Royal Caribbean Cruises Q1 adjusted net income $45.2 million
Staff writer ▼ | April 22, 2015
Royal Caribbean Cruises reported stronger than expected first quarter results and updated its outlook for the full year.Article continues below
Adjusted net income for the first quarter of 2015 was $45.2 million, or $0.20 per share, compared to adjusted net income of $46.1 million, or $0.21 per share, in the first quarter of 2014.
Results were approximately $0.08 better than the mid-point of guidance, despite a $0.05 currency and fuel headwind. US GAAP net income for the first quarter 2015 was $45.2 million or $0.20 per share compared to $26.5 million or $0.12 per share in 2014.
Net yields on a Constant-Currency basis decreased 1% during the quarter. Strong close-in demand for Caribbean sailings catapulted yields over the top end of guidance and more than offset weaker onboard sales from company's internationally sourced guests.
Given that the majority of onboard revenue sales are priced in US Dollars, the strengthening of the Dollar reduced the purchasing power of many of company's internationally sourced guests, which modestly affected their onboard spend.
Constant-currency NCC excluding fuel increased 0.9% which is 160 basis points better than guidance, mainly driven by efficiencies. Bunker pricing net of hedging for the first quarter was $597 per metric ton and consumption was 344,000 metric tons.
The company has updated full year adjusted EPS guidance to a range of $4.45 to $4.65 from $4.65 to $4.85. The strengthening of the US Dollar and the increase in fuel prices since company's January guidance is expected to negatively impact earnings by $0.36.
Constant-currency net yields are expected to be in the range of up 2.5% to 4.0%, a slight reduction from previous guidance mainly due to the impact of the stronger US Dollar on the purchasing power of company's non-US guests.
Net cruise costs excluding fuel are expected to be flat to down 1% on a Constant-Currency basis, better than previous guidance of 1% or better. ■ What to read next
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