Royal Caribbean Cruises Ltd. reported record first quarter results and increased its outlook for the full year. The company reported first quarter US GAAP earnings of $1.02 per share and Adjusted earnings of $1.09 per share beating guidance due to better revenue. Full year Adjusted earnings guidance is increased by $0.15 to a range of $8.70 to $8.90 per share.
Results for the First Quarter 2018:
- US GAAP Net Income was $218.7 million or $1.02 per share and Adjusted Net Income was $232.8 million or $1.09per share versus US GAAP and Adjusted Net Income of $214.7 million or $0.99 per share in 2017.
- Gross Yields were up 3.1% in Constant-Currency (up 5.1% As-Reported). Net Yields were up 4.9% in Constant-Currency (up 7.0% As-Reported).
- Gross Cruise Costs per APCD increased 5.0% in Constant-Currency (up 6.1% As-Reported). Net Cruise Costs (“NCC”) excluding Fuel per APCD were up 11.2% in Constant-Currency (up 12.5% As-Reported).
Full Year 2018:
- Overall, the company’s booked position remains at a record level, better than last year in both rate and volume.
- Adjusted earnings are expected to be in the range of $8.70 to $8.90 per share, up $0.15 from initial guidance.
- Net Yields are expected to increase 2.0% to 3.75% in Constant-Currency (up approximately 4.0% As-Reported).
- NCC excluding Fuel per APCD are expected to be up approximately 2.5% in Constant-Currency (up 3.0% to 3.5% As-Reported).
“This year is proving to be another strong year with all our brands firing on all cylinders,” said Richard D. Fain, chairman and CEO. “The market continues to support our growth as our people keep focused on delivering our targets and goals. The strength of this market plus our new ships in 2018 (Symphony of the Seas, Azamara Pursuit, Mein Schiff 1 and Celebrity Edge), position us nicely for 2019 as well.”
FIRST QUARTER 2018
US GAAP Net Income for the first quarter of 2018 was $218.7 million or $1.02 per share and Adjusted Net Income was $232.8 million or $1.09 per share. Last year, US GAAP and Adjusted Net Income were $214.7 million or $0.99 per share. The improvement over last year and over previous guidance was mainly driven by better than expected revenue from our global brands and our joint ventures.
Gross Yields were up 3.1% and Net Yields were up 4.9% in Constant-Currency. Demand for our core products came in as expected, while demand for experiential related onboard products and activities was better than anticipated. Net Onboard revenue yields grew by 6.3% in Constant-Currency.
Gross Cruise Costs per APCD increased 5.0% in Constant-Currency. Net Cruise Costs (“NCC”) excluding Fuel per APCD were up 11.2% in Constant-Currency, higher than guidance, driven by timing.
Bunker pricing net of hedging for the first quarter was $500.2 per metric ton and consumption was 320.6 metric tons.
“We are delighted to report another record breaking quarter and to be driving towards record earnings for the year, above our initial guidance,” said Jason T. Liberty, executive vice president and CFO. “Revenues continue to excel and expenses, even including some new demand generating initiatives, continue to be carefully controlled.”
During this quarter the company completed the $500 million share repurchase program authorized a year ago.