Summary
Royal Caribbean Cruises Ltd. (RCL) reported significant revenue declines for the quarter and six months ended June 30, 2021, compared to the prior year, primarily due to the ongoing impact of the COVID-19 pandemic and the suspension of global cruise operations. Despite the revenue drop, the company showed signs of recovery with improved booking volumes for 2021 and 2022 sailings, at prices higher than pre-pandemic levels. RCL has been actively managing its liquidity, securing substantial financing and implementing cost-saving measures. The company is gradually resuming operations, with a significant portion of its fleet expected to be back in service by the end of 2021. While the company continues to face operating losses, investors should note the efforts in debt management and the strategic extensions of credit facilities. The significant increase in customer deposits, partly due to future cruise credits, indicates a level of customer confidence. The outlook remains cautious, with ongoing uncertainties related to health protocols, potential future disruptions, and the pace of full fleet return. However, the company believes it has sufficient liquidity to fund its obligations for at least the next twelve months.
Financial Highlights
49 data points| Revenue | $50.91M |
| Cost of Revenue | $424.83M |
| Gross Profit | -$373.92M |
| SG&A Expenses | $285.56M |
| Operating Income | -$1.02B |
| Interest Expense | $304.81M |
| Net Income | -$1.35B |
| EPS (Basic) | $-5.29 |
| EPS (Diluted) | $-5.29 |
| Shares Outstanding (Basic) | 254.58M |
| Shares Outstanding (Diluted) | 254.58M |
Key Highlights
- 1Total revenues for the second quarter of 2021 decreased by 71.0% to $50.9 million compared to $175.6 million in the second quarter of 2020, reflecting the ongoing impact of COVID-19.
- 2The company reported a Net Loss attributable to Royal Caribbean Cruises Ltd. of $1.35 billion for Q2 2021, compared to a Net Loss of $1.64 billion in Q2 2020.
- 3Average monthly cash burn rate for Q2 2021 was approximately $330 million, slightly higher than the previous quarter due to more ships returning to operation.
- 4Total debt increased to $21.0 billion as of June 30, 2021, with the company taking significant financing actions, including issuing new debt and equity, to bolster liquidity.
- 5Booking volumes improved in Q2 2021 compared to Q1 2021, with pricing for 2021 and 2022 sailings reported to be higher than in 2019.
- 6By the end of 2021, RCL anticipates having 80% of its fleet in service.
- 7Customer deposits increased to $2.4 billion as of June 30, 2021, with approximately 40% of this balance related to future cruise credits.