Strong demand and enhanced margin drive
fourth quarter earnings
Record start to WAVE and record booked
position provide strong momentum to 2024
Adjusted EPS in 2024 are expected to be
$9.50 - $9.70
MIAMI, Feb. 1,
2024 /PRNewswire/ -- Royal Caribbean Group (NYSE: RCL)
today reported 2023 Earnings per Share ("EPS") of $6.31 and Adjusted EPS of $6.77. These results were better than the
company's guidance due to stronger close-in demand. The strength is
continuing into 2024 with Adjusted EPS expected to be in the range
of $9.50 to $9.70 per share.
"2023 was an exceptional year, propelled by unmatched demand for
our brands from new and loyal guests," said Jason Liberty, president and CEO, Royal
Caribbean Group. "With the wind in our sails and record-breaking
bookings, 2024 is poised to be another robust year, and we expect
to achieve two of our Trifecta goals one year early,"
added Liberty. "With our industry-leading global brands combined
with the most innovative fleet and destinations, we remain
intensely focused on delivering a lifetime of vacations and
priceless memories for our guests while delivering exceptional
long-term shareholder value."
Full Year 2023 Results:
- Gross Margin Yields increased 13.2% as-reported. Net Yields
increased 13.5% in Constant Currency (13.2% as-reported). Both
metrics are compared to 2019.
- Gross Cruise Costs per Available Passenger Cruise Day ("APCD")
increased 10.9% as-reported. Net Cruise Costs ("NCC"), excluding
Fuel, per APCD increased 7.9% in Constant Currency (7.5%
as-reported). Both metrics are compared to 2019, and include
approximately 65 bps, compared to prior guidance, related to
increase in stock compensation expense due to the significant rise
in share price.
- Total revenues were $13.9
billion, Net Income was $1.7
billion or $6.31 per share,
Adjusted Net Income was $1.8 billion
or $6.77 per share, and Adjusted
EBITDA was $4.5 billion.
Full Year 2024 Outlook:
- WAVE season is off to a record start. Booked load factors and
rates are higher than all prior years.
- Net Yields are expected to increase 5.25% to 7.25% in Constant
Currency (5.30% to 7.30% as-reported), compared to 2023.
- NCC, excluding Fuel, per APCD is expected to increase 3.75% to
4.25% in Constant Currency (3.80% to 4.30% as-reported) compared to
2023, and include 315 bps of costs related to increased drydock
days and the new operations of Hideaway Beach at Perfect Day at
CocoCay.
- Adjusted EPS is expected to grow 40% year over year and be in
the range of $9.50 to $9.70.
- The company expects to achieve two of its
Trifecta goals in 2024: triple digit EBITDA per APCD
and ROIC in the teens, one year earlier than prior
expectations.
Fourth Quarter 2023 Results
Net Income for the fourth quarter of 2023 was $0.3 billion or $1.06 per share compared to Net Loss of
$(0.5) billion or $(1.96) per share for the same period in the
prior year. Adjusted Net Income was $0.3
billion or $1.25 per share for
the fourth quarter of 2023 compared to Adjusted Net Loss of
$(0.3) billion or $(1.12) per share for the same period in the
prior year. The company also reported total revenues of
$3.3 billion and Adjusted EBITDA of
$1.0 billion.
Gross Margin Yields increased 30.9% as-reported, and Net Yields
increased 17.9% in Constant Currency (17.3% as-reported) when
compared to the fourth quarter of 2019. Load factor for the quarter
was 105%.
Gross Cruise Costs per APCD increased 9.7% as-reported, compared
to 2019. NCC, excluding Fuel, per APCD increased 6.7% in Constant
Currency (6.2% as-reported), when compared to 2019 and included
approximately 250 bps related to increase in stock
compensation expense compared to prior guidance due to the
significant rise in share price.
Full Year 2023 Results
For the full year 2023, the company reported Net Income of
$1.7 billion or $6.31 per share compared to Net Loss of
$(2.2) billion or $(8.45) per share in the prior year. The company
also reported Adjusted Net Income of $1.8
billion or $6.77 per share for
the full year 2023 compared to Adjusted Net Loss of $(1.9) billion or $(7.50) per share in the prior year.
Gross Margin Yields increased 13.2% as-reported, and Net Yields
increased 13.5% in Constant Currency (13.2% as-reported) when
compared to 2019.
Gross Cruise Costs per APCD increased 10.9% as-reported and NCC,
excluding Fuel, per APCD increased 7.9% in Constant Currency (7.5%
as-reported), compared to 2019, and included 65 bps related to
increase in stock compensation expense due to the significant rise
in share price, compared to prior guidance.
Update on Bookings
The company is very encouraged about the demand and pricing
environment for 2024. Overall, the five best booking weeks of
the company's history have occurred since the last earnings call,
including the first three weeks of WAVE. As a result, the company
is now in a record booked position in both rate and volume. The
booking strength is widespread benefiting all key itineraries.
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 market response to the company's new ships (particularly
Icon of the Seas), existing hardware and the expansion of
Perfect Day at CocoCay (with Hideaway Beach) has been excellent and
further positions the company for strong yield and earnings growth
in 2024.
"Demand for our brands continues to outpace broader travel as a
result of consumer spend further shifting toward experiences and
the exceptional value proposition of our products," said
Jason Liberty, president and CEO,
Royal Caribbean Group. "We have exciting new vacation experiences
in 2024, including the game changing Icon of the Seas, and
have entered the year in a record booked position at significantly
higher prices, further positioning us for a strong 2024."
As of December 31, 2023, the
Group's customer deposit balance was at $5.3
billion.
First Quarter 2024
Net Yields are expected to increase 15.2% to 15.7% in Constant
Currency (15.3% to 15.8% as-reported) compared to 2023. First
quarter yield growth is benefiting from both Load factor catch up
and the annualization of pricing power that began during WAVE of
2023.
NCC, excluding Fuel, per APCD, is expected to increase 7.10% to
7.60% in Constant Currency (7.20% to 7.70% as-reported) compared to
2023 and includes 380 bps of costs related to increased drydock
days and the operations of Hideaway Beach.
Based on current fuel pricing, interest rates, currency exchange
rates and the factors detailed above, the company expects first
quarter Adjusted EPS to be in the range of $1.10 to $1.20.
Fuel Expense
Bunker pricing, net of hedging, for the fourth quarter was
$713 per metric ton and consumption
was 421,000 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 $307 million of fuel expense in its first quarter guidance
at a forecasted consumption of 444,000 metric tons, which is 60%
hedged via swaps. Forecasted consumption is 61%, 44%, and 15%
hedged via swaps for 2024, 2025, and 2026, respectively. The annual
average cost per metric ton of the hedge portfolio is approximately
$509, $468, and $490 for
2024, 2025, and 2026, respectively.
The company provided the following guidance for the first
quarter and full year 2024:
FUEL
STATISTICS
|
First Quarter
2024
|
Full Year
2024
|
Fuel Consumption
(metric tons)
|
444,000
|
1,727,000
|
Fuel
Expenses
|
$307 million
|
$1,165
million
|
Percent Hedged (fwd.
consumption)
|
60.0 %
|
61.0 %
|
|
|
|
GUIDANCE
|
As-Reported
|
Constant
Currency
|
|
First Quarter
2024
|
Net Yields vs.
2023
|
15.30% to
15.80%
|
15.20% to
15.70%
|
Net Cruise Costs per
APCD vs. 2023
|
4.60% to
5.10%
|
4.60% to
5.10%
|
Net Cruise Costs per
APCD ex. Fuel vs. 2023
|
7.20% to
7.70%
|
7.10% to
7.60%
|
|
Full Year
2024
|
Net Yields vs.
2023
|
5.30% to
7.30%
|
5.25% to
7.25%
|
Net Cruise Costs per
APCD vs. 2023
|
2.0% to
2.50%
|
2.0% to
2.50%
|
Net Cruise Costs per
APCD ex. Fuel vs. 2023
|
3.80% to
4.30%
|
3.75% to
4.25%
|
|
|
|
GUIDANCE
|
First Quarter
2024
|
Full Year
2024
|
APCDs
|
12.3 million
|
50.9 million
|
Capacity
change vs. 2023
|
9.7 %
|
8.5 %
|
Depreciation and
amortization
|
$385 to $395
million
|
$1,600 to $1,610
million
|
Net Interest,
excluding loss on extinguishment of debt
|
$305 to $315
million
|
$1,230 to $1,240
million
|
Adjusted
EPS
|
$1.10 to
$1.20
|
$9.50 to
$9.70
|
SENSITIVITY
|
First Quarter
2024
|
Full Year
2024
|
1% Change in
Currency
|
$4 million
|
$18 million
|
1% Change in Net
Yields
|
$25 million
|
$120 million
|
1% Change in NCC
excluding Fuel
|
$15 million
|
$61 million
|
100 basis pt. Change
in SOFR
|
$4 million
|
$26 million
|
10% Change in Fuel
prices
|
$16 million
|
$58 million
|
|
|
Exchange rates used
in guidance calculations
|
|
GBP
|
$1.27
|
|
AUD
|
$0.66
|
|
CAD
|
$0.74
|
|
EUR
|
$1.08
|
|
Liquidity and Financing Arrangements
As of December 31, 2023, the
Group's liquidity position was $3.1
billion, which includes cash and cash equivalents and
undrawn revolving credit facility capacity.
During the fourth quarter, the company refinanced its
$3.0 billion revolving credit
facilities and $500 million term loan
into new $3.5 billion multiyear
revolving credit facilities. In addition, the company repaid from
liquidity on hand, the remaining $500
million of its 11.50% senior secured notes due June 2025. Finally, the company settled its
2.875% convertible notes in November by utilizing $224.5 million of liquidity on hand and issuing
146,500 shares.
"Our accelerated performance and commitment to strengthening the
balance sheet allowed us to pay off approximately $4 billion
of debt in 2023 and significantly reduce leverage consistent with
our Trifecta goal of returning to investment grade
metrics," said Naftali Holtz, chief
financial officer, Royal Caribbean Group. "We will continue to
strategically allocate capital to invest in our future while also
paying down debt, and will be close to investment grade metrics in
2024."
The company noted that as of December 31,
2023, the scheduled debt maturities for 2024, 2025, 2026,
and 2027 were $1.7 billion,
$2.6 billion, $3.4 billion and $3.8
billion, respectively. Approximately 80% of the company's
debt is tied to fixed interest rates.
Capital Expenditures and Capacity Guidance
Capital expenditures for the full year 2024 are expected to be
approximately $3.3 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 Utopia of the Seas and Silver Ray in 2024.
All ship orders have committed financing in place. Non-new
ship related capital expenditures are expected to be $0.6 billion.
Capacity changes for 2024 are expected to be 8.5% compared to
2023. Capacity changes for 2025, 2026, and 2027 are expected to be
5%, 6%, and 4%, 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 periods presented,
these items included (i) loss contingency in connection with the
ongoing Havana Docks litigation recorded in other (income) expenses
in 2022; (ii) gain on sale of controlling interest; (iii)
impairment and credit losses; (iv) restructuring charges and other
initiative expenses; and (v) equity investments impairment and
recovery of losses.
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) less net income attributable to noncontrolling
interest, 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
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)
impairment and credit losses; (vi) the amortization of the
Silversea Cruises intangible assets resulting from the Silversea
Cruises acquisition in 2018; (vii) restructuring charges and other
initiative expenses; (viii) equity investments impairment and
recovery of losses, and (ix) loss contingency recorded in 2022 in
connection with the ongoing Havana Docks litigation inclusive of
related legal fees and costs.
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 for 2019 or Q4 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 of 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 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. 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 cost performance. 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; (iii) restructuring charges and other
initiative expenses; (iv) the transaction and integration costs
related to the Silversea Cruises acquisition; and (v) the costs
related to the Oasis of the Seas incident included within
other operating expenses.
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 the most recent
five-quarter average of Total shareholders' equity. We use this
measure to calculate ROIC (as defined below).
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.
Gross Margin Yield represent Gross Margin per APCD.
Adjusted Gross Margin represent Gross Margin,
adjusted for payroll and related, food, fuel, other operating, and
depreciation and amortization expenses. 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 EBITDA Margin is a non-GAAP measure that
represents Adjusted EBITDA (as defined above) divided by total
revenues.
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 65 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 8 ships on order as of December 31, 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 2024 and beyond; demand for our brands; our
progress towards achievement of our Trifecta goals; future capital
expenditures; and expectations regarding our 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 INCOME (LOSS)
|
(in millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Passenger ticket
revenues
|
$
2,286
|
|
$
1,702
|
|
$
9,568
|
|
$
5,793
|
Onboard and other
revenues
|
1,045
|
|
902
|
|
4,332
|
|
3,047
|
Total
revenues
|
3,331
|
|
2,604
|
|
13,900
|
|
8,840
|
Cruise operating
expenses:
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
450
|
|
393
|
|
2,001
|
|
1,357
|
Onboard and
other
|
169
|
|
146
|
|
809
|
|
597
|
Payroll and
related
|
309
|
|
307
|
|
1,197
|
|
1,288
|
Food
|
205
|
|
203
|
|
819
|
|
653
|
Fuel
|
300
|
|
293
|
|
1,150
|
|
1,073
|
Other
operating
|
457
|
|
442
|
|
1,799
|
|
1,648
|
Total cruise operating
expenses
|
1,890
|
|
1,784
|
|
7,775
|
|
6,616
|
Marketing, selling and
administrative expenses
|
503
|
|
444
|
|
1,792
|
|
1,583
|
Depreciation and
amortization expenses
|
368
|
|
361
|
|
1,455
|
|
1,407
|
Operating Income
(Loss)
|
570
|
|
15
|
|
2,878
|
|
(766)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
4
|
|
14
|
|
36
|
|
36
|
Interest expense, net
of interest capitalized
|
(346)
|
|
(432)
|
|
(1,402)
|
|
(1,364)
|
Equity investment
income
|
51
|
|
27
|
|
200
|
|
57
|
Other income
(expense)
|
1
|
|
(124)
|
|
(8)
|
|
(119)
|
|
(290)
|
|
(515)
|
|
(1,174)
|
|
(1,390)
|
Net Income
(Loss)
|
280
|
|
(500)
|
|
1,704
|
|
(2,156)
|
Less: Net Income
attributable to noncontrolling interest
|
2
|
|
—
|
|
7
|
|
—
|
Net Income (Loss)
attributable to Royal Caribbean Cruises Ltd.
|
$
278
|
|
$
(500)
|
|
$
1,697
|
|
$
(2,156)
|
|
|
|
|
|
|
|
|
Earnings (Loss) per
Share:
|
|
|
|
|
|
|
|
Basic
|
$
1.09
|
|
$
(1.96)
|
|
$
6.63
|
|
$
(8.45)
|
Diluted
|
$
1.06
|
|
$
(1.96)
|
|
$
6.31
|
|
$
(8.45)
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
256
|
|
255
|
|
256
|
|
255
|
Diluted
|
280
|
|
255
|
|
283
|
|
255
|
|
|
|
|
|
|
|
|
Comprehensive Income
(Loss)
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
$
280
|
|
$
(500)
|
|
$
1,704
|
|
$
(2,156)
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(11)
|
|
(22)
|
|
(9)
|
|
10
|
Change in defined
benefit plans
|
2
|
|
14
|
|
6
|
|
49
|
(Loss) gain on cash
flow derivative hedges
|
(20)
|
|
157
|
|
(27)
|
|
8
|
Total other
comprehensive (loss) income
|
(29)
|
|
149
|
|
(30)
|
|
67
|
Comprehensive Income
(Loss)
|
251
|
|
(351)
|
|
1,674
|
|
(2,089)
|
Less: Comprehensive
Income attributable to noncontrolling interest
|
2
|
|
—
|
|
7
|
|
—
|
Comprehensive Income
(Loss) attributable to Royal Caribbean Cruises Ltd.
|
$
249
|
|
$
(351)
|
|
$
1,667
|
|
$
(2,089)
|
ROYAL CARIBBEAN
CRUISES LTD.
|
STATISTICS
|
(unaudited)
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2019
|
|
2023
|
|
2022
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Passengers
Carried
|
1,939,360
|
|
1,746,130
|
|
1,607,561
|
|
7,646,203
|
|
5,536,335
|
|
6,553,865
|
Passenger Cruise
Days
|
12,605,093
|
|
11,052,960
|
|
11,057,419
|
|
49,549,127
|
|
35,051,935
|
|
44,803,953
|
APCD
|
11,962,340
|
|
11,644,086
|
|
10,401,177
|
|
46,916,259
|
|
41,197,650
|
|
41,432,451
|
Occupancy
|
105.4 %
|
|
94.9 %
|
|
106.3 %
|
|
105.6 %
|
|
85.1 %
|
|
108.1 %
|
ROYAL CARIBBEAN
CRUISES LTD.
|
CONSOLIDATED BALANCE
SHEETS
|
(in millions, except
share data)
|
|
|
|
|
|
As of
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
497
|
|
$
1,935
|
Trade and other
receivables, net of allowances of $6.6 and $11.6 at
December 31, 2023 and December 31, 2022,
respectively
|
405
|
|
531
|
Inventories
|
248
|
|
224
|
Prepaid expenses and
other assets
|
617
|
|
456
|
Derivative financial
instruments
|
25
|
|
59
|
Total current
assets
|
1,792
|
|
3,205
|
Property and
equipment, net
|
30,114
|
|
27,546
|
Operating lease
right-of-use assets
|
611
|
|
538
|
Goodwill
|
809
|
|
809
|
Other assets, net of
allowances of $42.7 and $71.6 at December 31, 2023 and
December 31, 2022, respectively
|
1,805
|
|
1,678
|
Total
assets
|
$
35,131
|
|
$
33,776
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
1,720
|
|
$
2,088
|
Current portion of
operating lease liabilities
|
65
|
|
80
|
Accounts
payable
|
792
|
|
647
|
Accrued expenses and
other liabilities
|
1,478
|
|
1,459
|
Derivative financial
instruments
|
35
|
|
131
|
Customer
deposits
|
5,311
|
|
4,168
|
Total current
liabilities
|
9,401
|
|
8,573
|
Long-term
debt
|
19,732
|
|
21,303
|
Long-term operating
lease liabilities
|
613
|
|
523
|
Other long-term
liabilities
|
486
|
|
508
|
Total
liabilities
|
30,232
|
|
30,907
|
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; 284,672,386 and
283,257,102 shares issued, December 31, 2023 and
December 31, 2022, respectively)
|
3
|
|
3
|
Paid-in
capital
|
7,474
|
|
7,285
|
Accumulated
deficit
|
(10)
|
|
(1,707)
|
Accumulated other
comprehensive loss
|
(674)
|
|
(644)
|
Treasury stock
(28,248,125 and 28,018,385 common shares at cost, December 31,
2023 and December 31, 2022, respectively)
|
(2,069)
|
|
(2,068)
|
Total shareholders'
equity attributable to Royal Caribbean Cruises Ltd
|
4,724
|
|
2,869
|
Noncontrolling
Interests
|
175
|
|
—
|
Total shareholders'
equity
|
4,899
|
|
2,869
|
Total liabilities
and shareholders' equity
|
$
35,131
|
|
$
33,776
|
ROYAL CARIBBEAN
CRUISES LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
millions)
|
|
|
|
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
(unaudited)
|
|
|
Operating
Activities
|
|
|
|
Net Income
(Loss)
|
$
1,704
|
|
$ (2,156)
|
Adjustments:
|
|
|
|
Depreciation and
amortization
|
1,455
|
|
1,407
|
Net deferred income
tax benefit
|
(8)
|
|
(22)
|
(Gain) loss on
derivative instruments not designated as hedges
|
(19)
|
|
100
|
Share-based
compensation expense
|
126
|
|
36
|
Equity investment
income
|
(200)
|
|
(57)
|
Amortization of debt
issuance costs, discounts and premiums
|
109
|
|
163
|
Loss on extinguishment
of debt
|
121
|
|
94
|
Changes in operating
assets and liabilities:
|
|
|
|
Decrease (increase) in
trade and other receivables, net
|
99
|
|
(234)
|
Increase in
inventories
|
(24)
|
|
(74)
|
Increase in prepaid
expenses and other assets
|
(184)
|
|
(153)
|
Increase in accounts
payable trade
|
124
|
|
75
|
Increase in accrued
liabilities
|
13
|
|
352
|
Increase in customer
deposits
|
1,143
|
|
1,007
|
Other, net
|
18
|
|
(57)
|
Net cash provided by
operating activities
|
4,477
|
|
481
|
|
|
|
|
Investing
Activities
|
|
|
|
Purchases of property
and equipment
|
(3,897)
|
|
(2,710)
|
Cash received on
settlement of derivative financial instruments
|
35
|
|
53
|
Cash paid on settlement
of derivative financial instruments
|
(86)
|
|
(356)
|
Investments in and
loans to unconsolidated affiliates
|
(31)
|
|
—
|
Cash received on loans
to unconsolidated affiliates
|
40
|
|
19
|
Proceeds from the sale
of property and equipment and other assets
|
13
|
|
—
|
Other, net
|
3
|
|
7
|
Net cash used in
investing activities
|
(3,923)
|
|
(2,987)
|
|
|
|
|
Financing
Activities
|
|
|
|
Debt
proceeds
|
7,641
|
|
9,787
|
Debt issuance
costs
|
(194)
|
|
(252)
|
Repayments of
debt
|
(9,566)
|
|
(7,729)
|
Premium on repayment of
debt
|
(80)
|
|
(49)
|
Proceeds from sale of
noncontrolling interest
|
209
|
|
—
|
Other, net
|
(3)
|
|
(16)
|
Net cash (used in)
provided by financing activities
|
(1,993)
|
|
1,741
|
Effect of exchange rate
changes on cash
|
1
|
|
(2)
|
Net decrease in cash
and cash equivalents
|
(1,438)
|
|
(767)
|
Cash and cash
equivalents at beginning of year
|
1,935
|
|
2,702
|
Cash and cash
equivalents at end of year
|
$
497
|
|
$
1,935
|
|
|
|
|
Supplemental
Disclosures
|
|
|
|
Cash paid during the
year for:
|
|
|
|
Interest, net of
amount capitalized
|
$
1,442
|
|
$
960
|
Non-Cash Investing
Activities
|
|
|
|
Purchases of property
and equipment included in accounts payable and accrued expenses and
other liabilities
|
$
50
|
|
$
34
|
Acquisition of
property and equipment from assumed debt
|
$
—
|
|
$
277
|
Non-Cash Financing
Activities
|
|
|
|
Debt related to
acquisition of property and equipment
|
$
—
|
|
$
277
|
ROYAL CARIBBEAN
CRUISES LTD.
|
NON-GAAP RECONCILING
INFORMATION
|
(unaudited)
|
Gross Margin Yields and
Net Yields were calculated by dividing Gross Margin and Adjusted
Gross Margin by APCD as follows (in millions, except APCD and
Yields):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2023 On a
Constant
Currency Basis
|
|
2019
|
|
2023
|
|
2023 On a
Constant
Currency Basis
|
|
2019
|
Total
revenues
|
$
3,331
|
|
$
—
|
|
$
2,517
|
|
$
13,900
|
|
$
—
|
|
$
10,951
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Cruise operating
expenses
|
1,890
|
|
—
|
|
1,482
|
|
7,775
|
|
—
|
|
6,063
|
Depreciation and
amortization expenses
|
368
|
|
—
|
|
322
|
|
1,455
|
|
—
|
|
1,246
|
Gross
Margin
|
1,073
|
|
1,086
|
|
713
|
|
4,670
|
|
4,699
|
|
3,642
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and
related
|
309
|
|
—
|
|
280
|
|
1,197
|
|
—
|
|
1,079
|
Food
|
205
|
|
—
|
|
148
|
|
819
|
|
—
|
|
584
|
Fuel
|
300
|
|
—
|
|
178
|
|
1,150
|
|
—
|
|
698
|
Other
operating
|
457
|
|
—
|
|
369
|
|
1,799
|
|
—
|
|
1,406
|
Depreciation and
amortization expenses
|
368
|
|
—
|
|
322
|
|
1,455
|
|
—
|
|
1,246
|
Adjusted Gross
Margin
|
$
2,712
|
|
$
2,726
|
|
$
2,010
|
|
$
11,090
|
|
$
11,123
|
|
$
8,655
|
|
|
|
|
|
|
|
|
|
|
|
|
APCD
|
11,962,340
|
|
11,962,340
|
|
10,401,177
|
|
46,916,259
|
|
46,916,259
|
|
41,432,451
|
Gross Margin
Yields
|
$
89.70
|
|
$
90.78
|
|
$
68.55
|
|
$
99.54
|
|
$
100.16
|
|
$
87.90
|
Net
Yields
|
$
226.71
|
|
$
227.88
|
|
$
193.25
|
|
$
236.38
|
|
$
237.08
|
|
$
208.89
|
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 millions, except APCD and costs per APCD):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2023 On a
Constant
Currency Basis
|
|
2019
|
|
2023
|
|
2023 On a
Constant
Currency Basis
|
|
2019
|
Total cruise operating
expenses
|
$
1,890
|
|
$
—
|
|
$
1,482
|
|
$
7,775
|
|
$
—
|
|
$
6,063
|
Marketing, selling and
administrative expenses
|
503
|
|
—
|
|
415
|
|
1,792
|
|
—
|
|
1,559
|
Gross Cruise
Costs
|
2,393
|
|
2,403
|
|
1,897
|
|
9,567
|
|
9,602
|
|
7,622
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
450
|
|
—
|
|
377
|
|
2,001
|
|
—
|
|
1,656
|
Onboard and
other
|
169
|
|
—
|
|
130
|
|
809
|
|
—
|
|
640
|
Net Cruise Costs
including other costs
|
1,774
|
|
—
|
|
1,390
|
|
6,757
|
|
—
|
|
5,326
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
controlling interests (1)
|
—
|
|
—
|
|
—
|
|
(3)
|
|
—
|
|
—
|
Impairment and credit
losses (2)
|
15
|
|
—
|
|
—
|
|
8
|
|
—
|
|
—
|
Restructuring charges
and other initiatives expense (3)
|
—
|
|
—
|
|
14
|
|
5
|
|
—
|
|
14
|
Integration costs
related to Silversea Cruises acquisition (3)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
Transaction costs
related to Silversea Cruises acquisition (3)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
Incidental costs
related to the Oasis of the Seas incident included within other
operating expenses
|
—
|
|
—
|
|
3
|
|
—
|
|
—
|
|
15
|
Net Cruise
Costs
|
1,759
|
|
1,766
|
|
1,373
|
|
6,747
|
|
6,769
|
|
5,295
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
300
|
|
—
|
|
178
|
|
1,150
|
|
—
|
|
698
|
Net Cruise Costs
excluding Fuel
|
$
1,459
|
|
$
1,466
|
|
$
1,195
|
|
$
5,597
|
|
$
5,619
|
|
$
4,597
|
|
|
|
|
|
|
|
|
|
|
|
|
APCD
|
11,962,340
|
|
11,962,340
|
|
10,401,177
|
|
46,916,259
|
|
46,916,259
|
|
41,432,451
|
Gross Cruise Costs
per APCD
|
$
200.04
|
|
$
200.88
|
|
$
182.38
|
|
$
203.92
|
|
$
204.66
|
|
$
183.96
|
Net Cruise Costs per
APCD
|
$
147.04
|
|
$
147.63
|
|
$
132.00
|
|
$
143.81
|
|
$
144.28
|
|
$
127.80
|
Net Cruise Costs
excluding Fuel per APCD
|
$
121.97
|
|
$
122.55
|
|
$
114.89
|
|
$
119.30
|
|
$
119.77
|
|
$
110.95
|
|
|
(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 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). Additionally, includes
an $11.4 million impairment related to ceasing the use of certain
real estate assets in our shoreside operations. This amount is
included in Marketing, selling and administrative expenses
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).
|
ROYAL CARIBBEAN
CRUISES LTD.
|
NON-GAAP RECONCILING
INFORMATION
|
(unaudited)
|
EBITDA, Adjusted EBITDA
and Adjusted EBITDA Margin were calculated as follows (in millions,
except APCD and per APCD data):
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
attributable to Royal Caribbean Cruises Ltd.
|
|
$
278
|
|
$
(500)
|
|
$
1,697
|
|
$
(2,156)
|
Interest
income
|
|
(4)
|
|
(14)
|
|
(36)
|
|
(36)
|
Interest expense, net
of interest capitalized
|
|
346
|
|
432
|
|
1,402
|
|
1,364
|
Depreciation and
amortization expenses
|
|
368
|
|
361
|
|
1,455
|
|
1,407
|
Income tax expense
(1)
|
|
—
|
|
—
|
|
6
|
|
4
|
EBITDA
|
|
988
|
|
279
|
|
4,524
|
|
583
|
|
|
|
|
|
|
|
|
|
Other (income) expenses
(2)
|
|
(1)
|
|
124
|
|
2
|
|
115
|
Gain on sale of
controlling interest (3)
|
|
—
|
|
—
|
|
(3)
|
|
—
|
Impairment and credit
losses (4)
|
|
15
|
|
1
|
|
8
|
|
1
|
Restructuring charges
and other initiatives expense
|
|
—
|
|
5
|
|
5
|
|
12
|
Equity investment
impairment and recovery of losses (5)
|
|
—
|
|
—
|
|
8
|
|
—
|
Adjusted
EBITDA
|
|
$
1,002
|
|
$
409
|
|
$
4,544
|
|
$
711
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
3,331
|
|
$
2,604
|
|
$
13,900
|
|
$
8,840
|
|
|
|
|
|
|
|
|
|
APCD
|
|
11,962,340
|
|
11,644,086
|
|
46,916,259
|
|
41,197,650
|
Net Income (Loss)
per APCD
|
|
$
23.24
|
|
$
(42.94)
|
|
$
36.17
|
|
$
(52.33)
|
Adjusted EBITDA per
APCD
|
|
$
83.76
|
|
$
35.13
|
|
$
96.85
|
|
$
17.26
|
Adjusted EBITDA
Margin
|
|
30.1 %
|
|
15.7 %
|
|
32.7 %
|
|
8.0 %
|
|
|
(1)
|
These amounts are
included in Other income (expense) within our consolidated
statements of comprehensive income (loss).
|
(2)
|
Represents net
non-operating (income) expense. For 2022, primarily represents our
loss contingency recorded in connection with the ongoing Havana
Docks litigation inclusive of related legal fees and costs. The
amount excludes Income tax expense, 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). Additionally, 2023
includes an $11.4 million impairment related to ceasing the use of
certain real estate assets in our shoreside operations. This
amount is included in Marketing, selling and administrative
expenses within our consolidated statements of comprehensive
income (loss).
|
(5)
|
For the year ended
December 31, 2023, represents equity method impairments of $12.6
million recognized during the third quarter of 2023, and a $4.2
million recovery of losses from one of our equity
method investees recognized during the second quarter of 2023.
These amounts are included in Equity investment income
within our consolidated statements of comprehensive income
(loss).
|
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 millions,
except per share data):
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net Income (Loss)
attributable to Royal Caribbean Cruises Ltd.
|
$
278
|
|
$
(500)
|
|
$
1,697
|
|
$
(2,156)
|
Loss on extinguishment
of debt
|
40
|
|
77
|
|
121
|
|
94
|
Gain on sale of
controlling interest (1)
|
—
|
|
—
|
|
(3)
|
|
—
|
PortMiami tax on sale
of noncontrolling interest (2)
|
(3)
|
|
—
|
|
7
|
|
—
|
Silver Whisper deferred
tax liability release (3)
|
—
|
|
—
|
|
(26)
|
|
—
|
Impairment and credit
losses (4)
|
15
|
|
1
|
|
8
|
|
1
|
Amortization of
Silversea Cruises intangible assets resulting from the Silversea
Cruises acquisition (5)
|
1
|
|
2
|
|
6
|
|
6
|
Restructuring charges
and other initiatives expense
|
—
|
|
5
|
|
5
|
|
12
|
Equity investment
impairment and recovery of losses (6)
|
—
|
|
—
|
|
12
|
|
—
|
Litigation loss
contingency (7)
|
—
|
|
130
|
|
—
|
|
130
|
Adjusted Net Income
(Loss) attributable to Royal Caribbean Cruises Ltd.
|
$
331
|
|
$
(285)
|
|
$
1,827
|
|
$
(1,913)
|
|
|
|
|
|
|
|
|
Earnings (Loss) per
Share - Diluted (8)
|
$
1.06
|
|
$
(1.96)
|
|
$
6.31
|
|
$
(8.45)
|
Adjusted Earnings
(Loss) per Share - Diluted (8)
|
$
1.25
|
|
$
(1.12)
|
|
$
6.77
|
|
$
(7.50)
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding - Diluted
|
280
|
|
255
|
|
283
|
|
255
|
|
|
(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 income (expense) 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 income (expense) 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). Additionally, includes
an $11.4 million impairment related to ceasing the use of certain
real estate assets in our shoreside operations. This amount is
included in Marketing, selling and administrative expenses
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)
|
For the year ended
December 31, 2023, represents equity method impairments of $12.6
million and recognition of deferred currency translation adjustment
losses of $4.0 million. These amounts are included
in Equity investment income and Other income
(expense) within our consolidated statements of comprehensive
income (loss), respectively. Additionally, the year ended December
31, 2023, includes a $4.2 million recovery of losses from one of
our equity method investees recognized during the second quarter of
2023. This amount is included in Equity investment income
within our consolidated statements of comprehensive income
(loss).
|
(7)
|
Represents the 2022
loss contingency recorded in connection with the ongoing Havana
Docks litigation inclusive of related legal fees and costs.
This amount is included in Other income
(expense) within our consolidated statements of
comprehensive income (loss).
|
(8)
|
Diluted EPS and
Adjusted EPS includes the add-back of dilutive interest expense
related to our convertible notes of $19.2 million and $87.8
million for the quarter and year ended December 31,
2023.
|
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SOURCE Royal Caribbean Group