RCL Q4 2021 Earnings

Call Details

• Call Title: Royal Caribbean Cruises Q4 2021 Earnings Call
• Date: February 4, 2022 at 3:00 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 Royal Caribbean International)

Call Summary

Financial Performance

• Adjusted net loss for Q4 2021 was $1.2B and adjusted net loss for full year 2021 was $4.8B.
• Cash flow from operating ships turned positive during Q4 2021.
• Total gross revenue per passenger cruise day was up 10% versus Q4 2019 due primarily to stronger onboard revenue.
• Total load factors expanded from 36% in Q3 2021 to close to 60% in Q4 2021.
• Q4 results were reported as better than internal expectations driven by onboard revenue strength and improved cost management.
• The company expects positive EBITDA and operating cash flow in late spring 2022.

Guidance

• The company expects a net loss for the first half of 2022 and a profit for the second half of 2022.
• Q1 2022 operating plan targets about 7.7 million APCDs, which is approximately 95% of planned capacity.
• Expected load factors on core itineraries in Q1 2022 are approximately 60% with month-over-month improvement within the quarter.
• The company expects to bring the remainder of the fleet back into service in time for the summer 2022 season.
• The company reiterated expectations to approach historical load factor levels by the third quarter of 2022.
• Expectations include positive operating cash flow and EBITDA in late spring but note that Omicron delayed return to profitability by months.