Royal Caribbean Cruises Ltd · Q2 2020 earnings

Briefing

Reported financial results for the second quarter of 2020 and commented on the business in light of the global COVID-19 pandemic.

Royal Caribbean Group reported a US GAAP Net Loss of $(1.6) billion or $(7.83) per share for the second quarter of 2020, compared to a US GAAP Net Income of $472.8 million or $2.25 per share in the prior year, due to the COVID-19 pandemic which led to the suspension of global cruise operations starting March 13, 2020.

• Suspended global cruise operation starting March 13, 2020 due to the COVID-19 pandemic, resulting in cancellation of all second quarter sailings.
• Reported US GAAP Net Loss of $(1.6) billion or $(7.83) per share for Q2 2020, compared to US GAAP Net Income of $472.8 million or $2.25 per share in the prior year.
• Adjusted Net Loss of $(1.3) billion or $(6.13) per share for Q2 2020, compared to Adjusted Net Income of $532.7 million or $2.54 per share in the prior year.
• Liquidity of approximately $4.1 billion as of June 30, 2020, with an estimated cash burn of $250 million to $290 million per month during the suspension of operations.

Headline financials

Revenue & EPS history

The Company expects to incur a net loss on both a US GAAP and adjusted basis for its third quarter and the 2020 fiscal year, the extent of which will depend on the timing and extent of the return to service. Interest expense for the remainder of the year (July 1, 2020 through December 31, 2020) will be in the range of $505 million to $515 million.