Royal Caribbean reports record 2019 results
RCL today reported 2019 US GAAP earnings of $8.95 per share and adjusted earnings of $9.54 per share and announced that 2020 adjusted earnings are expected to be in the range of $10.40 to $10.70 per share
The company today introduced its 20>25 by 2025 program which is designed to give people throughout the company specific goals to work towards. The program includes several goals by 2025: delivering $20.00 adjusted earnings per share; further reducing the company's carbon footprint by 25%; delivering strong returns on invested capital; and continuing to improve on record guest satisfaction and employee engagement metrics.
Full Year 2019 results:
For the full year, US GAAP Net Income was $1.9 billion or $8.95 per share and Adjusted Net Income was $2.0 billion or $9.54 per share versus US GAAP Net Income of $1.8 billion or $8.56 per share and Adjusted Net Income of $1.9 billion or $8.86 per share in 2018.
Gross Yields were up 8.2% in Constant-Currency (up 7.0% As-Reported). Net Yields were up 8.0% in Constant-Currency (up 6.7% As-Reported).
Gross Cruise Costs per Available Passenger Cruise Days ("APCD") increased 8.7% in Constant-Currency (up 8.0% As-Reported). Net Cruise Costs ("NCC") excluding Fuel per APCD were up 11.4% in Constant-Currency (up 10.8% As-Reported).
Full Year 2020 guidance:
Wave season has started on a very robust basis with strong demand especially in the US and European markets.
As previously announced, the Wuhan Coronavirus and the efforts to contain it are expected to negatively affect our results. While we expect this to be temporary, the situation is highly fluid and the overall impact cannot reasonably be estimated at this time. Accordingly, our guidance does not include any provision for the impact of the outbreak. We will update our guidance as the situation stabilizes and we can reasonably estimate its impact.
Net Yields are expected to increase 2.25% to 4.25% in Constant-Currency and 2.5% to 4.5% As-Reported.
NCC excluding Fuel per APCD are expected to increase 1.75% to 2.25% in both Constant-Currency and As-Reported basis.
Adjusted earnings are expected to be in the range of $10.40 to $10.70 per share.
20>25 by 2025 Program
These goals have been put in place to focus our leadership on achieving outsized improvements in our performance going forward. We believe that what gets measured gets better and - just like the Double-Double program - we believe that this 20>25 by 2025 program will help focus our people on the key success factors for our future. This program not only focuses on earnings and carbon footprint, it will also focus on further improving our guest satisfaction and employee engagement while continuing to deliver strong returns on invested capital.
"We are pairing ambitious business and environmental goals because we all understand that businesses must do our part to meet the needs of all our stakeholders," said Richard D. Fain, chairman and CEO. "Over the last years, our people have worked hard to deliver strong performance on both profitability metrics and important societal goals. This 20>25 by 2025 program should help take those efforts to the next level".