Summary
Royal Caribbean Cruises Ltd. (RCL) reported strong financial performance in its 2018 10-K filing, highlighting an 18% increase in Adjusted EPS year-over-year, marking the fifth consecutive year of double-digit earnings growth. The company demonstrated robust revenue growth, with Total Revenues increasing by 8.2% to $9.5 billion, driven by both higher ticket prices and increased onboard spending per passenger. This growth was supported by a 4.0% increase in capacity, including the delivery of new, technologically advanced ships like Symphony of the Seas and Celebrity Edge. The company's strategic acquisitions, such as the 66.7% stake in Silversea Cruises, are expanding its presence in the ultra-luxury and expedition markets, positioning it for future capacity growth. RCL also continues to focus on operational efficiencies, cost management, and shareholder returns, evidenced by its share repurchase program and an announced 17% increase in its common stock dividend. Looking ahead to 2019, RCL anticipates continued growth with an expected capacity increase of 8.6% and projected Adjusted EPS between $9.75 and $10.00, signaling confidence in its ongoing expansion and profitability.
Financial Highlights
52 data points| Revenue | $9.49B |
| Cost of Revenue | $5.26B |
| Gross Profit | $4.23B |
| SG&A Expenses | $1.30B |
| Operating Income | $1.89B |
| Interest Expense | $333.67M |
| Net Income | $1.81B |
| EPS (Basic) | $8.60 |
| EPS (Diluted) | $8.56 |
| Shares Outstanding (Basic) | 210.57M |
| Shares Outstanding (Diluted) | 211.55M |
Key Highlights
- 1Achieved 18% year-over-year growth in Adjusted EPS in 2018, continuing a five-year trend of double-digit earnings growth.
- 2Total Revenues grew by 8.2% to $9.5 billion in 2018, driven by a 4.0% increase in capacity and higher ticket prices and onboard spending.
- 3Acquisition of a 66.7% stake in Silversea Cruises in July 2018, enhancing presence in the ultra-luxury and expedition cruise segments.
- 4Significant fleet expansion with the addition of new ships: Symphony of the Seas, Azamara Pursuit, and Celebrity Edge in 2018, and further new builds on order.
- 5Announced a 17% increase in common stock dividend and has $700 million remaining under its share repurchase program, demonstrating commitment to shareholder returns.
- 6Projected 2019 capacity increase of 8.6% and guidance for Adjusted EPS of $9.75-$10.00, indicating positive near-term outlook.
- 7Launched 'Perfect Day Island Collection' initiative with Perfect Day at CocoCay set to open in Spring 2019, aimed at enhancing destination experiences.