MIAMI, July 27,
2023 /PRNewswire/ -- 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.
- Gross Cruise Costs per Available Passenger Cruise Day ("APCD")
increased 10.9% As-Reported, and Net Cruise Costs ("NCC"),
excluding Fuel, per APCD increased 9.0% in Constant-Currency (8.6%
As-Reported), both compared to the second quarter of 2019.
Favorable timing of operating expenses was offset by the increase
in stock compensation expense due to the rise in share price and
expected financial performance.
- Total revenues were a record $3.5
billion, Net Income was $458.8
million or $1.70 per share,
Adjusted Net Income was $491.7
million or $1.82 per share,
Adjusted EBITDA was a record $1.2
billion and Operating Cash Flow was $1.4 billion.
Full Year 2023 Outlook:
- Net Yields are expected to increase 11.5% to 12.0% in
Constant-Currency and As-Reported, compared to 2019.
- NCC, excluding Fuel, per APCD is expected to be up
approximately 7.0% in Constant-Currency (6.7% As-Reported),
compared to 2019. The increase in costs, relative to previous
guidance, is driven by an increase in stock compensation
expense due to the rise in share price and expected financial
performance.
- Adjusted Earnings per Share for the full year are expected to
be in the range of $6.00 to
$6.20 per share.
Third Quarter 2023 Outlook:
- Net Yields are expected to increase 13.5% to 14.0% in
Constant-Currency (14.0% to 14.5% As-Reported), compared to the
third quarter of 2019.
- NCC, excluding Fuel, per APCD is expected to increase
approximately 11.2% in Constant-Currency and As-Reported, compared
to third quarter 2019. Approximately half of the cost increase
compared to 2019 is related to structural costs, timing shift of
operating expenses from the second quarter, and increase in stock
compensation expense.
- Adjusted Earnings per Share for the third quarter are expected
to be in the range of $3.38 to
$3.48 per share.
Second Quarter 2023
The company reported Net Income for the second quarter of
$458.8 million or $1.70 per share compared to Net Loss of
$(0.5) billion or $(2.05) per share for the same period in the
prior year. The company also reported Adjusted Net Income of
$491.7 million or $1.82 per share for the second quarter compared
to Adjusted Net Loss of $(0.5)
billion or $(2.08) per share
for the same period in the prior year.
Second quarter revenue significantly exceeded the company's
guidance due to higher pricing and higher shipboard revenue across
the company's key itineraries, including the Caribbean and Europe. Load factor for the second quarter was
105%.
Gross Cruise Costs per APCD increased 10.9% As-Reported,
compared to 2019. NCC, excluding Fuel, per APCD increased 8.6%
As-Reported and 9.0% in Constant-Currency, compared to 2019.
Favorable timing of operating expenses drove NCC lower, however it
was offset entirely by an increase in stock compensation expense
related costs due to the significant rise in share price and
expected financial performance.
Update on Bookings
Booking volumes in the second quarter remained significantly
higher than the corresponding period in 2019 and at record pricing
levels. Demand for 2023 sailings has significantly exceeded
expectations and bookings for 2024 sailings are up significantly
versus all prior years at record prices. Demand from the North
American consumer has remained incredibly strong throughout the
year, and booking volumes from European consumers who are booking
European cruises this summer have accelerated.
The further increase in yield expectations for the year is the
result of higher pricing and onboard revenue expectations for key
itineraries, particularly in North
America and Europe. Consumer spending onboard, as well
as pre-cruise purchases, continue to significantly exceed 2019
levels driven by greater participation at higher prices.
As of June 30, 2023, the Group's
customer deposit balance was at a record-high $5.7 billion.
Fuel Expense
Bunker pricing net of hedging for the second quarter was
$682 per metric ton and consumption
was 405,000 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 $275 million of fuel expense in its third quarter guidance
at a forecasted consumption of 408,000 metric tons, which is 55%
hedged via swaps. Forecasted consumption is 54%, 60% and 40% hedged
via swaps for the remainder of 2023, 2024 and 2025, respectively.
The annual average cost per metric ton of the hedge portfolio is
approximately $573, $509, and $496 for
2023, 2024, and 2025, respectively.
The company provided the following guidance for the third
quarter and full year 2023:
FUEL
STATISTICS
|
Third Quarter
2023
|
Full Year
2023
|
Fuel Consumption
(metric tons)
|
408,000
|
1,649,000
|
Fuel
Expenses
|
Approx. $275
million
|
Approx. $1,140
million
|
Percent Hedged (fwd.
consumption)
|
55.0 %
|
54.0 %
|
|
|
|
GUIDANCE
|
As-Reported
|
Constant
Currency
|
|
Third Quarter
2023
|
Net Yields vs.
2019
|
14.0% to
14.5%
|
13.5% to
14.0%
|
Net Cruise Costs per
APCD vs. 2019
|
approximately
14.8%
|
approximately
14.7%
|
Net Cruise Costs per
APCD ex. Fuel vs. 2019
|
approximately
11.2%
|
approximately
11.2%
|
|
Full Year
2023
|
Net Yields vs.
2019
|
11.5% to
12.0%
|
11.5% to
12.0%
|
Net Cruise Costs per
APCD vs. 2019
|
approximately
11.6%
|
approximately
11.9%
|
Net Cruise Costs per
APCD ex. Fuel vs. 2019
|
approximately
6.7%
|
approximately
7.0%
|
|
|
|
GUIDANCE
|
Third Quarter
2023
|
Full Year
2023
|
APCDs
|
12 million
|
47 million
|
Capacity
change vs. 2019
|
12.2 %
|
13.5 %
|
Depreciation and
amortization
|
$360 to $370
million
|
$1,465 to $1,475
million
|
Net Interest,
excluding loss on extinguishment of debt
|
$295 to $305
million
|
$1,272 to $1,282
million
|
Adjusted
EPS
|
$3.38 to
$3.48
|
$6.00 to
$6.20
|
|
|
|
SENSITIVITY
|
Third Quarter
2023
|
Full Year
2023
|
1% Change in
Currency
|
$6 million
|
$15 million
|
1% Change in Net
Yields
|
$32 million
|
$110 million
|
1% Change in NCC
excluding Fuel
|
$14 million
|
$56 million
|
100 basis pt. Change
in SOFR
|
$4 million
|
$13 million
|
10% Change in Fuel
prices
|
$27 million
|
$114 million
|
|
|
Exchange rates used
in guidance calculations
|
|
GBP
|
$1.29
|
|
AUD
|
$0.68
|
|
CAD
|
$0.76
|
|
EUR
|
$1.11
|
|
Liquidity and Financing Arrangements
As of June 30, 2023, the Group's
liquidity position was $3.7 billion,
which includes cash and cash equivalents and undrawn revolving
credit facility availability.
During the second quarter, the company generated $1.4 billion in operating cash flow and repaid
$1.6 billion of debt, including
$392 million of its 11.50% senior
secured notes due June 2025. The company settled its 4.25%
convertible notes in June by utilizing $338
million of cash on hand and issuing 373,505 shares. In July,
the company redeemed, utilizing cash on hand, an additional
$300 million of its 11.50% senior
secured notes due June 2025.
"Strengthening the balance sheet continues to be a top
priority," said Naftali Holtz, chief
financial officer, Royal Caribbean Group. "Better than expected
financial results and cash flow have allowed us to accelerate
reduction in both leverage and debt levels. We expect to continue
improving the balance sheet and moving us closer to achieving our
Trifecta goal of returning to investment grade
metrics."
As of June 30, 2023, the scheduled
debt maturities for the remainder of 2023, 2024, 2025, and 2026
were $1.0 billion, $2.0 billion, $3.3
billion, and $2.8 billion,
respectively.
Capital Expenditures and Capacity Guidance
Capital expenditures for full year 2023 are expected to be
$4.2 billion. The company took
delivery of Silver Nova and expects to take delivery of two
additional new ships, Icon of the Seas and Celebrity Ascent,
in 2023. 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, 2024, 2025, and 2026 are expected to
be 13.5%, 8%, 6%, and 5%, 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 10:00 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.
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 June 30, 2023. 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. 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.
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 2023 and 2022
periods, these items included (i) other (income) expense; (ii) gain
on sale of controlling interest; (iii) recovery of losses from one
of our equity method investees; (iv) impairment and credit losses
(recoveries); and (v) restructuring charges and other initiative
expenses.
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. We believe that
this non-GAAP measure is meaningful when assessing our performance
on a comparative basis.
Adjusted Net Income (Loss) attributable to Royal Caribbean
Cruises Ltd. is a non-GAAP measure that represents Net Income
(Loss) attributable to Royal Caribbean Cruises Ltd. excluding
certain items that we believe adjusting for is meaningful when
assessing our performance on a comparative basis. 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.
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 2023 periods presented, we calculate
"Constant Currency" by applying the average 2019 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) attributable to Royal Caribbean Cruises Ltd. 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.
Invested Capital represents the most recent five-quarter
average of total debt (i.e., Current portion of long-term debt plus
Long-term debt) plus Total shareholders' equity. We use this
measure to calculate ROIC (as defined below).
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 2023 and 2019 periods presented, Net Cruise
Costs and Net Cruise Costs excluding Fuel exclude (i) the gain on
sale of controlling interest; (ii) impairment and credit losses
(recoveries); (iii) restructuring charges and other initiative
expenses; (iv) incidental costs related to the Oasis of the Seas
incident included within cruise operating expenses; and (v) the
transaction costs related to the Silversea Cruises acquisition. 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, food, fuel, 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.
Adjusted Operating Income (Loss) is a non-GAAP
measure that represents operating income (loss) including income
(loss) from equity investments and income taxes but excluding
certain items that we believe adjusting for is meaningful when
assessing our operating performance on a comparative basis. We use
this non-GAAP measure to calculate ROIC (as defined below).
Return on Invested Capital ("ROIC") represents
Adjusted Operating Income (Loss) divided by Invested Capital. We
believe ROIC is a meaningful measure because it quantifies how
efficiently we generated operating income relative to the capital
we have invested in the business. ROIC is also used as a key metric
in our long-term incentive compensation program for our executive
officers.
Trifecta refers to the multi-year Adjusted EBITDA
per APCD, Adjusted EPS and ROIC goals we publicly announced in
November 2022 and are seeking to
achieve by the end of 2025. We designed this program to help us
better execute and achieve our business goals by clearly
articulating longer-term financial objectives. Under the Trifecta
Program, we are targeting Adjusted EBITDA per APCD of at least
$100, Adjusted EPS of at least
$10, and ROIC of 13% or higher by the
end of 2025.
For additional information see "Adjusted Measures of Financial
Performance" below.
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 INCOME (LOSS)
|
(unaudited; in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Passenger ticket
revenues
|
$ 2,443,506
|
|
$ 1,418,203
|
|
$ 4,340,022
|
|
$ 2,070,061
|
Onboard and other
revenues
|
1,079,476
|
|
766,039
|
|
2,068,106
|
|
1,173,412
|
Total
revenues
|
3,522,982
|
|
2,184,242
|
|
6,408,128
|
|
3,243,473
|
Cruise operating
expenses:
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
516,007
|
|
329,859
|
|
918,937
|
|
480,202
|
Onboard and
other
|
220,315
|
|
155,570
|
|
378,950
|
|
230,009
|
Payroll and
related
|
284,372
|
|
327,141
|
|
594,370
|
|
676,759
|
Food
|
202,695
|
|
155,226
|
|
402,086
|
|
255,410
|
Fuel
|
275,918
|
|
275,179
|
|
577,431
|
|
463,659
|
Other
operating
|
455,569
|
|
436,944
|
|
876,007
|
|
758,822
|
Total cruise operating
expenses
|
1,954,876
|
|
1,679,919
|
|
3,747,781
|
|
2,864,861
|
Marketing, selling and
administrative expenses
|
434,848
|
|
371,425
|
|
895,703
|
|
765,455
|
Depreciation and
amortization expenses
|
361,677
|
|
351,542
|
|
721,450
|
|
691,009
|
Operating Income
(Loss)
|
771,581
|
|
(218,644)
|
|
1,043,194
|
|
(1,077,852)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
9,583
|
|
6,490
|
|
24,391
|
|
9,812
|
Interest
expense, net of interest capitalized
|
(355,512)
|
|
(302,706)
|
|
(714,899)
|
|
(580,365)
|
Equity
investment income (loss)
|
42,014
|
|
(13,179)
|
|
62,485
|
|
(44,238)
|
Other (expense)
income
|
(5,386)
|
|
6,457
|
|
(771)
|
|
3,919
|
|
(309,301)
|
|
(302,938)
|
|
(628,794)
|
|
(610,872)
|
Net Income
(Loss)
|
462,280
|
|
(521,582)
|
|
414,400
|
|
(1,688,724)
|
Less: Net Income
attributable to noncontrolling interest
|
3,519
|
|
—
|
|
3,549
|
|
—
|
Net Income (Loss)
attributable to Royal Caribbean Cruises Ltd.
|
$
458,761
|
|
$ (521,582)
|
|
$
410,851
|
|
$
(1,688,724)
|
Earnings (Loss) per
Share:
|
|
|
|
|
|
|
|
Basic
|
$
1.79
|
|
$
(2.05)
|
|
$
1.61
|
|
$
(6.63)
|
Diluted
|
$
1.70
|
|
$
(2.05)
|
|
$
1.60
|
|
$
(6.63)
|
Weighted-Average
Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
255,805
|
|
254,964
|
|
255,636
|
|
254,893
|
Diluted
|
281,913
|
|
254,964
|
|
258,741
|
|
254,893
|
|
|
|
|
|
|
|
|
Comprehensive Income
(Loss)
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
$
462,280
|
|
$ (521,582)
|
|
$
414,400
|
|
$
(1,688,724)
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(3,263)
|
|
12,682
|
|
(9,809)
|
|
20,460
|
Change in
defined benefit plans
|
(3,785)
|
|
15,168
|
|
(272)
|
|
27,765
|
Gain (loss) on
cash flow derivative hedges
|
4,988
|
|
(84,493)
|
|
(26,709)
|
|
111,408
|
Total other
comprehensive (loss) income
|
(2,060)
|
|
(56,643)
|
|
(36,790)
|
|
159,633
|
Comprehensive Income
(Loss)
|
$
460,220
|
|
$ (578,225)
|
|
$
377,610
|
|
$
(1,529,091)
|
|
|
|
|
|
|
|
|
ROYAL CARIBBEAN
CRUISES LTD.
|
STATISTICS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2023
|
|
2022
|
|
2019
|
|
2023
|
|
2022
|
|
2019
|
|
|
|
|
|
|
|
|
Passengers
Carried
|
1,900,810
|
|
1,340,622
|
|
1,663,900
|
|
3,707,079
|
|
2,075,431
|
|
3,197,126
|
Passenger Cruise
Days
|
12,297,290
|
|
8,443,745
|
|
11,321,528
|
|
23,772,032
|
|
12,862,644
|
|
21,883,345
|
APCD
|
11,708,837
|
|
10,295,996
|
|
10,437,420
|
|
22,942,326
|
|
17,988,902
|
|
20,298,020
|
Occupancy
|
105.0 %
|
|
82.0 %
|
|
108.5 %
|
|
103.6 %
|
|
71.5 %
|
|
107.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROYAL CARIBBEAN
CRUISES LTD.
|
CONSOLIDATED BALANCE
SHEETS
|
(in thousands,
except share data)
|
|
As of
|
|
June
30,
|
|
December
31,
|
|
2023
|
|
2022
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
726,424
|
|
$
1,935,005
|
Trade and other
receivables, net of allowances of $10,027 and $11,612 at June 30,
2023
and December 31, 2022, respectively
|
375,357
|
|
531,066
|
Inventories
|
215,915
|
|
224,016
|
Prepaid expenses
and other assets
|
604,623
|
|
455,836
|
Derivative
financial instruments
|
46,516
|
|
59,083
|
Total current
assets
|
1,968,835
|
|
3,205,006
|
Property and
equipment, net
|
27,935,922
|
|
27,546,445
|
Operating lease
right-of-use assets
|
551,534
|
|
537,559
|
Goodwill
|
809,250
|
|
809,277
|
Other assets,
net of allowances of $62,833 and $71,614 at June 30, 2023 and
December 31,
2022, respectively
|
1,657,807
|
|
1,678,074
|
Total
assets
|
$
32,923,348
|
|
$
33,776,361
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current portion
of long-term debt
|
$
1,713,299
|
|
$
2,087,711
|
Current portion
of operating lease liabilities
|
81,797
|
|
79,760
|
Accounts
payable
|
692,011
|
|
646,727
|
Accrued expenses
and other liabilities
|
1,391,553
|
|
1,459,957
|
Derivative
financial instruments
|
111,864
|
|
131,312
|
Customer
deposits
|
5,676,341
|
|
4,167,997
|
Total current
liabilities
|
9,666,865
|
|
8,573,464
|
Long-term
debt
|
18,685,633
|
|
21,303,480
|
Long-term
operating lease liabilities
|
537,641
|
|
523,006
|
Other long-term
liabilities
|
492,127
|
|
507,599
|
Total
liabilities
|
29,382,266
|
|
30,907,549
|
|
|
|
|
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; 284,405,911 and
283,257,102
shares issued, June 30, 2023 and December 31, 2022,
respectively)
|
2,844
|
|
2,832
|
Paid-in
capital
|
7,406,818
|
|
7,284,852
|
Accumulated
deficit
|
(1,296,578)
|
|
(1,707,429)
|
Accumulated
other comprehensive loss
|
(680,004)
|
|
(643,214)
|
Treasury stock
(28,248,125 and 28,018,385 common shares at cost, June 30, 2023
and
December 31, 2022, respectively)
|
(2,069,432)
|
|
(2,068,229)
|
Total shareholders'
equity attributable to Royal Caribbean Cruises Ltd.
|
3,363,648
|
|
2,868,812
|
Noncontrolling
Interests
|
177,434
|
|
—
|
Total shareholders'
equity
|
3,541,082
|
|
2,868,812
|
Total liabilities
and shareholders' equity
|
$
32,923,348
|
|
$
33,776,361
|
ROYAL CARIBBEAN
CRUISES LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited, in
thousands)
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
Operating
Activities
|
|
|
|
Net Income
(Loss)
|
$
414,400
|
|
$
(1,688,724)
|
Adjustments:
|
|
|
|
Depreciation and
amortization
|
721,450
|
|
691,009
|
Net deferred
income tax benefit
|
(6,139)
|
|
(9,205)
|
(Gain) loss on
derivative instruments not designated as hedges
|
(11,675)
|
|
87,245
|
Share-based
compensation expense
|
65,721
|
|
10,134
|
Equity
investment (income) loss
|
(62,485)
|
|
44,238
|
Amortization of
debt issuance costs, discounts and premiums
|
58,144
|
|
84,734
|
Loss on
extinguishment of debt
|
43,518
|
|
—
|
Changes in operating
assets and liabilities:
|
|
|
|
Decrease
(increase) in trade and other receivables, net
|
131,865
|
|
(201,605)
|
Decrease
(increase) in inventories
|
8,101
|
|
(78,884)
|
Increase in
prepaid expenses and other assets
|
(139,249)
|
|
(168,948)
|
Increase in
accounts payable trade
|
30,287
|
|
221,746
|
(Decrease)
increase in accrued liabilities
|
(62,957)
|
|
16,818
|
Increase in
customer deposits
|
1,508,345
|
|
1,007,876
|
Other, net
|
1,939
|
|
(66,641)
|
Net cash provided by
(used in) operating activities
|
2,701,265
|
|
(50,207)
|
Investing
Activities
|
|
|
|
Purchases of property
and equipment
|
(1,048,389)
|
|
(2,317,747)
|
Cash received on
settlement of derivative financial instruments
|
17,581
|
|
36,073
|
Cash paid on settlement
of derivative financial instruments
|
(13,960)
|
|
(265,047)
|
Cash received on loans
to unconsolidated affiliates
|
10,939
|
|
8,700
|
Other, net
|
11,680
|
|
10,474
|
Net cash used in
investing activities
|
(1,022,149)
|
|
(2,527,547)
|
Financing
Activities
|
|
|
|
Debt
proceeds
|
1,208,177
|
|
3,831,566
|
Debt issuance
costs
|
(52,610)
|
|
(133,946)
|
Repayments of
debt
|
(4,249,101)
|
|
(1,706,807)
|
Proceeds from sale of
noncontrolling interest
|
209,320
|
|
—
|
Other, net
|
(3,928)
|
|
(11,050)
|
Net cash (used in)
provided by financing activities
|
(2,888,142)
|
|
1,979,763
|
Effect of exchange rate
changes on cash and cash equivalents
|
445
|
|
(1,574)
|
Net decrease in cash
and cash equivalents
|
(1,208,581)
|
|
(599,565)
|
Cash and cash
equivalents at beginning of period
|
1,935,005
|
|
2,701,770
|
Cash and cash
equivalents at end of period
|
$
726,424
|
|
$
2,102,205
|
ROYAL CARIBBEAN
CRUISES LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited, in
thousands)
|
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
Supplemental
Disclosure
|
|
|
|
Cash paid during the
period for:
|
|
|
|
Interest, net of
amount capitalized
|
$
560,023
|
|
$
425,119
|
Non-cash Investing
Activities
|
|
|
|
Purchase of
property and equipment included in accounts payable and accrued
expenses and other liabilities
|
$
17,790
|
|
$
33,189
|
ROYAL CARIBBEAN
CRUISES LTD.
|
NON-GAAP RECONCILING
INFORMATION
|
(unaudited)
|
Gross Margin Yields and
Net Yields were calculated by dividing Gross Margin and Adjusted
Gross Margins by APCD as follows (in thousands, except APCD and
Yields):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June
30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2023 On a
Constant
Currency Basis
|
|
2019
|
|
2023
|
|
2023 On a
Constant
Currency Basis
|
|
2019
|
Total
revenue
|
$
3,522,982
|
|
$
—
|
|
$
2,806,631
|
|
$ 6,408,128
|
|
$
—
|
|
$ 5,246,398
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Cruise operating
expenses
|
1,954,876
|
|
—
|
|
1,544,504
|
|
3,747,781
|
|
—
|
|
2,958,208
|
Depreciation and
amortization expenses
|
361,677
|
|
—
|
|
311,600
|
|
721,450
|
|
—
|
|
603,885
|
Gross
Margin
|
1,206,429
|
|
1,212,711
|
|
950,527
|
|
1,938,897
|
|
1,961,253
|
|
1,684,305
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and
related
|
284,372
|
|
—
|
|
265,569
|
|
594,370
|
|
—
|
|
535,101
|
Food
|
202,695
|
|
—
|
|
146,847
|
|
402,086
|
|
—
|
|
286,381
|
Fuel
|
275,918
|
|
—
|
|
181,924
|
|
577,431
|
|
—
|
|
342,095
|
Other
operating
|
455,569
|
|
—
|
|
348,801
|
|
876,007
|
|
—
|
|
694,943
|
Depreciation and
amortization expenses
|
361,677
|
|
—
|
|
311,600
|
|
721,450
|
|
—
|
|
603,885
|
Adjusted Gross
Margin
|
$
2,786,660
|
|
$
2,793,884
|
|
$
2,205,268
|
|
$
5,110,241
|
|
$
5,134,584
|
|
$ 4,146,710
|
|
|
|
|
|
|
|
|
|
|
|
|
APCD
|
11,708,837
|
|
11,708,837
|
|
10,437,420
|
|
22,942,326
|
|
22,942,326
|
|
20,298,020
|
Gross Margin
Yields
|
$
103.04
|
|
$
103.57
|
|
$
91.07
|
|
$
84.51
|
|
$
85.49
|
|
$
82.98
|
Net
Yields
|
$
238.00
|
|
$
238.61
|
|
$
211.28
|
|
$
222.74
|
|
$
223.80
|
|
$
204.29
|
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 June
30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2023 On a
Constant
Currency Basis
|
|
2019
|
|
2023
|
|
2023 On a
Constant Currency
Basis
|
|
2019
|
Total cruise
operating
expenses
|
$
1,954,876
|
|
$
—
|
|
$
1,544,504
|
|
$ 3,747,781
|
|
$
—
|
|
$ 2,958,208
|
Marketing, selling
and
administrative expenses
|
434,848
|
|
—
|
|
376,874
|
|
895,703
|
|
—
|
|
791,821
|
Gross Cruise
Costs
|
2,389,724
|
|
2,398,663
|
|
1,921,378
|
|
4,643,484
|
|
4,664,368
|
|
3,750,029
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
516,007
|
|
—
|
|
426,934
|
|
918,937
|
|
—
|
|
790,089
|
Onboard and
other
|
220,315
|
|
—
|
|
174,429
|
|
378,950
|
|
—
|
|
309,599
|
Net Cruise Costs
Including
Other Costs
|
1,653,402
|
|
—
|
|
1,320,015
|
|
3,345,597
|
|
—
|
|
2,650,341
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
controlling
interest (1)
|
—
|
|
—
|
|
—
|
|
(3,130)
|
|
—
|
|
—
|
Impairment and
credit
losses (recoveries) (2)
|
—
|
|
—
|
|
—
|
|
(6,990)
|
|
—
|
|
—
|
Restructuring charges
and
other initiative expenses
|
5,288
|
|
—
|
|
—
|
|
5,288
|
|
—
|
|
—
|
Incidental costs
related to
the Oasis of the Seas
incident included within
cruise operating expenses
|
—
|
|
—
|
|
12,026
|
|
—
|
|
—
|
|
12,026
|
Transaction costs
related to
Silversea Cruises acquisition (3)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,186
|
Net Cruise
Costs
|
1,648,114
|
|
1,653,209
|
|
1,307,989
|
|
3,350,429
|
|
3,363,378
|
|
2,637,129
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Fuel (4)
|
275,918
|
|
—
|
|
181,228
|
|
577,431
|
|
—
|
|
341,399
|
Net Cruise Costs
Excluding
Fuel
|
$
1,372,196
|
|
$
1,377,292
|
|
$
1,126,761
|
|
$ 2,772,998
|
|
$
2,785,947
|
|
$ 2,295,730
|
|
|
|
|
|
|
|
|
|
|
|
|
APCD
|
11,708,837
|
|
11,708,837
|
|
10,437,420
|
|
22,942,326
|
|
22,942,326
|
|
20,298,020
|
Gross Cruise Costs
per
APCD
|
$
204.10
|
|
$
204.86
|
|
$
184.09
|
|
$
202.40
|
|
$
203.31
|
|
$
184.75
|
Net Cruise Costs per
APCD
|
$
140.76
|
|
$
141.19
|
|
$
125.32
|
|
$
146.04
|
|
$
146.60
|
|
$
129.92
|
Net Cruise Costs
Excluding
Fuel per APCD
|
$
117.19
|
|
$
117.63
|
|
$
107.95
|
|
$
120.87
|
|
$
121.43
|
|
$
113.10
|
(1)
|
Represents gain on sale
of controlling interest in cruise terminal facilities in Italy.
These amounts are included in Other operating within
our consolidated statements of comprehensive income
(loss).
|
(2)
|
Represents asset
impairments and credit losses recoveries for notes receivables for
which credit losses were previously recorded. These amounts are
included in Other operating within our consolidated
statements of comprehensive income (loss).
|
(3)
|
These amounts are
included in Marketing, selling and administrative expenses
within our consolidated statements of comprehensive income
(loss).
|
(4)
|
For the quarter and six
months ended June 30, 2019, the amount does not include incremental
fuel expenses incurred of $0.7 million related to the collapse of
the drydock structure at the Grand Bahama Shipyard involving
Oasis of the Seas.
|
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 June
30,
|
|
Six Months Ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
attributable to Royal Caribbean
Cruises Ltd.
|
|
$
458,761
|
|
$
(521,582)
|
|
$
410,851
|
|
$
(1,688,724)
|
Interest
income
|
|
(9,583)
|
|
(6,490)
|
|
(24,391)
|
|
(9,812)
|
Interest expense, net
of interest capitalized
|
|
355,512
|
|
302,706
|
|
714,899
|
|
580,365
|
Depreciation and
amortization expenses
|
|
361,677
|
|
351,542
|
|
721,450
|
|
691,009
|
Income tax expense
(benefit) (1)
|
|
7,806
|
|
(2,025)
|
|
(537)
|
|
4,553
|
EBITDA
|
|
1,174,173
|
|
124,151
|
|
1,822,272
|
|
(422,609)
|
|
|
|
|
|
|
|
|
|
Other (income) expense
(2)
|
|
(2,420)
|
|
(4,432)
|
|
1,308
|
|
(8,472)
|
Gain on sale of
controlling interest (3)
|
|
—
|
|
—
|
|
(3,130)
|
|
—
|
Recovery of losses from
one of our equity method
investees
|
|
(4,228)
|
|
—
|
|
(4,228)
|
|
—
|
Impairment and credit
losses (recoveries) (4)
|
|
—
|
|
(10,943)
|
|
(6,990)
|
|
(10,770)
|
Restructuring charges
and other initiative expenses
|
|
5,288
|
|
902
|
|
5,288
|
|
1,875
|
Adjusted
EBITDA
|
|
$
1,172,813
|
|
$
109,678
|
|
$
1,814,520
|
|
$
(439,976)
|
|
|
|
|
|
|
|
|
|
APCD
|
|
11,708,837
|
|
10,295,996
|
|
22,942,326
|
|
17,988,902
|
Net Income (Loss)
attributable to Royal Caribbean
Cruises Ltd. per APCD
|
|
$
39.18
|
|
$
(50.66)
|
|
$
17.91
|
|
$
(93.88)
|
Adjusted EBITDA per
APCD
|
|
$
100.16
|
|
$
10.65
|
|
$
79.09
|
|
$
(24.46)
|
(1)
|
These amounts are
included in Other (expense) income within our consolidated
statements of comprehensive income (loss).
|
(2)
|
Represents net
non-operating income or expense. For the periods reported,
primarily relates to gains or losses arising from the remeasurement
of monetary assets and liabilities denominated in foreign
currencies. The amount excludes income tax expense (benefit),
included in the EBITDA calculation above.
|
(3)
|
Represents gain on sale
of controlling interest in cruise terminal facilities in Italy.
These amounts are included in Other operating within our
consolidated statements of comprehensive income (loss).
|
(4)
|
Represents asset
impairments and credit loss recoveries for notes receivables for
which credit losses were previously recorded. These amounts are
included in Other operating within our consolidated
statements of comprehensive income (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):
|
|
|
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)
|
Restructuring charges
and other initiatives expenses
|
13,707
|
Oasis of the Seas
incident, Grand Bahama's Drydock write-off and other incidental
expense (3)
|
35,239
|
Transaction and
integration cost 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)
|
Amount includes
incidental costs, net of insurance recoveries of $14.5 million
related to the collapse of the drydock structure at the Grand
Bahama Shipyard involving Oasis of the Seas, which were
reported primarily within Other operating expenses in our
consolidated statements of comprehensive income (loss) for the year
ended December 31, 2019; and $20.7 million regarding the Grand
Bahama incident involving one of its drydocks, included in our
equity investment income within our consolidated statements
of comprehensive income (loss) for the year ended December 31,
2019.
|
(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 Income
(Loss) attributable to Royal Caribbean Cruises Ltd. and Adjusted
Earnings (Loss) per Share were calculated as follows (in thousands,
except shares and per share data):
|
|
|
|
|
|
|
|
|
|
Quarter Ended June
30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net Income (Loss)
attributable to Royal Caribbean Cruises Ltd.
|
$
458,761
|
|
$
(521,582)
|
|
$
410,851
|
|
$
(1,688,724)
|
Loss on extinguishment
of debt
|
30,229
|
|
—
|
|
43,518
|
|
—
|
Gain on sale of
controlling interest (1)
|
—
|
|
—
|
|
(3,130)
|
|
—
|
PortMiami tax on sale
of noncontrolling interest (2)
|
—
|
|
—
|
|
10,020
|
|
—
|
Silver Whisper deferred
tax liability release (3)
|
—
|
|
—
|
|
(25,784)
|
|
—
|
Recovery of losses from
one of our equity method investees
|
(4,228)
|
|
—
|
|
(4,228)
|
|
—
|
Impairment and credit
losses (recoveries) (4)
|
—
|
|
(10,943)
|
|
(6,990)
|
|
(10,770)
|
Amortization of
Silversea Cruises intangible assets resulting from the Silversea
Cruises acquisition (5)
|
1,623
|
|
1,623
|
|
3,246
|
|
3,246
|
Restructuring charges
and other initiative expenses
|
5,288
|
|
902
|
|
5,288
|
|
1,875
|
Adjusted Net Income
(Loss) attributable to Royal Caribbean Cruises Ltd.
|
$
491,673
|
|
$
(530,000)
|
|
$
432,791
|
|
$
(1,694,373)
|
|
|
|
|
|
|
|
|
Earnings (Loss) per
Share - Diluted (6)
|
$
1.70
|
|
$
(2.05)
|
|
$
1.60
|
|
$
(6.63)
|
Adjusted Earnings
(Loss) per Share - Diluted (6)
|
$
1.82
|
|
$
(2.08)
|
|
$
1.69
|
|
$
(6.65)
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding - Diluted
|
281,913
|
|
254,964
|
|
258,741
|
|
254,893
|
|
|
|
|
|
|
|
|
(1)
|
Represents gain on sale
of controlling interest in cruise terminal facilities in Italy.
These amounts are included in Other operating within our
consolidated statements of comprehensive income (loss).
|
(2)
|
Represents tax on the
PortMiami sale of noncontrolling interest. These amounts are
included in Other (expense) income in our consolidated
statements of comprehensive income (loss).
|
(3)
|
Represents the release
of the deferred tax liability subsequent to the execution of the
bargain purchase option for the Silver Whisper. These amounts are
included in Other (expense) income within our consolidated
statements of comprehensive income (loss).
|
(4)
|
Represents asset
impairments and credit loss recoveries for notes receivables for
which credit losses were previously recorded. These amounts are
included in Other operating within our consolidated
statements of comprehensive income (loss).
|
(5)
|
Represents the
amortization of the Silversea Cruises intangible assets resulting
from the 2018 Silversea Cruises acquisition
|
(6)
|
Diluted EPS and
Adjusted Diluted EPS includes the add-back of dilutive interest
expense related to our convertible notes of $21.3 million and $4.2
million for the quarter and six months ended June 30, 2023,
respectively.
|
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SOURCE Royal Caribbean Group