RCCL forecasts 2012 eps of $1.80 to $2.10, booking trend consistent with guidance

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 20 April 2012 20 April 2012

Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping company, has narrowed its 2012 earnings per share (eps) estimate to the range of $1.80 to $2.10 from $1.90 to $2.30 it forecast in February.

“The company reported that overall, booking trends and pricing have been consistent with prior guidance. Cumulative bookings since early February have been down mid single digits, although gradual improvement continues. Bookings from the United States have been running ahead of same time last year for the past four weeks,” RCCL said in a statement.

 “As expected, pricing reductions within the range of the company's previous guidance have been implemented to address booking shortfalls on certain products through the end of the third quarter. Nevertheless, Constant-Currency booked APD's remain ahead of the same time last year in all quarters. Overall, pricing remains in line with or higher than the same time last year for all major itinerary groups with the exception of Europe,” the company said.

 “Bookings for the fourth quarter of 2012 and for 2013 sailings remain strong, with both load factors and pricing running ahead of same time last year. In addition, the company has seen an increase in summer demand for its Pullmantur brand's tour product.”

 "Despite the extraordinary disruptions to our booking patterns this year, thus far the recovery is consistent with our forecasts," said Brian J. Rice, executive vice president and chief financial officer. Rice continued, "The Caribbean and Alaska remain healthy and as expected, a wide range of outcomes still persist regarding Europe this summer. While the marketplace is still volatile and uncertain, we are narrowing our yield and EPS ranges to reflect our best estimates at this time."

RCCL first quarter net profit falls to $47.0 million

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 20 April 2012 20 April 2012

Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping group, said its net income was $47.0 million, or $0.21 per share in the first quarter of this year, versus $78.4 million, or $0.36 per share, in the same period in 2011.The company had forecast a figure in the range of $0.10 to $0.20.

“Net Yields increased 7.0% on a Constant-Currency basis (+6.4% As-Reported). Net Cruise Costs ("NCC") excluding fuel increased 5.7% on a Constant-Currency basis (+5.1% As-Reported); Consistent with prior guidance, approximately 350 basis points of the Net Yield improvement and approximately 500 basis points of the NCC excluding fuel increase during the quarter related to previously announced deployment initiatives and changes to the company's distribution system,” the company said in a statement.

As expected, booking activity has continued to gradually improve over the last several months. Since the company's earnings announcement on February 2, 2012, the price of oil has risen which, at current levels and net of hedging, would increase bunker expenses $0.15 per share for the year.

As announced in the company's February 2, 2012 earnings release, Net Yields and NCC's this year are being influenced by two unique factors:

 Firstly, the company made some changes related to its International distribution system in 2011 which carry on into 2012 and will increase yields. The changes also increase expenses, but the bottom line impact is not material.

 Secondly, the company has increased its commitment in certain deployment initiatives which increase revenues but also increase related expenses. For example, China represents a strategic market initiative the company is augmenting significantly, RCCL said.