MIAMI, March 4,
2025 /PRNewswire/ -- Royal Caribbean Group (NYSE:
RCL) today introduced the "Perfecta Program", a new
three-year financial initiative designed to drive continued
superior performance. The program has two main goals to be achieved
by the end of 2027:
- 20% compound annual growth rate in Adjusted Earnings per Share
compared to 2024
- Return on Invested Capital ("ROIC") in the high teens
…all while delivering the best vacation experiences responsibly
and maintaining solid investment grade balance sheet metrics. The
company remains dedicated to reducing its carbon intensity by 15%
or greater as compared to 2024, ensuring sustainable and
responsible growth.
The Perfecta Program sets clear financial
targets that align the organization around these priorities, in
order to drive strong financial performance and sustainable
shareholder value creation. Perfecta builds on the
success of the company's previous three-year Trifecta Program that
launched in 2022 and concluded last year with goals achieved 18
months ahead of schedule. Perfecta builds on this
momentum with even bolder targets for Royal Caribbean Group's next
chapter of transformative progress.
"The Perfecta Program sets a clear course for
Royal Caribbean Group's next ambitious ascent," said Jason Liberty, president and CEO, Royal
Caribbean Group. "It propels us forward with even greater
ambition—driven by strategic execution, unmatched vacation
experiences, and a relentless focus on innovation. As we drive
towards delivering a lifetime of vacations and winning a greater
share of the large and growing $2
trillion global vacation market, we remain committed to
delivering exceptional value for our guests, employees and
shareholders."
To achieve the new program's goals, the company plans to execute
its proven formula of moderate capacity growth, moderate yield
growth, and strong cost control. The company has an exciting lineup
of new ships and private destinations to be delivered by 2027,
including Star of the Seas, Legend of the Seas, the
fourth Icon Class ship, Celebrity Xcel, Perfect Day Mexico and two
Royal Beach Clubs in Nassau and Cozumel.
The company expects to generate significant cash flow over the
next three years and remains committed to disciplined capital
allocation through strategic investments, a competitive dividend
and opportunistic share repurchases, all while maintaining solid
investment grade metrics. While the company may opportunistically
repurchase shares, it does not forecast the impact of potential
future share repurchases in setting the Perfecta
goals.
"Together with our Perfecta goals, we remain
committed to maintaining a strong balance sheet at a target
leverage ratio below 3.0x," said Naftali
Holtz, chief financial officer, Royal Caribbean Group. "This
aligns with our disciplined approach to capital allocation,
ensuring we have the flexibility to invest in growth while
continuing to deliver long term shareholder value."
About Royal Caribbean Group
Royal Caribbean Group
(NYSE: RCL) is a vacation industry leader with a global fleet
of 67 ships across its five brands traveling to all
seven continents. With a mission to deliver the best vacations
responsibly, Royal Caribbean Group serves millions of guests each
year through its portfolio of best-in-class brands, including Royal
Caribbean, Celebrity Cruises, and Silversea; and an expanding
portfolio of land-based vacation experiences through Perfect Day at
CocoCay and Royal Beach Club collection. The company also owns
50% of a joint venture that operates TUI Cruises and Hapag-Lloyd
Cruises. With a rich history of innovating, Royal Caribbean Group
continually delivers exciting new products and guest experiences
that help shape the future of leisure travel. Learn more
at royalcaribbeangroup.com or rclinvestor.com.
Cautionary Statement Concerning Forward-Looking
Statements: This press release and related comments by
management includes "forward-looking statements" under the Private
Securities Litigation Reform Act of 1995. These statements include,
but are not limited, to: statements regarding financial results for
2025 and beyond, expectations regarding the timing and results of
our Perfecta Program and expectations regarding credit profile and
our carbon intensity. Words such as "designed," "committed
to," "driving," "expect," "goal," "plan," and similar expressions
are intended to help identify forward-looking statements.
Forward-looking statements reflect management's current
expectations, are based on judgments, are inherently uncertain and
are subject to risks, uncertainties and other factors, which could
cause our actual results, performance or achievements to differ
materially from the future results, performance or achievements
expressed or implied in those forward-looking statements.
More information about factors that could affect our operating
results is included under the caption "Risk Factors" in our most
recent annual report on Form 10-K, as well as our other filings
with the SEC, copies of which may be obtained by visiting our
Investor Relations website at www.rclinvestor.com or the SEC's
website at www.sec.gov. Undue reliance should not be placed on the
forward-looking statements in this release, which are based on
information available to us on the date hereof. We undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Definitions
Selected Operational and Financial
Metrics
Adjusted Earnings (Loss) per Share ("Adjusted EPS") is a
non-GAAP measure that represents Adjusted Net Income (Loss)
attributable to Royal Caribbean Cruises Ltd. (as defined below)
divided by weighted average shares outstanding or by diluted
weighted average shares outstanding, as applicable. We believe that
this non-GAAP measure is meaningful when assessing our performance
on a comparative basis.
Adjusted Operating Income (Loss) is a non-GAAP measure that
represents operating income (loss) including income (loss) from
equity investments and income taxes but excluding certain items
that we believe adjusting for is meaningful when assessing our
operating performance on a comparative basis. We use this non-GAAP
measure to calculate ROIC (as defined below).
Available Passenger Cruise Days ("APCD") is our measurement
of capacity and represents double occupancy per cabin multiplied by
the number of cruise days for the period, which excludes canceled
cruise days and cabins not available for sale. We use this measure
to perform capacity and rate analysis to identify our main
non-capacity drivers that cause our cruise revenue and expenses to
vary.
Carbon Intensity is our measurement of carbon dioxide emissions
divided by APCD (well-to-wake).
Invested Capital represents the most recent five-quarter
average of total debt (i.e., Current portion of long-term debt plus
Long-term debt) plus the most recent five-quarter average of Total
shareholders' equity. We use this measure to calculate ROIC (as
defined below).
Perfecta Program refers to the multi-year Adjusted EPS and ROIC
goals we are seeking to achieve by end of 2027. Under our Perfecta
Program, we are targeting 20% compound annual growth rate in
Adjusted EPS compared to 2024 and ROIC of 16% or higher by the
end of 2027.
Return on Invested Capital ("ROIC") is a non-GAAP measure
that represents Adjusted Operating Income (Loss) divided by
Invested Capital. We believe ROIC is a meaningful measure because
it quantifies how efficiently we generated operating income
relative to the capital we have invested in the business.
Adjusted Measures of Financial Performance
This press release includes certain adjusted financial measures
defined as non-GAAP financial measures under Securities and
Exchange Commission rules, which we believe provide useful
information to investors as a supplement to our consolidated
financial statements, which are prepared and presented in
accordance with generally accepted accounting principles, or U.S.
GAAP. The presentation of adjusted financial information is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with U.S. GAAP. These measures may be different from
adjusted measures used by other companies. In addition, these
adjusted measures are not based on any comprehensive set of
accounting rules or principles. Adjusted measures have limitations
in that they do not reflect all of the amounts associated with our
results of operations as do the corresponding U.S. GAAP
measures.
We have not provided a quantitative reconciliation of the
projected non-GAAP financial measures to the most comparable GAAP
financial measures because preparation of meaningful U.S. GAAP
projections would require unreasonable effort. Due to significant
uncertainty, we are unable to predict, without unreasonable effort,
the future movement of foreign exchange rates, fuel prices and
interest rates inclusive of our related hedging programs. In
addition, we are unable to determine the future impact of non-core
business related gains and losses which may result from strategic
initiatives. These items are uncertain and could be material to our
results of operations in accordance with U.S. GAAP. Due to this
uncertainty, we do not believe that reconciling information for
such projected figures would be meaningful.
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SOURCE Royal Caribbean Group
