RCCL Reports $162.4 Million Profit for 2009, $3.5 Million Profit in Q4

Royal Caribbean Cruises Ltd. (RCCL) announced net income for the fourth quarter 2009 of $3.4 million, or 2 cents per share, compared to profits of $1.5 million, or 1 cent per share in 2008. The results were better than the company’s previous guidance of a loss of approximately 5 cents per share due to stronger than expected revenues and continued cost discipline.

Revenues were unchanged year-over-year at $1.5 billion for the fourth quarter of both 2009 and 2008. Net yields decreased 7.2 percent from the prior year or 9.7 percent after adjusting for year-over-year changes in currency. Net yields were at the upper end of previous guidance due to strength in both ticket and onboard revenues.

For the full year 2009, RCCL reported profits of $162.4 million, or 75 cents per share, compared to net income of $573.7 million, or $2.68 per share, for the full year 2008. Revenues for the full year 2009 declined to $5.9 billion from $6.5 billion in 2008.

Royal Caribbean noted an improving booking environment and said it expects net yields for 2010 to improve 3 to 6 percent versus 2009. First quarter 2010 net yields are expected to improve approximately 2 percent. Earnings per share the year (assuming current fuel prices) is expected to be in the range of $2 to $2.20 including 39 cents related to a legal settlement. The first quarter EPS is expected to be in the range of 25 to 30 cents.

The company reported that early Wave Season bookings have been encouraging and that, since the beginning of September, new bookings have been running approximately 30 percent higher than the corresponding period a year ago. Current price levels are also ahead of the same time last year across the majority of the company’s product groups.

Royal Caribbean reported that booked load factors and average per diems are ahead of same time last year for all four quarters and the full year. The company expects net yields to increase approximately 2 percent for the first quarter and between 3 and 6 percent for the full year. After adjusting for changes in currency, net yields are forecasted to be around flat in the first quarter and increase 3 to 5 percent for the full year.