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Royal Caribbean Reports First Quarter Results And Reaffirms 2013 Guidance

  Royal Caribbean Reports First Quarter Results And Reaffirms 2013 Guidance

  PR Newswire

  MIAMI, April 25, 2013

MIAMI, April 25, 2013 /PRNewswire/ -- Royal Caribbean Cruises Ltd. (NYSE, OSE:
RCL) today reported first quarter results and reaffirmed its outlook for full
year 2013.

KEY HIGHLIGHTS

  *Results For the First Quarter 2013: Improved earnings driven by stronger
    revenue and the timing of expenses.

       *Net Yields increased 3.6% on a Constant-Currency basis (2.7%
         As-Reported);
       *Net Cruise Costs ("NCC") excluding fuel decreased 0.5% on a
         Constant-Currency basis (decreased 0.6% As-Reported); and
       *Net income was $76.2 million, or $0.35 per share, versus net income
         of $47.0 million, or $0.21 per share, in 2012.

  *Full Year 2013: Overall, demand trends appear consistent with the
    company's earlier expectations. Constant-Currency Net Yield and EPS
    guidance for the year remain unchanged at this time.

       *Net Yields are expected to increase 2% to 4% on both
         Constant-Currency and As-Reported bases;
       *NCC excluding fuel are expected to be up 2% to 3% on both
         Constant-Currency and As-Reported bases; and
       *Earnings per share are expected to be within a range of $2.30 to
         $2.50.

"It was a gratifying first quarter," said Richard D. Fain, chairman and chief
executive officer. "Ticket revenues were better than expected, costs were well
controlled and it was encouraging to see record guest satisfaction and
noticeable improvements in onboard spending as a result of our revitalization
efforts," Fain continued.

First Quarter 2013 Results Royal Caribbean Cruises Ltd. today announced first
quarter 2013 net income of $76.2 million, or $0.35 per share, versus net
income of $47.0 million, or $0.21 per share, in the first quarter of 2012.

Both onboard revenue and ticket pricing improved, contributing to a Net Yield
increase of 3.6% on a Constant-Currency basis. NCC excluding fuel were also
better than anticipated, primarily due to timing, and declined 0.5% on a
Constant-Currency basis.

Bunker pricing net of hedging for the first quarter was $699 per metric ton
and consumption was 5,000 metric tons lower than expected at 345,900 metric
tons. Versus the first quarter of 2012, fuel consumption per APCD was 1.2%
lower.

Outlook

Full Year 2013 Since the beginning of the year booking volumes have averaged
5% ahead of the prior year. At this time, full year booked load factors and
APDs are higher than the same time last year. The overall demand environment
is in-line with the company's expectations from February, but as usual there
are regional fluctuations. Bookings from North America have remained strong
since the beginning of the year, with the exception of a modest disruption to
Caribbean demand which the company attributes to adverse industry media
coverage. Despite the difficult economic news in the EU, demand from European
sourced guests strengthened in early February and the company expects pricing
improvement from the region for the year. Demand from China has weakened
somewhat due to itinerary changes related to the territorial dispute with
Japan.

At this time, the company expects that the negative effects from the adverse
industry media coverage in March and itinerary changes in Asia will be offset
by the favorable performance in the first quarter and a slightly better
outlook for Europe. As a result, full year 2013 Constant-Currency yield
expectations remain unchanged from the company's February guidance of an
increase of 2% to 4%.

"Our brands have continued to generate solid demand despite a soft economy in
Europe and recent adverse industry media coverage," commented Brian J. Rice,
vice chairman and chief financial officer. Rice continued, "The consumer
continues to recognize that we offer a great vacation at an excellent value."

Based on current fuel pricing and currency exchange rates, NCC excluding fuel
are expected to be up 2% to 3% both on Constant-Currency and As-Reported
bases.

The company does not forecast changes in foreign currency exchange rates or
oil prices. Movements in these two variables are often offsetting, with the
recent decrease in oil prices largely negating the unfavorable impact of
currency exchange movements.

Based on current fuel pricing and currency exchange rates, the company
continues to expect that 2013 earnings will be in the range of $2.30 to $2.50
per share.

Second Quarter 2013 Constant-Currency Net Yields are expected to increase
approximately 3% in the second quarter of 2013. NCC excluding fuel are
expected to increase approximately 3% on a Constant-Currency basis, due in
part to timing shifts of marketing activities from the first quarter to the
second quarter.

Based on current fuel pricing and currency exchange rates, the company expects
that second quarter earnings will be in the range of $0.10 to $0.15 per share.

2014 Deployment Update The company recently opened the majority of its 2014
deployment offerings and announced a two-month European summer micro-season
for the Oasis of the Seas that complements the vessel's scheduled maintenance
drydock in Rotterdam. Demand for these sailings has been exceptionally strong.

Despite this micro-deployment, the company expects to further reduce its
European deployment year-over-year by another 10% and also expects that
European itineraries will be approximately 25% of its overall 2014 capacity.

FUEL EXPENSE & GUIDANCE SUMMARY

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 $236 million and $928
million of fuel expense in its second quarter 2013 and full year 2013
guidance, respectively.

Forecasted consumption is now 57% hedged via swaps for the remainder of 2013
and 55%, 40%, 20% and 5% hedged for 2014, 2015, 2016 and 2017, respectively.
For the same five-year period, the average cost per metric ton of the hedge
portfolio is approximately $568, $623, $635, $602 and $638, respectively.

The company provided the following fuel statistics for the second quarter and
full year 2013:

          FUEL STATISTICS           Second Quarter 2013 Full Year 2013
  Fuel Consumption (metric tons)          340,000         1,363,000
           Fuel Expenses               $236 million      $928 million
 Percent Hedged (fwd consumption)           57%              57%
Impact of 10% change in fuel prices     $9 million       $26 million

The company provided the following additional guidance for the second quarter
and full year of 2013:

          GUIDANCE                As-Reported       Constant-Currency
                                         Second Quarter 2013
         Net Yields                 2% to 3%            Approx. 3%
  Net Cruise Costs per APCD        Approx. 2%           Approx. 2%
 Net Cruise Costs per APCD,

       excluding Fuel              Approx. 3%           Approx. 3%
                                           Full Year 2013
         Net Yields                 2% to 4%             2% to 4%
  Net Cruise Costs per APCD         2% to 3%             2% to 3%
 Net Cruise Costs per APCD,

       excluding Fuel               2% to 3%             2% to 3%
                              Second Quarter 2013     Full Year 2013
      Capacity Increase               1.3%                 1.3%
Depreciation and Amortization $183 to $193 million $750 to $770 million
    Interest Expense, net      $79 to $89 million  $325 to $340 million
             EPS                 $0.10 to $0.15       $2.30 to $2.50

Exchange rates used in guidance calculations
       Current – April  Previous - February
 EUR        $1.31              $1.36
 GBP        $1.53              $1.58

 CAD        $0.97              $1.00

 BRL        $0.50              $0.50

 AUD        $1.03              $1.04

Liquidity and Financing Arrangements As of March 31, 2013, liquidity was $2.2
billion, including cash and the undrawn portion of the company's unsecured
credit facilities. The company noted that scheduled debt maturities for 2013,
2014, 2015 and 2016 are $1.5 billion, $1.5 billion, $1.1 billion and $1.0
billion, respectively.

The company will continue to opportunistically approach the prepayment and
refinancing of its 2013 and 2014 scheduled maturities.

Capital Expenditures and Capacity Guidance Based upon current ship orders,
projected capital expenditures for 2013, 2014, 2015 and 2016 are $700 million,
$1.2 billion, $1.2 billion and $1.3 billion, respectively.

Capacity increases for 2013, 2014, 2015 and 2016 are 1.3%, 1.0%, 6.9% and
4.8%, respectively. The company's annualized capacity growth rate from 2012 to
2016 remains at a historically low rate of 3.5%.

Conference Call Scheduled The company has scheduled a conference call at 10
a.m. Eastern Time Zone 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

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.

Constant-Currency We believe Net Yields and Net Cruise Costs are our most
relevant non-GAAP financial measures. However, a significant portion of our
revenue and expenses are denominated in currencies other than the United
States dollar. Because our reporting currency is the United States 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 is
just one of many elements impacting our revenues and expenses, it can be an
important element. For this reason, we also monitor Net Yields and Net Cruise
Costs 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 and Net Cruise Costs Excluding Fuel Net Cruise Costs and Net
Cruise Costs 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. 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. A reconciliation of
historical Gross Cruise Costs to Net Cruise Costs and Net Cruise Costs
Excluding Fuel is provided below under Results of Operations. 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 Debt-to-Capital Net Debt-to-Capital is a ratio which represents total
long-term debt, including the current portion of long-term debt, less cash and
cash equivalents ("Net Debt") divided by the sum of Net Debt and total
shareholders' equity. We believe Net Debt and Net Debt-to-Capital, along with
total long-term debt and shareholders' equity are useful measures of our
capital structure.

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,OSE: RCL) is a global cruise vacation
company that owns Royal Caribbean International, Celebrity Cruises,
Pullmantur, Azamara Club Cruises and CDF Croisieres de France, as well as TUI
Cruises through a 50 percent joint venture. Together, these six brands operate
a combined total of 41 ships with five under contract. They operate diverse
itineraries around the world that call on approximately 460 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 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 2013 and the costs and yields expected in 2013 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 environment on the demand for cruises,
the impact of the economic environment on our ability to generate cash flows
from operations or obtain new borrowings from the credit or capital markets in
amounts sufficient to satisfy our capital expenditures, debt repayments and
other financing needs, the uncertainties of conducting business
internationally and expanding into new markets, changes in operating and
financing costs, vacation industry competition and changes in industry
capacity and overcapacity, emergency ship repairs, including the related lost
revenue, the impact of ship delivery delays, ship cancellations or ship
construction price increases, financial difficulties encountered by shipyards
or their subcontractors and incidents or adverse publicity concerning the
cruise vacation industry 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 and subsequent quarterly reports on Form 10-Q,
copies 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.

Non-GAAP Measures of Financial Performance This press release includes certain
non-GAAP 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 non-GAAP 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 non-GAAP measures used by other companies. In addition,
these non-GAAP measures are not based on any comprehensive set of accounting
rules or principles. Non-GAAP 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 non-GAAP financial
measures included in this press release can be found in the tables included at
the end of this press release.

Financial Tables Follow

                       ROYAL CARIBBEAN CRUISES LTD.
          CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
             (unaudited, in thousands, except per share data)
                                                       Quarter Ended
                                                         March 31,
                                                     2013         2012
Passenger ticket revenues                         $ 1,393,778  $ 1,352,238
Onboard and other revenues                            517,442      482,242
   Total revenues                                   1,911,220    1,834,480
Cruise operating expenses:
   Commissions, transportation and other              322,937      320,738
   Onboard and other                                  121,487      107,595
   Payroll and related                                209,923      210,114
   Food                                               119,483      113,625
   Fuel                                               241,652      228,994
   Other operating                                    266,708      274,046
        Total cruise operating expenses             1,282,190    1,255,112
Marketing, selling and administrative expenses        274,034      264,601
Depreciation and amortization expenses                189,364      179,392
Operating Income                                      165,632      135,375
Other income (expense):
   Interest income                                      3,747        6,346
   Interest expense, net of interest capitalized     (90,182)     (92,666)
   Other expense                                      (2,971)      (2,091)
                                                     (89,406)     (88,411)
Net Income                                        $    76,226  $    46,964
Earnings Per Share:
Basic                                             $      0.35  $      0.22
Diluted                                           $      0.35  $      0.21
Weighted-Average Shares Outstanding:
Basic                                                 219,097      217,584
Diluted                                              220,484      219,230
Comprehensive Income (Loss)
Net Income                                        $    76,226  $    46,964
Other comprehensive income (loss):
   Foreign currency translation adjustments           (4,244)        3,340
   (Loss) gain on cash flow derivative hedges        (22,600)      147,470
        Total other comprehensive (loss) income      (26,844)      150,810
Comprehensive Income                              $    49,382  $   197,774

                STATISTICS
                          Quarter Ended
                            March 31,
                         2013       2012
Passengers Carried     1,261,292  1,277,571
Passenger Cruise Days  8,844,590  8,683,203
APCD                   8,428,110  8,299,800
Occupancy                 104.9%     104.6%

                         ROYAL CARIBBEAN CRUISES LTD.
                         CONSOLIDATED BALANCE SHEETS
                      (in thousands, except share data)
                                                            As of
                                                   March 31,    December31,
                                                      2013          2012
                                                  (unaudited)
Assets
Current assets
 Cash and cash equivalents                        $  215,888  $  194,855
 Trade and other receivables, net                      308,030       281,421
 Inventories                                           145,922       146,295
 Prepaid expenses and other assets                     236,954       207,662
 Derivative financial instruments                       51,820        57,827
  Total current assets                               958,614       888,060
Property and equipment, net                         17,473,793    17,451,034
Goodwill                                               429,198       432,975
Other assets                                         1,004,496     1,055,861
                                                  $ 19,866,101  $ 19,827,930
Liabilities and Shareholders' Equity
Current liabilities
 Current portion of long-term debt                $ 2,491,064  $ 1,519,483
 Accounts payable                                      337,441       351,587
 Accrued interest                                      103,838       106,366
 Accrued expenses and other liabilities                493,788       541,722
 Customer deposits                                   1,634,373     1,546,993
  Total current liabilities                        5,060,504     4,066,151
Long-term debt                                       5,975,890     6,970,464
Other long-term liabilities                            491,172       482,566
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; 229,705,743 and 229,080,109
 shares issued, March 31, 2013 and December 31,
 2012, respectively)                                     2,297         2,291
 Paid-in capital                                     3,117,135     3,109,887
 Retained earnings                                   5,794,167     5,744,791
 Accumulated other comprehensive loss                (161,360)     (134,516)
 Treasury stock (10,308,683 common shares at 
 cost, March 31, 2013 and December 31, 2012)         (413,704)     (413,704)
  Total shareholders' equity                       8,338,535     8,308,749
                                                  $ 19,866,101  $ 19,827,930

                        ROYAL CARIBBEAN CRUISES LTD.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                          (unaudited, in thousands)
                                                           Quarter Ended
                                                             March 31,
                                                          2013        2012
Operating Activities
Net income                                             $  76,226  $  46,964
Adjustments:
      Depreciation and amortization                       189,364     179,392
      Gain on fuel call options                                 -     (2,681)
Changes in operating assets and liabilities:
      Decrease in trade and other receivables, net          2,257      21,069
      Decrease (increase) in inventories                      152     (3,141)
      Increase in prepaid expenses and other assets      (19,990)    (30,612)
      Decrease in accounts payable                       (13,043)    (14,263)
      Decrease in accrued interest                        (2,528)    (22,294)
      Decrease in accrued expenses and other
      liabilities                                       (45,953)    (21,938)
      Increase in customer deposits                        55,751      77,360
Other, net                                                  (979)    (14,641)
Net cash provided by operating activities                 241,257     215,215
Investing Activities
Purchases of property and equipment                    (178,376)   (177,235)
Cash (paid) received on settlement of derivative
financial instruments                                     (8,747)       8,027
Equity contribution to unconsolidated affiliate          (19,487)           -
Cash payments received from loan to unconsolidated
affiliate                                                  11,993      11,813
Other, net                                                  1,104     (1,048)
Net cash used in investing activities                   (193,513)   (158,443)
Financing Activities
Debt proceeds                                             120,000     145,000
Debt issuance costs                                      (15,516)    (16,260)
Repayments of debt                                      (106,137)   (131,810)
Dividends paid                                           (27,735)    (43,506)
Proceeds from exercise of common stock options              3,339       1,557
Other, net                                                    377         424
Net cash used in financing activities                    (25,672)    (44,595)
Effect of exchange rate changes on cash                   (1,039)       3,170
Net increase in cash and cash equivalents                  21,033      15,347
Cash and cash equivalents at beginning of period          194,855     262,186
Cash and cash equivalents at end of period             $ 215,888  $ 277,533
Supplemental Disclosure
Cash paid during the period for:
Interest, net of amount capitalized                    $  88,229  $ 101,065
Non cash investing activities
Purchases of property and equipment through asset
trade in                                               $  46,375  $    -

                      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,
                                                   2013 On a
                                                   Constant
                                      2013      Currency basis     2012
Passenger ticket revenues          $ 1,393,778    $   1,409,742   $ 1,352,238
Onboard and other revenues             517,442          517,955       482,242
Total revenues                       1,911,220        1,927,697     1,834,480
Less:
        Commissions,
        transportation and other       322,937          327,068       320,738
        Onboard and other              121,487          121,845       107,595
Net revenues                       $ 1,466,796    $   1,478,784   $ 1,406,147
APCD                                 8,428,110        8,428,110     8,299,800
Gross Yields                       $    226.77    $      228.72   $    221.03
Net Yields                         $    174.04    $      175.46   $    169.42
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,
                                            2013 On a Constant
                                2013          Currencybasis         2012
Total cruise operating
expenses                     $ 1,282,190      $        1,288,846  $ 1,255,112
Marketing, selling and
administrative expenses          274,034                 274,537      264,601
Gross Cruise Costs             1,556,224               1,563,383    1,519,713
Less:
   Commissions,
   transportation and other      322,937                 327,068      320,738
   Onboard and other             121,487                 121,845      107,595
Net Cruise Costs             $ 1,111,800      $        1,114,470  $ 1,091,380
Less:
   Fuel                          241,652                 242,855      228,994
Net Cruise Costs Excluding
Fuel                         $   870,148      $          871,615  $   862,386
APCD                           8,428,110               8,428,110    8,299,800
Gross Cruise Costs per APCD  $    184.65      $           185.50  $    183.10
Net Cruise Costs per APCD    $    131.92      $           132.23  $    131.49
Net Cruise Costs Excluding
Fuel per APCD               $    103.24      $           103.42  $    103.90
Net Debt-to-Capital was calculated as follows (in thousands):

                                                   As of
                                          March 31,    December31,
                                             2013          2012
Long-term debt, net of current portion  $  5,975,890  $  6,970,464
Current portion of long-term debt          2,491,064     1,519,483
Total debt                                 8,466,954     8,489,947
Less: Cash and cash equivalents              215,888       194,855
Net Debt                                $  8,251,066  $  8,295,092
Total shareholders' equity               $  8,338,535  $  8,308,749
Total debt                                 8,466,954     8,489,947
Total debt and shareholders' equity       16,805,489    16,798,696
Debt-to-Capital                                50.4%         50.5%
Net Debt                                   8,251,066     8,295,092
Net Debt and shareholders' equity       $ 16,589,601  $ 16,603,841
Net Debt-to-Capital                            49.7%         50.0%

Website: http://www.royalcaribbean.com
Contact: Ian Bailey, (305) 982-2625