ROYAL CARIBBEAN GROUP REPORTS THIRD QUARTER RESULTS AND INCREASES FULL YEAR GUIDANCE
Royal Caribbean Group (NYSE: RCL) reported strong Q3 2024 results with EPS of $4.21 and Adjusted EPS of $5.20, exceeding guidance due to stronger pricing and onboard revenue. Total revenues reached $4.9 billion with Net Income of $1.1 billion. The company increased its full year 2024 Adjusted EPS guidance to $11.57-$11.62, reflecting robust demand. Load factor was 111%, with Net Yields up 7.9%. The company announced expansion plans including Perfect Day Mexico (2027) and new developments in Puerto Williams and Cozumel. Management anticipates 2025 earnings per share to start with a $14 handle, driven by strong booking trends and higher pricing.
Royal Caribbean Group (NYSE: RCL) ha riportato risultati solidi nel terzo trimestre del 2024 con un utile per azione di $4,21 e un utile per azione rettificato di $5,20, superando le previsioni grazie a prezzi più elevati e ricavi a bordo. I ricavi totali hanno raggiunto $4,9 miliardi con un reddito netto di $1,1 miliardi. L'azienda ha aumentato le previsioni dell'utile per azione rettificato per l'intero anno 2024 a $11,57-$11,62, riflettendo una domanda robusta. Il fattore di carico era dell'111%, con i rendimenti netti in aumento del 7,9%. L'azienda ha annunciato piani di espansione che includono Perfect Day Mexico (2027) e nuovi sviluppi a Puerto Williams e Cozumel. La direzione prevede che gli utili per azione del 2025 inizieranno con un valore di $14, supportati da forti tendenze di prenotazione e prezzi più elevati.
Royal Caribbean Group (NYSE: RCL) reportó resultados sólidos en el tercer trimestre de 2024 con un EPS de $4.21 y un EPS ajustado de $5.20, superando las expectativas gracias a precios más altos y a ingresos a bordo. Los ingresos totales alcanzaron $4.9 mil millones con un ingreso neto de $1.1 mil millones. La compañía aumentó su guía de EPS ajustado para todo el año 2024 a $11.57-$11.62, reflejando una demanda robusta. El factor de ocupación fue del 111%, con un aumento de los rendimientos netos del 7.9%. La empresa anunció planes de expansión que incluyen Perfect Day Mexico (2027) y nuevos desarrollos en Puerto Williams y Cozumel. La dirección anticipa que los beneficios por acción de 2025 comenzarán con un valor de $14, impulsados por fuertes tendencias de reservas y precios más altos.
로얄 캐리비안 그룹 (NYSE: RCL)은 2024년 3분기 실적이 강하게 나타나며 주당 순이익 $4.21과 조정 주당 순이익 $5.20을 기록했으며, 가격 상승과 선내 수익 덕분에 가이던스를 초과했습니다. 총 수익은 $49억에 달하며 순이익은 $11억입니다. 회사는 2024년 전체 연도 조정 주당 순이익 가이던스를 $11.57-$11.62로 늘렸으며, 이는 견고한 수요를 반영합니다. 적재율은 111%로, 순수익률은 7.9% 증가했습니다. 회사는 Perfect Day Mexico (2027)을 포함한 확장 계획과 푸에르토 윌리엄스 및 코수멜의 새로운 개발을 발표했습니다. 경영진은 2025회의 주당 순이익이 $14에서 시작될 것으로 예상하며, 이는 강한 예약 트렌드와 높은 가격에 의한 것입니다.
Royal Caribbean Group (NYSE: RCL) a annoncé de solides résultats pour le troisième trimestre de 2024, avec un BPA de 4,21 $ et un BPA ajusté de 5,20 $, dépassant les prévisions grâce à des prix plus élevés et des revenus à bord. Les revenus totaux ont atteint 4,9 milliards de dollars avec un revenu net de 1,1 milliard de dollars. L'entreprise a relevé ses prévisions de BPA ajusté pour l'année 2024 à 11,57 $ - 11,62 $, reflétant une demande robuste. Le taux de chargement était de 111 %, avec des rendements nets en hausse de 7,9 %. L'entreprise a annoncé des projets d'expansion, y compris Perfect Day Mexico (2027) et de nouveaux développements à Puerto Williams et Cozumel. La direction prévoit que les bénéfices par action pour 2025 commenceront par un montant de 14 $, soutenus par des tendances de réservation solides et des prix plus élevés.
Royal Caribbean Group (NYSE: RCL) hat im dritten Quartal 2024 starke Ergebnisse gemeldet, mit einem EPS von $4,21 und einem bereinigten EPS von $5,20, das die Prognosen aufgrund höherer Preise und Einnahmen an Bord übertraf. Die Gesamteinnahmen betrugen $4,9 Milliarden bei einem Nettoergebnis von $1,1 Milliarden. Das Unternehmen hat die Prognose für das bereinigte EPS für das gesamte Jahr 2024 auf $11,57-$11,62 angehoben, was eine robuste Nachfrage widerspiegelt. Der Auslastungsfaktor betrug 111%, mit einer Steigerung der Nettorenditen um 7,9%. Das Unternehmen kündigte Expansionspläne an, darunter Perfect Day Mexico (2027) sowie neue Entwicklungen in Puerto Williams und Cozumel. Das Management erwartet, dass die Gewinne pro Aktie im Jahr 2025 mit einem Wert von 14 Dollar beginnen, gestützt durch starke Buchungstrends und höhere Preise.
- Q3 2024 Adjusted EPS of $5.20, significantly higher than $3.85 in Q3 2023
- Strong revenue performance of $4.9 billion with Net Income of $1.1 billion
- Load factor reached 111% with Net Yields up 7.9%
- Increased full year 2024 Adjusted EPS guidance to $11.57-$11.62
- Strong booking trends for 2025 with higher rates
- Hurricane Milton impact causing 40bps negative effect on Q4 Net Yields
- Higher costs in Q4 due to increased drydock days and stock compensation
- Q4 2024 guidance includes $0.24 of headwinds
Insights
Royal Caribbean Group delivered exceptional Q3 2024 results with
Key performance metrics show strong momentum:
Strategic initiatives including Perfect Day Mexico and expansion of private destinations position RCL for sustained growth. The company's return to an unsecured balance sheet structure and strong liquidity of
Booking trends and consumer behavior indicate exceptional market strength. The demand environment is accelerating beyond 2023 levels, with higher load factors and stronger pricing, particularly in European and Alaskan itineraries. Onboard revenue continues to outperform through increased participation and higher pricing.
Looking ahead to 2025, preliminary guidance suggests EPS starting with
Robust demand for its vacation experiences drives strong results and improved outlook
Announces major strategic initiatives to continue expansion of the company's private destination footprint
The company is increasing its full year 2024 Adjusted EPS guidance to
"Our exceptional third quarter results and increased full year expectations reflect the robust demand for our differentiated vacation experiences," said Jason Liberty, president and CEO, Royal Caribbean Group. "We see elevated demand patterns continuing as we build the business for 2025, and although the yield comparable will be a high bar, our proven formula of moderate capacity growth, moderate yield growth and strong cost discipline is expected to continue to deliver strong financial results. While we are still very early in the planning process, we anticipate earnings per share in 2025 to start with a
Third Quarter 2024:
- Load factor in the third quarter was
111% . - Gross Margin Yields were up
13.4% as-reported. Net Yields were up7.9% in Constant Currency and as-reported. - Gross Cruise Costs per Available Passenger Cruise Days ("APCD") increased
1.3% as-reported. Net Cruise Costs ("NCC"), excluding Fuel, per APCD increased4.0% in Constant-Currency and as-reported. - Total revenues were
, Net Income was$4.9 billion or$1.1 billion per share, Adjusted Net Income was$4.21 or$1.4 billion per share, and Adjusted EBITDA was$5.20 .$2.1 billion
Full Year 2024 Outlook:
- Net Yields are expected to increase
10.8% to11.3% in Constant Currency (10.9% to11.4% as-reported). - NCC, excluding Fuel, per APCD is expected to increase approximately
6.2% to6.7% in Constant Currency and as-reported. The increase in costs, compared to prior guidance, is driven by higher stock-based compensation. - Adjusted EPS is expected to grow
71% year-over-year and be in the range of to$11.57 $11.62 .
Third Quarter 2024 Results
Net Income for the third quarter of 2024 was
Gross Margin Yields increased
Gross Cruise Costs per APCD increased
Royal Caribbean Group continues to deliver the best vacation experience through innovative new ships and exciting private destinations. This quarter, the Company announced its plans to expand its private destinations portfolio with Perfect Day Mexico, expected to open in 2027. The company also announced Silversea's new 150-room hotel in Puerto Williams,
"We wake up every day obsessively focused on our mission of delivering a lifetime of the very best vacation experiences to our guests. In pursuit of that mission, we are very excited to further broaden our Perfect Day Collection with Perfect Day Mexico and to develop the Southernmost hotel on Earth," said Jason Liberty, president and CEO, Royal Caribbean Group. "Together with the expansion of our Icon Class, we look to continue to change the game and position ourselves to win a greater share of the
Update on Bookings and Onboard Revenue
The demand and pricing environment accelerated since the last earnings call, exceeding 2023 levels. Closer-in demand for 2024 sailings exceeded expectations, contributing to higher load factors at higher prices and higher onboard revenue for the third quarter. Consumer spending onboard, as well as pre-cruise purchases, continue to significantly exceed 2023 levels driven by greater participation at higher prices.
The market response to the company's new ships, existing hardware, and private destinations, has been excellent and accelerating - further positioning the company for yield growth in 2025. Demand for 2025 is strong with booked load factors in line with prior years and at higher rates, allowing for further pricing and yield growth as 2025 bookings continue to ramp up.
"The performance of our business continues to be robust, driven by strong demand and excellent operational execution," said Naftali Holtz, chief financial officer, Royal Caribbean Group. "Our strong booked position is exactly where we want to be to further optimize our yield profile and deliver on our formula of success - moderate capacity growth, moderate yield growth and strong cost discipline - positioning us to continue to deliver margin expansion and strong financial returns."
Fourth Quarter 2024
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 fourth quarter Adjusted EPS to be in the range of
Fuel Expense
Bunker pricing, net of hedging, for the third 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 current fuel prices, the company has included
The company provided the following guidance for the fourth quarter and full year 2024:
FUEL STATISTICS | Fourth Quarter 2024 | Full Year 2024 |
Fuel Consumption (metric tons) | 433,000 | 1,704,000 |
Fuel Expenses | ||
Percent Hedged (fwd. consumption) | 61 % | 61 % |
GUIDANCE | As-Reported | Constant Currency |
Fourth Quarter 2024 | ||
Net Yields vs. 2023 | ||
Net Cruise Costs per APCD vs. 2023 | ||
Net Cruise Costs per APCD ex. Fuel vs. 2023 | ||
Full Year 2024 | ||
Net Yields vs. 2023 | ||
Net Cruise Costs per APCD vs. 2023 | ||
Net Cruise Costs per APCD ex. Fuel vs. 2023 | ||
GUIDANCE | Fourth Quarter 2024 | Full Year 2024 |
APCDs | 12.8 million | 50.6 million |
Capacity change vs. 2023 | 6.6 % | 7.8 % |
Depreciation and amortization | ||
Net Interest, excluding loss on extinguishment of debt | ||
Adjusted EPS | ||
SENSITIVITY | Fourth Quarter 2024 | Full Year 2024 |
Fourth Quarter 2024 | Remainder of Year 2024 | |
100 basis pt. Change in SOFR | ||
Exchange rates used in guidance calculations | ||
GBP | ||
AUD | ||
CAD | ||
EUR |
Liquidity and Financing Arrangements
As of September 30, 2024, the company's liquidity position was
During the quarter, the company achieved a fully unsecured balance sheet through the execution of several refinancing transactions. In August, the company refinanced its
Also during the quarter, the company exchanged
"This quarter, we achieved an important milestone of returning to a fully unsecured capital structure while also reducing cost of capital and recapturing a portion of our Covid-era share dilution," added Holtz. "Our strong balance sheet position allows us to further support our growth ambitions and expand capital allocation, while delivering strong cash flow and maintaining investment grade balance sheet metrics."
The company noted that as of September 30, 2024, the scheduled debt maturities for the remainder of 2024, 2025, 2026, and 2027 were
Capital Expenditures and Capacity Guidance
Capital expenditures for the full year 2024 are expected to be approximately
Capacity changes for 2024, 2025, 2026, and 2027 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 expense (income); (ii) gain on sale of controlling interest; (iii) equity investment impairment and recovery losses; (iv) restructuring charges and other initiative expenses, and (v) impairment and credit losses (recoveries).
Adjusted EBITDA Margin is a non-GAAP measure that represents Adjusted EBITDA (as defined above) divided by total revenues.
Adjusted Earnings per Share ("Adjusted EPS") is a non-GAAP measure that represents Adjusted Net Income 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 Net Income is a non-GAAP measure that represents Net Income attributable to Royal Caribbean Cruises Ltd. 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 and inducement expense; (ii) the amortization of the Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition; (iii) gain on sale of controlling interest; (iv) tax on the sale of PortMiami noncontrolling interest; (v) Silver Whisper deferred tax liability release; (vi) restructuring charges and other initiative expenses; (vii) equity investment impairment and recovery losses; and (viii) impairment and credit losses (recoveries).
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 of Net Income 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.
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.
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. 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 periods presented, Net Cruise Costs and Net Cruise Costs excluding Fuel exclude (i) the gain on sale of controlling interest; (ii) impairment and credit losses (recoveries); and (iii) restructuring and other initiative expenses.
Gross Margin Yield represent Gross Margin per APCD.
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.
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 Royal Caribbean Group
Royal Caribbean Group (NYSE: RCL) is a vacation industry leader with a global fleet of 68 ships across its five brands traveling to approximately 1,000 destinations. With a mission to deliver the best vacations responsibly, Royal Caribbean Group serves millions of guests each year through its portfolio of best-in-class brands, including Royal Caribbean International, Celebrity Cruises, and Silversea; and expanding portfolio of land-based vacation experiences through Perfect Day at CocoCay and Royal Beach Club collection. The company also owns
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 2024 and beyond; demand for our brands; future capital expenditures; and expectations regarding our credit profile. Words such as "anticipate," "believe," "committed," "could," "driving," "estimate," "expect," "goal," "intend," "may," "plan," "position," "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: our ability to obtain sufficient financing or capital to fund our capital expenditures, operations, debt repayments and other financing 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; 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; 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 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) | |||||||
(unaudited; in millions, except per share data) | |||||||
Quarter Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Passenger ticket revenues | $ 3,471 | $ 2,941 | $ 8,900 | $ 7,282 | |||
Onboard and other revenues | 1,415 | 1,219 | 3,824 | 3,287 | |||
Total revenues | 4,886 | 4,160 | 12,724 | 10,569 | |||
Cruise operating expenses: | |||||||
Commissions, transportation and other | 688 | 632 | 1,758 | 1,551 | |||
Onboard and other | 289 | 261 | 726 | 640 | |||
Payroll and related | 328 | 294 | 959 | 888 | |||
Food | 251 | 212 | 697 | 614 | |||
Fuel | 290 | 272 | 876 | 850 | |||
Other operating | 545 | 466 | 1,584 | 1,342 | |||
Total cruise operating expenses | 2,391 | 2,137 | 6,600 | 5,885 | |||
Marketing, selling and administrative expenses | 451 | 393 | 1,452 | 1,289 | |||
Depreciation and amortization expenses | 410 | 365 | 1,190 | 1,087 | |||
Operating Income | 1,634 | 1,265 | 3,482 | 2,308 | |||
Other income (expense): | |||||||
Interest income | 4 | 7 | 13 | 32 | |||
Interest expense, net of interest capitalized | (603) | (340) | (1,324) | (1,055) | |||
Equity investment income | 106 | 87 | 203 | 149 | |||
Other expense | (26) | (8) | (37) | (9) | |||
(519) | (254) | (1,145) | (883) | ||||
Net Income | 1,115 | 1,011 | 2,337 | 1,425 | |||
Less: Net Income attributable to noncontrolling interest | 4 | 2 | 12 | 5 | |||
Net Income attributable to Royal Caribbean Cruises Ltd. | $ 1,111 | $ 1,009 | $ 2,325 | $ 1,420 | |||
Earnings per Share: | |||||||
Basic | $ 4.22 | $ 3.94 | $ 8.98 | $ 5.55 | |||
Diluted | $ 4.21 | $ 3.65 | $ 8.91 | $ 5.24 | |||
Weighted-Average Shares Outstanding: | |||||||
Basic | 263 | 256 | 259 | 256 | |||
Diluted | 264 | 282 | 280 | 284 | |||
Comprehensive Income (Loss) | |||||||
Net Income | $ 1,115 | $ 1,011 | $ 2,337 | $ 1,425 | |||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | (10) | 11 | — | 2 | |||
Change in defined benefit plans | 6 | 5 | 3 | 4 | |||
(Loss) gain on cash flow derivative hedges | (95) | 20 | (82) | (7) | |||
Total other comprehensive (loss) income | (99) | 36 | (79) | (1) | |||
Comprehensive Income | 1,016 | 1,047 | 2,258 | 1,424 | |||
Less: Comprehensive Income attributable to noncontrolling interest | 4 | 2 | 12 | 5 | |||
Comprehensive Income attributable to Royal Caribbean Cruises Ltd. | $ 1,012 | $ 1,045 | $ 2,246 | $ 1,419 |
ROYAL CARIBBEAN CRUISES LTD. | |||||||
STATISTICS | |||||||
(unaudited) | |||||||
Quarter Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Passengers Carried | 2,310,220 | 1,999,764 | 6,404,844 | 5,706,843 | |||
Passenger Cruise Days | 14,785,828 | 13,172,002 | 41,165,985 | 36,944,034 | |||
APCD | 13,316,981 | 12,011,593 | 37,836,007 | 34,953,919 | |||
Occupancy | 111.0 % | 109.7 % | 108.8 % | 105.7 % |
ROYAL CARIBBEAN CRUISES LTD. | |||
CONSOLIDATED BALANCE SHEETS | |||
(in millions, except share data) | |||
As of | |||
September 30, | December 31, | ||
2024 | 2023 | ||
(unaudited) | |||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 418 | $ 497 | |
Trade and other receivables, net of allowances of | 441 | 405 | |
Inventories | 265 | 248 | |
Prepaid expenses and other assets | 667 | 617 | |
Derivative financial instruments | 40 | 25 | |
Total current assets | 1,831 | 1,792 | |
Property and equipment, net | 31,706 | 30,114 | |
Operating lease right-of-use assets | 649 | 611 | |
Goodwill | 809 | 809 | |
Other assets, net of allowances of | 2,072 | 1,805 | |
Total assets | $ 37,067 | $ 35,131 | |
Liabilities and Shareholders' Equity | |||
Current liabilities | |||
Current portion of long-term debt | $ 1,868 | $ 1,720 | |
Current portion of operating lease liabilities | 68 | 65 | |
Accounts payable | 851 | 792 | |
Accrued expenses and other liabilities | 1,476 | 1,478 | |
Derivative financial instruments | 44 | 35 | |
Customer deposits | 5,324 | 5,311 | |
Total current liabilities | 9,631 | 9,401 | |
Long-term debt | 18,972 | 19,732 | |
Long-term operating lease liabilities | 648 | 613 | |
Other long-term liabilities | 592 | 486 | |
Total liabilities | 29,843 | 30,232 | |
Shareholders' equity | |||
Preferred stock ( | — | — | |
Common stock ( | 3 | 3 | |
Paid-in capital | 7,669 | 7,474 | |
Retained earnings (accumulated deficit) | 2,207 | (10) | |
Accumulated other comprehensive loss | (753) | (674) | |
Treasury stock (28,468,430 and 28,248,125 common shares at cost, September 30, 2024 and | (2,081) | (2,069) | |
Total shareholders' equity attributable to Royal Caribbean Cruises Ltd. | 7,045 | 4,724 | |
Noncontrolling Interests | 179 | 175 | |
Total shareholders' equity | 7,224 | 4,899 | |
Total liabilities and shareholders' equity | $ 37,067 | $ 35,131 |
ROYAL CARIBBEAN CRUISES LTD. | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(unaudited, in millions) | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Operating Activities | |||
Net Income | $ 2,337 | $ 1,425 | |
Adjustments: | |||
Depreciation and amortization | 1,190 | 1,087 | |
Net deferred income tax expense (benefit) | 15 | (3) | |
Loss on derivative instruments not designated as hedges | 8 | 31 | |
Share-based compensation expense | 109 | 79 | |
Equity investment income | (203) | (149) | |
Amortization of debt issuance costs, discounts and premiums | 76 | 84 | |
Loss on extinguishment of debt and inducement expense | 456 | 81 | |
Changes in operating assets and liabilities: | |||
(Increase) decrease in trade and other receivables, net | (13) | 131 | |
Increase in inventories, net | (17) | (18) | |
Increase in prepaid expenses and other assets | (110) | (44) | |
Increase in accounts payable trade | 53 | 62 | |
Decrease in accrued expenses and other liabilities | (142) | (245) | |
Increase in customer deposits | 13 | 864 | |
Other, net | 26 | (24) | |
Net cash provided by operating activities | 3,798 | 3,361 | |
Investing Activities | |||
Purchases of property and equipment | (2,716) | (1,329) | |
Cash received on settlement of derivative financial instruments | 14 | 23 | |
Cash paid on settlement of derivative financial instruments | (61) | (66) | |
Investments in and loans to unconsolidated affiliates | (47) | (22) | |
Cash received on loans from unconsolidated affiliates | 13 | 36 | |
Other, net | (8) | 9 | |
Net cash used in investing activities | (2,805) | (1,349) | |
Financing Activities | |||
Debt proceeds | 9,358 | 1,808 | |
Debt issuance costs | (120) | (56) | |
Repayments of debt | (9,969) | (5,255) | |
Premium on repayment of debt | (290) | (51) | |
Proceeds from sale of noncontrolling interest | — | 209 | |
Other, net | (49) | (1) | |
Net cash used in financing activities | (1,070) | (3,346) | |
Effect of exchange rate changes on cash and cash equivalents | (2) | (1) | |
Net decrease in cash and cash equivalents | (79) | (1,335) | |
Cash and cash equivalents at beginning of period | 497 | 1,935 | |
Cash and cash equivalents at end of period | $ 418 | $ 600 | |
Supplemental Disclosure | |||
Cash paid during the period for: | |||
Interest, net of amount capitalized | $ 998 | $ 1,064 | |
Non-cash Investing Activities | |||
Purchase of property and equipment included in accounts payable | $ 52 | $ 24 | |
Non-cash Financing Activity | |||
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. Reported Adjusted Gross Margin, Yields and per PCD amounts may vary from amounts calculated based on accompanying financial tables due to rounding.): | |||||||||||
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||
2024 | 2024 On a | 2023 | 2024 | 2024 On a | 2023 | ||||||
Total revenue | $ 4,886 | $ 4,885 | $ 4,160 | $ 12,724 | $ 12,724 | $ 10,569 | |||||
Less: | |||||||||||
Cruise operating expenses | 2,391 | 2,391 | 2,137 | 6,600 | 6,602 | 5,885 | |||||
Depreciation and amortization expenses | 410 | 410 | 365 | 1,190 | 1,190 | 1,087 | |||||
Gross Margin | 2,085 | 2,084 | 1,658 | 4,934 | 4,932 | 3,597 | |||||
Add: | |||||||||||
Payroll and related | 328 | 328 | 294 | 959 | 959 | 888 | |||||
Food | 251 | 250 | 212 | 697 | 697 | 614 | |||||
Fuel | 290 | 290 | 272 | 876 | 876 | 850 | |||||
Other operating | 545 | 546 | 466 | 1,584 | 1,585 | 1,342 | |||||
Depreciation and amortization expenses | 410 | 410 | 365 | 1,190 | 1,190 | 1,087 | |||||
Adjusted Gross Margin | $ 3,909 | $ 3,908 | $ 3,267 | $ 10,240 | $ 10,239 | $ 8,378 | |||||
APCD | 13,316,981 | 13,316,981 | 12,011,593 | 37,836,007 | 37,836,007 | 34,953,919 | |||||
Passenger Cruise Days | 14,785,828 | 14,785,828 | 13,172,002 | 41,165,985 | 41,165,985 | 36,944,034 | |||||
Gross Margin Yields | $ 156.52 | $ 156.54 | $ 138.04 | $ 130.39 | $ 130.36 | $ 102.91 | |||||
Net Yields | $ 293.46 | $ 293.44 | $ 272.00 | $ 270.63 | $ 270.60 | $ 239.67 | |||||
Adjusted Gross Margin per PCD | $ 264.30 | $ 264.29 | $ 248.04 | $ 248.74 | $ 248.71 | $ 226.76 |
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. Reported Gross Cruise Costs, Net Cruise Costs, Net Cruise Costs excluding Fuel, and per APCD amounts may vary from amounts calculated based on accompanying financial tables due to rounding.): | |||||||||||
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||
2024 | 2024 On a | 2023 | 2024 | 2024 On a | 2023 | ||||||
Total cruise operating expenses | $ 2,391 | $ 2,391 | $ 2,137 | $ 6,600 | $ 6,602 | $ 5,885 | |||||
Marketing, selling and administrative expenses | 451 | 450 | 393 | 1,452 | 1,452 | 1,289 | |||||
Gross Cruise Costs | 2,842 | 2,841 | 2,530 | 8,052 | 8,054 | 7,174 | |||||
Less: | |||||||||||
Commissions, transportation and other | 688 | 688 | 632 | 1,758 | 1,758 | 1,551 | |||||
Onboard and other | 289 | 289 | 261 | 726 | 727 | 640 | |||||
Net Cruise Costs Including Other Costs | 1,865 | 1,864 | 1,637 | 5,568 | 5,569 | 4,983 | |||||
Less: | |||||||||||
Gain on sale of controlling interest (1) | — | — | — | — | — | (3) | |||||
Impairment and credit losses (recoveries) (2) | — | — | — | 6 | 6 | (7) | |||||
Restructuring charges and other initiative expenses | 2 | 2 | — | 5 | 5 | 5 | |||||
Net Cruise Costs | 1,863 | 1,862 | 1,637 | 5,557 | 5,558 | 4,988 | |||||
Less: | |||||||||||
Fuel | 290 | 290 | 272 | 876 | 876 | 850 | |||||
Net Cruise Costs Excluding Fuel | $ 1,573 | $ 1,572 | $ 1,365 | $ 4,681 | $ 4,682 | $ 4,138 | |||||
APCD | 13,316,981 | 13,316,981 | 12,011,593 | 37,836,007 | 37,836,007 | 34,953,919 | |||||
Gross Cruise Costs per APCD | $ 213.42 | $ 213.35 | $ 210.62 | $ 212.82 | $ 212.85 | $ 205.22 | |||||
Net Cruise Costs per APCD | $ 139.87 | $ 139.82 | $ 136.25 | $ 146.88 | $ 146.89 | $ 142.67 | |||||
Net Cruise Costs Excluding Fuel per APCD | $ 118.12 | $ 118.06 | $ 113.57 | $ 123.73 | $ 123.74 | $ 118.36 |
(1) | For 2023, represents gain on sale of controlling interest in cruise terminal facilities in |
(2) | For 2024, represents property and equipment impairment charges related to certain construction in progress assets. 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). |
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. Reported EBITDA, Adjusted EBITDA, and per APCD and Margin amounts may vary from amounts calculated based on accompanying financial tables due to rounding.): | ||||||||
Quarter Ended September 30, | Nine Months Ended September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Net Income attributable to Royal Caribbean Cruises Ltd. | $ 1,111 | $ 1,009 | $ 2,325 | $ 1,420 | ||||
Interest income | (4) | (7) | (13) | (32) | ||||
Interest expense, net of interest capitalized | 603 | 340 | 1,324 | 1,055 | ||||
Depreciation and amortization expenses | 410 | 365 | 1,190 | 1,087 | ||||
Income tax expense (1) | 23 | 7 | 46 | 6 | ||||
EBITDA | 2,143 | 1,714 | 4,872 | 3,536 | ||||
Other expense (income) (2) | 3 | 1 | (9) | 3 | ||||
Gain on sale of controlling interest (3) | — | — | — | (3) | ||||
Equity investment impairment and recovery losses | — | 13 | — | 8 | ||||
Restructuring charges and other initiative expenses | 2 | — | 5 | 5 | ||||
Impairment and credit losses (recoveries) (4) | — | — | 6 | (7) | ||||
Adjusted EBITDA | $ 2,148 | $ 1,728 | $ 4,874 | $ 3,542 | ||||
Total revenues | $ 4,886 | $ 4,160 | $ 12,724 | $ 10,569 | ||||
APCD | 13,316,981 | 12,011,593 | 37,836,007 | 34,953,919 | ||||
Net Income attributable to Royal Caribbean Cruises Ltd. per APCD | $ 83.37 | $ 84.01 | $ 61.44 | $ 40.62 | ||||
Adjusted EBITDA per APCD | $ 161.25 | $ 143.88 | $ 128.81 | $ 101.36 | ||||
Adjusted EBITDA Margin | 44.0 % | 41.5 % | 38.3 % | 33.5 % |
(1) | These amounts are included in Other expense within our consolidated statements of comprehensive income (loss). |
(2) | Represents net non-operating (income) expense. The amount excludes income tax expense, included in the EBITDA calculation above. |
(3) | For 2023, represents gain on sale of controlling interest in cruise terminal facilities in |
(4) | For 2024, represents property and equipment impairment charges related to certain construction in progress assets. 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). |
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 shares and per share data. Reported Adjusted Net Income attributable to Royal Caribbean Cruises Ltd.amounts may vary from amounts calculated based on accompanying financial tables due to rounding.): | |||||||
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net Income attributable to Royal Caribbean Cruises Ltd. | $ 1,111 | $ 1,009 | $ 2,325 | $ 1,420 | |||
Loss on extinguishment of debt and inducement expense (1) | 323 | 38 | 456 | 81 | |||
Amortization of Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition (2) | 2 | 2 | 5 | 5 | |||
Gain on sale of controlling interest (3) | — | — | — | (3) | |||
PortMiami tax on sale of noncontrolling interest (4) | (3) | — | (3) | 10 | |||
Silver Whisper deferred tax liability release (5) | — | — | — | (26) | |||
Restructuring charges and other initiative expenses | 2 | — | 5 | 5 | |||
Equity investments impairment and recovery of losses | — | 17 | — | 12 | |||
Impairment and credit losses (recoveries) (6) | — | — | 6 | (7) | |||
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. | $ 1,435 | $ 1,066 | $ 2,794 | $ 1,497 | |||
Earnings per Share - Diluted (7) | $ 4.21 | $ 3.65 | $ 8.91 | $ 5.24 | |||
Adjusted Earnings per Share - Diluted (8) (9) | $ 5.20 | $ 3.85 | $ 10.16 | $ 5.52 | |||
Weighted-Average Shares Outstanding - Diluted | 264 | 282 | 280 | 284 |
(1) | For 2024, includes |
(2) | Represents the amortization of the Silversea Cruises intangible assets resulting from the 2018 Silversea Cruises acquisition. |
(3) | For 2023, represents gain on sale of controlling interest in cruise terminal facilities in |
(4) | 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 expense in our consolidated statements of comprehensive income (loss). |
(5) | For 2023, 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 expense within our consolidated statements of comprehensive income (loss). |
(6) | For 2024, represents property and equipment impairment charges related to certain construction in progress assets. 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). |
(7) | Diluted EPS includes the add-back of dilutive inducement and interest expense related to our convertible notes of |
(8) | Adjusted Diluted EPS includes the add-back of dilutive interest expense related to our convertible notes of |
(9) | Weighted-Average Shares Outstanding - Diluted - for the quarter ended September 30, 2024, includes the add-back of 14.7 million shares that are anti-dilutive for diluted EPS purposes, but included for adjusted diluted EPS. |
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SOURCE Royal Caribbean Group
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