What was Royal Caribbean's financial performance in 2011?

In 2011, Royal Caribbean Cruises Ltd. reported a net income of $607.4 million, an 18% increase from $515.7 million in 2010. Total revenues grew by 11.6% to $7.5 billion, supported by a 7.5% increase in capacity and a 4.1% rise in Net Yields. The company's financial performance was strong despite a challenging geopolitical and economic environment.

How is the company managing its fleet and future growth?

Royal Caribbean is actively managing its fleet through revitalization programs and the addition of new, state-of-the-art ships. In 2011, they took delivery of "Celebrity Silhouette" and have "Celebrity Reflection" scheduled for late 2012. Additionally, two "Project Sunshine" vessels for Royal Caribbean International are on order for delivery in 2014 and 2015, which will increase passenger capacity by approximately 12%.

What is the company's strategy regarding international markets?

RCL is increasingly focusing on international expansion, with nearly half of its passenger ticket revenues now originating from outside the United States. Key growth markets include Southern Europe, Asia, and Australia. The company is adapting its product offerings and marketing efforts to cater to the preferences of these diverse guest bases.

How has the Costa Concordia incident affected RCL's business?

The Costa Concordia incident, which occurred in early 2012 shortly after the reporting period, had a near-term impact on new booking activity due to extensive media coverage and the temporary curtailment of marketing efforts. While the company noted a slowdown in bookings, its outlook for Net Yields and Net Cruise Costs excluding fuel remained largely unchanged, and management expressed confidence in the long-term stability of its business.

RCL 10-K FY2011 Annual Report — Revenue, Net Income, EPS

Summary

Royal Caribbean Cruises Ltd. (RCL) reported strong performance for the fiscal year ending December 31, 2011, with net income increasing by 18% to $607.4 million, or $2.77 per diluted share. Total revenues rose 11.6% to $7.5 billion, driven by an increase in capacity and higher ticket prices. The company benefited from a full year of operations for "Allure of the Seas" and the addition of "Celebrity Silhouette", alongside a 4.1% increase in Net Yields. Despite geopolitical events affecting some itineraries and a slight increase in operating expenses, including fuel costs, RCL demonstrated resilience. Looking ahead to 2012, RCL anticipated continued revenue growth, particularly from international markets, and planned strategic investments in fleet revitalization and technology. The company also reinstated its quarterly dividend in July 2011, signaling financial health. However, the report also acknowledges the near-term impact of the Costa Concordia incident on bookings, though management expressed confidence in its long-term business prospects. The company maintained a strong liquidity position and focused on improving credit metrics.

Financial Highlights

50 data points

Beta

Revenue

$7.54B

0.3% Gross Margin

Net Income

$607.42M

0.1% Net Margin

EPS (Diluted)

$2.77

Total Assets

$19.80B

Cash & Equivalents

$262.19M

Free Cash Flow

$282.11M

Financial Statements

Beta

Revenue	$7.54B
Cost of Revenue	$4.94B
Gross Profit	$2.59B
SG&A Expenses	$960.60M
Operating Expenses	$6.61B
Operating Income	$931.63M
Interest Expense	$382.42M
Net Income	$607.42M
EPS (Basic)	$2.80
EPS (Diluted)	$2.77
Shares Outstanding (Basic)	216.98M
Shares Outstanding (Diluted)	219.23M

Key Highlights

1Net income increased 18% to $607.4 million in 2011, up from $515.7 million in 2010.
2Total revenues grew 11.6% to $7.5 billion, driven by an 7.5% increase in capacity and a 4.1% rise in Net Yields.
3The company took delivery of "Celebrity Silhouette" and expects to continue fleet expansion with "Celebrity Reflection" in late 2012 and "Project Sunshine" vessels in 2014-2015.
4RCL reinstated its quarterly dividend in July 2011, signaling a return to profitability and confidence in future cash flows.
5International markets are a growing focus, with nearly half of passenger ticket revenues originating from outside the United States.
6The company amended and extended its primary revolving credit facility, enhancing its liquidity position.
7Despite the Costa Concordia incident impacting bookings, RCL maintained its outlook for Net Yields and Net Cruise Costs excluding fuel for 2012.

ROYAL CARIBBEAN CRUISES LTD Annual Report, Year Ended Dec 31, 2011

Summary

Financial Highlights

Key Highlights

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