Royal Caribbean Cruises .(RCL) - 2024 Q4 - Annual Results

Financial Performance - Royal Caribbean Group reported 2024 Adjusted EPS of $11.80, exceeding guidance due to strong close-in demand and onboard revenue[1][4] - Total revenues for 2024 reached $16.5 billion, with a Net Income of $2.9 billion[4] - The company expects 2025 Adjusted EPS to be between $14.35 and $14.65, reflecting a growth of 23%[1][10] - Fourth quarter 2024 Net Income was $0.6 billion or $2.02 per share, compared to $0.3 billion or $1.06 per share in the prior year[6] - Net income attributable to Royal Caribbean Cruises Ltd. for the year 2024 was $2,877 million, compared to $1,697 million in 2023, reflecting a 69% increase[50] - Net income for 2024 was $2,896 million, compared to $1,704 million in 2023, reflecting a 70% increase[57] - Adjusted net income attributable to Royal Caribbean Cruises Ltd. for Q4 2024 was $445 million, compared to $331 million in Q4 2023, a 34.4% increase[66] - Comprehensive income attributable to Royal Caribbean Cruises Ltd. for the year 2024 was $2,750 million, up from $1,667 million in 2023[50] Revenue and Booking Trends - Total revenues for Q4 2024 reached $3,761 million, a 13% increase from $3,331 million in Q4 2023[50] - Passenger ticket revenues increased to $2,599 million in Q4 2024, up from $2,286 million in Q4 2023, representing a 14% growth[50] - Bookings have accelerated, resulting in the best five booking weeks in the company's history, with load factors at higher rates[9][10] - Total revenues for the year ended December 31, 2024, were $16,484 million, a 18.6% increase from $13,900 million in 2023[61] - The company reported total revenues of $16,484 million for the year ended December 31, 2024, compared to $13,900 million in 2023, a 18.5% increase[65] Cost and Expense Management - Total cruise operating expenses for Q4 2024 were $2,052 million, an increase from $1,890 million in Q4 2023[50] - Marketing, selling, and administrative expenses rose to $674 million in Q4 2024, compared to $503 million in Q4 2023, marking a 34% increase[50] - Fuel expenses for the year 2024 were $1,160 million, slightly up from $1,150 million in 2023[50] - Total cruise operating expenses for Q4 2024 were $2,052 million, compared to $1,890 million in Q4 2023, reflecting a 8.6% increase[63] - Gross cruise costs per APCD for Q4 2024 were $214.33, compared to $200.04 in Q4 2023, indicating a 7.1% increase[63] - Net cruise costs excluding fuel per APCD for Q4 2024 were $138.31, up from $121.97 in Q4 2023, a 13.4% increase[63] Capacity and Operational Metrics - The company anticipates a capacity change of 5.4% for 2025 compared to 2024[22] - In Q4 2024, Royal Caribbean carried 2,159,429 passengers, a 11.3% increase from 1,939,360 in Q4 2023[53] - Passenger cruise days increased to 13,678,795 in Q4 2024, up from 12,605,093 in Q4 2023, representing an 8.5% growth[53] - The average passenger cruise days (APCD) for 2024 was 12,716,724, compared to 11,962,340 in 2023, marking a 6.3% increase[53] - The occupancy rate reached 107.6% in Q4 2024, up from 105.4% in Q4 2023[53] Future Outlook and Investments - The company announced the launch of Celebrity River Cruises, with an initial order for 10 ships expected to sail in 2027[13][14] - Capital expenditures for 2025 are projected to be approximately $5 billion, primarily for new ship orders[21] - Adjusted EBITDA per APCD target is set at a minimum of $100 by the end of 2025, with the company achieving this goal ahead of schedule[40] - Return on Invested Capital (ROIC) is targeted to be 13% or higher by the end of 2025, with current performance indicating progress towards this goal[40] - ROIC for the year ended December 31, 2024, was 16.1%[68] Balance Sheet and Liquidity - As of December 31, 2024, the company's liquidity position was $4.1 billion, including cash and undrawn credit facilities[20] - Cash and cash equivalents decreased to $388 million as of December 31, 2024, down from $497 million in 2023[55] - Total assets increased to $37,070 million in 2024, compared to $35,131 million in 2023, a growth of 5.5%[55] - Long-term debt decreased to $18,473 million in 2024 from $19,732 million in 2023, a reduction of 6.4%[55] - Adjusted EBITDA for the year ended December 31, 2024, reached $5,971 million, compared to $4,544 million in 2023, marking a 31.4% increase[65]