Summary
Royal Caribbean Cruises Ltd. (RCL) reported first-quarter 2011 results showing a significant increase in total revenues, up 12.5% year-over-year to $1.7 billion. This growth was driven by a 10.1% increase in capacity and a 4.0% rise in Net Yields, attributed to higher ticket prices and increased occupancy. Despite higher operating expenses associated with expanded capacity, the company's net income rose slightly to $91.6 million, or $0.42 per diluted share, from $87.4 million, or $0.40 per diluted share, in the prior year's first quarter. The company also demonstrated improved financial health with a reduction in its Net Debt-to-Capital ratio to 50.1% from 52.4% at the end of 2010. Looking ahead, RCL provided an optimistic outlook for the full year 2011, projecting Net Yields to increase by 5%-7% and announcing plans for a 7.5% capacity increase driven by new ship deployments. The company also highlighted strategic fleet development, including the agreement for a new generation of Royal Caribbean International ships, and reaffirmed its focus on cost management and liquidity. The sale of ships, such as the Celebrity Mercury, contributed positively to investing activities, while financing activities showed increased debt repayments alongside new borrowings.
Financial Highlights
46 data points| Revenue | $1.67B |
| Cost of Revenue | $1.10B |
| Gross Profit | $570.92M |
| SG&A Expenses | $248.14M |
| Operating Income | $149.53M |
| Interest Expense | $100.63M |
| Net Income | $78.41M |
| EPS (Basic) | $0.36 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 216.51M |
| Shares Outstanding (Diluted) | 219.63M |
Key Highlights
- 1Total revenues increased by 12.5% to $1.7 billion in Q1 2011, driven by a 10.1% increase in capacity and a 4.0% rise in Net Yields.
- 2Net income for Q1 2011 was $91.6 million ($0.42/share), a modest increase from $87.4 million ($0.40/share) in Q1 2010.
- 3Net Debt-to-Capital ratio improved to 50.1% as of March 31, 2011, down from 52.4% as of December 31, 2010.
- 4The company expects full-year 2011 Net Yields to increase by 5%-7% and Net Cruise Costs per APCD to increase by 5%-6%.
- 5Capacity is projected to increase by 7.5% for the full year 2011 due to new ship additions.
- 6Investing activities were boosted by proceeds from ship sales, including Celebrity Mercury, offsetting capital expenditures.
- 7Financing activities involved significant debt repayments and new borrowings, leading to a decrease in total debt.