The Group is now offering cruises in all of its key destinations with the exception of China. This near-term update doesnt impact our $80 fair value estimate or our long-term outlook, and we still think Royal can surpass 2019s level of revenue and passengers in 2023. As of January 2022, the line operates twenty-six ships and has four additional ships on order. Gross Cruise Costs per APCD and NCCper APCD for the second quarter included $7.75 per APCD related to enhanced health protocols and one-time costs to return ships and crew back to operations. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Wed like to share more about how we work and what drives our day-to-day business. 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. For additional information see "Adjusted Measures of Financial Performance" below. 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. [33][34], In February 2020 TUI announced the purchase of Hapag-Lloyd Kreuzfahrten. FOMC meeting ahead; Chinese tech stocks jump, cruise line stocks sink. Oil tops $116, Occidental and Kroger hit new highs. Second half 2022 sailings are booked at higher prices than 2019, both including and excluding FCCs. Operating cash flow and EBITDA were positive for the quarter. We sell different types of products and services to both investment professionals and individual investors. Now that the full fleet has returned to service and load factors are nearly 90%, the company expects customer deposits to return to typical seasonality. The company expects to operate 11.6 million APCDs in the third quarter and generate approximately $2.9 billion - $3.0 billion in Total Revenue, based on current currency exchange rates. (4)Represents estimated cash refunds expected to be paid to Pullmantur guests as part of the Pullmantur S.A. reorganization. We continue to see a robust and accelerating demand environment for cruising and on-board spend. Island Cruises became an informal cruise line on the British and Brazilian markets. Guests are still booking their cruises closer-in compared to prior years, contributing to the better-than-expected load factors in the second quarter. The company reported Net Loss for the second quarter of 2022 of $(0.5) billion or $(2.05) per share compared to Net Loss of $(1.3) billion or $(5.29) per share in the prior year. As of June 30, 2022, the Group's customer deposit balance was $4.2 billion, a record high for the company. Silversea Cruises is a luxury cruise line headquartered in Monaco. [9] It followed this with the formation of CDF Croisires de France in May 2008 to serve the French-language market. [29] Pullmantur under Administration review was hoping to restart some operations with MV Horizon, laid up in Eleusis Bay, and two Celebrity Millennium class cruise ships. For new bookings, the Group has returned to typical booking and cancellation policies, which were relaxed during the pandemic. 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. Although there has been plenty of economic rhetoric on a weakening consumer, travel companies appear to be dodging a pullback in discretionary spend, as evidenced in no-moat Royal Caribbeans demand outlook. How we use your information depends on the product and service that you use and your relationship with us. (1)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. Celebrity Cruises is a cruise line headquartered in Miami, Florida[22] and a wholly owned subsidiary of Royal Caribbean Group. These products and services are usually sold through license agreements or subscriptions. (10) Represents equity investment asset impairments for TUI Cruises GmbH in 2021 as a result of the impact of COVID-19. Approximately 70% of the company's debt is tied to fixed interest rates. Founded in 1994 by the Vlasov Group of Monaco and the Lefebvre family of Rome it pioneered all-inclusive cruising with its first ship, Silver Cloud. Gear advertisements and other marketing efforts towards your interests. "Our liquidity position remains strong, and we are generating positive operating cash flow and EBITDA. Royal Caribbean Cruises just changed its name, without telling anyone", "Royal Caribbean Cruises Ltd. changes corporate name", "Royal Caribbean has sold its Azamara brand including 4 ships for $201 million as the company continues to push back 2021 sail dates", "Royal Caribbean Acquires Crystal Endeavor Ship for Silversea Fleet", "Royal Caribbean Receives Court Approval To Acquire Cruise Ship Endeavor", "2018 Worldwide Cruise Line Market Share", "Royal Caribbean Cruises Ltd. And Springwater Capital Announce Joint Venture", "Pullmantur Could Restart Operations with Two Celebrity Millennium-Class Cruise Ships", "Crucial week for Pullmantur: ERE negotiations start", "Spanish cruise company Pullmantur requests to open the liquidation process", "Royal Caribbean and TUI AG complete joint venture for TUI Cruises", "Tui bndelt Kreuzfahrt-Geschft in Gemeinschaftsunternehmen mit Royal Caribbean Cruises", "TUI sells 5% of Hapag-Lloyd Cruises to Royal Caribbean", "Royal Caribbean CEO hints at future plans for Freeport, Bahamas resort purchase", https://en.wikipedia.org/w/index.php?title=Royal_Caribbean_Group&oldid=1099587545, Companies listed on the New York Stock Exchange, Short description is different from Wikidata, Articles with unsourced statements from June 2019, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 21 July 2022, at 15:20. Approximately 60% of the FCC balance accumulated since the start of the pandemic has been redeemed. 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. The Net Loss and Adjusted Net Loss for the quarter are primarily the result of the impact of the COVID-19 pandemic on the business. For 2023, all quarters are currently booked within historical ranges at record pricing. [34] The take over was completed in July 2020. Starting Aug. 8, testing will be required for unvaccinated guests on all voyages and for vaccinated guests only on voyages that are six nights or longer. [16][17] Royal Caribbean sold Azamara Cruises to Sycamore Partners in March of 2021 for $201 million. Weve made tremendous progress in our conservation efforts in partnership with World Wildlife Fund. 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. "Last week, the CDC ended its COVID-19 Program for Cruise Ships. Instead, they were either laid up or under charter to other cruise lines, such as the Brazil-based Viagens CVC. In the second quarter, approximately 90% of total bookings were new versus FCC redemptions. The company also reported Adjusted Net Loss of $(0.5) billion or $(2.08) per share for the second quarter of 2022 compared to Adjusted Net Loss of $(1.3) billion or $(5.06) per share in the prior year. For the 2022 and 2021 periods presented, these items included (i) impairment and credit losses (recoveries); (ii) restructuring charges and other initiative expenses; (iii) the amortization of the Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition in 2018; (iv) the amortization of non-cash debt discount on our convertible notes; (v) the estimated cash refunds expected to be paid to Pullmantur guests as part of the Pullmantur S.A. reorganization in 2020; (vi) gain on the extinguishment of debt; (vii) equity investment asset impairments; (viii) net insurance recoveries related to the collapse of the drydock structure at the Grand Bahama Shipyard involving Oasis of the Seas; and (ix) the net gain recognized in 2021 in relation to the sale of the Azamara brand. Based in Miami, Florida, United States, it is the largest cruise line by revenue and second largest by passengers counts. [25] Since July 2020, it has been owned by Royal Caribbean Group. Booking volumes received in the second quarter for 2022 sailings averaged 30% above 2019 booking volumes for 2019 sailings in the corresponding period in the second quarter with even greater strength in July. Occupancy ("Load Factor")Occupancy, in accordance with cruise vacation industry practice, is calculated by dividing Passenger Cruise Days by APCD. During the second quarter, the Group generated operating cash flow of approximately $0.5 billion. Additionally, Royal offered third-quarter guidance that included sales that reach $2.9 billion-$3 billion (around our $3.1 billion projection), signaling sales are set to surpass 2019 levels. We believe that this non-GAAP measure is meaningful when assessing our performance on a comparative basis. The transaction is fully financed through a 15-year unsecured term loan, guaranteed by the German export credit agency, Euler Hermes, and has no amortization payments in the first two years. [19] [20]. [3] That same month, it also changed its name to Royal Caribbean Group. (11)Represents net insurance recoveries related to the collapse of the drydock structure at the Grand Bahama Shipyard involving Oasis of the Seas. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. For its subsidiary cruise line, see, Cruise line headquartered in Madrid, Spain, Other companies owned by Royal Caribbean Group, largest cruise line by revenue and second largest by passengers counts, "2021 Royal Caribbean Cruises Ltd. Form 10-K", "Royal Caribbean Group Acquires Remaining Interest in Silversea", "Royal Caribbean Cruises Ltd. to Sell Its Interest in Island Cruises to First Choice Holidays Ltd", "Celebrity Cruises Presents New, Deluxe Cruise Line: Azamara Cruises", Cruise Business Review: Royal Caribbean starts new cruise line dedicated to French market, "TUI AG and Royal Caribbean Cruises Ltd. announce joint venture to serve German cruise market", "Tui Travel plc Begins Trading on the London Stock Exchange", "Have you noticed? 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. As a result, all quarters are currently booked within historical ranges at record pricing. Cruising remains a very attractive value proposition for vacationers, and today we have an opportunity to further close the value gap to other land-based vacation offerings," added Liberty. Depreciation and amortization expenses for the third quarter of 2022 are expected to be approximately $360 million. A keel-laying ceremony took place at Finnish shipyard Meyer Turku to celebrate the progress on the revolutionary cruise ship. We also lowered our fair value estimates for these companies and see their competitive advantages waning from the impact of COVID-19. It is not possible to predict or identify all such risks. The Group expects to operate approximately 11.6 million APCDs for the third quarter and 11.5 million APCDs for the fourth quarter. For the remainder of 2022 and all of 2023, the annual average cost per metric ton of the fuel swap portfolio is approximately $473 and $575, respectively. Cision Distribution 888-776-0942 In addition, we are unable to determine the future impact of non-core business related gains and losses which may result from strategic initiatives. 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. The Group continues to benefit from the delivery of new, more efficient ships and past sales of less efficient ships, as well as actions taken to improve operating costs and margins that continue to materialize as operations ramp up. (6)Represents net insurance recoveries related to the collapse of the drydock structure at the Grand Bahama Shipyard involving Oasis of the Seas. Second quarter results were meaningfully ahead of the company's expectations driven by accelerating and strong close-in demand, further improvement in onboard revenue and better cost performance. 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. Although such changes in local currency prices are just one of many elements impacting our revenues and expenses, it can be an important element. Booking volumes received in the second quarter for the back half of 2022 sailings remained significantly higher than booking volumes received in the second quarter of 2019 for the back half of 2019. "Consumers' propensity to travel and cruise remains strong. 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. The company has scheduled a conference call at 10:00 a.m. Eastern Time today. 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, and the captions Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations in our most recent annual report on Form 10-K, copies of which may be obtained by visiting our Investor Relations website at www.rclinvestor.com or the SECs website at www.sec.gov. The third-quarter EPS goal of $0.05-$0.25 marks the first quarter of profitability since prior to the pandemic but was lower than the above $1 we forecast as inflation continues to eats into profit potential. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. [10], Royal Caribbean also has an interest in TUI Cruises, a joint venture with TUI AG,[11] which began operations in 2009 aimed at a German-speaking market. Trade and other receivables, net of allowances of $7,897 and $13,411 at June30, 2022 and. We believe that this non-GAAP measure is meaningful when assessing our operating performance on a comparative basis. The company does not forecast fuel rates, and fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. This means that we're transitioning to the point where everyone will be able to vacation with us while always working with our destination partners to meet their regulations. The company also has a 50% investment in a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises, allowing it to compete on the basis of innovation, quality of ships and service, variety of itineraries, choice of destinations, and price. [3] They also hold a 50% stake in TUI Cruises and the now-defunct Pullmantur Cruises and CDF Croisires de France. [4][5] Previously Royal Caribbean Group also fully owned Azamara Cruises selling the cruise line to Sycamore Partners in January 2021, and 50% of Island Cruises, selling their stake to TUI Travel PLC in October 2008. While demand for the critical Europe season has been strong over the past three months, the combination of COVID-19 and the Russia-Ukraine war, has set back load factor recovery, particularly for the third quarter of 2022, where European itineraries account for about a third of overall capacity.
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