Royal Caribbean Cruises Ltd (RCL) has reported 116.59 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $214.73 million, or $0.99 a share in the quarter, compared with $99.14 million, or $0.46 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $214.73 million, or $0.99 a share compared with $123.96 million or $0.57 a share, a year ago. Revenue during the quarter grew 4.73 percent to $2,008.56 million from $1,917.80 million in the previous year period. Gross margin for the quarter expanded 325 basis points over the previous year period to 58.95 percent. Total expenses were 86.08 percent of quarterly revenues, down from 91.49 percent for the same period last year. This has led to an improvement of 541 basis points in operating margin to 13.92 percent.
Operating income for the quarter was $279.52 million, compared with $163.13 million in the previous year period.
“Our progress continues on a steady upward path toward our Double-Double goals,” said Richard D. Fain, chairman and Chief executive officer. “The year started off with a very positive tone and the tone has only continued to please. We are looking forward to our fifth consecutive year of double-digit earnings growth.”
For fiscal year 2017, Royal Caribbean Cruises Ltd projects revenue to grow in the range of 4.50 percent to 6 percent for and its adjusted diluted earnings per share to be in the range of $7 to $7.20.
Operating cash flow improves significantly
Royal Caribbean Cruises Ltd has generated cash of $796.53 million from operating activities during the quarter, up 66.67 percent or $318.63 million, when compared with the last year period. Cash flow from investing activities was $123.60 million for the quarter as against cash outgo of $236.75 million in the last year period.
The company has spent $944.39 million cash to carry out financing activities during the quarter as against cash outgo of $246.76 million in the last year period.
Cash and cash equivalents stood at $109.31 million as on Mar. 31, 2017, down 6.86 percent or $8.05 million from $117.36 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Royal Caribbean Cruises Ltd was negative $4,515.05 million on Mar. 31, 2017 compared with negative $3,505.66 million on Mar. 31, 2016. Current ratio was at 0.14 as on Mar. 31, 2017, down from 0.20 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 18 days for the quarter from 11 days for the last year period. Days sales outstanding were almost stable at 12 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 6 days for the quarter compared with 13 days for the previous year period. At the same time, days payable outstanding was almost stable at 36 days for the quarter, when compared with the previous year period.
Debt comes down marginally
Royal Caribbean Cruises Ltd has recorded a decline in total debt over the last one year. It stood at $8,569.37 million as on Mar. 31, 2017, down 1.53 percent or $132.81 million from $8,702.18 million on Mar. 31, 2016. Total debt was 38.92 percent of total assets as on Mar. 31, 2017, compared with 41.51 percent on Mar. 31, 2016. Debt to equity ratio was at 0.92 as on Mar. 31, 2017, down from 1.10 as on Mar. 31, 2016. Interest coverage ratio improved to 3.48 for the quarter from 2.49 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
