Financial News

Royal Caribbean schedules second quarter 2019 earnings call

In:
Category: 
18Jul2019

Royal Caribbean will hold a conference call on July 25, 2019 at 10:00 a.m. to discuss its second quarter 2019 financial results.

The call will be available on-line at the company's investor relations web site, www.rclinvestor.com. To listen to the call by phone, please dial (877) 663-9606 in the US and Canada. International phone calls should be made to (706) 758-4628. There is no passcode or meeting number. A replay of the webcast will be available at the same site for a month following the call.

Royal Caribbean provides financial impact due to Cuba travel policy change

In:
06Jun2019

In a press release, Royal Caribbean commented on the impact the U.S. government's policy change on travel to Cuba and provided a range for its financial impact.

The company estimates that the financial impact of this regulatory change is a reduction to the Adjusted EPS for 2019 in the range of $0.25 to $0.35 per share.

"While the affected sailings impact only 3 percent of our 2019 capacity, the extremely short notice period for this high yielding destination amplifies the earnings impact," said Jason T. Liberty, executive vice president and CFO. "The result of this policy change has created a short-term impact to our guests, operations and earnings; fortunately, we have many alternative and attractive destinations for our guests to choose from."

On June 4, 2019, the U.S. government announced that effective June 5th, 2019 authorized travel to Cuba under the People-to-People program is rescinded and travel to Cuba via cruise ships is prohibited. Therefore, effective June 5th, cruise ships will no longer be allowed to travel between the U.S. and Cuba.

Royal Caribbean talks Cuba, early Perfect Day response and more during earnings call with investors

In:
02May2019

After each fiscal quarter, Royal Caribbean Cruises Ltd. holds a conference call with investors to go over their quarterly results that were released earlier in the day.  While most of this discussion is mired in financial discussion, there are some interesting tidbits that guests can pull out of these discussions.

We rounded up the most intriguing bits from the earnings call that may provide guidance or a view of where the cruise line is going, and how leadership sees things currently.

No changes to Cuba...yet

Ever since the U.S. Administration made an announcement that it intends to clamp down on recent changes to America's policy towards Cuba, many have wondered what impact that will have on cruises to Cuba.

Royal Caribbean Cruises Ltd Chairman and CEO Richard Fain took a little time to speak on the subject, saying essentially that nothing has changed quite yet,  "If such legislation does ensue, we believe that we possess all defenses. And we're not expecting to change our itineraries as a result. The administration also commented on possible changes to the regulations that apply to travel to Cuba."

"At this point, we don't know if there will be any changes, what those changes might be? Or to what extent they would impact us. Only 3% of our itineraries currently go to Cuba. And any impact would depend on what the regulations say. And how much advanced notice we and our guests would receive."

Perfect Day impact

Throughout the call with investors, Royal Caribbean's executives were very bullish on the potential Perfect Day at CocoCay will bring to the cruise line's offerings. Not only is it looking like a really fun place to spend the day, but it also looks like it will bring a big return for the company.

Mr. Fain started off the call saying, " To say that, she is a beauty is a massive understatement and we believe that we have created a truly game changer for the cruise industry, in fact for the vacation industry."

Royal Caribbean Cruises Ltd. Chief Financial Officer Jason Liberty spoke to the early returns the cruise line is seeing, "Perfect Day at CocoCay hasn't officially opened yet, but it's clearly fueling additional and higher-yielding demand for our Caribbean itineraries. Bookings and pricing have been exceeding our expectations overall for the Caribbean, with sailings visiting Perfect Day up by more than other Caribbean itineraries."

Guests spending onboard the ship is at the heart of higher revenue

If you are looking for a common thread among the recent strong financial results that Royal Caribbean has shown lately, the onboard purchases guests have been making is a good place to start.

Once again, onboard spending was up and clearly guests are enjoying the various packages they can purchase for their sailing.

Mr. Liberty mentioned, "On the onboard side, which has been exceptionally strong we saw an over index of spend on shore excursion our packages like beverage packaging, internet package and again more focused on the experiential stuff versus seeing more spend occur within the retail shops."

Perfect Day at CocoCay is engineered around guest experience

One of the analysts on the conference call inquired about the prospect of Perfect Day at CocoCay might seem overcrowded.  More generally, he wanted to know how all the new additions and expansion will not impact the  customer experience that would create a negative passenger experience.

Royal Caribbean International CEO Michael Bayley responded by saying, "We've designed Perfect Day to deliver what we think will generally be a perfect day for our customers. And we, from what we've seen so far with between 4,000 and 6,000 people on the island, we've got a huge amount of space available."

"So we've engineered designed for peak and the peak was way up close to 10,000. We obviously know we'll operate it with bigger ships coming to Perfect Day, and we'll see how we go. I think we're kind of feeling pretty optimistic about the potential for three ship calls versus two ship calls that could take us up to 12,000 a day. And remember, it's a fairly large island and we've only developed about a third of it."

New cruisers versus loyal customers

One analyst noticed a trend that Royal Caribbean is able to hold on to pricing premiums on new ships.

Mr. Bailey answered by talking about the cruise line's strategy of attracting people new to cruise, while retaining loyal customers, "I think we stated a few years ago one of our key areas of focus was on new-to-cruise in particularly in market like the United States we've been quite focused on growing our new-to-cruise segment. "

"We have changed some of our strategy so everything that we've done with the short product where we took the Voyager class ships and put them through role amplified and then place them into the short product with Perfect Day CocoCay has really stimulated that new-to-cruise segment. So that's part of it."

"Our loyalty customers continue to grow. They like the brands and they enjoy what we provide. I think the new ships, we've been very focused on not only the continuation of kind of on innovation in bringing new products and services to our guests. But we've done a lot more analytics on, really trying to understand what's going to attract those customers and bring them back and also be able to maintain higher yields."

New app rollout update

Many guests have been wondering when will a certain ship in Royal Caribbean's fleet gain support for the cruise line's new smart phone app.

Mr. Fain provided a brief update on the project rollout at the start of the call. "I'm particularly excited this is already been so broadly deployed that 60% of our guests can get it available. And, towards the end of the year it will be virtually all our guests. And the ratings that it's getting in the Apple App Store are 4.7."

Royal Caribbean First Quarter 2019 Earnings Call Scheduled

In:
Category: 
23Apr2019

Royal Caribbean will hold a conference call on May 1, 2019 at 10am to discuss its first quarter 2019 financial results.

The call will be available on-line at the company's investor relations website, www.rclinvestor.com.  To listen to the call by phone, please dial (877) 663-9606 in the US and Canada.  International phone calls should be made to (706) 758-4628. There is no passcode or meeting number. A replay of the webcast will be available at the same site for a month following the call.

Royal Caribbean Fourth Quarter 2018 Earnings Call Scheduled

In:
Category: 
24Jan2019

Royal Caribbean will hold a conference call on January 30, 2019 at 10am to discuss its fourth quarter 2018 financial results.

The call will be available on-line at the company's investor relations web site,www.rclinvestor.com. To listen to the call by phone, please dial (877) 663-9606 in the US and Canada. International phone calls should be made to (706) 758-4628. There is no passcode or meeting number. A replay of the webcast will be available at the same site for a month following the call.

Royal Caribbean schedules third quarter 2018 earnings call

In:
Category: 
19Oct2018

Royal Caribbean will hold a conference call on October 25, 2018, at 10am to discuss its third quarter 2018 financial results.

The call will be available on-line at the company's investor relations web site, www.rclinvestor.com. To listen to the call by phone, please dial (877) 663-9606 in the US and Canada. International phone calls should be made to (706) 758-4628. There is no passcode or meeting number.

A replay of the webcast will be available at the same site for a month following the call.

Royal Caribbean To Hold Conference Call On Second Quarter 2018 Earnings

In:
Category: 
30Jul2018

Royal Caribbean will hold a conference call on August 2, 2018 at 10am to discuss its second quarter 2018 financial results.

The call will be available on-line at the company's investor relations web site, www.rclinvestor.com. To listen to the call by phone, please dial (877) 663-9606 in the US and Canada. International phone calls should be made to (706) 758-4628. There is no passcode or meeting number. A replay of the webcast will be available at the same site for a month following the call.

Royal Caribbean Cruises Ltd. declares dividend & announces $1 Billion stock buyback

In:
Category: 
10May2018

Royal Caribbean Cruises Ltd announced  a quarterly dividend of $0.60 per common share payable on July 3, 2018, to shareholders of record at the close of business on June 4, 2018. 

The company also announced today that its Board of Directors has approved the repurchase of $1 billion of the company's common stock over the next two years.

"Over the past five years, we have increased our dividends fivefold and repurchased close to $1.25 billion in common stock," said Richard D. Fain, chairman and CEO.  "We are very pleased to be in a position to improve returns for our shareholders, which remains one of our top priorities."

Royal Caribbean Fourth Quarter 2017 Earnings Call Scheduled

In:
Category: 
18Jan2018

Royal Caribbean will hold a conference call on January 24, 2018 at 10am to discuss its fourth quarter 2017 financial results.

The call will be available on-line at the company's investor relations web site,www.rclinvestor.com. To listen to the call by phone, please dial (877) 663-9606 in the US and Canada. International phone calls should be made to (706) 758-4628. There is no passcode or meeting number. A replay of the webcast will be available at the same site for a month following the call.

Royal Caribbean reports record third quarter earnings

In:
Category: 
07Nov2017

Royal Caribbean Cruises Ltd. reported today its third quarter results, of $3.49 per share, which includes a $0.20 negative impact from the recent hurricane.

US GAAP and Adjusted Net Income for the third quarter were $752.8 million or $3.49 per share, better than previous guidance. Last year, US GAAP Net Income was $693.3 million, or $3.21 per share, and Adjusted Net Income was $690.9 million, or $3.20 per share.

"Delivering record earnings during a period of such unprecedented disruption is a testament to the strength in demand for cruising and for our brands," said Jason T. Liberty, executive vice president and CFO. "Strong demand trends coupled with our continued cost discipline have put us in a strong position to successfully complete our Double-Double program. As a matter of fact, I am pleased to report that we have already achieved our Double-Double targets on a trailing twelve month basis through September 2017."

Financially, the hurricanes that devastated many people and places in Texas, Florida, and the Caribbean, were unusually impactful because of when and where they hit and the net effect was a cost to the company in excess of $55 million or $0.26 per share. Most of this impact was from lost revenue, but there were also direct costs associated with the storms and with the company's humanitarian efforts.

The company expects full year Adjusted EPS guidance to be in the range of $7.35 to $7.40 per share. Excluding the cost of the hurricanes, Adjusted EPS would have been in the range of $7.60 to $7.65 per share.

Management is excited by the 2018 introduction of Symphony of the Seas in Europe next spring and Celebrity Edge in Fort Lauderdale in December of 2018. While still early in the booking cycle, the view for 2018 is encouraging and the company expects another year of solid yield and earnings growth.

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