RCL Q2 2024 Earnings

Call Details

• Call Title: Royal Caribbean Cruises Q2 2024 Earnings Call
• Date: July 25, 2024 at 2:00 PM UTC
• Management Team:
  • Michael McCarthy (Vice President of Investor Relations)
  • Jason Liberty (Chief Executive Officer)
  • Naftali Holtz (Chief Financial Officer)
  • Michael Bayley (President and CEO of World Caribbean International)

Call Summary

Financial Performance

• Reported adjusted earnings per share were $3.21 for Q2 2024.
• Adjusted EBITDA was $1.6 billion and gross EBITDA margin was 38%.
• Net yield growth for the quarter was 13.3%.
• Load factors were 108.2 and contributed approximately 300 basis points to yield growth.
• Net cruise costs excluding fuel (NCCx) increased 5.7% in constant currency in Q2.
• The quarter included a $0.51 per share outperformance versus the midpoint of guidance, driven in part by approximately $0.15 per share of favorable timing of expenses.
• Trailing 12-month Trifecta metrics included $113 adjusted EBITDA per APCD, $10.08 adjusted EPS, and return on invested capital in the mid-teens.

Guidance

• Full-year net yield growth is expected to be up 10.4% to 10.9%.
• Full-year adjusted EPS guidance was raised to $11.35 to $11.45.
• Company expects adjusted EPS to grow 68% year over year for 2024.
• Third-quarter guidance calls for operating 13.4M APCDs and net yields up 6.5% to 7% versus 2023.
• Third-quarter net cruise costs excluding fuel are expected to be up 4.7% to 5.2%.
• Full-year net cruise costs excluding fuel are expected to be up approximately 6%, which is 50 basis points higher than prior guidance due to higher non-cash stock-based compensation.
• Company expects fuel expense of $1.17 billion for the year and is 61% hedged at below market rates.