Despite the Hurricanes, RCL Reported Record 3rd Qtr Earnings

[ChucktownSteve]

According to PRNewswire:

 

Royal Caribbean Cruises Ltd. today reported record third quarter results of $3.49 per share, which includes a $0.20 negative impact from the recent hurricanes; updated full year guidance to a range of $7.35 to $7.40, which includes a $0.26 negative impact from the recent hurricanes; and introduced its new three-year program designed to further drive performance: 20/20 Vision. This includes a $0.26 negative impact from the recent hurricanes.

 

Financially, the storms were unusually impactful because of when and where they hit and the net effect was a cost to the company in excess of $55 million or $0.26 per share. Most of this impact was from lost revenue, but there were also direct costs associated with the storms and with the company's humanitarian efforts.

 

"Delivering record earnings during a period of such unprecedented disruption is a testament to the strength in demand for cruising and for our brands," said Jason T. Liberty, executive vice president and CFO. "Strong demand trends coupled with our continued cost discipline have put us in a strong position to successfully complete our Double-Double program. As a matter of fact, I am pleased to report that we have already achieved our Double-Double targets on a trailing twelve month basis through September 2017."

 

And you wonder why cabins have been so expensive? On behalf of my portfolio I thank you all very much.

[Mynki]

Will you be thanking Lutroff Perlo public ally on here? Lol

Edited November 7, 2017 by Mynki

[Orator]

Stock has rolled back from opening high, but still a very nice gain. In spite of what some say on this board their strategy seems to be working at this point. I have thanked her privately and as an investor would thank her on this thread.

[ChucktownSteve]

Will you be thanking Lutroff Perlo public ally on here? Lol

So she's the only one who made the profits possible by making all those cutbacks?

 

I thank the loyal passengers who continued to book; for without them, the record profits would not exist. So Thank you loyal passengers of RCL, Celebrity and Azamara. :D

[ChucktownSteve]

In case you don't know what they mean by their double/double program, here is a link to RCL's corporate web site explaining the discipline.

http://www.rclcorporate.com/the-discipline-behind-double-double/

 

"Royal Caribbean’s chairman and CEO says the company’s Double Double Program, announced in July, “sets demanding, but realistic targets” that give the plan its name: double the company’s 2014 earnings per share by 2017 and increase return on invested capital to double digits."

 

Double Double’s twofold targets are meant to be hit consecutively, explains Jason Liberty, senior vice president and chief financial officer of Royal Caribbean Cruises Ltd.

“Both goals really hinge on double-digit return on invested capital,” Liberty says. “That means that we’re making smarter decisions about how we get the most revenue from all our assets and investments. Doubling our earnings will follow.”

 

It began in 2015 and In essence means no big discounts and higher pricing plus reduction in costs. Whether its reducing service or cut backs in items that used to be supplied. You've been reading about that for years if you've followed the board. RCL isn't the only company doing that because if you read any of the other boards you'll hear the same groans everywhere.

 

I don't own the stock for the shareholder benefit (usually non existent if any perk is received). I own it for its return on profits thankx to the double/double program. As long as their customers are willing to pay more and don't mind the cut backs, the stock will continue along this track. I should buy more until we enter the end of the late cycle.