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Royal Caribbean Cruises Ltd. Reports Operating Results (10-Q)

October 25, 2012 | About:
10qk

10qk

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Royal Caribbean Cruises Ltd. (RCL) filed Quarterly Report for the period ended 2012-09-30.

Royal Caribbean Cruises Ltd. has a market cap of $6.98 billion; its shares were traded at around $33.74 with a P/E ratio of 13.9 and P/S ratio of 0.9. The dividend yield of Royal Caribbean Cruises Ltd. stocks is 1.5%. Royal Caribbean Cruises Ltd. had an annual average earning growth of 4.8% over the past 10 years. GuruFocus rated Royal Caribbean Cruises Ltd. the business predictability rank of 3-star.

Highlight of Business Operations:

Our revenues are seasonal based on demand for cruises. Demand is strongest for cruises during the Northern Hemispheres summer months and holidays. In order to mitigate the impact of the winter weather in the Northern Hemisphere and to capitalize on the summer season in the Southern Hemisphere, our brands have increased deployment to South America and Australia during the Northern Hemisphere winter months.

Onboard and other revenues included concession revenues of $72.9 million in 2012 compared to $69.1 million for the same period in 2011. The increase in concession revenues was due to an increase in spending on a per passenger basis.

Approximately $81.1 million of the increase in total revenues was attributable to a 1.4% increase in capacity. The increase in capacity was primarily due to the addition of Celebrity Silhouette which entered service in July 2011. This increase in capacity was partially offset by the sale of Celebrity Mercury to TUI Cruises in February 2011 and the completion of our one-year charter of the Bleu de France in November 2011 following its sale to a third party in November 2010. As previously disclosed, we consolidate the operating results of Pullmantur and its wholly-owned brand, CDF Croisières de France, on a two-month lag to allow for more timely preparation of our consolidated financial statements. The increase in capacity was also partially offset by the delivery of Ocean Dream to an unrelated third party in May 2012 as part of a six year bareboat charter agreement.

Onboard and other revenues included concession revenues of $213.3 million in 2012 compared to $202.7 million for the same period in 2011. The increase in concession revenues was due to an increase in spending on a per passenger basis and the increase in capacity mentioned above.

Net Yields increased 1.4% in 2012 compared to 2011 primarily due to the changes to our international distribution system, an increase in Pullmanturs land based tours, hotel and air packages revenue and to an increase in ticket prices partially attributable to the deployment initiatives. Net Yields increased 3.4% in 2012 compared to 2011 on a Constant Currency basis.

Read the The complete Report

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