Royal Caribbean Cruises Reports Q3 2018 Earnings

Celebrity Edge

Royal Caribbean Cruises Ltd. today reported third quarter results and narrowed its full year Adjusted EPS guidance to a range of $8.75 to $8.85 per share. This range includes a negative impact of approximately $0.10 per share due to a stronger dollar and higher fuel prices since the company’s previous guidance. The company reported third quarter US GAAP earnings of $3.86 per share and adjusted earnings of $3.98 per share, beating the mid-point of previous guidance by $0.05 per share.

Third Quarter 2018 results:

US GAAP Net Income was $810.4 million or $3.86 per share and Adjusted Net Income was $836.3 million or $3.98 per share in 2018 versus US GAAP and Adjusted Net Income of $752.8 million or $3.49 per share in 2017.
Gross Yields were up 1.9% in Constant-Currency (up 1.0% As-Reported). Net Yields were up 2.6% in Constant-Currency (up 1.8% As-Reported).
Gross Cruise Costs per APCD increased 0.2% in Constant-Currency (down 0.2% As-Reported). Net Cruise Costs (“NCC”) excluding Fuel per APCD were down 0.1% in Constant-Currency (down 0.4% As-Reported).
Full Year 2018 Forecast:

Adjusted earnings are expected to be in the range of $8.75 to $8.85 per share. This range includes a negative impact of approximately $0.10 per share from currency and fuel and also includes Silversea’s operations.
Net Yields are expected to increase 4.0% to 4.5% in Constant-Currency and approximately 4.5% As-Reported. These metrics include approximately 80 basis points from Silversea’s operations.
NCC excluding Fuel per APCD are expected to be up approximately 4.5% in Constant-Currency (up 4.5% to 5.0% As-Reported). These metrics include approximately 140 basis points from Silversea’s operations.
“While 2018 is proving to be another record year, 2019 is shaping up to be even better,” said Richard D. Fain, chairman and CEO. “I can’t recall ever starting a new year with such an exciting blueprint. Our brands are strong; our new ships are awesome; our existing ship upgrades are powerful; our tech is exciting; our people are psyched; and our other new products are opening new horizons.”

THIRD QUARTER 2018

US GAAP Net Income for the third quarter was $810.4 million or $3.86 per share and Adjusted Net Income was $836.3 million or $3.98 per share, beating the mid-point of the guidance by $0.05 per share. Last year, both US GAAP and Adjusted Net Income were $752.8 million or $3.49 per share.

Gross Yields were up 1.9% and Net Yields were up 2.6% in Constant-Currency, exceeding prior guidance due to strong close-in demand for our core products and better onboard revenues.

Gross Cruise Costs per APCD increased 0.2% in Constant-Currency. NCC excluding Fuel per APCD were down 0.1% in Constant-Currency, slightly higher than guidance, driven by timing.

Bunker pricing net of hedging for the third quarter was $538.57 per metric ton and consumption was 338,700 metric tons.

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