MIAMI, Feb. 7, 2023
/PRNewswire/ -- Royal Caribbean Group (NYSE: RCL) today reported
fourth quarter 2022 Loss per Share of $(1.96) and Adjusted Loss per Share of
$(1.12). These results exceeded the
company's guidance due to better pricing on close-in demand, strong
onboard spend, favorable timing of operating costs, and lower
interest expense.
"2022 was a pivotal year as we successfully returned our
business to full operations and delivered memorable vacation
experiences to 6 million guests," said Jason Liberty, president and
chief executive officer, Royal Caribbean Group. "We also returned
to positive Adjusted EBITDA and Operating Cash Flow by consistently
growing revenue and controlling costs. Our teams have worked
tirelessly to deliver the best vacation experiences, responsibly,
and we are grateful for their extraordinary efforts."
"We are experiencing a record-breaking WAVE season, resulting in
a booked position approaching previous record highs and at higher
prices. This, along with the normalization of our booking window,
provides the visibility for us to provide annual guidance, which is
in line with our Trifecta program," added Liberty. "The combination
of our industry-leading global brands, most innovative fleet,
nimble sourcing and our continued focus on profitability positions
us well to deliver record yields and Adjusted EBITDA in 2023."
Financial Highlights & Outlook
Fourth Quarter 2022:
- Load Factors were in line with guidance at 95%, with
Caribbean sailings reaching 100%,
and holiday sailings close to 110%.
- Total revenues per passenger cruise day were up 3.5%
as-reported and 4.5% in Constant Currency, compared to the fourth
quarter of 2019.
- Total revenues were $2.6 billion,
Net Loss was $(500.2) million or
$(1.96) per share, Adjusted Net Loss
was $(284.9) million or $(1.12) per share, and Adjusted EBITDA was
$409.3 million.
Full Year 2022:
- Load Factors were 85% overall, full fleet back in operation
since June of 2022.
- Total revenues were $8.8 billion,
Net Loss was $(2.2) billion or
$(8.45) per share, Adjusted Net Loss
was $(1.9) billion or $(7.50) per share, and Adjusted EBITDA was
$711.6 million.
Full Year 2023 Outlook:
- The company is experiencing a record-breaking WAVE season,
driven by strong demand. The seven biggest booking weeks in the
company's history have occurred since the last earnings call in
November 2022.
- 2023 cumulative booked position remains well within historical
ranges for all quarters and at record rates. North America based itineraries are booked in
line with 2019 for the full year, and ahead for the second quarter
through the fourth quarter.
- Net Yields are expected to increase 2.5% to 4.5% in both
as-reported and in Constant Currency versus 2019. Net Yields are
expected to ramp up as load factors reach historical levels by late
spring.
- The company continues to successfully manage costs in a
complicated environment with Net Cruise Costs (NCC), excluding
Fuel, per APCD expected to increase 4.5% to 5.5% as-reported and
4.75% to 5.75% in Constant Currency compared to 2019, a three-year
old benchmark, and include approximately 210 basis points from
lingering transitional costs (e.g. crew movement) and additional
structural costs (e.g. full year operations of Perfect Day at
CocoCay and the new Galveston terminal).
- The company expects to exceed prior record Adjusted EBITDA,
achieved in 2019.
- The company expects Adjusted Earnings per Share in the range of
$3.00 to $3.60.
First Quarter 2023 Outlook:
- Net Yields are expected to increase 0.5% to 1.5% as-reported
and 1% to 2% in Constant Currency compared to 2019, with load
factors reaching 100% and total revenues per passenger cruise day
up in the mid-to-high single digit range in both as-reported and
Constant Currency compared to 2019.
- NCC, excluding Fuel, per APCD is expected to increase
approximately 8.3% as-reported and approximately 8.5% in Constant
Currency, compared to 2019, including 320 basis points of lagging
transitional costs, additional structural costs, and timing of
expenses.
- Adjusted Loss per Share is expected to be in the range of
$(0.65) – $(0.85).
Fourth Quarter 2022 Results
The company reported Net Loss for the fourth quarter of 2022
of $(0.5) billion or $(1.96) per
share compared to Net Loss of $(1.4)
billion or $(5.33) per share
for the same period in the prior year. Adjusted Net Loss was
$(0.3) billion or $(1.12) per share for the fourth quarter of 2022
compared to Adjusted Net Loss of $(1.2)
billion or $(4.78) per share
for the same period in the prior year.
Fourth quarter Load Factors were in line with guidance at 95%,
with Caribbean sailings reaching
100%. Total revenues per passenger cruise day were up 3.5%
as-reported and 4.5% in Constant Currency versus the fourth quarter
of 2019 due to strong pricing on close-in demand and continued
strength in onboard revenues.
Gross Cruise Costs per APCD increased 4.9% as-reported and 5.8%
in Constant Currency, compared to the fourth quarter of 2019. NCC,
excluding Fuel, per APCD increased 3.9% as-reported and 4.7% in
Constant Currency, compared to the fourth quarter of 2019. Gross
Cruise Costs per APCD and NCC, excluding Fuel, per APCD for the
fourth quarter included $1.23 per
APCD related to health protocols and one-time lagging costs related
to fleet ramp up. The Group expects transitory costs related to
health protocols and ramp up of operations to be largely gone in
2023 as the majority of crew have returned and protocols have
eased. In the fourth quarter, the company continued to benefit from
multiple actions taken to reshape its cost structure and to help
partially offset inflationary and supply chain challenges.
"Fourth quarter results reflect the continued strong demand for
our vacation experiences and our teams' ability to manage costs in
a complicated environment while staying focused on delivering the
best vacation experiences expected by our guests," said
Naftali Holtz, chief financial
officer, Royal Caribbean Group. "The benefit from multiple actions
we have taken during the last few years to improve margins continue
to yield results, as we focus on executing our proven formula of
moderate yield growth and strong cost controls."
The company recorded a loss contingency of $130 million in the fourth quarter related to a
Helms-Burton Act claim which the company continues to vigorously
defend.
Full Year 2022 Results
For the full year, the company reported Net Loss of $(2.2) billion or $(8.45) per share compared to Net Loss of
$(5.3) billion or $(20.89) per share in the prior year. The company
also reported Adjusted Net Loss of $(1.9)
billion or $(7.50) per share
for the full year 2022 compared to Adjusted Net Loss of
$(4.8) billion or $(19.19) per share in the prior year.
Update on Bookings
The company is very encouraged about the demand environment for
2023. Booking volumes in the fourth quarter were significantly
higher than the corresponding period in 2019, culminating in record
booking weeks for the Group for both Black Friday and Cyber
Monday. Momentum continues into early 2023 and the company is
experiencing a record-breaking WAVE season. Overall, the seven
biggest booking weeks in the company's history have occurred since
the middle of November 2022,
including the first five weeks of WAVE. The booking window has
continued to move back to normal, providing further confidence in
forward looking business, as guests plan for the future. Consumer
spending onboard and pre-cruise purchases continue to exceed prior
years driven by greater participation at higher prices, indicating
quality and healthy future demand.
The cumulative booked position remains well within historical
ranges at record rates and has improved significantly since
November. North America sailings,
many of which visit Perfect Day at CocoCay, are leading the way and
are booked in line with record 2019 levels for the full year and
ahead for the second quarter through the fourth quarter. Bookings
for European itineraries have been accelerating during WAVE and are
now higher than 2019.
"Leisure travel strength continues as consumer spend is shifting
towards experiences, with cruising remaining an attractive value
proposition," said Liberty. "The quality demand trends further
exhibit the strength of our brands and the growing propensity to
cruise."
As of December 31, 2022, the
Group's customer deposit balance was at a record $4.2 billion.
Fuel Expense
Bunker pricing, net of hedging, for the fourth quarter was
$694 per metric ton and consumption
was 422,000 metric tons.
The company does not forecast fuel prices and its fuel cost
calculations are based on current at-the-pump prices, net of
hedging impacts. Based on today's fuel prices, the company has
included $294 million of fuel expense in its first quarter guidance
at a forecasted consumption of 412,500 which is 57% hedged via
swaps. Forecasted consumption is 55% hedged via swaps for full year
2023 and is 10% hedged via swaps for 2024. The annual average cost
per metric ton of the hedge portfolio is approximately $583 for 2023 and $826 for 2024. The higher average hedged cost in
2024 is driven primarily by the hedged fuel mix, with 2024
currently hedged with Marine Gas Oil ("MGO") swaps, while 2023 is
hedged fairly evenly between MGO and Intermediate Fuel Oil ("IFO")
swaps.
The company provided the following guidance for the first
quarter and full year 2023:
FUEL
STATISTICS
|
First Quarter
2023
|
Full Year
2023
|
Fuel Consumption
(metric tons)
|
412,500
|
1,654,000
|
Fuel
Expenses
|
Approx. $294
million
|
Approx. $1,141
million
|
Percent Hedged (fwd.
consumption)
|
57.0 %
|
55.0 %
|
|
|
|
|
|
|
GUIDANCE
|
As-Reported
|
Constant
Currency
|
|
|
|
First Quarter
2023
|
|
|
|
Net Yields vs.
2019
|
0.5% to
1.5%
|
1% to 2%
|
Net Cruise Costs per
APCD vs. 2019
|
Approx.
14.7%
|
Approx.
14.9%
|
Net Cruise Costs per
APCD ex. Fuel vs. 2019
|
Approx. 8.3%
|
Approx. 8.5%
|
|
|
|
Full Year
2023
|
|
|
|
Net Yields vs.
2019
|
2.5% to
4.5%
|
2.5% to
4.5%
|
Net Cruise Costs per
APCD vs. 2019
|
9.7% to
10.7%
|
9.8% to
10.8%
|
Net Cruise Costs per
APCD ex. Fuel vs. 2019
|
4.5% to 5.5%
|
4.75% to
5.75%
|
|
|
|
GUIDANCE
|
First Quarter
2023
|
Full Year
2023
|
APCDs
|
11.2 million
|
47 million
|
Capacity
change vs. 2019
|
14.0 %
|
14.0 %
|
Depreciation and
amortization
|
Approx. $360
million
|
$1,470 to $1,490
million
|
Net Interest,
excluding loss on extinguishment of debt
|
$330 to $340
million
|
$1,310 to $1,350
million
|
Adjusted
EPS
|
$(0.65) to
$(0.85)
|
$3.00 to
$3.60
|
|
|
|
|
|
|
SENSITIVITY
|
First Quarter
2023
|
Full Year
2023
|
1% Change in
Currency
|
$3 million
|
$15 million
|
1% Change in Net
Yields
|
$22 million
|
$102 million
|
1% Change in NCC
excluding Fuel
|
$14 million
|
$55 million
|
100 basis pt. Change
in LIBOR/SOFR
|
$5 million
|
$34 million
|
10% Change in Fuel
prices
|
$29 million
|
$114 million
|
|
|
Exchange rates used
in guidance calculations
|
|
GBP
|
$1.23
|
|
AUD
|
$0.71
|
|
CAD
|
$0.75
|
|
EUR
|
$1.09
|
|
Liquidity and Financing Arrangements
As of December 31, 2022, the
Group's liquidity position was $2.9
billion, which includes cash and cash equivalents, undrawn
revolving credit facility capacity, and a $700 million commitment for a 364-day term loan
facility.
During the fourth quarter, the company repaid $0.6 billion of debt maturities and closed on the
refinancing of $2.0 billion of
secured and guaranteed debt previously due June 2023.
Additionally, in January 2023, the
company extended $2.3 billion of its
existing revolving credit facility commitment to April 2025.
The company noted that as of December 31,
2022, and taking into effect the extension of the credit
facilities, the scheduled debt maturities for 2023, 2024, 2025 and
2026 were $2.1 billion, $2.6 billion, $5.7
billion and $2.8 billion,
respectively. Approximately 75% of the company's debt is tied
to fixed interest rates.
Capital Expenditures and Capacity Guidance
Capital expenditures for the full-year 2023 are expected to be
approximately $4.1 billion, based on
current foreign exchange rates and are predominantly related to the
company's new ship order book. The company expects to take delivery
of three new ships in 2023 including Icon of the Seas,
Celebrity Ascent and Silver Nova. All ship orders
have committed financing in place. Non-new ship related capital
expenditures are expected to be $0.5
billion. Capacity changes for 2023 are expected to be 14%
compared to 2019. Capacity changes for 2024, 2025 and 2026 are
expected to be 10%, 5%, and 6%, respectively. These figures do not
include potential ship sales or additions that the company may
elect in the future.
Conference call scheduled
The company has scheduled a conference call at 10 a.m. Eastern Time today. This call can
be heard, either live or on a delayed basis, on the company's
investor relations website at www.rclinvestor.com.
Definitions
Selected Operational and Financial Metrics
Adjusted EBITDA is a non-GAAP measure that represents EBITDA (as
defined below) excluding certain items that we believe adjusting
for is meaningful when assessing our profitability on a comparative
basis. For the 2022 and 2021 periods, these items included (i)
other expenses, which includes the estimate of amounts payable in
connection with ongoing Havana Docks litigation recorded in 2022;
(ii) impairment and credit losses; (iii) restructuring charges and
other initiative expenses; (iv) equity investment asset
impairments; (v) net insurance recoveries related to the collapse
of the drydock structure at the Grand Bahama Shipyard involving
Oasis of the Seas; (vi) Pullmantur reorganization
settlement; and (vii) the net gain recognized in 2021 in relation
to the sale of the Azamara brand.
Adjusted Net Income (Loss) is a non-GAAP measure that represents
net income (loss) excluding certain items that we believe adjusting
for is meaningful when assessing our performance on a comparative
basis. For the 2022 and 2021 periods presented, these items
included (i) gain or loss on the extinguishment of debt; (ii) the
amortization of non-cash debt discount on our convertible notes;
(iii) the estimated cash refunds expected to be paid to Pullmantur
guests as part of the Pullmantur S.A. reorganization in 2020; (iv)
impairment and credit losses; (v) equity investment asset
impairments; (vi) net insurance recoveries related to the collapse
of the drydock structure at the Grand Bahama Shipyard involving
Oasis of the Seas; (vii) restructuring charges and other initiative
expenses; (viii) the amortization of the Silversea Cruises
intangible assets resulting from the Silversea Cruises acquisition
in 2018; (ix) the net gain recognized in 2021 in relation to the
sale of the Azamara brand; (x) the net loss recognized in the
fourth quarter of 2021 related to the elimination of the
three-month reporting lag for Silversea Cruises; and (xi) the
estimated amounts that may be payable in relation to the ongoing
Havana Docks litigation.
Adjusted Earnings (Loss) per Share ("Adjusted EPS") is a
non-GAAP measure that represents Adjusted Net Income (Loss) (as
defined below) divided by weighted average shares outstanding or by
diluted weighted average shares outstanding, as applicable. We
believe that this non-GAAP measure is meaningful when assessing our
performance on a comparative basis.
Available Passenger Cruise Days ("APCD") is our measurement of
capacity and represents double occupancy per cabin multiplied by
the number of cruise days for the period, which excludes canceled
cruise days and cabins not available for sale. We use this
measure to perform capacity and rate analysis to identify our main
non-capacity drivers that cause our cruise revenue and expenses to
vary.
Constant Currency is a significant measure for our revenues and
expenses, which are denominated in currencies other than the U.S.
Dollar. Because our reporting currency is the U.S. Dollar,
the value of these revenues and expenses in U.S. Dollar will be
affected by changes in currency exchange rates. Although such
changes in local currency prices are just one of many elements
impacting our revenues and expenses, it can be an important
element. For this reason, we also monitor our revenues and expenses
in "Constant Currency" - i.e., as if the current period's currency
exchange rates had remained constant with the comparable prior
period's rates. For the 2022 periods presented, we calculate
"Constant Currency" by applying the average 2019 or Q3 2022 period
exchange rates for each of the corresponding months of the reported
and/or forecasted period, so as to calculate what the results would
have been had exchange rates been the same throughout both periods.
We do not make predictions about future exchange rates and use
current exchange rates for calculations of future periods. It
should be emphasized that the use of Constant Currency is primarily
used by us for comparing short-term changes and/or projections.
Over the longer term, changes in guest sourcing and shifting the
amount of purchases between currencies can significantly change the
impact of the purely currency-based fluctuations.
EBITDA is a non-GAAP measure that represents net income
(loss) excluding (i) interest income; (ii) interest expense, net of
interest capitalized; (iii) depreciation and amortization expenses;
and (iv) income tax benefit or expense. We believe that this
non-GAAP measure is meaningful when assessing our operating
performance on a comparative basis.
Occupancy ("Load Factor"), in accordance with cruise vacation
industry practice, is calculated by dividing Passenger Cruise Days
(as defined below) by APCD. A percentage in excess of 100%
indicates that three or more passengers occupied some cabins.
Passenger Cruise Days represent the number of passengers carried
for the period multiplied by the number of days of their respective
cruises.
Gross Cruise Costs represent the sum of total cruise operating
expenses plus marketing, selling and administrative expenses.
Net Cruise Costs ("NCC") and NCC excluding Fuel are non-GAAP
measures that represent Gross Cruise Costs excluding commissions,
transportation and other expenses and onboard and other expenses
and, in the case of Net Cruise Costs excluding Fuel, fuel expenses.
For the 2022 and 2019 periods presented, Net Cruise Costs and Net
Cruise Costs excluding Fuel exclude (i) restructuring charges and
other initiative expenses; (ii) the transaction and integration
costs related to the Silversea Cruises acquisition; and (iii) the
costs, net of insurance recoveries, related to the Grand Bahama drydock structure incident
involving Oasis of the Seas. In measuring our ability
to control costs in a manner that positively impacts net income, we
believe changes in Net Cruise Costs and Net Cruise Costs excluding
Fuel to be the most relevant indicators of our performance.
Gross Margin Yield represent Gross Margin per APCD.
Adjusted Gross Margin represent Gross Margin, adjusted for
payroll and related, fuel, food, other operating expenses, and
depreciation and amortization. Gross Margin is calculated pursuant
to GAAP as total revenues less total cruise operating expenses, and
depreciation and amortization.
Net Yields represent Adjusted Gross Margin per APCD. 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.
For additional information see "Adjusted Measures of Financial
Performance" below.
About Royal Caribbean Group
Royal Caribbean Group (NYSE: RCL) is one of the leading cruise
companies in the world with a global fleet of 64 ships traveling to
approximately 1,000 destinations around the world. Royal Caribbean
Group is the owner and operator of three award winning cruise
brands: Royal Caribbean International, Celebrity Cruises, and
Silversea Cruises and it is also a 50% owner of a joint venture
that operates TUI Cruises and Hapag-Lloyd Cruises. Together, the
brands have an additional 10 ships on order as of December 31, 2022. Learn more at
www.royalcaribbeangroup.com or www.rclinvestor.com.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements in this press release relating to, among
other things, our future performance estimates, forecasts and
projections constitute forward-looking statements under the Private
Securities Litigation Reform Act of 1995. These statements include,
but are not limited, to: statements regarding revenues, costs and
financial results for 2023 and beyond, and expectations regarding
credit profile. Words such as "anticipate," "believe," "could,"
"driving," "estimate," "expect," "goal," "intend," "may," "plan,"
"project," "seek," "should," "will," "would," "considering," and
similar expressions are intended to help identify forward-looking
statements. Forward-looking statements reflect management's current
expectations, are based on judgments, are inherently uncertain and
are subject to risks, uncertainties and other factors, which could
cause our actual results, performance or achievements to differ
materially from the future results, performance or achievements
expressed or implied in those forward-looking statements. Examples
of these risks, uncertainties and other factors include, but are
not limited to, the following: the impact of contagious illnesses
on economic conditions and the travel industry in general and the
financial position and operating results of our Company in
particular, such as: governmental and self-imposed travel
restrictions and guest cancellations; our ability to obtain
sufficient financing, capital or revenues to satisfy liquidity
needs, capital expenditures, debt repayments and other financing
needs; the effectiveness of the actions we have taken to improve
and address our liquidity needs; the impact of the economic and
geopolitical environment on key aspects of our business, such as
the demand for cruises, passenger spending, and operating costs;
incidents or adverse publicity concerning our ships, port
facilities, land destinations and/or passengers or the cruise
vacation industry in general; concerns over safety, health and
security of guests and crew; further impairments of our goodwill,
long-lived assets, equity investments and notes receivable; an
inability to source our crew or our provisions and supplies from
certain places; an increase in concern about the risk of illness on
our ships or when travelling to or from our ships, all of which
reduces demand; unavailability of ports of call; growing
anti-tourism sentiments and environmental concerns; changes in U.S.
foreign travel policy; the uncertainties of conducting business
internationally and expanding into new markets and new ventures;
our ability to recruit, develop and retain high quality personnel;
changes in operating and financing costs; our indebtedness, any
additional indebtedness we may incur and restrictions in the
agreements governing our indebtedness that limit our flexibility in
operating our business; the impact of foreign currency exchange
rates, the impact of higher interest rate and food and fuel prices;
the settlement of conversions of our convertible notes, if any, in
shares of our common stock or a combination of cash and shares of
our common stock, which may result in substantial dilution for our
existing shareholders; our expectation that we will not declare or
pay dividends on our common stock for the near future; vacation
industry competition and changes in industry capacity and
overcapacity; the risks and costs related to cyber security
attacks, data breaches, protecting our systems and maintaining
integrity and security of our business information, as well as
personal data of our guests, employees and others; the impact of
new or changing legislation and regulations (including
environmental regulations) or governmental orders on our business;
pending or threatened litigation, investigations and enforcement
actions; the effects of weather, natural disasters and seasonality
on our business; the impact of issues at shipyards, including ship
delivery delays, ship cancellations or ship construction cost
increases; shipyard unavailability; the unavailability or cost of
air service; and uncertainties of a foreign legal system as we are
not incorporated in the United
States.
More information about factors that could affect our operating
results is included under the caption "Risk Factors" in our most
recent quarterly report on Form 10-Q, as well as our other filings
with the SEC, copies of which may be obtained by visiting our
Investor Relations website at www.rclinvestor.com or the SEC's
website at www.sec.gov. Undue reliance should not be placed on the
forward-looking statements in this release, which are based on
information available to us on the date hereof. We undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Adjusted Measures of Financial Performance
This press release includes certain adjusted financial measures
defined as non-GAAP financial measures under Securities and
Exchange Commission rules, which we believe provide useful
information to investors as a supplement to our consolidated
financial statements, which are prepared and presented in
accordance with generally accepted accounting principles, or U.S.
GAAP.
The presentation of adjusted financial information is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with U.S. GAAP. These measures may be different from
adjusted measures used by other companies. In addition, these
adjusted measures are not based on any comprehensive set of
accounting rules or principles. Adjusted measures have limitations
in that they do not reflect all of the amounts associated with our
results of operations as do the corresponding U.S. GAAP
measures.
A reconciliation to the most comparable U.S. GAAP measure of all
adjusted financial measures included in this press release can be
found in the tables included at the end of this press release. We
have not provided a quantitative reconciliation of the projected
non-GAAP financial measures to the most comparable GAAP financial
measures because preparation of meaningful U.S. GAAP projections
would require unreasonable effort. Due to significant uncertainty,
we are unable to predict, without unreasonable effort, the future
movement of foreign exchange rates, fuel prices and interest rates
inclusive of our related hedging programs. In addition, we are
unable to determine the future impact of non-core business related
gains and losses which may result from strategic initiatives. These
items are uncertain and could be material to our results of
operations in accordance with U.S. GAAP. Due to this uncertainty,
we do not believe that reconciling information for such projected
figures would be meaningful.
ROYAL CARIBBEAN
CRUISES LTD.
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Passenger ticket
revenues
|
$
1,702,457
|
|
$
617,393
|
|
$
5,793,492
|
|
$
941,175
|
Onboard and other
revenues
|
901,535
|
|
364,854
|
|
3,047,048
|
|
590,958
|
Total
revenues
|
2,603,992
|
|
982,247
|
|
8,840,540
|
|
1,532,133
|
Cruise operating
expenses:
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
392,752
|
|
134,645
|
|
1,357,008
|
|
207,562
|
Onboard and
other
|
146,329
|
|
61,164
|
|
596,554
|
|
116,946
|
Payroll and
related
|
306,673
|
|
307,838
|
|
1,287,801
|
|
838,088
|
Food
|
202,763
|
|
89,771
|
|
653,139
|
|
164,389
|
Fuel
|
292,694
|
|
166,264
|
|
1,072,567
|
|
385,322
|
Other
operating
|
441,231
|
|
375,822
|
|
1,647,267
|
|
945,205
|
Total cruise operating
expenses
|
1,782,442
|
|
1,135,504
|
|
6,614,336
|
|
2,657,512
|
Marketing, selling and
administrative expenses
|
444,358
|
|
503,055
|
|
1,582,929
|
|
1,370,076
|
Depreciation and
amortization expenses
|
360,595
|
|
333,366
|
|
1,406,689
|
|
1,292,878
|
Impairment and credit
losses
|
1,146
|
|
42,067
|
|
562
|
|
82,001
|
Operating Income
(Loss)
|
15,451
|
|
(1,031,745)
|
|
(763,976)
|
|
(3,870,334)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
14,092
|
|
3,456
|
|
35,857
|
|
16,773
|
Interest expense, net
of interest capitalized
|
(431,610)
|
|
(283,767)
|
|
(1,364,162)
|
|
(1,291,753)
|
Equity investment
income (loss)
|
26,936
|
|
1,575
|
|
56,695
|
|
(135,469)
|
Other (expense) income
(for 2021, includes
a $62.6 million net loss related to the 2021
elimination of the Silversea Cruises
reporting lag)
|
(125,075)
|
|
(46,487)
|
|
(120,376)
|
|
20,284
|
|
(515,657)
|
|
(325,223)
|
|
(1,391,986)
|
|
(1,390,165)
|
Net
Loss
|
$
(500,206)
|
|
$
(1,356,968)
|
|
$
(2,155,962)
|
|
$
(5,260,499)
|
|
|
|
|
|
|
|
|
Loss per
Share:
|
|
|
|
|
|
|
|
Basic
|
$
(1.96)
|
|
$
(5.33)
|
|
$
(8.45)
|
|
$
(20.89)
|
Diluted
|
$
(1.96)
|
|
$
(5.33)
|
|
$
(8.45)
|
|
$
(20.89)
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
255,184
|
|
254,792
|
|
255,011
|
|
251,812
|
Diluted
|
255,184
|
|
254,792
|
|
255,011
|
|
251,812
|
|
|
|
|
|
|
|
|
Comprehensive
Loss
|
|
|
|
|
|
|
|
Net
Loss
|
$
(500,206)
|
|
$
(1,356,968)
|
|
$
(2,155,962)
|
|
$
(5,260,499)
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(21,663)
|
|
4,448
|
|
10,295
|
|
15,703
|
Change in defined
benefit plans
|
13,923
|
|
4,959
|
|
48,914
|
|
8,707
|
Gain (loss) on cash
flow derivative hedges
|
157,003
|
|
(44,468)
|
|
8,462
|
|
4,046
|
Total other
comprehensive income (loss)
|
149,263
|
|
(35,061)
|
|
67,671
|
|
28,456
|
Comprehensive
Loss
|
$
(350,943)
|
|
$
(1,392,029)
|
|
$
(2,088,291)
|
|
$
(5,232,043)
|
ROYAL CARIBBEAN
CRUISES LTD.
|
STATISTICS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
(1)
|
|
2022
|
|
2021
(1)
|
|
|
|
|
|
|
Passengers
Carried
|
1,746,130
|
|
703,177
|
|
5,536,335
|
|
1,030,403
|
Passenger Cruise
Days
|
11,052,960
|
|
4,031,495
|
|
35,051,935
|
|
5,802,582
|
APCD
|
11,644,086
|
|
6,800,363
|
|
41,197,650
|
|
11,767,441
|
Occupancy
|
94.9 %
|
|
59.3 %
|
|
85.1 %
|
|
49.3 %
|
|
|
(1)
|
Due to the elimination
of the Silversea Cruises three-month reporting lag in October of
2021, we include Silversea Cruises' statistics from October 1
through December 31, 2021 in the quarter ended December 31, 2021,
and from October 1, 2020 through June 30, 2021 and October 1
through December 31, 2021 in the year ended December 31, 2021. The
year ended December 31, 2021 does not include July, August, and
September 2021 statistics as Silversea Cruises' results of
operations for those months are included within Other (expense)
income in our consolidated statements of comprehensive loss for the
quarter and year ended December 31, 2021.
|
ROYAL CARIBBEAN
CRUISES LTD.
|
CONSOLIDATED BALANCE
SHEETS
|
(in thousands,
except share data)
|
|
|
|
|
|
As of
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
1,935,005
|
|
$
2,701,770
|
Trade and other
receivables, net of allowances of $11,612 and $13,411 at
December 31, 2022 and December 31, 2021,
respectively
|
531,066
|
|
408,067
|
Inventories
|
224,016
|
|
150,224
|
Prepaid expenses and
other assets
|
455,836
|
|
286,026
|
Derivative financial
instruments
|
59,083
|
|
54,184
|
Total current
assets
|
3,205,006
|
|
3,600,271
|
Property and
equipment, net
|
27,546,445
|
|
25,907,949
|
Operating lease
right-of-use assets
|
537,559
|
|
542,128
|
Goodwill
|
809,277
|
|
809,383
|
Other assets, net of
allowances of $71,614 and $86,781 at December 31, 2022
and December 31, 2021, respectively
|
1,678,074
|
|
1,398,624
|
Total
assets
|
$
33,776,361
|
|
$
32,258,355
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
2,087,711
|
|
$
2,243,131
|
Current portion of
operating lease liabilities
|
79,760
|
|
68,922
|
Accounts
payable
|
646,727
|
|
545,978
|
Accrued
interest
|
388,828
|
|
251,974
|
Accrued expenses and
other liabilities
|
1,071,129
|
|
887,575
|
Derivative financial
instruments
|
131,312
|
|
127,236
|
Customer
deposits
|
4,167,997
|
|
3,160,867
|
Total current
liabilities
|
8,573,464
|
|
7,285,683
|
Long-term
debt
|
21,303,480
|
|
18,847,209
|
Long-term operating
lease liabilities
|
523,006
|
|
534,726
|
Other long-term
liabilities
|
507,599
|
|
505,181
|
Total
liabilities
|
30,907,549
|
|
27,172,799
|
Shareholders'
equity
|
|
|
|
Preferred stock ($0.01
par value; 20,000,000 shares authorized; none
outstanding)
|
—
|
|
—
|
Common stock ($0.01
par value; 500,000,000 shares authorized;
283,257,102 and 282,703,246 shares issued, December 31, 2022
and
December 31, 2021, respectively)
|
2,832
|
|
2,827
|
Paid-in
capital
|
7,284,852
|
|
7,557,297
|
(Accumulated deficit)
retained earnings
|
(1,707,429)
|
|
302,276
|
Accumulated other
comprehensive loss
|
(643,214)
|
|
(710,885)
|
Treasury stock
(28,018,385 and 27,882,987 common shares at cost,
December 31, 2022 and December 31, 2021,
respectively)
|
(2,068,229)
|
|
(2,065,959)
|
Total shareholders'
equity
|
2,868,812
|
|
5,085,556
|
Total liabilities
and shareholders' equity
|
$
33,776,361
|
|
$
32,258,355
|
ROYAL CARIBBEAN
CRUISES LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
Year Ended December
31,
|
|
2022
|
|
2021
|
|
(unaudited)
|
|
|
Operating
Activities
|
|
|
|
Net Loss
|
$
(2,155,962)
|
|
$
(5,260,499)
|
Adjustments:
|
|
|
|
Depreciation and
amortization
|
1,406,689
|
|
1,292,878
|
Impairment and credit
losses
|
562
|
|
82,001
|
Net deferred income
tax benefit
|
(21,576)
|
|
(42,979)
|
Loss (gain) on
derivative instruments not designated as hedges
|
99,985
|
|
(1,492)
|
Share-based
compensation expense
|
36,116
|
|
63,638
|
Equity investment
(income) loss
|
(56,695)
|
|
135,469
|
Amortization of debt
issuance costs
|
148,790
|
|
125,116
|
Amortization of debt
discounts and premiums
|
13,978
|
|
123,439
|
Loss on extinguishment
of debt
|
93,810
|
|
138,759
|
Changes in operating
assets and liabilities:
|
|
|
|
Increase in trade and
other receivables, net
|
(234,348)
|
|
(181,707)
|
Increase in
inventories
|
(73,792)
|
|
(34,527)
|
Increase in prepaid
expenses and other assets
|
(153,196)
|
|
(152,071)
|
Increase in accounts
payable
|
74,657
|
|
188,518
|
Increase (decrease) in
accrued interest
|
136,855
|
|
(694)
|
Increase in accrued
expenses and other liabilities
|
215,981
|
|
235,446
|
Increase in customer
deposits
|
1,007,129
|
|
1,426,647
|
Other, net
|
(57,126)
|
|
(15,757)
|
Net cash provided by
(used in) operating activities
|
481,857
|
|
(1,877,815)
|
|
|
|
|
Investing
Activities
|
|
|
|
Purchases of property
and equipment
|
(2,710,063)
|
|
(2,229,704)
|
Cash received on
settlement of derivative financial instruments
|
52,550
|
|
44,492
|
Cash paid on settlement
of derivative financial instruments
|
(355,909)
|
|
(74,249)
|
Investments in and
loans to unconsolidated affiliates
|
—
|
|
(70,228)
|
Cash received on loans
to unconsolidated affiliates
|
18,650
|
|
31,334
|
Proceeds from the sale
of property and equipment and other assets
|
421
|
|
176,039
|
Other, net
|
6,585
|
|
(22,423)
|
Net cash used in
investing activities
|
(2,987,766)
|
|
(2,144,739)
|
|
|
|
|
Financing
Activities
|
|
|
|
Debt
proceeds
|
9,787,166
|
|
4,467,789
|
Debt issuance
costs
|
(251,888)
|
|
(201,698)
|
Repayments of
debt
|
(7,728,568)
|
|
(2,296,990)
|
Premium on repayment of
debt
|
(49,367)
|
|
(135,372)
|
Repayments of
commercial paper notes
|
—
|
|
(414,570)
|
Proceeds from common
stock issuances
|
—
|
|
1,621,860
|
Other, net
|
(16,370)
|
|
(442)
|
Net cash provided by
financing activities
|
1,740,973
|
|
3,040,577
|
Effect of exchange rate
changes on cash
|
(1,829)
|
|
(727)
|
Net (decrease) in cash
and cash equivalents
|
(766,765)
|
|
(982,704)
|
Cash and cash
equivalents at beginning of year
|
2,701,770
|
|
3,684,474
|
Cash and cash
equivalents at end of year
|
$
1,935,005
|
|
$ 2,701,770
|
|
|
|
|
Supplemental
Disclosures
|
|
|
|
Cash paid during the
year for:
|
|
|
|
Interest, net of
amount capitalized
|
$ 959,907
|
|
$
834,245
|
Non-Cash Investing
Activities
|
|
|
|
Notes receivable
issued upon sale of property and equipment and other
assets
|
$
—
|
|
$ 16,000
|
Purchases of property
and equipment included in accounts payable and accrued expenses and
other
liabilities
|
$
33,853
|
|
$ 14,097
|
Acquisition of
property and equipment from assumed debt
|
$ 277,000
|
|
$
—
|
Non-Cash Financing
Activities
|
|
|
|
Debt related to
acquisition of property and equipment
|
$ 277,000
|
|
$
—
|
ROYAL CARIBBEAN
CRUISES LTD.
|
NON-GAAP RECONCILING
INFORMATION
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Cruise Costs, Net
Cruise Costs and Net Cruise Costs excluding Fuel were calculated as
follows (in thousands, except APCD and costs per APCD):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended December
31,
|
|
2022
|
|
2022 On a
Constant
Currency Basis
|
|
2019
|
|
2022
|
|
2022 On a
Constant
Currency Basis
|
|
2019
|
Total cruise
operating
expenses
|
$
1,782,442
|
|
$
—
|
|
$
1,481,519
|
|
$
6,614,336
|
|
$
—
|
|
$
6,062,765
|
Marketing, selling
and
administrative expenses
|
444,358
|
|
—
|
|
414,707
|
|
1,582,929
|
|
—
|
|
1,559,253
|
Gross Cruise
Costs
|
2,226,800
|
|
2,245,145
|
|
1,896,226
|
|
8,197,265
|
|
8,247,096
|
|
7,622,018
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation
and other
|
392,752
|
|
—
|
|
377,287
|
|
1,357,008
|
|
—
|
|
1,656,297
|
Onboard and
other
|
146,329
|
|
—
|
|
129,527
|
|
596,554
|
|
—
|
|
639,782
|
Net Cruise Costs
including
other costs
|
1,687,719
|
|
—
|
|
1,389,412
|
|
6,243,703
|
|
—
|
|
5,325,939
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
and
other initiatives expense (1)
|
5,177
|
|
—
|
|
13,707
|
|
11,625
|
|
—
|
|
13,707
|
Integration costs
related to
Silversea Cruises acquisition (1)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
862
|
Transaction costs
related to
Silversea Cruises acquisition (1)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,186
|
Costs, net of insurance
recoveries,
related to the Oasis of the Seas incident (2)
|
—
|
|
—
|
|
2,932
|
|
—
|
|
—
|
|
14,530
|
Net Cruise
Costs
|
1,682,542
|
|
1,693,131
|
|
1,372,773
|
|
6,232,078
|
|
6,262,111
|
|
5,295,654
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
292,694
|
|
—
|
|
178,190
|
|
1,072,567
|
|
—
|
|
697,962
|
Net Cruise Costs
excluding Fuel
|
$
1,389,848
|
|
$
1,400,436
|
|
$
1,194,583
|
|
$
5,159,511
|
|
$
5,189,542
|
|
$
4,597,692
|
|
|
|
|
|
|
|
|
|
|
|
|
APCD
|
11,644,086
|
|
11,644,086
|
|
10,401,177
|
|
41,197,650
|
|
41,197,650
|
|
41,432,451
|
Gross Cruise Costs
per APCD
|
$
191.24
|
|
$
192.81
|
|
$
182.31
|
|
$
198.97
|
|
$
200.18
|
|
$
183.96
|
Net Cruise Costs per
APCD
|
$
144.50
|
|
$
145.41
|
|
$
131.98
|
|
$
151.27
|
|
$
152.00
|
|
$
127.81
|
Net Cruise Costs
excluding Fuel per APCD
|
$
119.36
|
|
$
120.27
|
|
$
114.85
|
|
$
125.24
|
|
$
125.97
|
|
$
110.97
|
|
|
(1)
|
Included within
Marketing, selling and administrative expenses in our
consolidated statements of comprehensive loss.
|
(2)
|
Included within
Total cruise operating expenses in our consolidated
statements of comprehensive loss.
|
ROYAL CARIBBEAN
CRUISES LTD.
|
NON-GAAP RECONCILING
INFORMATION
|
(unaudited)
|
Gross Cruise Costs, Net
Cruise Costs and Net Cruise Costs Excluding Fuel were calculated as
follows (in thousands, except APCD and costs per APCD):
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
December 31,
2022
|
|
2022 On a
Constant
Currency Basis
|
|
September 30,
2022
|
Total cruise operating
expenses
|
$
1,782,442
|
|
$
—
|
|
$
1,956,263
|
Marketing, selling and
administrative expenses
|
444,358
|
|
—
|
|
373,116
|
Gross Cruise
Costs
|
2,226,800
|
|
2,227,726
|
|
2,329,379
|
Less:
|
|
|
|
|
|
Commissions,
transportation and other
|
392,752
|
|
—
|
|
484,054
|
Onboard and
other
|
146,329
|
|
—
|
|
220,216
|
Net Cruise Costs
including other costs
|
1,687,719
|
|
—
|
|
1,625,109
|
Less:
|
|
|
|
|
|
Restructuring charges
and other initiatives expense (1)
|
5,177
|
|
—
|
|
4,573
|
Net Cruise
Costs
|
1,682,542
|
|
1,682,599
|
|
1,620,536
|
Less:
|
|
|
|
|
|
Fuel
|
292,694
|
|
—
|
|
316,214
|
Net Cruise Costs
excluding Fuel
|
$
1,389,848
|
|
$
1,390,019
|
|
$
1,304,322
|
|
|
|
|
|
|
APCD
|
11,644,086
|
|
11,644,086
|
|
11,564,662
|
Gross Cruise Costs
per APCD
|
$
191.24
|
|
$
191.32
|
|
$
201.42
|
Net Cruise Costs per
APCD
|
$
144.50
|
|
$
144.50
|
|
$
140.13
|
Net Cruise Costs
excluding Fuel per APCD
|
$
119.36
|
|
$
119.38
|
|
$
112.79
|
|
|
(1)
|
Included within
Marketing, selling and administrative expenses in our
consolidated statements of comprehensive loss.
|
ROYAL CARIBBEAN
CRUISES LTD.
|
NON-GAAP RECONCILING
INFORMATION
|
(unaudited)
|
EBITDA and Adjusted
EBITDA were calculated as follows (in thousands, except APCD and
per APCD data):
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
$
(500,206)
|
|
$
(1,356,968)
|
|
$
(2,155,962)
|
|
$
(5,260,499)
|
Interest
income
|
|
(14,092)
|
|
(3,456)
|
|
(35,857)
|
|
(16,773)
|
Interest expense, net
of interest capitalized
|
|
431,610
|
|
283,767
|
|
1,364,162
|
|
1,291,753
|
Depreciation and
amortization expenses
|
|
360,595
|
|
333,366
|
|
1,406,689
|
|
1,292,878
|
Income tax (benefit)
expense (1)
|
|
(362)
|
|
(10,910)
|
|
4,153
|
|
(47,167)
|
EBITDA
|
|
277,545
|
|
(754,201)
|
|
583,185
|
|
(2,739,808)
|
|
|
|
|
|
|
|
|
|
Other expenses
(2)
|
|
125,437
|
|
57,397
|
|
116,223
|
|
26,883
|
Impairment and credit
losses
|
|
1,146
|
|
42,067
|
|
562
|
|
82,001
|
Restructuring charges
and other initiatives
expense
|
|
5,177
|
|
111
|
|
11,625
|
|
1,831
|
Equity investment
impairment (3)
|
|
—
|
|
5,302
|
|
—
|
|
31,344
|
Oasis of the Seas
incident (4)
|
|
—
|
|
—
|
|
—
|
|
(6,584)
|
Pullmantur
reorganization settlement (5)
|
|
—
|
|
—
|
|
—
|
|
10,242
|
Net gain related to the
sale of the Azamara
brand
|
|
—
|
|
1,403
|
|
—
|
|
(3,371)
|
Adjusted
EBITDA
|
|
$
409,305
|
|
$
(647,921)
|
|
$
711,595
|
|
$
(2,597,462)
|
|
|
|
|
|
|
|
|
|
APCD
|
|
11,644,086
|
|
6,800,363
|
|
41,197,650
|
|
11,767,441
|
Net Loss per
APCD
|
|
$
(42.96)
|
|
$
(199.54)
|
|
$
(52.33)
|
|
$
(447.04)
|
Adjusted EBITDA per
APCD
|
|
$
35.15
|
|
$
(95.28)
|
|
$
17.27
|
|
$
(220.73)
|
|
|
(1)
|
Included within
Other income (expense) in our consolidated statements of
comprehensive loss.
|
(2)
|
Represents net
non-operating income or expense. For 2022, primarily relates to our
estimate of amounts that may be payable in connection with the
ongoing Havana Docks litigation plus related legal fees and costs.
Excludes income tax (benefit) expense, included in the EBITDA
calculation above.
|
(3)
|
Represents equity
investment asset impairment, primarily for our investments in TUI
Cruises GmbH in 2021 as a result of the impact of
COVID-19.
|
(4)
|
Represents net
insurance recoveries related to the collapse of the drydock
structure at the Grand Bahama Shipyard involving Oasis of the
Seas.
|
(5)
|
Represents estimated
cash refunds expected to be paid to Pullmantur guests and other
expenses incurred as part of the Pullmantur S.A.
reorganization.
|
ROYAL CARIBBEAN
CRUISES LTD.
|
NON-GAAP RECONCILING
INFORMATION
|
(unaudited)
|
EBITDA and Adjusted
EBITDA were calculated as follows (in thousands, except APCD and
per APCD data):
|
|
|
|
|
|
Year Ended December
31,
|
|
|
2019
|
Net Income
attributable to Royal Caribbean Cruises Ltd.
|
|
$
1,878,887
|
Interest
income
|
|
(26,945)
|
Interest expense, net
of interest capitalized
|
|
408,513
|
Depreciation and
amortization expenses
|
|
1,245,942
|
Income tax expense
(1)
|
|
32,602
|
EBITDA
|
|
3,538,999
|
|
|
|
Other income
(2)
|
|
(8,089)
|
Grand Bahama's drydock
write-off and other incidental expenses
|
|
20,709
|
Restructuring charges
and other initiatives expense
|
|
13,707
|
Oasis of the Seas
incident (3)
|
|
14,530
|
Transaction and
integration costs related to the 2018 Silversea
acquisition
|
|
2,048
|
Non-controlling
interest adjustment (4)
|
|
35,965
|
Adjusted
EBITDA
|
|
$
3,617,869
|
|
|
|
APCD
|
|
41,432,451
|
Net Income
attributable to Royal Caribbean Cruises Ltd. per
APCD
|
|
$
45.35
|
Adjusted EBITDA per
APCD
|
|
$
87.32
|
|
|
(1)
|
Included within
Other income (expense) in our consolidated statements of
comprehensive income (loss).
|
(2)
|
Excludes income tax
expense, included in the EBITDA calculation above.
|
(3)
|
Represents incidental
costs, net of insurance recoveries, related to the collapse of the
drydock structure at the Grand Bahama Shipyard involving Oasis
of the Seas.
|
(4)
|
Adjustment made to
exclude the impact of the contractual accretion requirements
associated with the put option held by Heritage Cruise Holding
Ltd.'s (previously known as Silversea Cruises Group Ltd.)
noncontrolling interest, which noncontrolling interest we acquired
on July 9, 2020.
|
ROYAL CARIBBEAN
CRUISES LTD.
|
NON-GAAP RECONCILING
INFORMATION
|
(unaudited)
|
Adjusted Net Loss and
Adjusted Loss per Share were calculated as follows (in thousands,
except per share data):
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
Net
Loss
|
$
(500,206)
|
|
$
(1,356,968)
|
|
$
(2,155,962)
|
|
$
(5,260,499)
|
Loss on extinguishment
of debt
|
77,361
|
|
—
|
|
93,810
|
|
138,759
|
Convertible debt
amortization of debt discount (1)
|
—
|
|
26,073
|
|
—
|
|
104,291
|
Pullmantur
reorganization settlement (2)
|
—
|
|
—
|
|
—
|
|
10,242
|
Impairment and credit
losses
|
1,146
|
|
42,067
|
|
562
|
|
82,001
|
Equity investment
impairment (3)
|
—
|
|
5,302
|
|
—
|
|
31,344
|
Oasis of the Seas
incident (4)
|
—
|
|
—
|
|
—
|
|
(6,584)
|
Restructuring charges
and other initiatives expense
|
5,177
|
|
111
|
|
11,625
|
|
1,831
|
Amortization of
Silversea Cruises intangible assets
related to Silversea Cruises acquisition
|
1,623
|
|
1,623
|
|
6,493
|
|
6,493
|
Net gain related to the
sale of Azamara brand
|
—
|
|
1,403
|
|
—
|
|
(3,371)
|
Net loss related to the
elimination of the Silversea
Cruises reporting lag (5)
|
—
|
|
62,604
|
|
—
|
|
62,604
|
Litigation loss
contingency (6)
|
130,033
|
|
—
|
|
130,033
|
|
—
|
Adjusted Net
Loss
|
$
(284,866)
|
|
$
(1,217,785)
|
|
$
(1,913,439)
|
|
$
(4,832,889)
|
|
|
|
|
|
|
|
|
Loss per Share -
Diluted
|
$
(1.96)
|
|
$
(5.33)
|
|
$
(8.45)
|
|
$
(20.89)
|
Adjusted Loss per
Share - Diluted
|
$
(1.12)
|
|
$
(4.78)
|
|
$
(7.50)
|
|
$
(19.19)
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding - Diluted
|
255,184
|
|
254,792
|
|
255,011
|
|
251,812
|
|
|
(1)
|
Represents the
amortization of non-cash debt discount on our convertible
notes.
|
(2)
|
Represents estimated
cash refunds expected to be paid to Pullmantur guests and other
expenses incurred as part of the Pullmantur S.A.
reorganization.
|
(3)
|
Represents equity
investment asset impairment, primarily for our investments in TUI
Cruises GmbH in 2021 as a result of the impact of
COVID-19
|
(4)
|
Amounts include net
insurance recoveries related to the collapse of the drydock
structure at the Grand Bahama Shipyard involving Oasis of the
Seas.
|
(5)
|
Represents the net loss
related to the elimination of the Silversea Cruises reporting lag
in 2021.
|
(6)
|
Represents our estimate
of amounts that may be payable in connection with the ongoing
Havana Docks litigation plus related legal fees and
costs.
|
ROYAL CARIBBEAN
CRUISES LTD.
|
NON-GAAP RECONCILING
INFORMATION
|
(unaudited)
|
Total revenues per
PCDs were calculated as follows (in thousands, except PCDs
data):
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
2022
|
|
2022 On a
Constant
Currency Basis
|
|
2019
|
Passenger ticket
revenues
|
$
1,702,457
|
|
$
—
|
|
$
1,784,458
|
Onboard and other
revenues
|
901,535
|
|
|
|
732,955
|
Total
revenues
|
$
2,603,992
|
|
$
2,629,801
|
|
$
2,517,413
|
|
|
|
|
|
|
PCDs
|
11,052,960
|
|
11,052,960
|
|
11,057,419
|
Total revenues per
PCDs
|
$
235.6
|
|
$
237.9
|
|
$
227.7
|
ROYAL CARIBBEAN
CRUISES LTD.
|
NON-GAAP RECONCILING
INFORMATION
|
(unaudited)
|
Gross Margin Yields,
and Net Yields were calculated as follows (in thousands, except
APCD and Yields):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
Quarter Ended
December 31,
|
|
2022
|
|
2022 On a
Constant
Currency Basis
|
|
2019
|
|
2022
|
|
2022 On a
Constant
Currency Basis
|
|
2019
|
Total
revenues
|
$
2,993,075
|
|
$
—
|
|
$
3,186,850
|
|
$
2,603,992
|
|
$
—
|
|
$
2,517,413
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Cruise operating
expenses
|
1,956,263
|
|
—
|
|
1,623,038
|
|
1,782,442
|
|
—
|
|
1,481,519
|
Depreciation and
amortization expenses
|
355,085
|
|
—
|
|
320,295
|
|
360,595
|
|
—
|
|
321,762
|
Gross
Margin
|
681,727
|
|
700,188
|
|
1,243,517
|
|
460,955
|
|
477,156
|
|
714,132
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and
related
|
304,369
|
|
—
|
|
263,993
|
|
306,673
|
|
—
|
|
280,027
|
Food
|
194,966
|
|
—
|
|
149,621
|
|
202,763
|
|
—
|
|
147,903
|
Fuel
|
316,214
|
|
—
|
|
177,677
|
|
292,694
|
|
—
|
|
178,190
|
Other
operating
|
436,444
|
|
—
|
|
342,170
|
|
441,231
|
|
—
|
|
368,585
|
Depreciation and
amortization expenses
|
355,085
|
|
—
|
|
320,295
|
|
360,595
|
|
—
|
|
321,762
|
Adjusted Gross
Margin
|
$
2,288,805
|
|
$
2,311,122
|
|
$
2,497,273
|
|
$
2,064,911
|
|
$
2,083,243
|
|
$
2,010,599
|
|
|
|
|
|
|
|
|
|
|
|
|
APCD
|
11,564,662
|
|
11,564,662
|
|
10,733,254
|
|
11,644,086
|
|
11,644,086
|
|
10,401,177
|
Gross Margin
Yields
|
$
58.95
|
|
$
60.55
|
|
$
115.86
|
|
$
39.59
|
|
$
40.98
|
|
$
68.66
|
Net
Yields
|
$
197.91
|
|
$
199.84
|
|
$
232.67
|
|
$
177.34
|
|
$
178.91
|
|
$
193.30
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/royal-caribbean-group-reports-2022-results-and-provides-forward-guidance-301740643.html
SOURCE Royal Caribbean Group