 11,644,086 | 10,401,177 | |||||
Gross Margin Yields | $ 58.95 | $ 60.55 | $ 115.86 | $ 39.59 | $ 40.98 | $ 68.66 | |||||
Net Yields | $ 197.91 | $ 199.84 | $ 232.67 | $ 177.34 | $ 178.91 | $ 193.30 |
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