Adjusted EBITDA: Approx. $464 million, nearly double compared to last year.
Adjusted Net Cruise Costs: Excluding fuel per capacity day slightly below guidance at $164.
Adjusted EPS: $0.16, exceeding guidance of $0.12 and well above the loss of $0.30 in the previous year.
Net Yield: Increased 16.2%, materially exceeding the guidance of 15.5%.
Record Bookings: Achieved in the first quarter, leading to the most successful wave season ever.
Leverage: Reduced by a full turn compared to the end of 2023, ending Q1 at 6.3x net leverage.
Margins: Adjusted operational EBITDA margin for trailing 12 months now approaching 33%.
Future Guidance
Full Year Net Yield Growth: Raised by a full percentage point from 5.4% to approximately 6.5% on a constant currency basis.
Adjusted EBITDA Guidance for the Year: Increased by $50 million to $2.5 billion.
Adjusted EPS for the Year: Increased by $0.09 to $1.32.
Second Quarter Net Yield Growth: Expected to increase approximately 4.3%.
Second Quarter Adjusted EBITDA: Expected to be approximately $555 million.
Adjusted Net Cruise Cost: Excluding fuel is expected to be $159 for the full year 2024, essentially flat year-over-year when adjusted for dry dock impact.
Trends, Market Conditions, Sentiment
Demand for Cruises: Strong demand continues with record bookings and pricing, especially for Caribbean sailings.
Capacity Growth: With 8 new ship orders announced, a CAGR of 6% from 2023 to 2028 is expected.
Market Resilience: Despite itinerary adjustments due to cancellations in the Middle East and Red Sea, the demand remains robust across all markets.
Sustainability Initiatives: Significant progress in the company’s Sail & Sustain program, with half of the fleet now equipped with scrubber technology.
Cost Efficiency Focus: Continuous focus on rightsizing the cost base across the organization to improve margins.
Leverage Reduction Plan: Anticipated to reduce net leverage by approximately 1.5 turns from year-end 2023, ending 2024 in the upper 5x range.
Notable Quotes
Harry Sommer, CEO: “It’s such an exciting time for our company… The demand for cruise vacations continues to be at all-time high.”
Mark Kempa, CFO: “We had an exceptional start to the year, and we exceeded guidance across the board.”
Future Outlook: “The future is certainly bright, and we are excited to share this journey with you.”
On Sustainability: “We continue to be committed to our short- and long-term decarbonization goals.”
On Cost Management: “Demonstrating our ability to offset the impacts of inflation with our disciplined cost savings initiatives across the organization.”
On Revenue Growth: “Strong top line growth, combined with continued progress in reducing costs, allowed us to essentially beat all of our guidance metrics in the quarter.”
