ROYAL CARIBBEAN GROUP REPORTS 2024 RESULTS, ISSUES 2025 GUIDANCE AND ANNOUNCES LAUNCH OF RIVER VACATIONS
Royal Caribbean Group (NYSE: RCL) reported strong 2024 results with EPS of $10.94 and Adjusted EPS of $11.80, exceeding guidance due to robust pricing and onboard revenue. The company projects 2025 Adjusted EPS of $14.35-$14.65, representing 23% growth despite a $0.65 headwind from foreign exchange and fuel rates.
Key 2024 highlights include: total revenues of $16.5 billion, Net Income of $2.9 billion, and Adjusted EBITDA of $6.0 billion. The company experienced a record-breaking WAVE season start, with strong bookings and higher rates. Net Yields increased 11.6% in Constant Currency for 2024.
The company announced expansion into river cruising through Celebrity River Cruises, with an initial order of 10 ships planned to sail in 2027. For 2025, RCL expects Net Yields to increase 2.5-4.5% in Constant Currency, with capacity growth of 5.4% compared to 2024.
Royal Caribbean Group (NYSE: RCL) ha riportato risultati solidi per il 2024, con un utile per azione di $10.94 e un utile per azione aggiustato di $11.80, superando le previsioni grazie a una forte politica di prezzo e ricavi a bordo. L'azienda prevede un utile per azione aggiustato per il 2025 di $14.35-$14.65, che rappresenta una crescita del 23% nonostante un impatto negativo di $0.65 dovuto a fluttuazioni valutarie e tariffe del carburante.
I punti salienti del 2024 includono: ricavi totali di $16,5 miliardi, un reddito netto di $2,9 miliardi e un EBITDA aggiustato di $6,0 miliardi. L'azienda ha vissuto un avvio della stagione WAVE da record, con forti prenotazioni e tariffe superiori. I rendimenti netti sono aumentati dell'11,6% a valuta costante nel 2024.
L'azienda ha annunciato l'espansione nel settore delle crociere fluviali attraverso Celebrity River Cruises, con un ordine iniziale di 10 navi previsto per salpare nel 2027. Per il 2025, RCL prevede un aumento dei rendimenti netti del 2,5-4,5% a valuta costante, con una crescita della capacità del 5,4% rispetto al 2024.
Royal Caribbean Group (NYSE: RCL) reportó resultados sólidos para 2024, con una EPS de $10.94 y una EPS Ajustada de $11.80, superando las proyecciones gracias a precios robustos y ingresos a bordo. La compañía proyecta una EPS Ajustada para 2025 de $14.35-$14.65, lo que representa un crecimiento del 23% a pesar de un impacto negativo de $0.65 debido a fluctuaciones en el tipo de cambio y tarifas de combustible.
Los aspectos destacados de 2024 incluyen: ingresos totales de $16.5 mil millones, ingreso neto de $2.9 mil millones y EBITDA Ajustado de $6.0 mil millones. La empresa experimentó el inicio de la temporada WAVE con récord de reservas y tarifas más altas. Los rendimientos netos aumentaron un 11.6% en moneda constante para 2024.
La compañía anunció su expansión al sector de cruceros fluviales a través de Celebrity River Cruises, con un pedido inicial de 10 barcos planeados para navegar en 2027. Para 2025, RCL espera que los rendimientos netos aumenten entre el 2.5% y el 4.5% en moneda constante, con un crecimiento de capacidad del 5.4% en comparación con 2024.
로열 캐리비안 그룹 (NYSE: RCL)은 2024년도에 EPS $10.94 및 조정 EPS $11.80을 기록하며 강력한 실적을 보고했습니다. 이는 견고한 가격 책정과 선내 수익 덕분에 예상을 초과한 수치입니다. 회사는 2025년도 조정 EPS를 $14.35-$14.65로 예상하고 있으며, 이는 외환 및 연료 요인으로 인한 $0.65의 악재에도 불구하고 23% 성장하는 것입니다.
2024년 주요 하이라이트는 총 수익 $165억, 순이익 $29억, 조정 EBITDA $60억입니다. 회사는 예약과 높은 요금으로 인해 기록적인 WAVE 시즌 시작을 경험했습니다. 순수익은 2024년 상수 통화 기준으로 11.6% 증가했습니다.
회사는 셀러브리티 리버 크루즈를 통해 리버 크루징으로의 확장을 발표했으며, 2027년에 항해할 10척의 선박을 처음으로 주문할 계획입니다. 2025년을 위해 RCL은 순수익이 2024년 대비 상수 통화 기준으로 2.5-4.5% 증가하고, 용량이 5.4% 성장할 것으로 예상하고 있습니다.
Royal Caribbean Group (NYSE: RCL) a annoncé de solides résultats pour 2024, avec un BPA de 10,94 $ et un BPA ajusté de 11,80 $, dépassant les prévisions grâce à une tarification robuste et des revenus à bord. La société prévoit un BPA ajusté de 14,35 $ à 14,65 $ pour 2025, représentant une croissance de 23 % malgré un impact négatif de 0,65 $ dû aux fluctuations des devises et aux tarifs du carburant.
Les faits saillants de 2024 comprennent : des revenus totaux de 16,5 milliards de dollars, un revenu net de 2,9 milliards de dollars et un EBITDA ajusté de 6,0 milliards de dollars. L'entreprise a connu un début de saison WAVE record, avec de fortes réservations et des tarifs plus élevés. Les rendements nets ont augmenté de 11,6 % en monnaie constante pour 2024.
L'entreprise a annoncé son expansion dans le secteur des croisières fluviales à travers Celebrity River Cruises, avec une commande initiale de 10 navires prévue pour 2027. Pour 2025, RCL s'attend à ce que les rendements nets augmentent de 2,5 à 4,5 % en monnaie constante, avec une croissance de la capacité de 5,4 % par rapport à 2024.
Royal Caribbean Group (NYSE: RCL) hat für 2024 starke Ergebnisse gemeldet, mit einem EPS von $10.94 und einem bereinigten EPS von $11.80, die die Prognosen übertreffen dank robuster Preisgestaltung und Onboard-Einnahmen. Das Unternehmen prognostiziert für 2025 ein bereinigtes EPS von $14.35-$14.65, was einem Wachstum von 23% entspricht, trotz eines Gegenwinds von $0.65 durch Wechselkurs- und Kraftstoffkosten.
Wichtige Höhepunkte für 2024 umfassen: Gesamterlöse von $16.5 Milliarden, Nettoergebnis von $2.9 Milliarden und bereinigtes EBITDA von $6.0 Milliarden. Das Unternehmen erlebte einen rekordverdächtigen Start in die WAVE-Saison mit starken Buchungen und höheren Preisen. Die Nettoerträge stiegen 2024 in konstanten Währungen um 11,6%.
Das Unternehmen kündigte eine Expansion in den Flusskreuzfahrten-Sektor durch Celebrity River Cruises an, mit einer anfänglichen Bestellung von 10 Schiffen, die für 2027 geplant sind. Für 2025 erwartet RCL, dass die Nettoerträge in konstanten Währungen um 2,5-4,5% steigen und dass die Kapazität im Vergleich zu 2024 um 5,4% wachsen wird.
- Exceeded 2024 guidance with Adjusted EPS of $11.80
- Strong 2024 financial performance: $16.5B revenue, $2.9B net income
- Net Yields increased 11.6% in Constant Currency for 2024
- Projected 23% earnings growth for 2025
- Record-breaking booking levels with higher rates
- Expansion into river cruising market with 10 new ships ordered
- $0.65 EPS headwind from foreign exchange and fuel rates for 2025
- Higher stock-based compensation expense due to stock price increase
- Significant debt maturities: $1.6B in 2025, $2.9B in 2026
Insights
Royal Caribbean's 2024 results showcase a remarkable financial transformation and strategic evolution. The $11.80 Adjusted EPS for 2024 and projected 23% earnings growth for 2025 reflect fundamental strength across multiple revenue streams.
The yield metrics are particularly compelling - the 11.6% increase in Net Yields demonstrates pricing power and strong consumer demand. The 108% load factor indicates optimal capacity utilization while maintaining premium pricing, a challenging balance in the cruise industry.
The expansion into river cruising through Celebrity River Cruises represents a strategic masterstroke. The $2 trillion global vacation market opportunity, combined with data showing nearly half of existing customers interested in river cruises, presents significant cross-selling potential and revenue diversification. The initial 10-ship commitment indicates confidence in the segment's profitability.
The company's hedging strategy is noteworthy, with 60% of 2025 fuel consumption hedged at favorable rates. This provides meaningful cost visibility and margin protection, particularly valuable given current global energy market volatility.
The moderate planned capacity growth of 5.4% in 2025 and similar rates through 2028 demonstrates disciplined expansion that should support continued yield strength. Combined with the projected flat to slightly higher costs (NCC ex-fuel guidance of 0% to 1%), this suggests potential for further margin expansion.
The robust liquidity position of $4.1 billion provides ample flexibility for both the river cruise expansion and continued fleet modernization, while maintaining a safety buffer against market uncertainties.
Stronger than expected close-in demand drives fourth quarter results
WAVE season off to a record start, propelling 2025 momentum
Adjusted EPS in 2025 are expected to be
Expanding vacation offering through the launch of Celebrity River Cruises
"2024 was exceptional, thanks to our incredible team's flawless execution, which drove elevated demand across our leading brands, the early achievement of our Trifecta goals, and meaningful progress on our strategic priorities," said Jason Liberty, president and CEO, Royal Caribbean Group. "2025 is shaping up to be another great year, with expected adjusted earnings growth of
Full Year 2024 Results:
- Gross Margin Yields increased
23.8% as-reported. Net Yields increased11.6% in Constant Currency (11.5% as-reported). - Gross Cruise Costs per Available Passenger Cruise Day ("APCD") increased
4.6% as-reported. Net Cruise Costs ("NCC"), excluding Fuel, per APCD increased6.8% in Constant Currency (6.8% as-reported). - Total revenues were
$16.5 billion $2.9 billion $10.94 $3.2 billion $11.80 $6.0 billion
Full Year 2025 Outlook:
- WAVE season bookings are off to a record start, with booked load factors in line with prior years and at higher rates.
- Net Yields are expected to increase
2.5% to4.5% in Constant Currency and1.8% to3.8% as-reported. - NCC, excluding Fuel, per APCD are expected to be flat to up
1.0% in Constant Currency and (0.3% ) to0.7% as-reported. - Adjusted EPS is expected to be in the range of
$14.35 $14.65
Fourth Quarter 2024 Results
Net Income for the fourth quarter of 2024 was
Gross Margin Yields increased
Gross Cruise Costs per APCD increased
Update on Bookings
The company continues to be encouraged by the demand and pricing environment for its vacation experiences. Close-in demand in the fourth quarter remained strong on both a rate and volume basis. Bookings have accelerated since the last earnings call, resulting in the best five booking weeks in the company's history. Booked load factors continue to be in line with prior years, and at higher rates. Guest spending onboard and pre-cruise purchases continue to exceed prior years driven by greater participation at higher prices, due to the company's robust commercial engine.
"Our strong booked position allows us to optimize our yield profile and drive margin expansion and strong financial returns," said Naftali Holtz, Chief Financial Officer, Royal Caribbean Group. "Our formula for success - moderate capacity growth, moderate yield growth, and strong cost discipline - is expected to deliver
First Quarter 2025
Net Yields are expected to increase
NCC, excluding Fuel, per APCD, is expected to increase
Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects first quarter Adjusted EPS to be in the range of
Celebrity River Cruises
This morning, the company issued a press release announcing the expansion of its vacation offerings with the launch of Celebrity River Cruises, a premium river cruise vacation that will begin taking bookings this year. The Company has committed to an initial order for 10 transformative ships and plans to sail in 2027.
"We're thrilled to announce our entry into the river cruise market through our Celebrity Cruises premium travel brand. Our guests and travel partners should expect us to do what we do best – innovate and elevate the river cruise experience as we meet the growing demand for intimate, culturally enriching travel experiences," said Jason Liberty, president and CEO, Royal Caribbean Group. "With about half of our guests having experienced or intending to vacation on a river cruise, we know they will enjoy Celebrity's elevated offering on the river. By leveraging our valuable loyalty programs across our three brands, we will deepen customer engagement and further our ability to keep guests within our ecosystem of vacation offerings. We are the best in the world at delivering the vacation of a lifetime, and this is the latest example of how we are building the capabilities to deliver a lifetime of vacations."
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 2025:
FUEL STATISTICS | First Quarter 2025 | Full Year 2025 |
Fuel Consumption (metric tons) | 424,000 | 1,724,000 |
Fuel Expenses | ||
Percent Hedged (fwd. consumption) | 62.0 % | 60.0 % |
GUIDANCE | As-Reported | Constant Currency |
First Quarter 2025 | ||
Net Yields vs. 2024 | ||
Net Cruise Costs per APCD vs. 2024 | ( | ( |
Net Cruise Costs per APCD ex. Fuel vs. 2024 | ||
Full Year 2025 | ||
Net Yields vs. 2024 | ||
Net Cruise Costs per APCD vs. 2024 | ( | ( |
Net Cruise Costs per APCD ex. Fuel vs. 2024 | ( | |
GUIDANCE | First Quarter 2025 | Full Year 2025 |
APCDs | 12.7 million | 53.3 million |
Capacity change vs. 2024 | 3.1 % | 5.4 % |
Depreciation and amortization | ||
Net Interest, excluding loss on extinguishment of debt | ||
Adjusted EPS | ||
SENSITIVITY | First Quarter 2025 | Full Year 2025 |
First Quarter 2025 | Full Year 2025 | |
100 basis pt. Change in SOFR | ||
Exchange rates used in guidance calculations | ||
GBP | ||
AUD | ||
CAD | ||
EUR | ||
Liquidity
As of December 31, 2024, the Group's liquidity position was
Capital Expenditures and Capacity Guidance
Capital expenditures for the full year 2025 are expected to be approximately
Capacity changes for 2025 are expected to be
Conference call scheduled
The company has scheduled a conference call at 10 a.m. Eastern Time today. This call can be heard, either live or on a delayed basis, on the company's investor relations website at www.rclinvestor.com.
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 periods presented, these items included (i) Other (income) expense, which includes the release of the loss contingency in connection with the Havana Docks litigation recorded in other expenses in 2022; (ii) impairment and credit losses; (iii) equity investment impairment, recovery of losses and other; (iv) restructuring charges and other initiative expense; and (v) gain on sale of controlling interest.
Adjusted EBITDA Margin is a non-GAAP measure that represents Adjusted EBITDA (as defined above) divided by total revenues.
Adjusted Earnings (Loss) per Share ("Adjusted EPS") is a non-GAAP measure that represents Adjusted Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. (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.
Adjusted Gross Margin represent Gross Margin, adjusted for payroll and related, food, fuel, other operating, and depreciation and amortization expenses. Gross Margin is calculated pursuant to GAAP as total revenues less total cruise operating expenses, and depreciation and amortization.
Adjusted Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. is a non-GAAP measure that represents net income (loss) less net income attributable to noncontrolling interest, excluding certain items that we believe adjusting for is meaningful when assessing our performance on a comparative basis. For the periods presented, these items included (i) loss on extinguishment of debt; (ii) litigation loss contingency, which includes the release of the loss contingency recorded in 2022 in connection with the Havana Docks litigation inclusive of related legal fees and costs; (iii) impairment and credit losses; (iv) equity investment impairment, recovery of losses and other; (v) restructuring charges and other initiative expense; (vi) the amortization of the Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition in 2018; (vii) tax on the sale of PortMiami noncontrolling interest; (viii) Silver Whisper deferred tax liability release; and (ix) gain on sale of controlling interest.
Adjusted Operating Income (Loss) is a non-GAAP measure that represents operating income (loss) including income (loss) from equity investments and income taxes but excluding certain items that we believe adjusting for is meaningful when assessing our operating performance on a comparative basis. We use this non-GAAP measure to calculate ROIC (as defined below).
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) attributable to Royal Caribbean Cruises Ltd. excluding (i) interest income; (ii) interest expense, net of interest capitalized; (iii) depreciation and amortization expenses; and (iv) income tax expense. We believe that this non-GAAP measure is meaningful when assessing our operating performance on a comparative basis.
Gross Cruise Costs represent the sum of total cruise operating expenses plus marketing, selling and administrative expenses.
Gross Margin Yield represent Gross Margin per APCD.
Invested Capital represents the most recent five-quarter average of total debt (i.e., Current portion of long-term debt plus Long-term debt) plus the most recent five-quarter average of Total shareholders' equity. We use this measure to calculate ROIC (as defined below).
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. In measuring our ability to control costs in a manner that positively impacts net income, we believe changes in Net Cruise Costs and Net Cruise Costs excluding Fuel to be the most relevant indicators of our cost performance. For the 2024 and 2023 periods presented, Net Cruise Costs and Net Cruise Costs excluding Fuel exclude (i) impairment and credit losses; (ii) restructuring charges and other initiative expense; and (iii) the gain on sale of controlling interests.
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.
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 ("PCD") represent the number of passengers carried for the period multiplied by the number of days of their respective cruises.
Return on Invested Capital ("ROIC") represents Adjusted Operating Income (Loss) divided by Invested Capital. We believe ROIC is a meaningful measure because it quantifies how efficiently we generated operating income relative to the capital we have invested in the business. ROIC is also used as a key metric in our long-term incentive compensation program for our executive officers.
Trifecta refers to the multi-year Adjusted EBITDA per APCD, Adjusted EPS and ROIC goals we publicly announced in November 2022. We designed this program to help us better execute and achieve our business goals by clearly articulating longer-term financial objectives. Under the Trifecta Program, we are targeting Adjusted EBITDA per APCD of at least
For additional information see "Adjusted Measures of Financial Performance" below.
About Royal Caribbean Group
Royal Caribbean Group (NYSE: RCL) is one of the leading cruise companies in the world with a global fleet of 66 ships traveling to approximately 1,000 destinations around the world. Royal Caribbean Group is the owner and operator of three award winning cruise brands: Royal Caribbean International, Celebrity Cruises, and Silversea Cruises and it is also a
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 2025 and beyond; demand for our brands; expectations on timing and demand for river cruising offerings; future capital expenditures; and expectations regarding our credit profile. Words such as "anticipate," "believe," "could," "driving," "estimate," "expect," "goal," "intend," "may," "plan," "project," "shaping up," "position," "allows," "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 the economic and geopolitical environment on key aspects of our business, such as the demand for cruises, passenger spending, and operating costs; changes in operating costs; the unavailability or cost of air service; disease outbreaks and increased concern about the risk of illness on our ships or when travelling to or from our ships, which could cause a decrease in demand, guest cancellations, and ship redeployments; incidents or adverse publicity concerning our ships, port facilities, land destinations and/or passengers or the cruise vacation industry in general; the effects of weather, climate events and/or natural disasters on our business; risks related to our sustainability activities; the impact of issues at shipyards, including ship delivery delays, ship cancellations or ship construction cost increases; shipyard unavailability; unavailability of ports of call; vacation industry competition and increase in industry capacity and overcapacity; inability to manage our cost and capital allocation strategies; the uncertainties of conducting business globally and expanding into new markets and new ventures, including potential acquisitions; issues with travel advisers that sell and market our cruises; reliance on third-party service providers; potential unavailability of insurance coverage; the risks and costs related to cyber security attacks, data breaches, protecting our systems and maintaining data integrity and security; uncertainties of a foreign legal system as we are not incorporated in
More information about factors that could affect our operating results is included under the caption "Risk Factors" in our most recent annual report on Form 10-K, as well as our other filings with the SEC, copies of which may be obtained by visiting our Investor Relations website at www.rclinvestor.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Adjusted Measures of Financial Performance
This press release includes certain adjusted financial measures defined as non-GAAP financial measures under Securities and Exchange Commission rules, which we believe provide useful information to investors as a supplement to our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles, or
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
ROYAL CARIBBEAN CRUISES LTD. | |||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||
(in millions, except per share data) | |||||||
Quarter Ended | Year Ended | ||||||
December 31, | December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Passenger ticket revenues | $ 2,599 | $ 2,286 | $ 11,499 | $ 9,568 | |||
Onboard and other revenues | 1,161 | 1,045 | 4,986 | 4,332 | |||
Total revenues | 3,761 | 3,331 | 16,484 | 13,900 | |||
Cruise operating expenses: | |||||||
Commissions, transportation and other | 492 | 450 | 2,250 | 2,001 | |||
Onboard and other | 183 | 169 | 909 | 809 | |||
Payroll and related | 342 | 309 | 1,301 | 1,197 | |||
Food | 237 | 205 | 934 | 819 | |||
Fuel | 284 | 300 | 1,160 | 1,150 | |||
Other operating | 514 | 457 | 2,098 | 1,799 | |||
Total cruise operating expenses | 2,052 | 1,890 | 8,652 | 7,775 | |||
Marketing, selling and administrative expenses | 674 | 503 | 2,125 | 1,792 | |||
Depreciation and amortization expenses | 411 | 368 | 1,600 | 1,455 | |||
Operating Income | 624 | 570 | 4,106 | 2,878 | |||
Other income (expense): | |||||||
Interest income | 3 | 4 | 16 | 36 | |||
Interest expense, net of interest capitalized | (266) | (346) | (1,590) | (1,402) | |||
Equity investment income | 57 | 51 | 260 | 200 | |||
Other income (expense) | 141 | 1 | 103 | (8) | |||
(65) | (290) | (1,210) | (1,174) | ||||
Net Income | 559 | 280 | 2,896 | 1,704 | |||
Less: Net Income attributable to noncontrolling interest | 6 | 2 | 18 | 7 | |||
Net Income attributable to Royal Caribbean Cruises Ltd. | $ 553 | $ 278 | $ 2,877 | $ 1,697 | |||
Earnings per Share: | |||||||
Basic | $ 2.06 | $ 1.09 | $ 11.00 | $ 6.63 | |||
Diluted | $ 2.02 | $ 1.06 | $ 10.94 | $ 6.31 | |||
Weighted-Average Shares Outstanding: | |||||||
Basic | 269 | 256 | 261 | 256 | |||
Diluted | 277 | 280 | 279 | 283 | |||
Comprehensive Income (Loss) | |||||||
Net Income | $ 559 | $ 280 | $ 2,896 | $ 1,704 | |||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | 17 | (11) | 17 | (9) | |||
Change in defined benefit plans | 9 | 2 | 12 | 6 | |||
(Loss) gain on cash flow derivative hedges | (75) | (20) | (157) | (27) | |||
Total other comprehensive (loss) income | (49) | (29) | (128) | (30) | |||
Comprehensive Income | 510 | 251 | 2,768 | 1,674 | |||
Less: Comprehensive Income attributable to noncontrolling interest | 6 | 2 | 18 | 7 | |||
Comprehensive Income attributable to Royal Caribbean Cruises Ltd. | $ 504 | $ 249 | $ 2,750 | $ 1,667 | |||
__________________________________________________ Certain amounts may not add due to use of rounded numbers.
| |||||||
ROYAL CARIBBEAN CRUISES LTD. | |||||||
STATISTICS | |||||||
(unaudited) | |||||||
Quarter Ended | Year Ended | ||||||
December 31, | December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Passengers Carried | 2,159,429 | 1,939,360 | 8,564,272 | 7,646,203 | |||
Passenger Cruise Days | 13,678,795 | 12,605,093 | 54,844,780 | 49,549,127 | |||
APCD | 12,716,724 | 11,962,340 | 50,552,731 | 46,916,259 | |||
Occupancy | 107.6 % | 105.4 % | 108.5 % | 105.6 % | |||
ROYAL CARIBBEAN CRUISES LTD. | |||
CONSOLIDATED BALANCE SHEETS | |||
(in millions, except share data) | |||
As of | |||
December 31, | December 31, | ||
2024 | 2023 | ||
(unaudited) | |||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 388 | $ 497 | |
Trade and other receivables, net | 371 | 405 | |
Inventories | 265 | 248 | |
Prepaid expenses and other assets | 670 | 617 | |
Derivative financial instruments | 11 | 25 | |
Total current assets | 1,705 | 1,792 | |
Property and equipment, net | 31,831 | 30,114 | |
Operating lease right-of-use assets | 677 | 611 | |
Goodwill | 808 | 809 | |
Other assets | 2,049 | 1,805 | |
Total assets | $ 37,070 | $ 35,131 | |
Liabilities and shareholders' equity | |||
Current liabilities | |||
Current portion of long-term debt | $ 1,603 | $ 1,720 | |
Current portion of operating lease liabilities | 74 | 65 | |
Accounts payable | 919 | 792 | |
Accrued expenses and other liabilities | 1,635 | 1,478 | |
Derivative financial instruments | 90 | 35 | |
Customer deposits | 5,496 | 5,311 | |
Total current liabilities | 9,817 | 9,401 | |
Long-term debt | 18,473 | 19,732 | |
Long-term operating lease liabilities | 670 | 613 | |
Other long-term liabilities | 375 | 486 | |
Total liabilities | 29,335 | 30,232 | |
Shareholders' equity | |||
Preferred stock ( | — | — | |
Common stock ( issued, December 31, 2024 and December 31, 2023, respectively) | 3 | 3 | |
Paid-in capital | 7,831 | 7,474 | |
Retained earnings (accumulated deficit) | 2,612 | (10) | |
Accumulated other comprehensive loss | (802) | (674) | |
Treasury stock (28,468,430 and 28,248,125 common shares at cost, December 31, 2024 and December 31, 2023, respectively) | (2,081) | (2,069) | |
Total shareholders' equity attributable to Royal Caribbean Cruises Ltd. | 7,563 | 4,724 | |
Noncontrolling Interest | 172 | 175 | |
Total shareholders' equity | 7,735 | 4,899 | |
Total liabilities and shareholders' equity | $ 37,070 | $ 35,131 | |
ROYAL CARIBBEAN CRUISES LTD. | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(in millions) | |||
Year Ended December 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Operating Activities | |||
Net Income | $ 2,896 | $ 1,704 | |
Adjustments: | |||
Depreciation and amortization | 1,600 | 1,455 | |
Net deferred income tax benefit | — | (8) | |
Loss (gain) on derivative instruments not designated as hedges | 77 | (19) | |
Share-based compensation expense | 267 | 126 | |
Equity investment income | (260) | (200) | |
Amortization of debt issuance costs, discounts and premiums | 98 | 109 | |
Loss on extinguishment of debt and inducement expense | 463 | 121 | |
Changes in operating assets and liabilities: | |||
Decrease in trade and other receivables, net | 52 | 99 | |
Increase in inventories, net | (17) | (24) | |
Increase in prepaid expenses and other assets | (137) | (184) | |
Increase in accounts payable | 120 | 124 | |
Increase in accrued expenses and other liabilities | — | 13 | |
Increase in customer deposits | 186 | 1,143 | |
Other, net | (80) | 18 | |
Net cash provided by operating activities | 5,265 | 4,477 | |
Investing Activities | |||
Purchases of property and equipment | (3,268) | (3,897) | |
Cash received on settlement of derivative financial instruments | 14 | 35 | |
Cash paid on settlement of derivative financial instruments | (130) | (86) | |
Investments in and loans to unconsolidated affiliates | (67) | (31) | |
Cash received on loans to unconsolidated affiliates | 18 | 40 | |
Other, net | (13) | 16 | |
Net cash used in investing activities | (3,446) | (3,923) | |
Financing Activities | |||
Debt proceeds | 10,318 | 7,641 | |
Debt issuance costs | (133) | (194) | |
Repayments of debt | (11,651) | (9,566) | |
Premium on repayment of debt | (292) | (80) | |
Dividends paid | (107) | — | |
Proceeds from sale of noncontrolling interest | — | 209 | |
Other, net | (57) | (3) | |
Net cash used in financing activities | (1,922) | (1,993) | |
Effect of exchange rate changes on cash | (6) | 1 | |
Net decrease in cash and cash equivalents | (109) | (1,438) | |
Cash and cash equivalents at beginning of year | 497 | 1,935 | |
Cash and cash equivalents at end of year | $ 388 | $ 497 | |
Supplemental Disclosures | |||
Cash paid during the year for: | |||
Interest, net of amount capitalized | $ 1,210 | $ 1,442 | |
Non-Cash Investing Activities | |||
Purchases of property and equipment included in accounts payable and accrued expenses and other liabilities | $ 47 | $ 50 | |
Non-Cash Financing Activities | |||
Non-cash inducement on convertible notes exchange | $ 104 | $ — | |
ROYAL CARIBBEAN CRUISES LTD. | |||||||||||
NON-GAAP RECONCILING INFORMATION | |||||||||||
(unaudited) | |||||||||||
Gross Margin Yields, Net Yields and Adjusted Gross Margin per PCD were calculated by dividing Gross Margin and Adjusted Gross Margin by APCD, and Adjusted Gross Margin by PCD as follows (in millions, except APCD, PCD, Yields, and Adjusted Gross Margin per PCD. Certain amounts may not add due to use of rounded numbers; reported Adjusted Gross Margin, Yields and per PCD amounts are calculated from the underlying dollar amounts): | |||||||||||
Quarter Ended December 31, | Year Ended December 31, | ||||||||||
2024 | 2024 On a | 2023 | 2024 | 2024 On a | 2023 | ||||||
Total revenues | $ 3,761 | $ 3,771 | $ 3,331 | $ 16,484 | $ 16,494 | $ 13,900 | |||||
Less: | |||||||||||
Cruise operating expenses | 2,052 | 2,053 | 1,890 | 8,652 | 8,655 | 7,775 | |||||
Depreciation and amortization expenses | 411 | 411 | 368 | 1,600 | 1,600 | 1,455 | |||||
Gross Margin | 1,298 | 1,306 | 1,073 | 6,231 | 6,239 | 4,670 | |||||
Add: | |||||||||||
Payroll and related | 342 | 343 | 309 | 1,301 | 1,302 | 1,197 | |||||
Food | 237 | 237 | 205 | 934 | 934 | 819 | |||||
Fuel | 284 | 284 | 300 | 1,160 | 1,160 | 1,150 | |||||
Other operating | 514 | 514 | 457 | 2,098 | 2,099 | 1,799 | |||||
Depreciation and amortization expenses | 411 | 411 | 368 | 1,600 | 1,600 | 1,455 | |||||
Adjusted Gross Margin | $ 3,086 | $ 3,095 | $ 2,712 | $ 13,325 | $ 13,333 | $ 11,090 | |||||
APCD | 12,716,724 | 12,716,724 | 11,962,340 | 50,552,731 | 50,552,731 | 46,916,259 | |||||
Passenger Cruise Days | 13,678,795 | 13,678,795 | 12,605,093 | 54,844,780 | 54,844,780 | 49,549,127 | |||||
Gross Margin Yields | $ 102.06 | $ 102.72 | $ 89.70 | $ 123.27 | $ 123.41 | $ 99.54 | |||||
Net Yields | $ 242.66 | $ 243.37 | $ 226.71 | $ 263.59 | $ 263.75 | $ 236.38 | |||||
Adjusted Gross Margin per PCD | $ 225.60 | $ 226.25 | $ 215.16 | $ 242.96 | $ 243.11 | $ 223.81 | |||||
ROYAL CARIBBEAN CRUISES LTD. | |||||||||||
NON-GAAP RECONCILING INFORMATION | |||||||||||
(unaudited) | |||||||||||
Gross Cruise Costs, Net Cruise Costs and Net Cruise Costs excluding Fuel were calculated as follows (in millions, except APCD and costs per APCD. Certain amounts may not add due to use of rounded numbers; reported Gross Cruise Costs, Net Cruise Costs, Net Cruise Costs excluding Fuel, and per APCD amounts are calculated from the underlying dollar amounts): | |||||||||||
Quarter Ended December 31, | Year Ended December 31, | ||||||||||
2024 | 2024 On a | 2023 | 2024 | 2024 On a | 2023 | ||||||
Total cruise operating expenses | $ 2,052 | $ 2,053 | $ 1,890 | $ 8,652 | $ 8,655 | $ 7,775 | |||||
Marketing, selling and administrative expenses | 674 | 675 | 503 | 2,125 | 2,126 | 1,792 | |||||
Gross Cruise Costs | 2,726 | 2,728 | 2,393 | 10,778 | 10,782 | 9,567 | |||||
Less: | |||||||||||
Commissions, transportation and other | 492 | 493 | 450 | 2,250 | 2,251 | 2,001 | |||||
Onboard and other | 183 | 183 | 169 | 909 | 910 | 809 | |||||
Net Cruise Costs including other costs | 2,051 | 2,052 | 1,774 | 7,619 | 7,621 | 6,757 | |||||
Less: | |||||||||||
Impairment and credit losses (1) | 3 | 3 | 15 | 9 | 9 | 8 | |||||
Restructuring charges and other initiatives expense (2) | 5 | 5 | — | 10 | 10 | 5 | |||||
Gain on sale of controlling interests (3) | — | — | — | — | — | (3) | |||||
Net Cruise Costs | 2,043 | 2,044 | 1,759 | 7,600 | 7,602 | 6,747 | |||||
Less: | |||||||||||
Fuel | 284 | 284 | 300 | 1,160 | 1,160 | 1,150 | |||||
Net Cruise Costs excluding Fuel | $ 1,759 | $ 1,760 | $ 1,459 | $ 6,440 | $ 6,442 | $ 5,597 | |||||
APCD | 12,716,724 | 12,716,724 | 11,962,340 | 50,552,731 | 50,552,731 | 46,916,259 | |||||
Gross Cruise Costs per APCD | $ 214.33 | $ 214.52 | $ 200.04 | $ 213.20 | $ 213.27 | $ 203.92 | |||||
Net Cruise Costs per APCD | $ 160.63 | $ 160.74 | $ 147.04 | $ 150.34 | $ 150.38 | $ 143.81 | |||||
Net Cruise Costs excluding Fuel per APCD | $ 138.31 | $ 138.42 | $ 121.97 | $ 127.40 | $ 127.43 | $ 119.30 | |||||
(1) | For 2024, primarily represents property and equipment impairment charges related to certain construction in progress assets, which we determined would no longer be completed. For 2023, represents asset impairments and credit losses recoveries for notes receivables for which credit losses were previously recorded. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss). Additionally, for 2023, includes an |
(2) | These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss). |
(3) | Represents gain on sale of controlling interest in cruise terminal facilities in |
ROYAL CARIBBEAN CRUISES LTD. | ||||||||
NON-GAAP RECONCILING INFORMATION | ||||||||
(unaudited) | ||||||||
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin were calculated as follows (in millions, except APCD and per APCD data. Certain amounts may not add due to use of rounded numbers; reported EBITDA, Adjusted EBITDA, and per APCD and Margin amounts are calculated from the underlying dollar amounts): | ||||||||
Quarter Ended December 31, | Year Ended December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Net Income attributable to Royal Caribbean Cruises Ltd. | $ 553 | $ 278 | $ 2,877 | $ 1,697 | ||||
Interest income | (3) | (4) | (16) | (36) | ||||
Interest expense, net of interest capitalized | 266 | 346 | 1,590 | 1,402 | ||||
Depreciation and amortization expenses | 411 | 368 | 1,600 | 1,455 | ||||
Income tax expense (1) | — | — | 46 | 6 | ||||
EBITDA | 1,227 | 988 | 6,097 | 4,524 | ||||
Other (income) expenses (2) | (141) | (1) | (149) | 2 | ||||
Impairment and credit losses (3) | 3 | 15 | 9 | 8 | ||||
Equity investment impairment, recovery of losses and other | 4 | — | 4 | 8 | ||||
Restructuring charges and other initiatives expense | 5 | — | 10 | 5 | ||||
Gain on sale of controlling interest (4) | — | — | — | (3) | ||||
Adjusted EBITDA | $ 1,098 | $ 1,002 | $ 5,971 | $ 4,544 | ||||
Total revenues | $ 3,761 | $ 3,331 | $ 16,484 | $ 13,900 | ||||
APCD | 12,716,724 | 11,962,340 | 50,552,731 | 46,916,259 | ||||
Net Income per APCD | $ 43.46 | $ 23.24 | $ 56.92 | $ 36.17 | ||||
Adjusted EBITDA per APCD | $ 86.35 | $ 83.76 | $ 118.13 | $ 96.85 | ||||
Adjusted EBITDA Margin | 29.2 % | 30.1 % | 36.2 % | 32.7 % | ||||
(1) | These amounts are included in Other income (expense) within our consolidated statements of comprehensive income (loss). |
(2) | Represents net non-operating (income) expense. For 2024, primarily represents the release of the loss contingency recorded in 2022 in connection with the Havana Docks litigation inclusive of related legal fees and costs. The amount excludes income tax expense, included in the EBITDA calculation above. |
(3) | For 2024, primarily represents property and equipment impairment charges related to certain construction in progress assets, which we determined would no longer be completed. For 2023, represents asset impairments and credit losses recoveries for notes receivables for which credit losses were previously recorded. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss). Additionally, for 2023, includes an |
(4) | Represents gain on sale of controlling interest in cruise terminal facilities in |
ROYAL CARIBBEAN CRUISES LTD. | |||||||
NON-GAAP RECONCILING INFORMATION | |||||||
(unaudited) | |||||||
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Earnings per Share were calculated as follows (in millions, except per share data. Certain amounts may not add due to use of rounded numbers; reported Adjusted Net Income attributable to Royal Caribbean Cruises Ltd., Earnings per Share, and Adjusted Earnings per Share amounts are calculated from the underlying dollar amounts): | |||||||
Quarter Ended December 31, | Year Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net Income attributable to Royal Caribbean Cruises Ltd. | $ 553 | $ 278 | $ 2,877 | $ 1,697 | |||
Loss on extinguishment of debt (1) | 7 | 40 | 463 | 121 | |||
Litigation loss contingency (2) | (124) | — | (124) | — | |||
Impairment and credit losses (3) | 3 | 15 | 9 | 8 | |||
Equity investment impairment, recovery of losses and other | (1) | — | (1) | 12 | |||
Restructuring charges and other initiatives expense | 5 | — | 10 | 5 | |||
Amortization of Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition (4) | 2 | 1 | 6 | 6 | |||
PortMiami tax on sale of noncontrolling interest (5) | — | (3) | (3) | 7 | |||
Silver Whisper deferred tax liability release (6) | — | — | — | (26) | |||
Gain on sale of controlling interest (7) | — | — | — | (3) | |||
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. | $ 445 | $ 331 | $ 3,237 | $ 1,827 | |||
Earnings per Share - Diluted (8) | $ 2.02 | $ 1.06 | $ 10.94 | $ 6.31 | |||
Adjusted Earnings per Share - Diluted (9) | $ 1.63 | $ 1.25 | $ 11.80 | $ 6.77 | |||
Weighted-Average Shares Outstanding - Diluted | 277 | 280 | 279 | 283 | |||
(1) | For 2024, includes |
(2) | For 2024, represents the release of the loss contingency recorded in 2022, in connection with the Havana Docks litigation inclusive of related legal fees and costs. These amounts are included in Other income (expense) within our consolidated statements of comprehensive income (loss). |
(3) | For 2024, primarily represents property and equipment impairment charges related to certain construction in progress assets, which we determined would no longer be completed. For 2023, represents asset impairments and credit losses recoveries for notes receivables for which credit losses were previously recorded. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss). Additionally, for 2023, includes an |
(4) | Represents the amortization of the Silversea Cruises intangible assets resulting from the 2018 Silversea Cruises acquisition. |
(5) | For 2024, represents adjustments to tax impacts on the 2023 PortMiami sale of noncontrolling interest. For 2023, represents tax on the PortMiami sale of noncontrolling interest. These amounts are included in Other income (expense) in our consolidated statements of comprehensive income (loss). |
(6) | Represents the release of the deferred tax liability subsequent to the execution of the bargain purchase option for the Silver Whisper. These amounts are included in Other income (expense) within our consolidated statements of comprehensive income (loss). |
(7) | Represents gain on sale of controlling interest in cruise terminal facilities in |
(8) | Diluted EPS includes the add-back of |
(9) | Adjusted Diluted EPS includes the add-back of dilutive interest expense related to our convertible notes of |
ROYAL CARIBBEAN CRUISES LTD. | |
NON-GAAP RECONCILING INFORMATION | |
(unaudited) | |
Adjusted Operating Income and ROIC, were calculated as follows: (in millions, except ROIC. Certain amounts may not add due to use of rounded numbers; Adjusted operating income, Invested Capital, and ROIC amounts are calculated from the underlying dollar amounts): | |
For the Twelve Months Ended | |
December 31, 2024 | |
Operating Income | $ 4,106 |
Including: | |
Equity investment income | 260 |
Income tax expense | (46) |
Adjustments: | |
Impairment and credit losses (1) | 9 |
Equity investment impairment, recovery of losses and other | 4 |
Restructuring charges and other initiatives expense | 10 |
Amortization of Silversea Cruises intangible assets related to Silversea Cruises acquisition (2) | 6 |
PortMiami tax on sale of noncontrolling interest (3) | (3) |
Adjusted Operating Income | $ 4,347 |
Invested Capital | $ 27,074 |
ROIC | 16.1 % |
(1) | For 2024, primarily represents property and equipment impairment charges related to certain construction in progress assets, which we determined would no longer be completed. This amount is included in Other operating within our consolidated statements of comprehensive income (loss). |
(2) | Represents the amortization of the Silversea Cruises intangible assets resulting from the 2018 Silversea Cruises acquisition. |
(3) | Represents adjustments to tax impacts on the 2023 PortMiami sale of noncontrolling interest. |
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SOURCE Royal Caribbean Group
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