MIAMI, April 29, 2016 /PRNewswire/ -- Royal Caribbean
Cruises Ltd. (NYSE: RCL) today reported first quarter results and
increased its outlook for the full year. Continuing on its
Double-Double trajectory, the company's Adjusted
first quarter earnings were $0.57 per
share –nearly tripling last year's results and almost doubling
previously provided guidance. The company increased its full
year earnings guidance by $0.25 per
share to $6.15 to $6.35.
KEY HIGHLIGHTS
Results for the First Quarter 2016:
- Net Yields were up 7.0% on a Constant-Currency basis (up 3.4%
As-Reported), 300 basis points better than guidance. Strong
close-in demand on Caribbean
sailings and better onboard revenue drove the improvement.
- Net Cruise Costs ("NCC") excluding fuel increased 4.7% on a
Constant-Currency basis (up 3.6% As-Reported), which was in line
with guidance.
- Adjusted Net Income was $124.0
million or $0.57 per share,
versus $45.2 million, or $0.20 per share in 2015.
- US GAAP Net Income was $99.1
million or $0.46 per share,
versus $45.2 million or $0.20 per share in 2015.
Full Year 2016:
- Overall, the company's booked position remains strong, similar
to last year's record high levels.
- Adjusted EPS is expected to be in the range of $6.15 to $6.35 per share – $0.25 higher than previous guidance. The increase
is mainly driven by strength in North American products and onboard
revenue trends as well as stronger foreign currencies.
- Net Yields are expected to increase 2.5% to 4.0% on a
Constant-Currency basis (up 1.3% to 2.8% As-Reported).
- NCC excluding fuel are expected to be up approximately 1.0% on
a Constant-Currency basis (up 1.0% or less As-Reported).
The company continues to implement its $500 million share repurchase program.
Since the program was announced in October
2015, the company has repurchased $450 million worth of shares.
"What an exciting quarter in an exciting year," said
Richard D. Fain, chairman and chief
executive officer. "Our brands continue to excel and produce
gratifying results. This year's performance further
solidifies our base for the Double-Double."
FIRST QUARTER RESULTS
Adjusted Net Income for the first quarter of 2016 was
$124.0 million, or $0.57 per share, compared to Adjusted Net Income
of $45.2 million, or $0.20 per share, in the first quarter of 2015.
Strong close-in demand for the Caribbean combined with better than expected
onboard spend in beverage and internet drove the majority of the
outperformance. Foreign exchange and fuel contributed
$0.08 to the upside.
US GAAP Net Income for the first quarter 2016 was $99.1 million or $0.46 per share compared to $45.2 million or $0.20 per share in 2015. As previously announced,
the company eliminated the two-month reporting lag related to their
Pullmantur brand in the first quarter. This resulted in a
one-time catch up of approximately $0.10 loss per share which, as previously
discussed, has been removed from key statistics for 2016.
Net Yields on a Constant-Currency basis increased 7.0% during
the quarter. Constant-Currency NCC excluding fuel increased 4.7%.
Bunker pricing net of hedging for the first quarter was
$511 per metric ton and consumption
was 344,000 metric tons.
FULL YEAR 2016
The company has updated full year Adjusted EPS guidance to a
range of $6.15 to $6.35 from
$5.90 to $6.10. Foreign
exchange net of fuel is contributing approximately $0.15 to full year earnings.
The company's booked position is similar to last year's record
levels. However, China is a
closer-in booking environment making it harder to compare
positions. Excluding China bookings, the company's booked
position is well ahead of last year's.
Constant-Currency Net Yields are expected to be in the range of
up 2.5% to 4.0%. Strong first quarter revenue results,
combined with strong demand trends for North American products is
more than offsetting weaker demand for Mediterranean sailings from
the North American consumer.
"The first quarter has given our year momentum, which is more
than offsetting some headwinds from the Mediterranean," said
Jason T. Liberty, chief financial
officer. "This performance is positioning us for the highest
earnings in company history."
Net Cruise Costs excluding fuel are expected to be up
approximately 1.0% on a Constant-Currency basis.
Taking into account current fuel pricing, interest rates,
currency exchange rates and the factors detailed above, the company
expects 2016 guidance for Adjusted EPS to be in the range of
$6.15 to $6.35 per share.
SECOND QUARTER 2016
Constant-Currency Net Yields are expected to increase
approximately 1.0% in the second quarter of 2016. Various customary
factors skew comparisons between quarters such as an early Easter
shifting Holy Week sailings into the first quarter in 2016 and the
timing of new ship deliveries. NCC excluding fuel are
expected to be up approximately 2.0% on a Constant-Currency basis.
Based on current fuel pricing, interest rates and currency exchange
rates, the company expects second quarter Adjusted EPS will be
approximately $1.00 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 $191 million and
$734 million of fuel expense in its
second quarter and full year 2016 guidance, respectively.
Forecasted consumption is 65% hedged via swaps for the remainder
of 2016 and 60%,
40%, 25% and 10% hedged for 2017, 2018, 2019 and 2020,
respectively. For the same five years, the average cost per
metric ton of the hedge portfolio is approximately $537, $505, $466, $345 and $286, respectively.
The company provided the following fuel statistics for the
second quarter and full year 2016:
FUEL
STATISTICS
|
Second Quarter
2016
|
Full Year
2016
|
|
|
|
Fuel Consumption
(metric tons)
|
353,000
|
1,411,000
|
Fuel
Expenses
|
$191
million
|
$734
million
|
Percent Hedged
(fwd consumption)
|
67%
|
65%
|
Impact of 10%
change in fuel prices
|
$4 million
|
$11
million
|
In summary, the company provided the following guidance for the
second quarter and full year of 2016:
GUIDANCE
|
As-Reported
Constant-Currency
|
|
|
|
|
|
Second Quarter
2016
|
|
Net
Yields
|
Approx.
flat
|
Approx.
1.0%
|
|
Net Cruise Costs
per APCD
|
Flat to
(1.0%)
|
Flat to
(1.0%)
|
|
Net Cruise Costs
per APCD
Excluding
Fuel
|
1.5% to
2.0%
|
Approx.
2.0%
|
|
|
|
|
|
Full Year
2016
|
|
Net
Yields
|
1.3% to
2.8%
|
2.5% to
4.0%
|
|
Net Cruise Costs
per APCD
|
(1.5%) to
(2.0%)
|
(1.3%) to
(1.8%)
|
|
Net Cruise Costs
per APCD
Excluding
Fuel
|
1.0% or
less
|
Approx.
1.0%
|
|
|
|
|
|
|
Second Quarter
2016
|
Full Year
2016
|
|
Capacity
Increase
|
5.7%
|
6.0%
|
|
Depreciation and
Amortization
|
$220 to $225
million
|
$898 to $908
million
|
|
Interest Expense,
net
|
$71 to $76
million
|
$282 to $292
million
|
|
Adjusted
EPS
|
Approx.
$1.00
|
$6.15 to
$6.35
|
|
|
|
|
|
1% Change in
Currency
|
$3 million
|
$12
million
|
|
1% Change in Net
Yield
|
$16
million
|
$54
million
|
|
1% Change in NCC x
fuel
|
$10
million
|
$27
million
|
|
1% Change in
LIBOR
|
$13
million
|
$44
million
|
|
|
|
Top currency
exposures for the full year:
|
|
|
|
|
|
|
Current –
April
|
Previous –
January
|
|
GBP
|
$1.45
|
$1.45
|
|
CNH
AUD
CAD
EUR
|
$0.15
$0.77
$0.79
$1.13
|
$0.15
$0.70
$0.70
$1.09
|
|
LIQUIDITY AND FINANCING ARRANGEMENTS
As of March 31, 2016, liquidity
was $0.7 billion, including cash and
the undrawn portion of the company's unsecured credit
facilities. The company noted that scheduled debt maturities
for the remainder of 2016, 2017, 2018, 2019 and 2020 are
$0.8 billion, $0.9 billion, $2.2
billion, $0.6 billion and
$1.7 billion, respectively.
CAPITAL EXPENDITURES AND CAPACITY GUIDANCE
Based upon current ship orders, projected capital expenditures
for full year 2016, 2017, 2018, 2019 and 2020 are $2.4 billion, $0.5
billion, $2.5 billion,
$1.4 billion and $1.7 billion, respectively. Capacity
increases for 2016, 2017, 2018, 2019 and 2020 are expected to be
6.0%, 4.0%, 3.5%, 6.3% and 3.0%, respectively. These figures
do not include potential ship sales or additions that the company
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 web site 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.
Adjusted Earnings Per Share ("Adjusted EPS")
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.
Available Passenger Cruise Days ("APCD")
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 the main non-capacity drivers that cause our
cruise revenues and expenses to vary. APCDs reported 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 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 for each of the corresponding months of the
reported and/or forecasted period, so as to calculate what the
results would have been had exchange rates been the same throughout
both periods. We do not make predictions about future
exchange rates and use current exchange rates for calculations of
future periods. It should be emphasized that the use of
Constant-Currency is primarily used by us for comparing short-term
changes and/or projections. Over the longer term, changes in
guest sourcing and shifting the amount of purchases between
currencies significantly change the impact of the purely
currency-based fluctuations.
Gross Cruise Costs
Gross Cruise Costs represent the sum of total cruise operating
expenses plus marketing, selling and administrative expenses.
Gross Yields
Gross Yields represent total revenues per APCD.
Net Cruise Costs ("NCC") and Net Cruise Costs ("NCC") Excluding
Fuel
Represent Gross Cruise Costs excluding commissions, transportation
and other expenses and onboard and other expenses and, in the case
of Net Cruise Costs Excluding Fuel, fuel expenses. In measuring our
ability to control costs in a manner that positively impacts net
income, we believe changes in Net Cruise Costs and Net Cruise Costs
Excluding Fuel to be the most relevant indicators of our
performance. We have not provided a quantitative
reconciliation of projected Gross Cruise Costs to projected Net
Cruise Costs and projected Net Cruise Costs Excluding Fuel due to
the significant uncertainty in projecting the costs deducted to
arrive at these measures. Accordingly, we do not believe that
reconciling information for such projected figures would be
meaningful. Net Cruise Costs excludes initiative costs related to
our Pullmantur right-sizing strategy reported within Cruise
operating expenses.
Net Revenues
Net Revenues represent total revenues less commissions,
transportation and other expenses and onboard and other
expenses.
Net Yields
Net Yields represent Net Revenues per APCD. We utilize Net
Revenues and Net Yields to manage our business on a day-to-day
basis as we believe that it is the most relevant measure of our
pricing performance because it reflects the cruise revenues earned
by us net of our most significant variable costs, which are
commissions, transportation and other expenses and onboard and
other expenses. We have not provided a quantitative
reconciliation of projected Gross Yields to projected Net Yields
due to the significant uncertainty in projecting the costs deducted
to arrive at this measure. Accordingly, we do not believe
that reconciling information for such projected figures would be
meaningful.
Occupancy
Occupancy, in accordance with cruise vacation industry practice, is
calculated by dividing Passenger Cruise Days by APCD. A
percentage in excess of 100% indicates that three or more
passengers occupied some cabins.
Passenger Cruise Days
Passenger Cruise Days represent the number of passengers carried
for the period multiplied by the number of days of their respective
cruises.
Royal Caribbean Cruises Ltd. (NYSE: RCL) is a global cruise
vacation company that owns Royal Caribbean International, Celebrity
Cruises, Pullmantur, Azamara Club Cruises and CDF Croisières de
France, as well as TUI Cruises
through a 50 percent joint venture. Together, these six
brands operate a combined total of 46 ships with an additional ten
on order. They operate diverse itineraries around the world
that call on approximately 490 destinations on all seven
continents. Additional information can be found on
www.royalcaribbean.com, www.celebritycruises.com,
www.pullmantur.es www.azamaraclubcruises.com,
www.cdfcroisieresdefrance.com, www.tuicruises.com or
www.rclinvestor.com.
Certain statements in this release relating to, among other
things, our future performance constitute forward-looking
statements under the Private Securities Litigation Reform Act of
1995. These statements include, but are not limited to,
statements regarding expected financial results for the second
quarter and full year 2016, and expectations regarding the timing
and results of our Double-Double initiative and the costs and
yields expected in 2016 and other future periods. Words
such as "anticipate," "believe," "could," "estimate," "expect,"
"goal," "intend," "may," "plan," "project," "seek," "should,"
"will," and similar expressions are intended to identify these
forward-looking statements. Forward-looking statements
reflect management's current expectations, are inherently uncertain
and are subject to risks, uncertainties and other factors, which
could cause our actual results, performance or achievements to
differ materially from the future results, performance or
achievements expressed or implied in those forward-looking
statements. Examples of these risks, uncertainties and
other factors include, but are not limited to the following: the
impact of the economic and geopolitical environment on key aspects
of our business, such as the demand for cruises, passenger
spending, our operating costs and our ability to obtain new
borrowings in amounts sufficient to satisfy our capital
expenditures, debt repayments and other financing needs, incidents
or adverse publicity concerning the cruise vacation industry,
concerns over safety, health and security aspects of traveling,
unavailability of ports of call, the uncertainties of conducting
business internationally and expanding into new markets and new
ventures, changes in operating and financing costs, the impact of
foreign exchange rates, interest rate and fuel price
fluctuations, vacation industry competition and changes in industry
capacity and overcapacity, the impact of new or changing
regulations on our business, emergency ship repairs, including the
related lost revenue, the impact of ship delivery delays, ship
cancellations or ship construction price increases, shipyard
unavailability and the unavailability or cost of air service.
More information about factors that could affect our operating
results is included under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our most recent annual report on Form
10-K, a copy of which may be obtained by visiting our Investor
Relations web site at www.rclinvestor.com or the SEC's web site at
www.sec.gov. Undue reliance should not be placed on the
forward-looking statements in this release, which are based on
information available to us on the date hereof. We undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Adjusted Measures of Financial Performance
This press
release includes certain adjusted financial measures as defined
under Securities and Exchange Commission rules, which we believe
provide useful information to investors as a supplement to our
consolidated financial statements which are prepared and presented
in accordance with generally accepted accounting principles, or
GAAP.
The presentation of adjusted financial information is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP. These measures may be different from
adjusted measures used by other companies. In addition, these
adjusted measures are not based on any comprehensive set of
accounting rules or principles. Adjusted measures have limitations
in that they do not reflect all of the amounts associated with our
results of operations as do the corresponding GAAP measures.
A reconciliation to the most comparable GAAP measure of all
adjusted financial measures included in this press release can be
found in the tables included at the end of this press
release.
ROYAL CARIBBEAN
CRUISES LTD.
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|
|
(unaudited, in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger ticket
revenues
|
|
|
$
|
1,378,167
|
|
$
|
1,306,779
|
|
|
|
Onboard and other
revenues
|
|
|
539,628
|
|
|
508,820
|
|
|
|
|
Total
revenues
|
|
|
|
1,917,795
|
|
|
1,815,599
|
|
|
|
Cruise operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
|
324,890
|
|
|
324,418
|
|
|
|
|
Onboard and
other
|
|
|
|
103,654
|
|
|
116,239
|
|
|
|
|
Payroll and
related
|
|
|
|
227,441
|
|
|
211,591
|
|
|
|
|
Food
|
|
|
|
|
|
121,510
|
|
|
119,786
|
|
|
|
|
Fuel
|
|
|
|
|
|
175,862
|
|
|
205,276
|
|
|
|
|
Other
operating
|
|
|
|
288,221
|
|
|
245,307
|
|
|
|
|
|
Total cruise
operating expenses
|
|
1,241,578
|
|
|
1,222,617
|
|
|
|
Marketing, selling
and administrative expenses
|
|
302,021
|
|
|
286,832
|
|
|
|
Depreciation and
amortization expenses
|
|
210,764
|
|
|
200,468
|
|
|
|
Restructuring
charges
|
|
|
|
305
|
|
|
-
|
|
|
|
Operating
Income
|
|
|
|
163,127
|
|
|
105,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
2,720
|
|
|
3,737
|
|
|
|
|
Interest expense, net
of interest capitalized
|
|
(65,446)
|
|
|
(70,159)
|
|
|
|
|
Other (expense)
income (including a $21.7 million loss related to the 2016
elimination of the Pullmantur reporting lag)
|
|
(1,261)
|
|
|
5,970
|
|
|
|
|
|
|
|
|
|
|
|
(63,987)
|
|
|
(60,452)
|
|
|
|
Net
Income
|
|
|
|
$
|
99,140
|
|
$
|
45,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.46
|
|
$
|
0.21
|
|
|
|
Diluted
|
$
|
0.46
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
216,914
|
|
|
219,626
|
|
|
|
Diluted
|
|
|
|
|
|
217,869
|
|
|
220,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
Income
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
|
$
|
99,140
|
|
$
|
45,230
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
6,648
|
|
|
(31,544)
|
|
|
|
|
Change in defined
benefit plans
|
|
(3,512)
|
|
|
(1,493)
|
|
|
|
|
Gain (loss) on cash
flow derivative hedges
|
|
2,737
|
|
|
(260,949)
|
|
|
|
|
|
Total other
comprehensive income (loss)
|
|
5,873
|
|
|
(293,986)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
Income (Loss)
|
$
|
105,013
|
|
$
|
(248,756)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
|
|
2016(1)
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passengers
Carried
|
|
|
|
1,402,922
|
|
|
1,335,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger Cruise
Days
|
|
|
|
9,658,990
|
|
|
9,214,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APCD
|
|
|
|
|
|
9,192,563
|
|
|
8,778,945
|
|
|
|
Occupancy
|
|
|
|
|
105.1%
|
|
|
105.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Does not include
November and December 2015 amounts related to the
elimination of the Pullmantur reporting lag.
|
|
|
|
ROYAL CARIBBEAN
CRUISES LTD.
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
117,360
|
|
$ 121,565
|
|
|
Trade and other
receivables, net
|
|
253,303
|
|
238,972
|
|
|
Inventories
|
|
121,392
|
|
121,332
|
|
|
Prepaid expenses and
other assets
|
|
279,707
|
|
220,579
|
|
|
Derivative financial
instruments
|
|
120,524
|
|
134,574
|
|
|
Total
current assets
|
|
892,286
|
|
837,022
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
18,828,743
|
|
18,777,778
|
|
Goodwill
|
|
286,852
|
|
286,764
|
|
Other
assets
|
|
955,532
|
|
880,479
|
|
|
|
|
$ 20,963,413
|
|
$ 20,782,043
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
895,490
|
|
$ 899,542
|
|
|
Accounts
payable
|
|
371,854
|
|
302,072
|
|
|
Accrued
interest
|
|
80,888
|
|
38,325
|
|
|
Accrued expenses and
other liabilities
|
|
525,551
|
|
658,601
|
|
|
Derivative financial
instruments
|
|
577,493
|
|
651,866
|
|
|
Customer
deposits
|
|
1,946,668
|
|
1,742,286
|
|
|
Total
current liabilities
|
|
4,397,944
|
|
4,292,692
|
|
Long-term
debt
|
|
7,806,690
|
|
7,627,701
|
|
Other long-term
liabilities
|
|
871,010
|
|
798,611
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Preferred stock
($0.01 par value; 20,000,000 shares authorized;
|
|
|
|
|
|
|
none
outstanding)
|
|
-
|
|
-
|
|
|
Common stock ($0.01
par value; 500,000,000 shares authorized;
|
|
|
|
|
|
|
234,544,116 and
233,905,166 shares issued, March 31, 2016
|
|
|
|
|
|
|
and December 31,
2015, respectively)
|
|
2,345
|
|
2,339
|
|
|
Paid-in
capital
|
|
3,298,515
|
|
3,297,619
|
|
|
Retained
earnings
|
|
6,962,858
|
|
6,944,862
|
|
|
Accumulated other
comprehensive loss
|
|
(1,322,560)
|
|
(1,328,433)
|
|
|
Treasury stock
(18,697,703 and 15,911,971 common shares at
cost, March 31, 2016 and December 31, 2015,
respectively)
|
|
(1,053,389)
|
|
(853,348)
|
|
|
Total
shareholders' equity
|
|
7,887,769
|
|
8,063,039
|
|
|
|
|
$ 20,963,413
|
|
$ 20,782,043
|
|
ROYAL CARIBBEAN
CRUISES LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
March
31,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
Net income
|
|
$
99,140
|
|
$
45,230
|
Adjustments:
|
|
|
|
|
|
Depreciation and
amortization
|
|
210,764
|
|
200,468
|
|
Net deferred income
tax expense (benefit)
|
|
827
|
|
(520)
|
|
(Gain) loss on
derivative instruments not designated as hedges
|
|
(14,455)
|
|
28,083
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Decrease in trade and
other receivables, net
|
|
10,094
|
|
18,095
|
|
Decrease (increase)
in inventories
|
|
274
|
|
(2,615)
|
|
Increase in prepaid
expenses and other assets
|
|
(50,524)
|
|
(67,772)
|
|
Increase in accounts
payable
|
|
68,515
|
|
9,341
|
|
Increase in accrued
interest
|
|
42,564
|
|
28,774
|
|
Decrease in accrued
expenses and other liabilities
|
|
(53,108)
|
|
(53,681)
|
|
Increase in customer
deposits
|
|
178,316
|
|
208,423
|
Other, net
|
|
(14,511)
|
|
12,601
|
Net cash provided by
operating activities
|
|
477,896
|
|
426,427
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Purchases of property
and equipment
|
|
(249,840)
|
|
(304,644)
|
Cash received (paid)
on settlement of derivative financial instruments
|
|
13,101
|
|
(45,182)
|
Investments in and
loans to unconsolidated affiliates
|
|
-
|
|
(54,250)
|
Cash received on
loans to unconsolidated affiliates
|
|
7,104
|
|
8,280
|
Other, net
|
|
(7,111)
|
|
(3,780)
|
Net cash used in
investing activities
|
|
(236,746)
|
|
(399,576)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Debt
proceeds
|
|
1,519,000
|
|
749,800
|
Debt issuance
costs
|
|
(22,566)
|
|
(16,493)
|
Repayments of
debt
|
|
(1,382,270)
|
|
(587,111)
|
Purchases of treasury
of stock
|
|
(200,040)
|
|
-
|
Dividends
paid
|
|
(162,890)
|
|
(131,745)
|
Proceeds from
exercise of common stock options
|
|
1,345
|
|
4,615
|
Other, net
|
|
659
|
|
587
|
Net cash (used in)
provided by financing activities
|
|
(246,762)
|
|
19,653
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
1,407
|
|
(6,040)
|
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(4,205)
|
|
40,464
|
Cash and cash
equivalents at beginning of period
|
|
121,565
|
|
189,241
|
Cash and cash
equivalents at end of period
|
|
$
117,360
|
|
$ 229,705
|
|
|
|
|
|
|
Supplemental
Disclosure
|
|
|
|
|
Cash paid during the
year for:
|
|
|
|
|
|
Interest, net of
amount capitalized
|
|
$
18,670
|
|
$
33,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROYAL CARIBBEAN
CRUISES LTD.
|
NON-GAAP
RECONCILING INFORMATION
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Yields and Net
Yields were calculated as follows (in thousands, except APCD and
Yields):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
March 31,
|
|
|
|
|
|
|
|
|
2016
|
|
|
2016
On a
Constant
Currency
basis
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger ticket
revenues
|
|
|
$
|
1,378,167
|
|
$
|
1,438,485
|
|
$
|
1,306,779
|
Onboard and other
revenues
|
|
|
|
539,628
|
|
|
544,591
|
|
|
508,820
|
Total
revenues
|
|
|
|
|
|
1,917,795
|
|
|
1,983,076
|
|
|
1,815,599
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
|
324,890
|
|
|
337,298
|
|
|
324,418
|
|
Onboard and
other
|
|
|
|
103,654
|
|
|
104,977
|
|
|
116,239
|
Net
Revenues
|
|
|
|
|
$
|
1,489,251
|
|
$
|
1,540,801
|
|
$
|
1,374,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APCD
|
|
|
|
|
|
|
9,192,563
|
|
|
9,192,563
|
|
|
8,778,945
|
Gross
Yields
|
|
|
|
|
$
|
208.62
|
|
$
|
215.73
|
|
$
|
206.81
|
Net Yields
|
|
|
|
|
|
$
|
162.01
|
|
$
|
167.61
|
|
$
|
156.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Cruise Costs,
Net Cruise Costs and Net Cruise Costs Excluding Fuel were
calculated as follows (in thousands, except APCD and costs per
APCD):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
March 31,
|
|
|
|
|
|
|
|
|
2016
|
|
|
2016
On a
Constant
Currency
basis
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cruise
operating expenses
|
|
|
$
|
1,241,578
|
|
$
|
1,260,440
|
|
$
|
1,222,617
|
Marketing, selling
and administrative expenses
|
|
302,021
|
|
|
306,797
|
|
|
286,832
|
Gross Cruise
Costs
|
|
|
|
|
1,543,599
|
|
|
1,567,237
|
|
|
1,509,449
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
|
324,890
|
|
|
337,298
|
|
|
324,418
|
|
Onboard and
other
|
|
|
|
103,654
|
|
|
104,977
|
|
|
116,239
|
Net Cruise Costs
including other initiative costs
|
|
1,115,055
|
|
|
1,124,962
|
|
|
1,068,792
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other initiative
costs included within cruise operating expenses
|
|
2,491
|
|
|
2,551
|
|
|
-
|
Net Cruise
Costs
|
|
|
|
|
1,112,564
|
|
|
1,122,411
|
|
|
1,068,792
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel(2)
|
|
|
|
|
|
|
175,438
|
|
|
176,015
|
|
|
205,276
|
Net Cruise Costs
Excluding Fuel
|
|
|
$
|
937,126
|
|
$
|
946,396
|
|
$
|
863,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APCD
|
|
|
|
|
|
|
9,192,563
|
|
|
9,192,563
|
|
|
8,778,945
|
Gross Cruise Costs
per APCD
|
|
|
$
|
167.92
|
|
$
|
170.49
|
|
$
|
171.94
|
Net Cruise Costs per
APCD
|
|
|
$
|
121.03
|
|
$
|
122.10
|
|
$
|
121.74
|
Net Cruise Costs
Excluding Fuel per APCD
|
$
|
101.94
|
|
$
|
102.95
|
|
$
|
98.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
For 2016, amount does
not include fuel expense of $0.4 million included within other
initiative costs associated with the redeployment of
Pullmantur's Empress to the Royal Caribbean
International brand.
|
|
ROYAL CARIBBEAN
CRUISES LTD.
|
NON-GAAP
RECONCILING INFORMATION (CONTINUED)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
and Adjusted Earnings per Share were calculated as follows (in
thousands, except per share data):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income
|
$
|
123,956
|
|
$
|
45,230
|
|
|
Net
Income
|
|
99,140
|
|
|
45,230
|
|
|
|
Net Adjustments to
Net Income- Increase
|
$
|
24,816
|
|
$
|
-
|
|
|
Adjustments to Net
Income:
|
|
|
|
|
|
|
|
Net loss related to
the elimination of the Pullmantur reporting lag
|
$
|
21,656
|
|
$
|
-
|
|
|
Restructuring
charges
|
|
305
|
|
|
-
|
|
|
Other initiative
costs
|
|
2,855
|
|
|
-
|
|
|
|
Net Adjustments to
Net Income- Increase
|
$
|
24,816
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
per Share - Diluted
|
$
|
0.57
|
|
$
|
0.20
|
|
|
Earnings per Share
- Diluted
|
|
0.46
|
|
|
0.20
|
|
|
|
Net Adjustments to
Net Income- Increase
|
$
|
0.11
|
|
$
|
-
|
|
|
Adjustments to
Earnings per Share:
|
|
|
|
|
|
|
|
Net loss related to
the elimination of the Pullmantur reporting lag
|
$
|
0.10
|
|
$
|
-
|
|
|
Restructuring
charges
|
|
-
|
|
|
-
|
|
|
Other initiative
costs
|
|
0.01
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Adjustments to
Net Income- Increase
|
$
|
0.11
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding - Diluted
|
|
217,869
|
|
|
220,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/royal-caribbean-reports-significantly-higher-first-quarter-earnings-and-increases-full-year-guidance-300260049.html
SOURCE Royal Caribbean Cruises Ltd.