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Dec 31, 2019
Royal Caribbean Q4 2019 Earnings Report
Reported record results and provided 2020 guidance.
Key Takeaways
Royal Caribbean Cruises Ltd. reported US GAAP Net Income for the fourth quarter was $273.1 million or $1.30 per share and Adjusted Net Income was $297.4 million or $1.42 per share.
US GAAP Net Income for the fourth quarter was $273.1 million or $1.30 per share and Adjusted Net Income was $297.4 million or $1.42 per share.
Gross Yields were up 6.2% in Constant-Currency.
Net Yields were up 6.8% in Constant-Currency, within guidance.
NCC excluding Fuel per APCD were up 15.9% in Constant-Currency, higher than guidance driven by marine costs and employee related expenses.
Royal Caribbean
Royal Caribbean
Royal Caribbean Revenue by Segment
Revenue by Segment
Passenger Ticket Revenue
CapyFin.comOnboard and Other Revenue
CapyFin.com Forward Guidance
The company expects a Net Yield increase in the range of 2.25% to 4.25% in Constant-Currency and 2.5% to 4.5% As-Reported for the full year. Excluding any impact from the Coronavirus and taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company estimates 2020 Adjusted EPS will be in the range of $10.40 to $10.70 per share.
Positive Outlook
- Wave season has started on a very robust basis with strong demand especially in the US and European markets.
- Wave Season has started on a strong note with overall rates higher than same time last year and booked load factors ahead of same time last year on a like-for-like basis.
- The company’s new ships and new attractions are a major driver not only of revenue, but of the strength of its brands.
- Demand for the core products is very strong across all quarters.
- The company is very excited about the introduction of four new ships during 2020. These new ships will be important contributors to the yield growth and profitability.
Challenges Ahead
- Given the fluidity of the circumstances related to the Wuhan Coronavirus and the actions being taken to contain its spread, the 2020 adjusted guidance provided herein does not include any financial impact related to this subject.
- As previously announced, the Wuhan Coronavirus and the efforts to contain it are expected to negatively affect our results.
- Recent geopolitical events such as the brushfires in Australia and unrest in the Middle East have impacted demand for certain itineraries, but the strength of the core products has more than compensated.
- Costs in the first half of the year are expected to be higher than the second half driven by more drydock days and the timing of ship deliveries.
- The company has now cancelled 8 cruises out of China ending March 4th, and also modified certain itineraries in the region which overall have an estimated impact of $0.25 per share.
Revenue & Expenses
Visualization of income flow from segment revenue to net income