Summary
Royal Caribbean Cruises Ltd. (RCL) reported strong financial performance for the fiscal year ended December 31, 2017, achieving record Adjusted Earnings Per Share (EPS) for the fourth consecutive year and exceeding targets set by its 'Double-Double' program. The company saw an increase in total revenues to $8.8 billion, driven by higher ticket prices and onboard spending per passenger. Despite disruptions from the 2017 hurricane season and geopolitical tensions impacting travel to South Korea, RCL demonstrated resilience and growth, signaling a positive outlook for the cruise industry. The company continues to focus on fleet modernization and expansion, with significant new ship orders across its global brands, including the upcoming Symphony of the Seas, Celebrity Edge, and Azamara Pursuit. RCL also made strides in shareholder returns through share repurchases and a 25% increase in its common stock dividend. Furthermore, the company's senior unsecured debt was upgraded to investment grade by Moody's and S&P, reflecting its improved financial health and strategic execution. RCL remains committed to cost efficiency, innovation, and enhancing the guest experience.
Financial Highlights
52 data points| Revenue | $8.78B |
| Cost of Revenue | $4.90B |
| Gross Profit | $3.88B |
| SG&A Expenses | $1.19B |
| Operating Expenses | $7.03B |
| Operating Income | $1.74B |
| Interest Expense | $299.98M |
| Net Income | $1.63B |
| EPS (Basic) | $7.57 |
| EPS (Diluted) | $7.53 |
| Shares Outstanding (Basic) | 214.62M |
| Shares Outstanding (Diluted) | 215.69M |
Key Highlights
- 1Record Adjusted EPS for the fourth consecutive year, exceeding 'Double-Double' program targets ($7.53 per diluted share in 2017).
- 2Total revenues increased by 3.3% to $8.8 billion in 2017, driven by higher ticket prices and onboard spending.
- 3Significant fleet expansion planned with multiple new ship orders across Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises brands.
- 4Successful completion of the 'Double-Double' program, achieving target Adjusted EPS and exceeding 10% Return on Invested Capital (ROIC).
- 5Shareholder returns enhanced through a $500 million share repurchase program and a 25% dividend increase.
- 6Credit rating upgraded to investment grade by Moody's and S&P, signaling improved financial stability.
- 7Resilience shown despite challenges like the 2017 hurricane season and China's South Korea travel restrictions, with Net Yields increasing by 6.4% on a constant currency basis.