10 May 2015 - Business View Caribbean
Opening
Lines
Royal Caribbean Reports Notably
Higher First Quarter Earnings
Royal Caribbean Cruises Ltd. reported stronger than
expected first quarter results and updated its outlook
for the full year. Commercially the year is turning out
as expected, with strong booking trends and yield
growth for all major products. The strengthening of the
US Dollar and the rise in fuel prices are negatively af-
fecting earnings, but cost efficiencies are mitigating a
large portion of the impact.
Results for the First Quarter 2015:
Net Yields were down 1.0% on a Constant-Currency
basis (down 5.4% As-Reported). Strong close-in pricing
on Caribbean sailings drove the better than anticipated
performance. Net Cruise Costs ("NCC") excluding fuel
increased 0.9% on a Constant-Currency basis (down
1.7% As-Reported), significantly better than guidance
driven by further efficiencies. Adjusted Net Income was
$45.2 million, or $0.20 per share, versus a forecast of
$0.10 to $0.15 per share. Currency and fuel negative-
ly impacted the first quarter by $0.05. US GAAP Net
Income was $45.2 million or $0.20 per share, versus
$26.5 million or $0.12 per share in 2014.
Full Year 2015:
Adjusted EPS is expected to be in the range of $4.45
to $4.65 per share – $0.20 lower than our previous
guidance. The strengthening of the US Dollar and
the increase in fuel prices
have negatively impacted
the full year by $0.36. Net
Yields are expected to in-
crease 2.5% to 4.0% on a
Constant-Currency basis
(down 0.5% to 2.0% As-Re-
ported). The slight narrow-
ing of the range is driven
by somewhat weaker on-
board revenue trends from
non-US guests due to the
strengthening of the US
Dollar. NCC excluding fuel are expected to be flat to
down 1% on a Constant-Currency basis (down 2.5% to
3.5% As-Reported).
"It is gratifying to post another strong quarter with both
revenues and expenses exceeding expectations," said
Richard D. Fain, chairman and chief executive officer.
"Despite ongoing volatility in the currency and fuel
markets, our Double-Double program remains solidly
on track."
