Royal Caribbean profits fall 65% for first Quarter

[negc]

Wait - how can one have occupancy over 100%? :confused: Does 100% assume all cabins are doubles, or something?

 

100% occupancy on cruise ships is based on all lower berths being filled and is based on double occupancy. When 3rd and 4th passengers are added to the passenger count, you get occupancy rates of over 100%. RCI ships regularly sail at more than 100% occupancy.

 

I love it when the "analysts" predict (guess) an earnings rate and when that number isn't met, they somehow claim that the fault is with the company. Perhaps they would do better to question the accuracy of their analysts' projections.

 

In order to get a better picture of RCi's performance and not focus on one seemingly dramatic statistic, perhaps a comparison of the performance of the other major lines during the same period might be instructive.

[cruisnseas]

IF THEY READ WHAT I SAID, then the word "guess" should have been clearly visible to them. I saw no reason to define the word "guess." Insofar as speculating about a topic, these boards are filled with the thoughts/opinions of others on a topic, everything from which room or drink is best to "should we do this" or "should we do that."

I think (and please note; this is my opinion) you should find another post to critique.

 

And I said you ought not speculate (which is what a guess is, afterall) when your speculation is based outside of facts.

 

I know it is hard when you realize your initial post is made with no basis in fact, but its best to just admit you posted rashly in an effort to attack a company for doing something you didn't like (DD and moving the ships) when, in fact, we won't know the impact those choices had for sometime now.

 

Wait - how can one have occupancy over 100%? :confused: Does 100% assume all cabins are doubles, or something?

 

Ships base occupancy on "double" occupancy (two people in each room). If every room had two people it would be 100%. Some rooms sail with 3 or more and some sail with 1. Ideally, ships should sail with about 105% occupancy.

 

Interestingly, this is where the triple/quad limit comes into play when people are told their room could hold three, but they are not allowed to put a third person into it at this time. It is because the ship is projected to hit over a certain % occupancy which would put them in violation of maritime laws that have to do with # of lifeboats onboard vs # of passengers.

Edited April 24, 2014 by cruisnseas

[Big_G]

Nobody on cc buys rcl stock based on an earnings report:D

 

Its all based on OBC :p

 

That's for sure. That's what stock is really for...right? :confused::D

[tlatrice]

As far as Galveston goes with the Liberty prices, it will fall some more..

 

 

AMEN! ARE THEY NUTS?!?!?!?! Christmas/New Years on the Liberty is more expensive than the Allure/Oasis!

[Cruising89143]

100% occupancy on cruise ships is based on all lower berths being filled and is based on double occupancy. When 3rd and 4th passengers are added to the passenger count, you get occupancy rates of over 100%. RCI ships regularly sail at more than 100% occupancy.

 

I love it when the "analysts" predict (guess) an earnings rate and when that number isn't met, they somehow claim that the fault is with the company. Perhaps they would do better to question the accuracy of their analysts' projections.

 

In order to get a better picture of RCi's performance and not focus on one seemingly dramatic statistic, perhaps a comparison of the performance of the other major lines during the same period might be instructive.

 

Carnival Corp below. NCL announces their earnings on Monday.

http://www.prnewswire.com/news-releases/carnival-corporation--plc-reports-first-quarter-results-252232121.html

Edited April 24, 2014 by cruisingator2

[MaritimeR&R]

And I said you ought not speculate (which is what a guess is, afterall) when your speculation is based outside of facts.

 

I know it is hard when you realize your initial post is made with no basis in fact, but its best to just admit you posted rashly in an effort to attack a company for doing something you didn't like (DD and moving the ships) when, in fact, we won't know the impact those choices had for sometime now.

 

 

Ships base occupancy on "double" occupancy (two people in each room). If every room had two people it would be 100%. Some rooms sail with 3 or more and some sail with 1. Ideally, ships should sail with about 105% occupancy.

 

Interestingly, this is where the triple/quad limit comes into play when people are told their room could hold three, but they are not allowed to put a third person into it at this time. It is because the ship is projected to hit over a certain % occupancy which would put them in violation of maritime laws that have to do with # of lifeboats onboard vs # of passengers.

 

Now who is speculating. Or do you perceive yourself to be a mind reader.

[MaritimeR&R]

To all those reading this thread: Please note: The purpose of my posting of the 65% drop as initially reported by Reuters was to inform.

 

I apologize to any and all should you have mistaken the second part of that post. It was my opinion with no underlying negative motivations towards RCI or anyone else.

 

I hope the above satisfies any and all critics.

[nolesrule]

From an accounting standpoint...it should be when the ship sails. Anything else would violate the convention of conservatism and not properly match revenue and expenses.

 

That timing is what I would have figured.

 

And I realize you aren't saying you know for a fact that's what they do, just what would make the most sense.

 

I know just enough about accounting to be able to maintain Quickbooks for my S Corp. Of course, I'm surrounded by a family full of CPAs and business accountants. How is it I ended up in ecommerce consulting?

[DirtyDawg]

That timing is what I would have figured.

 

And I realize you aren't saying you know for a fact that's what they do, just what would make the most sense.

 

I know just enough about accounting to be able to maintain Quickbooks for my S Corp. Of course, I'm surrounded by a family full of CPAs and business accountants. How is it I ended up in ecommerce consulting?

 

Actually the deposits are first recorded as customer deposit liabilities on the balance sheet. They are recognized as revenue upon completion of the voyages for durations of 10 days or less, or on a pro-rata basis for longer voyages. That is from Note 2 of Royal's 2013 10K.

 

BTW if you ever have problems falling asleep, just download any company's 10K and start reading. You'll be out in no time!:D

[coordinator23]

Is anyone going to mention the elephant in the room? Smoking was banned on balconies, beginning Jan. 1st and some smokers went "shopping" for a line that allows it. Those who "vape" either continue to do so covertly or have moved on also (Princess allows it everywhere but the theater and dining room). If you're trying to quite smoking, chances are you will not join them to "vape" and be around smoking and smokers. I'm sure that some of the revenue went to other lines.

[MichaelCMTX]

This one's on me, everyone. I finally broke down and snapped up some RC stock on E-Trade that quarter and history unfolded as it typically does. Sorry.:o

[Julia’s Journey’s]

Is anyone going to mention the elephant in the room? Smoking was banned on balconies, beginning Jan. 1st and some smokers went "shopping" for a line that allows it. Those who "vape" either continue to do so covertly or have moved on also (Princess allows it everywhere but the theater and dining room). If you're trying to quite smoking, chances are you will not join them to "vape" and be around smoking and smokers. I'm sure that some of the revenue went to other lines.

 

Princess does not allow smoking everywhere, no smoking on balconies either.

Smoking is allowed in Casino on certain nights and in the cigar bar and one or 2 other smoking areas.

[Paulxyz2004]

Ummm, Q1 is January to March. I'm pretty sure that the Dynamic Dining announcement was in the last week of Q1, and the "switcheroo" announcement was in Q2.

 

Come on now! Dont let facts get in the way of a good "story"! The news media never does! :D

 

Exactly, pretty ridiculous "guess" from the OP:rolleyes:

[Paulxyz2004]

Is anyone going to mention the elephant in the room? Smoking was banned on balconies, beginning Jan. 1st and some smokers went "shopping" for a line that allows it. Those who "vape" either continue to do so covertly or have moved on also (Princess allows it everywhere but the theater and dining room). If you're trying to quite smoking, chances are you will not join them to "vape" and be around smoking and smokers. I'm sure that some of the revenue went to other lines.

 

 

Well at least a much more likely Scenario than the OP´s guess.;)

[BamaGuy44]

Is anyone going to mention the elephant in the room? Smoking was banned on balconies, beginning Jan. 1st and some smokers went "shopping" for a line that allows it. Those who "vape" either continue to do so covertly or have moved on also (Princess allows it everywhere but the theater and dining room). If you're trying to quite smoking, chances are you will not join them to "vape" and be around smoking and smokers. I'm sure that some of the revenue went to other lines.

 

Correlation doesn't equal causation. They also gained some bookings from cruisers who like the new policy, right? I was one of them. I wouldn't even consider a ship without a pretty strict smoking policy.

 

Did they lose more than they gained because of the new rules? Who knows but it's clear that most of the cruise lines feel they can make more money overall with stricter policies, or they wouldn't be doing it.

[The Big Booper]

They can't record the income until the sailing happens. Even if the final payment deadline has passed and they don't have to issue a refund if you cancel, the ship could suffer a malfunction and the line would then have to cancel the trip and make refunds.

 

Never having worked in the cruise business there are probably some arcane GAAP rules and issues.

 

Now back to tax season.

 

Lacerte is my friend.

 

<edit> The reports talk about the negative effect of unloading Pullmantur's non-core businesses. That whole acquisition is turning into a disaster with the collapse of Southern Europe's economy. Spain And Greece.

Edited April 24, 2014 by The Big Booper

[cruzfitter]

Princess does not allow smoking everywhere, no smoking on balconies either.

Smoking is allowed in Casino on certain nights and in the cigar bar and one or 2 other smoking areas.

 

I believe "vape" refers to e-cigarettes.

[coordinator23]

Princess does not allow smoking everywhere, no smoking on balconies either.

Smoking is allowed in Casino on certain nights and in the cigar bar and one or 2 other smoking areas.

 

I was referring to vapping not actual smoking.

[comxkid]

Stock is up as I write this.

 

Roller coaster day....stock only ended up being down $0.20 for the day.

[dealer9296]

This is such a shame but we saw it coming......remember in Oct, Nov. and Dec (which would have been last quarter).... when we were trying to tell RCCL.......some constructive criticism.....Here is a typical post from those days.

"No longer feel like "Royalty"

At that time we said the market will take care of the problem. You can only cut so much and instead of helping the bottom line it starts hurting it. Would like to know what Carnivals earnings are. We just returned from a 8 day cruise with them, however we are going on the Vision for 4 days on Tuesday.

Edited April 24, 2014 by dealer9296

[Cruising89143]

This is such a shame but we saw it coming......remember in Oct, Nov. and Dec (which would have been last quarter).... when we were trying to tell RCCL.......some constructive criticism.....Here is a typical post from those days.

"No longer feel like "Royalty"

At that time we said the market will take care of the problem. You can only cut so much and instead of helping the bottom line it starts hurting it. Would like to know what Carnivals earnings are. We just returned from a 8 day cruise with them, however we are going on the Vision for 4 days on Tuesday.

 

Did you read the report?

[dealer9296]

Read transcript of Conference call.

[Cruising89143]

Read transcript of Conference call.

 

You might want to read it again.

[SandyBShores]

The lower food costs make me wonder if that's the reason I've been reading more food quality complaints. How can RCIs be lower when overall food prices have only risen throughout the country? Are they cutting corners to try to balance out their bottom line?

[mr walker]

I am always intrigued when people have a point of view and then try and utilise any 'fact' to justify their position. This is not restricted to cruising forums either :D