Royal Caribbean Cruises Ltd (RCL) 10-Q Quarterly Report July 2023

Royal Caribbean Group (NYSE: RCL) today reported second quarter Earnings per Share of $1.70 and Adjusted Earnings per Share of $1.82. These results were significantly better than the company's guidance due to stronger pricing on closer-in demand and further strength in onboard revenue. As a result of the accelerating demand environment for its vacation experiences, the company is increasing its 2023 Adjusted Earnings per Share guidance by 33% to $6.00 – $6.20.

"Our brands continue to fire on all cylinders, resulting in record yields and second quarter earnings significantly exceeding our expectations,” said Jason Liberty, president and CEO, Royal Caribbean Group. “Demand for cruising and our brands is exceptionally strong and we have seen another step change in booking volumes and pricing, leading us to now expect double-digit net yield growth for the full year. We also expect to achieve record Adjusted EBITDA per APCD and Return on Invested Capital this year and are well on our way toward achieving our Trifecta goals.”

Key Highlights

Strong ticket pricing from both North America and Europe itineraries, combined with strength in onboard revenue, led to better-than-expected revenues in the second quarter and the significant increase in the company's full year outlook for revenue and earnings.

Second Quarter 2023:

•Gross Margin Yields increased 13.1% As-Reported, and Net Yields increased 12.9% in Constant-Currency (12.6% As-Reported), both compared to the second quarter of 2019.

The following information was filed by Royal Caribbean Cruises Ltd (RCL) on Thursday, July 27, 2023 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Royal Caribbean Cruises Ltd's 10-Q Quarterly Report:

Financial - Earnings Highlight
Adjusted Earnings (Loss) per Share ("Adjusted EPS") is a non-GAAP measure that represents Adjusted Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. (as defined below) divided by weighted average shares outstanding or by diluted weighted average shares outstanding, as applicable.

Financial - Earnings Highlight
We utilize Adjusted Gross Margin and Net Yields to manage our business on a day-to-day basis as we believe that they are the most relevant measures of our pricing performance because they reflect the cruise revenues earned by us net of our most significant variable costs, which are commissions, transportation and other expenses, and onboard and other expenses.
Financial - Earnings Highlight
29 Gross Margin Yields and Net Yields were calculated by dividing Gross Margin and Adjusted Gross Margin by APCD as follows (in thousands, except APCD and Yields): ` 30 Gross Cruise Costs, Net Cruise Costs and Net Cruise Costs Excluding Fuel were calculated as follows (in thousands, except APCD and costs per APCD): (1) Represents gain on sale of controlling interest in cruise terminal facilities in Italy.
Other - Other Highlight
The decrease was primarily attributable to a decrease in capital expenditures of $1.3 billion during 2023, compared to the same period in 2022, due to the delivery of Wonder of the Seas and Celebrity Beyond in 2022 compared to the delivery of Silver Nova during the same period in 2023, and a decrease in cash paid on the settlement of derivative financial instruments of $251.1 million during 2023, compared to the same period in 2022.
Financial - Debt Highlight
For the periods presented, these items included (i) loss on the extinguishment of debt; (ii) gain on sale of controlling interest; (iii) tax on the sale of PortMiami noncontrolling interest; (iv) Silver Whisper deferred tax liability release; (v) recovery of losses from one of our equity method investees; (vi) impairment and credit losses (recoveries) (vii) the amortization of the Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition in 2018; and (viii) restructuring charges and other initiative expenses.
Financial - Expense
Depreciation and Amortization Expenses Depreciation...Read more
Financial - Earnings
Net Income attributable to Royal...Read more
Financial - Expense
A reconciliation of Gross Cruise...Read more
Financial - Expense
Depreciation and Amortization Expenses Depreciation...Read more
Financial - Earnings
Results of Operations Summary Net...Read more
Revenue - Product
The increase in revenues reflect...Read more
Revenue - Product
The increase in revenues reflect...Read more
Other - Other
These non-GAAP financial measures are...Read more
Other - Other
We have not provided a...Read more
Financial - Expense
Cruise Operating Expenses Total Cruise...Read more
Financial - Expense
Cruise Operating Expenses Total Cruise...Read more
Financial - Expense
The increase was primarily due...Read more
Other - Other
The increase reflects our full...Read more
Financial - Earnings
A reconciliation of Earnings (Loss)...Read more
Financial - Income
For the 2023 and 2022...Read more
Financial - Expense
The increase was primarily due...Read more
Financial - Earnings
Adjusted Net Income (Loss) attributable...Read more
Financial - Expense
The increase was primarily due...Read more
Revenue - Product
32 Six Months Ended June...Read more
Financial - Expense
Total cruise operating expenses, increased...Read more
Other - Other
25 Effective March 31, 2023,...Read more
Revenue - Product
Onboard and other revenues also...Read more
Other - Other
(3)Represents the release of the...Read more
Financial - Debt
Debt denominated in other currencies...Read more
Revenue - Product
Passenger ticket revenues for 2023...Read more
Revenue - Product
Passenger ticket revenues for 2023...Read more
Revenue - Product
The remaining 30.6% of 2023...Read more
Revenue - Product
The remaining 32.3% of 2023...Read more
Financial - Expense
28 Selected statistical information is...Read more
Financial - Expense
The increase was primarily due...Read more
Revenue - Product
Revenues Total revenues for 2023...Read more
Financial - Debt
35 Material Cash Requirements As...Read more
Financial - Expense
In measuring our ability to...Read more
Other - Other
The increase reflects our full...Read more
Financial - Shares
In June 2023, our 4.25%...Read more
Revenue - Geography
Due to significant uncertainty, we...Read more
Other - Other
(2) Represents asset impairments and...Read more
M & A - Other
(5)Represents the amortization of the...Read more
Financial - Earnings
Adjusted EBITDA is a non-GAAP...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Royal Caribbean Cruises Ltd provided additional information to their SEC Filing as exhibits

Exhibit 10.1: Material Contract

Exhibit 10.2: Material Contract

Exhibit 10.3: Material Contract

Exhibit 10.4: Material Contract

Exhibit 10.5: Material Contract

Exhibit 10.6: Material Contract

Exhibit 10.7: Material Contract

Exhibit 10.8: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: RCL
CIK: 884887
Form Type: 10-Q Quarterly Report
Accession Number: 0000884887-23-000044
Submitted to the SEC: Thu Jul 27 2023 5:22:36 PM EST
Accepted by the SEC: Thu Jul 27 2023
Period: Friday, June 30, 2023
Industry: Water Transportation

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Royal Caribbean Cruises Ltd (RCL) SEC Filing 10-Q Quarterly Report for the period ending Friday, June 30, 2023

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