Royal Caribbean Cruises Ltd. reported 2018 US GAAP earnings of $8.56 per share and adjusted earnings of $8.86 per share. In addition, the company announced that 2019 adjusted earnings are expected to be in the range of $9.75 to $10.00 per share.
KEY HIGHLIGHTS
Full Year 2018:
- US GAAP Net Income was $1.8 billion or $8.56 per share and Adjusted Net Income was $1.9 billion or $8.86 per share in 2018 versus US GAAP and Adjusted Net Income of $1.6 billion or $7.53 per share in 2017.
- Gross Yields were up 3.8% in Constant-Currency (up 3.9% As-Reported). Net Yields were up 4.4% in Constant-Currency (up 4.5% As-Reported).
- Gross Cruise Costs per Available Passenger Cruise Days (“APCD”) increased 3.0% in Constant-Currency (up 3.2% As-Reported). Net Cruise Costs (“NCC”) excluding Fuel per APCD were up 4.1% in Constant-Currency (up 4.4% As-Reported).
Full Year 2019 Outlook:
- Adjusted earnings are expected to be in the range of $9.75 to $10.00 per share.
- Net Yields are expected to increase 6.5% to 8.5% in Constant-Currency and 6.0% to 8.0% As-Reported. These metrics include approximately 350 basis points from the operation of Silversea, the new cruise terminal in Miami and the Perfect Day development.
- NCC excluding Fuel per APCD are expected to increase 8.5% to 9.0% in Constant-Currency and 8.25% to 8.75% As-Reported. These metrics include approximately 650 basis points from the operation of Silversea, the cruise terminal in Miami and the Perfect Day development.
FULL YEAR 2018
US GAAP Net Income for the year was $1.8 billion or $8.56 per share and Adjusted Net Income was $1.9 billion or $8.86 per share. This result beat the January 2018 mid-point guidance by $0.21 per share and equates to a 17.5% year-over-year growth in adjusted earnings per share. This result was achieved despite the unfavorable impact from currency and fuel which negatively affected earnings by approximately $123 million or $0.58 per share versus the January 2018 guidance.
“This year our teams achieved record financial results while introducing four new vessels, acquiring Silversea Cruises, inaugurating two stunning cruise terminals and implementing Excalibur on about half of our fleet,” said Richard D. Fain, chairman and CEO. “By any measure 2018 was a particularly stellar year, and the strong Wave makes us optimistic about 2019 as well.”
Net Yields were up 4.4% in Constant-Currency. Strong demand for our core products, better onboard revenues and the consolidation from Silversea’s operations drove the year-over-year increase.
NCC excluding Fuel per APCD were up 4.1% in Constant-Currency. The main drivers behind the year-over-year increase were more drydock days, the lapping of hardware changes, investments in technology and the consolidation of Silversea’s operations.
FOURTH QUARTER RESULTS
US GAAP Net Income for the fourth quarter was $315.7 million or $1.50 per share and Adjusted Net Income was $322.1 million or $1.53 per share. Last year, US GAAP and Adjusted Net Income were $288.0 million or $1.34 per share.
Gross Yields were up 7.3% in Constant-Currency. Net Yields were up 6.8% in Constant-Currency, slightly better than the midpoint of guidance.
Gross Cruise Costs per APCD increased 6.1% in Constant-Currency. NCC excluding Fuel per APCD were up 5.1% in Constant-Currency, lower than guidance, driven by timing.
Favorability from depreciation and our joint ventures also contributed to the quarter’s positive performance.
Lastly, a combination of a stronger dollar and fuel rates negatively impacted the quarter by $0.04.
Bunker pricing net of hedging for the fourth quarter was $546.70 per metric ton and consumption was 357,700 metric tons.