Hi Everyone,
I received this press release from Royal Caribbean and thought it
would be of interest.
--
Ray Goldenberg 800-719-9917 or 805-566-3905
Lighthouse Travel http://www.lighthousetravel.com
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Royal Caribbean Reports Third Quarter Results
MIAMI, Nov. 3
Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) today announced earnings
for the third quarter of 2009 and provided guidance for the fourth
quarter and full year.
Key Highlights
-- Third quarter 2009 net income was $230.4 million, or $1.07 per
share,
compared to net income of $411.9 million, or $1.92 per share
in 2008.
The results were better than the company's most recent
guidance of $0.95
to $1.00 per share, driven primarily by the strength of
close-in
bookings.
-- Net Yields for the third quarter decreased 16.5% versus 2008,
somewhat
better than the company's previous guidance of down
approximately 18%.
-- Net Cruise Costs per APCD ("NCC") for the third quarter
decreased 10.0%
versus 2008. NCC, excluding bunker for the third quarter
declined 3.8%
versus 2008.
-- The company projects net yields to decline 7% to 8% in the
fourth
quarter and approximately 14% for the full year.
-- Earnings per share ("EPS") estimates for the full year are
expected to
be approximately $0.70 and are expected to be a slight loss in
the
fourth quarter.
-- The company took delivery of the widely anticipated Oasis of
the Seas on
October 28th.
"Like many other travel companies, we saw more strength than we
expected during our peak season but have been experiencing more
pricing pressure on some of our traditionally softer fall season
sailings," said Richard D. Fain, chairman and chief executive officer.
Fain continued, "Overall though, the business environment is largely
unchanged and stable. We expect the yield deficit to continue to
improve in the fourth quarter and we remain optimistic that 2010 will
bring year-over-year yield improvement."
Third Quarter 2009 Results
Royal Caribbean Cruises Ltd. today announced net income for the third
quarter 2009 of $230.4 million, or $1.07 per share, compared to net
income of $411.9 million, or $1.92 per share, in 2008.
Revenues were $1.8 billion, versus $2.1 billion in the third quarter
of 2008. Net Yields decreased 16.5% from the prior year or 14.5% after
adjusting for year over year changes in currency. Net yields improved
approximately one and a half percentage points from the company's
previous guidance, mainly as a result of the strength of close-in
bookings. As was announced during the second quarter, the H1N1 virus
had a negative impact on yields of approximately two percentage points
during the third quarter.
NCC decreased 10.0% from the prior year or 8.8% after adjusting for
changes in currency. NCC, excluding fuel, declined 3.8% from the prior
year or 2.2% after adjusting for changes in currency.
Fuel costs were in-line with the company's previous calculations.
Third quarter pricing averaged $460 per metric ton and consumption was
318.2 thousand metric tons.
Revenue Environment
The company reported that booking volume since mid-September was up
about 40% compared to same period last year, with favorable comparison
for cruises departing both in the fourth quarter and next year. "While
the pricing environment is still not what we'd like it to be, we're
pleased to see solid growth in our order book and a rapidly
diminishing gap in year-over-year booked volume comparisons," said
Brian J. Rice, executive vice president and chief financial officer.
The company expects fourth quarter Net Yields to decline approximately
7% to 8%, slightly worse than its previous forecast of down mid-single
digits. "During the fourth quarter, we historically source a
disproportionate number of our guests from Florida," said Rice. "As a
consequence of the weaker economy in the state, we do not anticipate
the same strength of close-in bookings in the fourth quarter as we saw
in the third quarter."
The company noted that its new ships, Royal Caribbean's Oasis-class
and Celebrity's Solstice-class vessels, continue to command
significant premiums and volumes. Oasis of the Seas will enter service
on December 1, 2009; Celebrity Solstice and Celebrity Equinox are
already in service, with Celebrity Eclipse debuting in April of 2010.
For the full year the company maintained its projection for Net Yields
to decline approximately 14%, or 12% to 13% after adjusting for
changes in currency.
The company affirmed its earlier outlook for year-over-year
improvements in net revenue yields in the first quarter and for the
full year of 2010.
Expense Guidance
NCC are forecasted to decrease approximately 10% for the fourth
quarter and the full year. After adjusting for changes in currency,
NCC are forecasted to decline approximately 12% in the fourth quarter
and 8% to 9% for the full year.
Excluding fuel, NCC are expected to decline 7% to 8% for the fourth
quarter and approximately 6% to 7% for the full year.
While it is early in the annual planning process, the company did
comment that it anticipates flat NCC, excluding fuel, for full year
2010. Efficiencies on the new hardware, sustainable cost reductions
completed in 2008 and 2009 and having attained initial critical mass
in its international operations are all factors that will support this
goal.
Fuel Expense
The company does not forecast fuel price changes and its cost
calculations are based on current at-the-pump prices net of hedging
impacts. Based on today's fuel prices the company has included $158
million and $596 million of fuel expense in its fourth quarter and
full year 2009 guidance, respectively.
The company's fuel consumption is currently 40% hedged for the fourth
quarter. In keeping with its previously disclosed hedging strategy,
forecasted consumption is now 50% hedged in 2010, 50% hedged in 2011
and 10% hedged in 2012.
For the rest of the 3rd quarter results, please see:
http://bit.ly/4Bt3aE |