Royal Caribbean Cruises Ltd. announced net income for the second quarter 2007 of $128.7 million, or $0.60 per share, compared to net income of $122.4 million, or $0.57 per share in 2006. The results were consistent…
Royal Caribbean Cruises Ltd. announced net income for the second quarter 2007 of $128.7 million, or $0.60 per share, compared to net income of $122.4 million, or $0.57 per share in 2006. The results were consistent with previous guidance of $0.58 to $0.63 per share. Revenues for the second quarter 2007 increased to $1.5 billion from revenues of $1.3 billion in the second quarter 2006.
The company also announced that the full year earnings guidance is substantially unchanged except for the impact of higher fuel prices. The company does not forecast fuel prices, and, adjusting for current spot pricing, full year 2007 earnings are expected to be $2.75 to $2.85 per share.
Key metrics for the second quarter 2007 on a comparable basis (excluding Pullmantur) were as follows:
- Net Yields decreased 0.2% compared to the second quarter 2006, consistent with previous guidance of a decrease in a range around 1%.
- Net Cruise Costs per APCD decreased 4.0%, versus previous guidance of a decrease in a range around 3%. Fuel costs were higher than anticipated, and non-fuel expenses came in lower.
- Fuel prices increased 8% from the May 1, 2007 levels disclosed previously, with at-the-pump fuel prices averaging $443 per metric ton compared to the previously disclosed price of $412 per metric ton. Fuel prices were $460 per metric ton in the second quarter 2006.
- Excluding fuel, Net Cruise Costs per APCD decreased 3.2%, versus previous guidance of a decrease in a range around 1%, partly due to the timing of certain marketing and selling expenses.
Despite continuing pressure from high fuel prices, our second quarter results were consistent with our expectations, said Richard Fain, chairman and chief executive officer. The revenue environment has stabilized versus the first quarter, and our cost control initiatives are working well.
Including Pullmantur, the company`s Net Yields increased 0.9% and Net Cruise Costs per APCD increased 1.1%. Pullmantur`s operating income fell slightly below expectations due to weaker than expected demand for its land tour business during the spring season.
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