RCL Beats the Double-Double Target, Rewards All Employees
Miami-based cruise liner conglomerate Royal Caribbean Cruises Ltd has reported a full year US GAAP and adjusted earnings of USD 1.63 billion, a growth of 23.8 percent year-over-year.
The 2017 full year result beat the January 2017 mid-point guidance by USD 115 million and was achieved despite an unusually ferocious hurricane season which hurt earnings by approximately USD 55 million.
RCL said that it had achieved its three-year Double-Double goal of doubling earnings per share and recording a double-digit return on invested capital.
“Our teams worked hard to achieve the Double-Double goals and now they have done it,” said Richard D. Fain, chairman and CEO.
“Each of the brands performed excellently during the past year raising their guest satisfaction and employee engagement scores to new heights. This augurs well as we focus on our previously announced 20/20 Vision.”
Due to its record-setting financial performance, RCL has decided to reward all of its 66,000 employees with salary bonuses of five percent.
“Exceptional results require exceptional effort,” Fain added. “Reaching the Double-Double required remarkable focus and discipline from our employees, and they delivered.”
RCL said that all employees will receive equity awards over three years equal to five percent of their 2017 salaries in a USD 80 million program called the “Thank You, Thank You Bonus.” Corporate officers, however, are excluded.
2018 Looking Good
RCL expects 2018 to be a 9th consecutive year of growth as its booked position for this year is better than last year’s record high and at higher rates driven by strong demand from North American and European consumers, the company said.
This is coupled with a positive outlook for the company’s Asia Pacific products and a strong onboard spend.
Adjusted earnings are expected to be in the range of USD 8.55 to USD 8.75 per share, up from USD 7.53 per share recorded in 2017.
Three ships are set to join the company’s fleet, those being Symphony of the Seas and Azamara Pursuit, which will be introduced in Europe, in April and August 2018 respectively, and Celebrity Edge in Fort Lauderdale in November.