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Royal Caribbean Added To NASDAQ Global Sustainability Index


Royal Caribbean announced today that NASDAQ has added the cruise line giant's stock as one of the top 100 companies in the world  for its sustainability practices by being added to the NASDAQ OMX CRD Global Sustainability Index.

The NASDAQ OMX CRD Global Sustainability Index tracks performance of companies that  are taking a leadership role in sustainability performance reporting. These companies have voluntarily disclosed their carbon footprint, energy usage, water consumption, hazardous and non-hazardous waste, employee safety, workforce diversity, management composition and community investing.

Royal Caribbean Chairman Richard Fain commented on the news, "Royal Caribbean's addition to the NASDAQ OMX CRD Global Sustainability Index is recognition of our status as a global leader for its sustainability practices. Conserving the marine environment is an integral part of our economic success. Our goal and that of our industry in general is to protect the marine environment and sustain the well-being of the people and destinations we serve. We appreciate the efforts made by NASDAQ and CRD Analytics to genuinely measure the performance of listed companies, and this recognition encourages and affirms our sustainability efforts."

Royal Caribbean reports better than expected third quarter results


Ahead of its conference call with investors, Royal Caribbean announced better than expected financial results for the third fiscal quarter and increased its earnings outlook for the full year 2012.

Royal Caribbean reported third quarter net income of $367.8 million, or $1.68 per share, versus income of $399.0 million, or $1.82 per share, in the third quarter of 2011.

Helping Royal Caribbean's financials for the quarter were stronger than expected close-in bookings, including Europe.  NCC excluding fuel were also better than anticipated and increased 2.0% on a Constant-Currency basis (declined 0.2% As-Reported).

Royal Caribbean Richard Fain commented on the news, "The strong third quarter certainly validates our confidence in our business model.Strong close-in demand and our focus on costs drove substantially better results than expected. I am especially gratified that we are still seeing price increases in a year marked by so many external pressures."

Royal Caribbean also increased its guidance for full year earnings per share by $0.15 to a range of $1.85 to $1.95. This increase has been mainly driven by stronger than anticipated revenue (+$0.06 per share) and expense reduction (+$0.06 per share). The remaining $0.03 per share improvement is principally due to currency benefits net of oil price increases.

Royal Caribbean Third Quarter 2012 Earnings Report Scheduled


Royal Caribbean has scheduled a conference call for Thursday, October 25, 2012 at 10am Eastern time to announce the results of it's third quarter fiscal calendar earnings.

If you're interested in hearing the results live, you can listen on-line at Royal Caribbean's investor relations web site, 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. A replay of the webcast will be available at the same site for a month following the call.

Royal Caribbean struggles with financial forecasts


With the global economy still uncertain, Royal Caribbean is just one of many companies that struggle to provide financial forecasts for shareholders and analysts every quarter.

Royal Caribbean chief financial officer Brian Rice is in charge of this task and has taken an approach to widen the range of profit, revenue or other projections while spending more time and effort making sure investors have the information they really need.

“It would certainly make my life easier if we didn't give [financial] guidance."

Rice mentions that Royal Caribbean continues the practice because rival cruise provide Carnival Corp. provides them, so Royal Caribbean feels compelled to keep up.

When it comes to net yelds, a very important performance benchmark, the company has modified the way it provides forecasts for it.   Early this year, it projected a four-percentage-point range for the change in its annual yield, wider than the three-percentage-point range of last year’s prediction and the two-point range it has traditionally used, Mr. Rice says.

He says the wider range gives the company breathing room with analysts. With narrower ranges analysts would typically press for more information if the company deviated by even 0.1 percentage point from the midpoint of its projections, he adds.

Royal Caribbean increases dividends to stockholders


Royal Caribbean's Board of Directors announced today that it will offer its shareholders a quarterly dividend of $0.12 per share payable on October 9, 2012, to shareholders of record at the close of business on September 25, 2012.

Dividends from the cruise have been $0.10 since 2008 after it dropped from its highest $0.15. This new change in dividends is an increase of 20 percent.

Royal Caribbean chairman Richard Fain commented on the change, "I am pleased that our Board of Directors increased the quarterly dividend payment today. We have consistently communicated our desire to balance rational growth, leverage reduction and shareholder return improvement. I think today's actions are further evidence that these goals can coexist harmoniously."

Royal Caribbean posts $3.6 million loss in second quarter results


Royal Caribbean reported its second quarter fiscal results for 2012 of a net loss of $3.6 million.

Larger than anticipated discounting in Europe has hurt Royal Caribbean's bottom line, despite solid demand in the Caribbean and Asia.  The impact of the Costa Concordia disaster continues to affect Royal Caribbean, particularly in the second and third quarters.

"The steady drumbeat of negative news emanating out of Europe is certainly having an impact," said Richard D. Fain, chairman and chief executive officer. Fain continued, "As a result, we are seeing pluses and minuses in the different geographical markets - North America is holding up reasonably well; Asia is a big plus; but Europe is a pretty consistent minus. Overall we have seen about a 100 basis point drop in our yield projections, but we expect to offset over half of this decline with lower spending."

The outlook for the rest of 2012 is being reduced somewhat, due to the strengthening of the U.S. dollar.  The dollar's gain has reduced the company's full year outlook by approximately $0.13 per share. This outlook reduction has been largely offset by the reduction in bunker pricing that occurred during this same time period. The net effect of these currency and fuel price changes is essentially neutral for the company's full year earnings outlook. However, the mark-to-market loss on the options is expected to cost the company a ($0.05) per share charge at current prices versus prior guidance.

You can view the full quarterly results.

Royal Caribbean Second Quarter 2012 Earnings Call Scheduled


Royal Caribbean will hold a conference call on July 26, 2012 at 10am to discuss its second quarter 2011 financial results.

The call will be available on-line at the company's investor relations web site, 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 outlook to shareholders call for a few more shaky months


At Royal Caribbean's annual shareholder meeting, executives said it expects a few more not-so-great months before business turns around.

The impact of the deadly Costa Concorida disaster are still rumbling through the cruise industry and Royal Caribbean is not immune to it.  Royal Caribbean chief financial officer Brian Rice said future booking volumes have been off since the Concordia shipwreck back on January 13.

Rice expects Royal Caribbean to feel the greatest impact from the crash in the second and third quarters of 2012 but 2013 looks to be "healthy".  Rice also cited other negative influences such as consumer spending, economic instability in Europe, fuel costs and the company's debt.

On the positive side of things, Royal Caribbean's global reach, customer engagement and a moderate pace of growth and fuel hedging are contributing to help the company's stock price.

Royal Caribbean reports better than expected first quarter 2012 results


Royal Caribbean reported its first quarter 2012 financial results and characterized it as better than expected.  In addition, they updated its guidancefor the remainder of 2012.

Royal Caribbean's net income for the first quarter 2012 was $47 million versus $78.4 million in 2011. Revenues improved to $1.8 billion in the first quarter of 2012 compared to $1.7 billion in the first quarter of 2011 as a result of capacity increases and yield improvements.

As Royal Caribbean expected, booking activity continued to improve over the span of the last few months.  Cumulative bookings since early February have been down mid single digits, although gradual improvement continues. Bookings from the United States have been running ahead of same time last year for the past four weeks.

Royal Caribbean Chairman Richard Fain commented on the results, "First quarter results were satisfactory given the difficult and uncertain operating environment and we continue to see gradual improvement in the demand for our great vacations.  We did not expect the impact of the tragedy to be long term and we are seeing evidence the effects are waning."

Bookings for the fourth quarter of 2012 and for 2013 sailings remain strong, with both load factors and pricing running ahead of same time last year. In addition, the company has seen an increase in summer demand for its Pullmantur brand's tour product.

Royal Caribbean reports "strong" Fourth Quarter 2011 results


Royal Caribbean reported today its fourth quarter and full year 2011 results along with an initial outlook for 2012.

Before the results were even mentioned, Royal Caribbean Chairman Richard Fain commented on the Costa Concordia tragedy, which has gripped the cruise industry in recent weeks, "All of us in the industry, who are so devoted to providing safe and exceptional vacations to millions of people around the world, are devastated and humbled when something like this happens."

Royal Caribbean's fourth quarter of 2011 ended on a strong note with solid bookings and cost control helping to compensate for the rise in fuel costs and foreign exchange impacts.

Royal Caribbean reported net income for 2011 of $607.4 million, versus $515.7 million in 2010.  For the fourth quarter, net income was at $36.6 million, which is up from $31.9 million in 2010.

Issues such as a rise in oil prices and a strengthening U.S. dollar offset profit, but Royal Caribbean was still able to end on a strong note.  Royal Caribbean's Chief Financial Officer Brian Rice commented on how the company was able to beat these issues, "For the year as a whole, adjusted for fuel price increases and geopolitical events, our earnings would have meaningfully exceeded the midpoint of our January 2011 guidance."

Looking forward to 2012, booking patterns at the end of 2011 were strong despite even the Costa Concordia disaster.  During the two weeks prior to the tragedy, Royal Caribbean reported bookings averaged 5% more than the same period last year and at higher prices.

The Concordia disaster is still impacting the cruise industry as a whole and Royal Caribbean says it's "very difficult to asses the impact of the incident on our revenues".