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Actionable news in RCL: ROYAL CARIBBEAN CRUISES Ltd.,

ROYAL CARIBBEAN REPORTS SECOND QUARTER EARNINGS AND

INCREASES FULL YEAR GUIDANCE

MIAMI – August 1, 2017 – Royal Caribbean Cruises Ltd. (NYSE: RCL) today reported US GAAP and Adjusted Earnings per Share (“EPS”) of $1.71 for the second quarter. This represents EPS growth of nearly 60% over same time last year. Better than anticipated performance in the second quarter combined with favorable booking trends are driving an increase in the Company’s full year Adjusted EPS guidance to a range of $7.35 to $7.45.

KEY HIGHLIGHTS

Second Quarter 2017 results:

> Gross Cruise Costs increased 1.2% on a Constant-Currency basis (0.6% As-Reported). Net Cruise Costs (“NCC”) Excluding Fuel were down 0.9% on a Constant-Currency basis (down 1.4% As-Reported).

Full Year 2017 Forecast:

“Our brands are executing beautifully, keeping the business in an exceptionally strong position,” said Richard D. Fain, chairman and CEO. “Strong close-in demand for cruise

bolstered the quarter, and we see further uplift for the balance of the year, positioning us well for the Double-Double and beyond.”

SECOND QUARTER RESULTS

US GAAP and Adjusted Net Income for the second quarter 2017 was $369.5 million or $1.71 per share, compared to US GAAP Net Income of $229.9 million or $1.06 per share and Adjusted Net Income of $235.2 million, or $1.09 per share in 2016.

Gross Yields were up 10.2% on a Constant-Currency basis. Net Yields on a Constant-Currency basis increased 11.5%, exceeding prior guidance due to strong close-in demand driving higher pricing and occupancy.

Gross Cruise Costs increased 1.2% on a Constant-Currency basis. Constant-Currency NCC Excluding Fuel decreased 0.9%.

Bunker pricing net of hedging for the second quarter was $527 per metric ton and consumption was 324,000 metric tons.

FULL YEAR 2017

The company updated full year Adjusted EPS guidance to a range of $7.35 to $7.45, a $0.30 increase at the midpoint versus previous guidance. Bookings continue to be very robust.

The company’s booked position for the remainder of 2017 continues to set new records. Looking further ahead, the company’s booked position for the next twelve months is also strong, up on both rate and volume, versus the same time last year. Net Yields for the year on a Constant-Currency basis are expected to increase 5.5% to 6.0%, up relative to prior guidance due to the better results in the second quarter as well as stronger trends for the balance of the year.

NCC Excluding Fuel are expected to be up approximately 1.0% on a Constant-Currency basis for the year.

“Demand has remained strong, and we have captured the related revenue opportunity,” said Jason T. Liberty, executive vice president and CFO. “These demand trends and continued cost discipline have resulted in the highest second quarter earnings in company history and have put us in position for another record year and achieving our Double-Double targets.”

Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects 2017 EPS to be in the range of $7.35 to $7.45 per share.

THIRD QUARTER 2017

Constant-Currency Net Yields are expected to be up 4.0% to 4.5% in the third quarter of 2017. Strong demand trends for Europe and North America products are driving improvement over an already strong previous year. NCC Excluding Fuel are expected to be up approximately 4.0% on a Constant-Currency basis.

Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects third quarter Adjusted EPS to be approximately $3.45 per share.

FUEL EXPENSE AND SUMMARY OF KEY GUIDANCE STATS

Fuel Expense

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 $176 million and $706 million of fuel expense in its third quarter and full year 2017 guidance, respectively.

Forecasted consumption is 64% hedged via swaps for 2017 and 54%, 45%, 35% and 15% hedged for 2018, 2019, 2020 and 2021, respectively. For the same five-year period, the average cost per metric ton of the hedge portfolio is approximately $487, $421, $331, $340 and $351, respectively.

The company provided the following fuel statistics for the third quarter and full year 2017:

In summary, the company provided the following guidance for the third quarter and full year 2017:

GUIDANCE As-Reported Constant-Currency
Third Quarter 2017
Net Yields 4.5% to 5.0% 4.0% to 4.5%
Net Cruise Costs per APCD Approx. 4.0% Approx. 4.0%
Net Cruise Costs per APCD Excluding Fuel 4.0% to 4.5% Approx. 4.0%
Full Year 2017
Net Yields Approx. 6.0% 5.5% to 6.0%
Net Cruise Costs per APCD Approx. 1.0% Approx. 1.0%
Net Cruise Costs per APCD Excluding Fuel Approx. 1.0% Approx. 1.0%
GUIDANCE Third Quarter 2017 Full Year 2017
Capacity Decrease (4.0%) (1.9%)
Depreciation and Amortization $235 to $240 million $945 to $953 million
Interest Expense, net $65 to $70 million $273 to $278 million
Adjusted EPS Approx. $3.45 $7.35 to $7.45
GUIDANCE Third Quarter 2017 Full Year 2017
1% Change in Currency $6 million $10 million
1% Change in Net Yield $20 million $36 million
1% Change in NCC x fuel $9 million $17 million
1% Change in LIBOR $6 million $16 million
Exchange rates used in guidance calculations
Previous – April Current - August
GBP $1.28 $1.32
AUD $0.76 $0.80
CAD $0.74 $0.80
CNH $0.15 $0.15
EUR $1.09 $1.18

LIQUIDITY AND FINANCING ARRANGEMENTS

As of June 30, 2017, liquidity was $1.9 billion, including cash and the undrawn portion of the company's unsecured revolving credit facilities. The company noted that scheduled debt maturities for the remainder of 2017, 2018, 2019, 2020 and 2021 are $0.8 billion, $1.9 billion, $0.8 billion, $1.1 billion and $0.6 billion, respectively.

CAPITAL EXPENDITURES AND CAPACITY GUIDANCE

Based upon current ship orders, projected capital expenditures for full year 2017, 2018, 2019, 2020 and 2021 are $0.6 billion, $2.8 billion, $1.6 billion, $2.1 billion and $2.4 billion, respectively. Capacity changes for 2017, 2018, 2019, 2020 and 2021 are expected to be -1.9%, 3.3%, 6.6%, 3.9% and 7.9%, respectively. These figures do not include potential ship sales or additions that we may elect to make in the future.

CONFERENCE CALL SCHEDULED

The company has scheduled a conference call at 10 a.m. Eastern Daylight Time today to discuss its earnings. This call can be heard, either live or on a delayed basis, on the company's investor relations website at www.rclinvestor.com.

Selected Operational and Financial Metrics

Adjusted Net Income

Adjusted Net Income represents net income 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 the net loss related to the elimination of the Pullmantur reporting lag, restructuring charges and other initiative costs related to our Pullmantur right-sizing strategy.

Represents Adjusted Net Income divided by the diluted shares outstanding at the end of the reporting period. We believe this measure is meaningful when assessing our performance on a comparative basis.

APCD is our measurement of capacity and represents double occupancy per cabin multiplied by the number of cruise days for the period. 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. APCDs reported in 2016 do not include the November and December 2015 APCD amounts related to the elimination of the Pullmantur reporting lag.

Constant-Currency

We believe Net Yields, Net Cruise Costs and Net Cruise Costs Excluding Fuel are our most relevant non-GAAP financial measures. However, a significant portion of our revenue and expenses are denominated in currencies other than the US Dollar. Because our reporting currency is the US Dollar, the value of these revenues and expenses in US Dollars will be affected by changes in currency exchange rates. Although such changes in local currency prices are just one of many elements impacting our revenues and expenses, it can be an important element. For this reason, we also monitor Net Yields, Net Cruise Costs, and Net Cruise Costs Excluding Fuel on a “Constant-Currency” basis – i.e., as if the current period’s currency exchange rates had remained constant with the comparable prior period’s rates. We calculate "Constant-Currency" by applying the average prior year period exchange rates...


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