Summary
Royal Caribbean Cruises Ltd. (RCL) reported its third quarter 2012 financial results, showing a decrease in total revenues to $2.2 billion from $2.3 billion in the same quarter of the prior year. This decline was partly attributed to unfavorable foreign currency exchange rate fluctuations. Despite the revenue dip, the company managed cruise operating expenses effectively, also seeing a decrease, which contributed to a net income of $367.8 million ($1.68 diluted EPS) for the quarter. The nine-month period also saw a revenue increase to $5.9 billion, with net income at $411.1 million ($1.87 diluted EPS). The company continues to manage its debt, repurchasing a significant portion of its senior notes and entering into new credit facilities to manage future maturities. The company highlighted ongoing efforts in fleet modernization and deployment strategies, including new ship deliveries and the integration of new itineraries. While the Costa Concordia incident earlier in the year had an impact on booking patterns, management indicated it did not expect a significant long-term impact. RCL's liquidity remains strong, with substantial cash and equivalents and available credit facilities, enabling it to meet its short-term obligations and continue strategic investments in new vessels.
Financial Highlights
47 data points| Revenue | $2.23B |
| Cost of Revenue | $1.35B |
| Gross Profit | $878.07M |
| SG&A Expenses | $243.88M |
| Operating Income | $452.14M |
| Interest Expense | $84.98M |
| Net Income | $367.78M |
| EPS (Basic) | $1.69 |
| EPS (Diluted) | $1.68 |
| Shares Outstanding (Basic) | 217.94M |
| Shares Outstanding (Diluted) | 219.30M |
Key Highlights
- 1Total revenues for the third quarter of 2012 decreased by 4.1% to $2.2 billion compared to $2.3 billion in the third quarter of 2011, impacted by currency fluctuations and a decrease in ticket prices.
- 2Net income for the third quarter of 2012 was $367.8 million, or $1.68 per diluted share, down from $399.0 million, or $1.82 per diluted share, in the same period of 2011.
- 3For the nine months ended September 30, 2012, total revenues increased by 2.1% to $5.9 billion, while net income decreased to $411.1 million from $570.9 million in the prior year.
- 4The company repurchased €255.0 million (approximately $328.0 million) of its 5.625% unsecured senior notes due 2014, resulting in a loss on early extinguishment of debt of approximately $7.5 million.
- 5RCL entered into new credit facilities, including a Euro-denominated term loan facility of up to €365.0 million and borrowed $290.0 million under another unsecured term loan, primarily to manage debt maturities and reduce revolving credit balances.
- 6The company took delivery of the 'Celebrity Reflection' in October 2012, financed by a $673.5 million unsecured term loan.
- 7As of September 30, 2012, RCL had $241.2 million in cash and cash equivalents and $1.7 billion available under its unsecured credit facilities, indicating strong liquidity.