RCL Q2 2022 Earnings

Call Details

• Call Title: Royal Caribbean Cruises Q2 2022 Earnings Call
• Date: July 28, 2022 at 2:00 PM UTC
• Management Team:
  • Michael McCarthy (Vice President, Investor Relations)
  • Jason Liberty (Chief Executive Officer)
  • Naftali Holtz (Chief Financial Officer)
  • Michael Bayley (President and CEO of Royal Caribbean International)

Call Summary

Financial Performance

• The company reported a net loss of approximately $500M, or $2.05 per share, for Q2 2022.
• Revenue for the quarter was $2.2B, which was double the first quarter of 2022.
• Operating cash flow was almost $500M for the quarter, delivering cash beyond operating and capital costs.
• EBITDA was $124M and turned positive in May, earlier than prior expectations.
• Total revenue per passenger cruise day increased 5% in constant currency versus Q2 2019.
• Load factors averaged 82% for the quarter and were about 90% in June, with North American itineraries sailing over 100%.

Guidance

• For Q3 2022 the company expects total revenues of $2.9B to $3.0B.
• For Q3 2022 the company expects adjusted EBITDA of $700M to $750M.
• For Q3 2022 the company expects adjusted earnings per share of $0.05 to $0.25.
• The company expects approximately 95% load factors in Q3 2022 and fleet-wide triple digits by year-end 2022.
• The company expects a slight net loss for the second half of 2022 due to increases in fuel rates, interest rates, and foreign exchange.
• Net cruise costs excluding fuel per APCD are expected to be higher by mid single digits for H2 2022 compared to 2019.