Summary
Royal Caribbean Cruises Ltd. (RCL) reported a decrease in total revenues for the third quarter and the first nine months of 2009 compared to the same periods in 2008. This decline was primarily attributed to increased discounting on ticket prices, a slight decrease in onboard spending, and the adverse impact of foreign currency fluctuations due to a stronger U.S. dollar. The company also experienced a decrease in occupancy rates, influenced by the global economic downturn and specific market pressures, particularly in Spain, as well as the impact of the H1N1 virus on certain destinations. Despite revenue challenges, RCL demonstrated effective cost management. Total cruise operating expenses decreased due to lower fuel prices, reduced commissions, and optimized transportation and lodging costs. Marketing, selling, and administrative expenses saw a slight increase, driven by international expansion efforts. The company's net income for the third quarter of 2009 was $230.4 million, or $1.07 per diluted share, compared to $411.9 million, or $1.92 per diluted share, in the prior year. For the nine-month period, net income was $159.1 million, or $0.74 per diluted share, a significant decrease from $572.2 million, or $2.67 per diluted share, in 2008. RCL anticipates further challenges in the fourth quarter of 2009, projecting a net loss per share, but forecasts full-year 2009 earnings per share of approximately $0.70, with expectations for year-over-year improvements in Net Yields in 2010.
Financial Highlights
25 data points| Revenue | $1.76B |
| Cost of Revenue | $1.12B |
| Gross Profit | $647.46M |
| SG&A Expenses | $196.59M |
| Operating Income | $306.84M |
| Interest Expense | $74.60M |
| Net Income | $229.71M |
| EPS (Basic) | $1.07 |
| EPS (Diluted) | $1.07 |
| Shares Outstanding (Basic) | 213.84M |
| Shares Outstanding (Diluted) | 215.67M |
Key Highlights
- 1Total revenues for Q3 2009 decreased by 14.5% to $1.76 billion compared to $2.06 billion in Q3 2008, primarily due to lower ticket prices and onboard spending.
- 2Net income for Q3 2009 was $230.4 million ($1.07 per diluted share), down from $411.9 million ($1.92 per diluted share) in Q3 2008.
- 3Fuel expenses decreased significantly (31.3% per metric ton in Q3 2009 vs. Q3 2008) due to lower fuel prices, contributing to lower overall operating expenses.
- 4The company took delivery of the new Oasis of the Seas in October 2009 and Celebrity Equinox in July 2009, increasing capacity.
- 5Net Yields decreased by 16.5% in Q3 2009 compared to Q3 2008, reflecting pricing pressures and reduced consumer spending.
- 6Net Cruise Costs per Available Passenger Cruise Day (APCD) decreased by 10.0% in Q3 2009 compared to Q3 2008, demonstrating effective cost control measures.
- 7The company maintained compliance with all debt covenants, with a Net Debt-to-Capital ratio of 48.5% as of September 30, 2009.