Royal Caribbean Cruises .(RCL) - 2025 Q1 - Quarterly Report

Financial Performance - Net Income attributable to Royal Caribbean Cruises Ltd. for Q1 2025 was $730 million, up from$360 million in Q1 2024, representing a 102.8% increase [154]. - Adjusted Net Income for Q1 2025 was $744 million, compared to$478 million in Q1 2024, reflecting a 55.7% increase [154]. - Total revenues increased by $271 million in Q1 2025 compared to Q1 2024, driven by higher capacity, ticket prices, and onboard spending [156]. - Total revenues for Q1 2025 increased by$271 million to $3.999 billion, up from$3.728 billion in Q1 2024 [170]. - Passenger ticket revenues rose by $202 million, or 7.9$2.744 billion, accounting for 68.6% of total revenues in Q1 2025 [170]. - Onboard and other revenues increased by $69 million, or 5.8$1.255 billion, representing 31.4% of total revenues in Q1 2025 [170]. - Operating income for Q1 2025 was $945 million, a 26$750 million in Q1 2024 [170]. - Adjusted EBITDA for Q1 2025 was $1.402 billion, compared to$1.174 billion in Q1 2024, marking a 19.4% increase [163]. - The company carried 2,241,673 passengers in Q1 2025, an increase from 2,054,382 passengers in Q1 2024 [163]. - The occupancy rate for Q1 2025 was 108.8%, up from 107.0% in Q1 2024 [163]. Cash Flow and Financing - Net cash provided by operating activities was $1.6 billion for Q1 2025, an increase of$0.3 billion compared to $1.3 billion in Q1 2024 [176]. - Net cash used in financing activities was$1.2 billion in Q1 2025, compared to $1.1 billion in Q1 2024, primarily due to dividend payments and treasury stock purchases [178]. - A cash dividend of$0.75 per share was declared during the quarter ended March 31, 2025, and paid in April 2025 [194]. - The company is in compliance with financial covenants as of March 31, 2025, and expects to remain compliant for at least the next twelve months [193]. - The company anticipates sufficient financial resources to fund obligations for at least the next twelve months, though future liquidity requirements remain uncertain [192]. Capital Expenditures and Investments - As of March 31, 2025, the aggregate expected cost of ships on order is $7.9 billion, with$1.0 billion already deposited [180]. - Total anticipated capital expenditures for 2025 are approximately $5 billion, primarily for existing ships on order and land-based destination initiatives [181]. - Material cash requirements total$12.31 billion through 2029, including $4.91 billion for interest on debt and$5.81 billion for ship purchase obligations [182]. - As of March 31, 2025, the company has $6.1 billion of committed financing for ships on order [189]. - Liquidity as of March 31, 2025, is$4.5 billion, comprising $0.4 billion in cash and cash equivalents and$4.1 billion in undrawn revolving credit facility capacity [190]. Strategic Goals - The company targets a 20% compound annual growth rate in Adjusted EPS by the end of 2027 under its Perfecta Program [151]. - The company aims for a Return on Invested Capital (ROIC) of 17% or higher by the end of 2027 [151]. - The company continuously considers opportunities for building additional ships and potential acquisitions, which would be financed through various means including additional debt [186]. - Approximately 36.5% of the aggregate ship costs are exposed to fluctuations in the Euro exchange rate as of March 31, 2025 [180]. Operational Highlights - Total cruise operating expenses rose by $23 million in Q1 2025 compared to the same period in 2024, primarily due to increased capacity [156]. - In February 2025, TUI Cruises, a 50$213 million in Convertible Senior Notes for about 3 million shares of common stock and $214 million in cash [156]. - Available Passenger Cruise Days (APCD) is used to evaluate capacity and revenue performance, excluding canceled cruise days [142]. - Constant Currency is monitored to assess revenue and expenses in relation to currency exchange rate fluctuations [143].