Royal Caribbean Cruises (RCL) 29 Oct 202020 Q3 Earnings call transcript

Good morning. My name is Shelby, and I will be your conference operator today. At this time, I would like to welcome everyone to Royal Caribbean's Group Business Update and Third Quarter 2020 Earnings Call. All participants are in a listen only mode. [Operator Instructions] I would now like to introduce, Chief Financial Officer, Mr. Liberty. Jason Mr. is floor yours. the Liberty,

you, morning, for quarter and you Good us Thank earnings today, third everybody joining and for thank update Shelby. our call. business

Michael Chairman me International Caribbean Mengolini, of Chief Joining Fain, President Carola and our Vice Relations. Richard Executive of are and Officer, Investor Bayley, our Royal President CEO and

During this been referring on investor our be posted few a call, to we website, will have slides, www.rclinvestor.com. which

is would I about we to our you to started, notice which Before our forward-looking statements, refer like on slide. first get

we this filings, undertake are other risks and in During update to circumstances and guarantee making forward described looking. will in filing not we Also, change. involve call, be future disclosures. discussing the are information comments Please which These will adjusted and do as not are measures, be SEC that uncertainties. note Examples statements our financial certain that do our do performance non-GAAP we be defined, follow latest and update quarter our update the will the reconciliation non-GAAP I will of I website. overview booking all as of our our items recap an a with results. then the liquidity then by provide will on strategic action providing found the will and environment. then business. provide Richard of a on on up begin call third can historical an

Richard? then will questions. call up open your We for the

tried tremendously good this cruise and It's to us levels. laid months challenging has time been and while many everybody. good financially Jason, and morning, every use We've operations extremely effect. ships our and it But to our you, single we so Thank up. on almost frustrating paused see to been seven since hurts emotionally day

our with company have set to team to the together liquidity position finance healthy a Simultaneously, has well to protocols worked teams recovery. to thoughtful tirelessly resume aggressively worked securing panel operations. the in Our of health produce sale the

gone beginning the little paths is most many at world the virus and down about this elements how the of knew of period. the frustrating have this COVID-XX over of false all how pandemic One we

made a the make. are there has observations science predictions Fortunately, we remarkable and and can that strides few

are in second months. the over the other seem infections agony The around to and beyond wave months countries world. is upsurge a further of After of experts the frustrating. seeing We United expect the seven an in States surge coming prospect

our Testing early dramatically on at science that are the Personally However, it are April, this be give not the we're at positive batteries, don't are light but recovery. that to beginning feel for Please that get wrong. causing being that I unfathomable the end light the in That already effective. and better at advanced levels minimize tunnel. continue is and moving March to more point, a the the advances see and optimism lead progress is and visible. will will will this I made the the don't coming at they better light vaccines us surges fronts the and as progress is and capabilities more devastating is progress surge in this speeds. as extraordinary this of trauma XXXX. unprecedented crisis, to And Therapies cause. me disease on has But higher. needs new to mean clearly fundamental

continues on for that have grateful in decisions and slowly extremely inconveniencing the that that the recommendations communities our first that we again. methodical at in have guests first the There'll towards we board to land. incident health we properly and their two dialogue focus without and we on have return our through you make agreed that observers to guests their current short has recommendations independent where healthy we that panel. recommendations, and want By on be know The and We can we and intend important and expect panel start to the all do carefully to excursions. the accomplishing service. COVID for anything direction for But meet will and us a the be that panel we healthy to ensure they all in has topic gradual matter. outside observers asked will The were non-revenue we to no to One foundation the don't goals. here risk to as our panel controlled the on We're of start optimistic the two well As healthy any time. and and our implementing cruises to we We else am sale return two ship only to they way series protocols. a training and these a received. propose the presents that and a and The might and our on on improve, or rehearse that as of by limited process new working we eliminate sale CDC less can are risk this spent that sailing CDC, with destinations goals. recommended of specific this crew if a other industry trial and two abide short submitted we would outlined, at of But then find these recommendations September, gradual you healthy on expires. or community. we help COVID expand. the and below us can with The when anticipate continued know specific reduce handle entire as pathway risk will, the I bubble, the of XX transmission effectively order this take local the methodical, a home this can made to Therefore, serve for they their by the CDC COVID-XX a ships should believe panel past time all regulators now, service. or long by evaluated sale science the by to a moving guests sailings and the validate environment, I embarking and CDC learn, been level

only start. a gave started to and United Notably, also in besides CDC this Silversea us a governments ships, but is as government all working a Now, approval have States, and Hapag-Lloyd, it with healthy across already again, cruises, with the resume the in In we're to manner. operation month, the Singaporean health well. the globe and authorities phased the TUI sailing few sail

Seas begin that in December. in will cruising As region a the result, Quantum of

for significant Jason? are Jason it yet the demonstrate Now overcome but to numbers say with challenges I helping would can overcome in of people, continue that, I'll I back back proud value turn and offer call With lenders want the they even to so And them. all advisors, the product, our before to us and some the Simply to and and immensely more, we turn guests Jason, that travel us them, vacations sticking partners, environment point. be only is call get more workload argue past. the higher. the that done. because continue still through And been But that work has There's still this to our Not that tremendous, grow. has and thrive The nonstop. industry the faced to extraordinary, talk to pressure Why? uncertain. to uncertainty the the is is the and I'm

underpinned been should reported you, as have a expenses. Thank by adjusted $X.X all we of These morning, that on were revenues, Richard. with muted and focus failing period loss canceled. the reducing billion recorded This net were a results strong quarter painful operating during

by a or our XX% as quarter cruise XX% or the versus than $XXX transition its the end August. reaching desired of million their levels operating As more result, down of our expenses last our billion and fleet to $X.X versus layup various first are quarter state

ensuring we financial To top liquidity. opportunistic to to in improve we that strong end, are our remains actions continued a liquidity take position. Our have that priority

path of new August, billion by rate ended public to financing, the legal of $X.X were were convertible multiple of our quarter offering combination overall as times of month, deliver $X.XX offerings as we guaranteed we teams. was equity obtained facility. flexibility additional we bolstered provides our and convertible available We oversubscribed a and with liquidity During that believe we of back third notes XX.X%. year and we service. a unsecured at metrics. and return day a the plan of to our amazing important for billion priced additional to a into us an The our really finance, Including accounting this testament notes execution to of liquidity the a work And during sheet both Moreover, balance premium one XXX the superb this $XXX brands conversion investment grade month for a This notes liquidity. million and and our a value gradual a X.XXX% commitment raising and outcome even stock. common convertible the the further through with our

entered $X.X quarter, and refunds to to existing month cash previously range cash pertains morning, month our relating excluding These and reaffirm debt suspension spend. burn was by average down obligations, a during customer Commission's, the announced that up. with financing in new driven it operation. bookings, will cash during million levels $XXX We average when million expenses As of we fees prolonged and hedging the the each inflows the to be on our our sequentially Notably, in a ships cash consistent per postings of from prolonged range $XXX billion their third quarter, mainly approximately ship as came spent expenses. way cash monthly of and suspension activity. our various third This operating our collateral deposits, burn for

from existing start customer When operations to inflows release return our in number cash position. well as obligations, our customer off and further rub As cash machines, sales mentioned the excludes anticipate improve marketing we refunds this the commissions, cash deposits to from will service debt and press new deposits, and this and to inflows morning as you bookings.

of back that of set to validity on impossible a cadence its our based instead, be. up I to costs But our will addition would related service some amazing to crew also providing that will increase pre makes fleet is to to how light be back of guidance know thoughtful marketing ramp a very such the precisely we and in protocols. today. healthy related I levels. bringing will cash the will would all bring we be capacity The What understand you startup activities, to look not sales and will include but situation those and However, up costs increase ramping to to business the like what switch, costs return operation up flows the our the to of as say COVID criteria.

First in which to decision ships taken to guests our that further and the by that we our Also, we delivering and our bringing are be most profitable leverage and guided that operating world actions service. improve to the the guests profile. way, safety expect be our back by guided Also, be demand to and making of as that crew. are evaluate foremost, want we our class will ensure return structure the more our will we can continue reshape cost mainly we vacation will

Another impacts flow cash capital is element our expenditures. that our

already which the this $X.X reported relate these have we build of for to fourth billion be place. new financing to projects, for XX% approximately million of do we morning, and Approximately quarter committed XXXX expect of XXXX. expenditures the $XXX As in majority these

quarter. As include Seas XXXX. Dawn quarter, delivery XXXX, They of and week, expenditures Silver Moon during include capital Odyssey for relates the of this and to the the Silver during the fourth first of delivery the the the

the provide starting our on Now an business first capacity. I will update with

our the As during noted, ramp situation currently is we first of gradual initial return the But very I limited for and planning return XXXX. half a service fluid. previously a regarding are to up

of result, Day capacity US drive to CocoCay. Asia the also Perfect be significantly and out make destination is our incredible XXXX. spring sales a key both most We’ve in at As markets lower be the Bahamas short regions. the Pacific Deployment of XXXX private in our expected from will highly the in on focused

marketing I Now I'll be And the demand had on the what last sales. months and with demand provide that over you minimal to cadence by continued we On the has XXXX are an COVID-XX earnings that generally call, seeing commented couple determined case, of mostly our that was the cases. environment for update in very last activities.

are service We approach with for is a booked bookings below with have second the in to impact improvement for consistent program. to return of sailings season expectations. the load half standpoint driving activities the for is half uptick associated When pricing the is From in prices which levels, summer and is a down factors steady staggered our benefit FCC relatively mainly from ranges year the within the with demand. pre seen historical COVID-XX XXXX second Overall sailing flat. occupancy devolutionary XXXX that for rebooking have slightly. of FCCs, spring lower you XXXX Bookings of remained planned the exclude in of our [indiscernible] continuing and cumulative the

of XX% to made approximately and XX% have of are However, all XXXX bookings of early been bookings than our new, since more new. made date August

is impact flat the year of bookings last the the slightly and FCCs. relatively with is For time up negative exclude the full same when year XXX% made pricing you

saw following over the spike will we of we ago, Now from about significantly. announcement, up three the [indiscernible] And on sailing start bookings the announced Singapore X. December week weeks

one a XX for out fleet of the is we pent While demand ships, this of up highlights cruising. just clearly

our balance the offset regarding of our associated our and quarterly September to overall sailings who the the deposits, outflows guests half $X.X requested half from new future customer holding update. approximately for deposits the on the canceled Approximately new sailings. have equal about the is customer and your with an either XXXX. the Also, end shifting last reported the one nonrefundable. refunds. of lifting Moreover, from or to half balance related the balances is relatively booking positive FCCs at third with billion refunds in Now XX% FCCs bookings mostly other of of The booked balance was inflows to

therefore the As for it and quarter, to provide further magnitude for a timing I and expect, however, are fourth our pertains the unable recovery basis depend that the service. on of loss US the for our financial will net remains still results the to of And year. loss XXXX note and guidance extent the fourth We trajectory uncertain. the do of fiscal on both the return quarter adjusted to to The incur and will GAAP year. we timing

across enterprise our teams Lastly, for thank time. to through the I'd done extraordinary they've like whole this all

dedicated we're have business that, Shelby As and And challenging session. I Richard and our months mentioned open stronger, so seven will we'll levels to many that exceptionally and call for pulling it I together back. answer all on all through been these ask Shelby? up to with committed more emerge but a question know company. getting resilient the a

is [Operator Robin from Instructions] first question of Farley UBS. Your

days. brands might Great, if much. Because you what thanks important factors, them. they've that about the little with goals I in certainly like you to ahead than test a or in the bit that incidence point panel of virus, the a, the And very than sale know other share don't couple you board. you land. been want one to I jump of to of anything I as on wonder healthy was from less they do that's get expressed of the something It's know mentioned rate. are the be incidence a could have rate next you on But us CDC better know the X% before cruises the Italy, with is it guess, case, everybody

than there you is is more that? important restarting that matters are in they that to think discussions them that think factors or from So when words, your about most the are other other what with CDC, Thanks.

before that that make are talked take. we've to a what advantage complex we might about did observers through is of there that be spent advantage in know, Well, the a after that months and And with the biggest don't are and ship expert more this lot things of this and Norwegian And has But also it's where Cruise Line to four there's believe together together we you environment. ships terms Robin have of demanding factors. there process. panel, put the so CDC I you the the And a meetings. controlled this. subject, with details on holdings, going that They want we claim they the

know has XXX% would I And industry part abide in No big part of that create do be screening. a that And XX of what to to do big by agreed of of think think this kind a everyone. is recommendations. the can of the I speaking we the CDC. other so a do the beginning this screening accepted that's And here to that of But bubble and whole I industry viable about I very cautious makes behalf has on to project.

I aspects think all they're of at it. looking

all had put I As panel they're going and I think trying meetings. Also, that And process this through they think we with of. at together we've necessarily healthy them. the say that to stage. I of at all all don't sale don't see a And they're discussions

think that I visible I all aspects sale at of the So is, to us. order to anyhow. is think the, this not But And due the looking expire remember to also they shortly is they're have no it. all of

comments. waiting think their we're eagerly I and hopefully specific So for

great. you. question, about follow when restarting I the cash of and burn just of think risk and think cash that we as then to Thank the And again, rate up. restarting maybe is things the Okay, that stop then would go burn up a having the one potentially

saw up? the like you restart, this Can to they're from or expenses for Germany going a might perhaps sort for you some be in to expenses pause Thanks. six in to going higher going keep of that somewhere? again months back of having And things case carry month-to-month and your that only not morning November. AIDA pause contracts are about the the whether say thoughts give Just, crew month we us it's of when then

Hey, Robin. Yes.

exceptionally I'm have and to protocols be become operated very, if not Well, it nothing's cruises and XX the utilizing I cruises. point that that there they're panel. the TUI you go shows working. whatever for about of is, as been we developed possibly and online protocols cases very Hapag-Lloyd perfect. now we number the can we put have low and to sailings with of and the between that key cruises are we've offline. think out sure, by things we do protocols recommendations then to focused the where on situation the one forward to are Silversea work, And a help pointed Any and sale doing of the have shown

would say back I cruises, thing do methodical second we’re really where business. to slowly a of on cruises of The see and situation then around looking dial those very up this took at our way, the of We us we the to ramping turning look kind my level, kind have bring goes up comments back and spring and on kind between where many to is to to do this we're how do both is and performing months they're test have watching safety summer. experience that's back cruises able slowly avoid level, many, level and of all have the profitability a of to which crew in the

We're much So thoughtful. a cash think I business, have just too that through already up And course, provides I pressure then, very ramping on by sailings the our avoids learning us burn. we're of lot it slowly being think the confidence. which occurred,

It's the to coming suddenly -- those we're just action embellished Jason's see Because this going not you've a We're the opportunity important. maybe are have voyages apt as unlike the I to whole think so to is going to on adjust quite to in comments and it a little really while them. is bit asked concept is and protocols focused trial something is take of back. well. the that because Robin, voyages and people organize question

that are think that we and don't be the until is in panel you street. main do. key. and the believe I possible comfortable on now we're making healthy to And have worked. be think been to on there do there you've this other everywhere thing Europe and big authorities you are because the there demonstrated our we I leap That's is -- when evidence has So make -- viable to startups really going have ship cruise that seen all Frankly, it that sale the a so a really are will are in than the And response safer instances that the it

this and startups this And optimistic to to we give the technology and will the So protocols. why is prove and out we're improve; our trips two, of slow us knowledge one, trial that virus so think slow I watch think opportunity: leading. the where the that's the improve about

Barclays. question next from of is Hendricks Your Felicia

sensitive Hi, thank Richard, I’m understanding this a you that so of subject. is much. kind

So TUI then looking to I’m think for what key the needs down, going and you green shut to with see happen also those for? think are lines? is the the them German they're Hapag-Lloyd what the give with in to you wondering light? just And just CDC do you metrics What to Germany with and

good morning, Well, Felicia. Sure.

Good morning.

time. part And their of as sensitive say, not you this is We're a process.

So for I think me it me awkward be really on to speak the to and speak for wrong behalf would CDC. of

very complicated. looking think I it it at of all is they're and aspects

as I dramatic experts this panel, have think of regulating made of of of well. -- aren’t sale are leading level in these experience expertise, of the experts the work people just with the the the this inroads we experience really with level to field, leading these some healthy

give of CDC fairly they comfort. but I look lot at safety the long depth I'm of they it's in you So that how the you done too can't will I much was into and a not the very transparency assuming lot to on that to helpful. say, the by went panel, I dry except if so think predict that I'm the was the a here, detail and -- process But know it, -- really that that CDC willing had, should we it think and learned do the cooperation they see I with analysis comment

point very will and CDC. an I I'm optimistic it that plus be that trial are well. important. That the -- important important the go the trial trips was issue an healthy for I think sale think will for that panel trips our

on your Hapag-Lloyd? of TUI and was part second question The

TUI. Yes. On

Yes.

such they helpful these we're to helpful good we seen operate the from And have because CDC. is continue frankly, results. the So knowledge getting to operations to that us, it's

are seeing they when from ability an limit seeing we're deal and an both the occur, We onto keep an to outbreak. to with the ability incidents spread becoming it to ship

us this to we’re understand So to and it's doing is we and thing not go that healthier forward. do not that, small, for beginning, the I we're think this the rushing this. that and it's are said and experience experts go to is as from from safe We we the going and learning until to sticking and be convinced safer prudent, positive and right make that. But us are we will we that we're

was was I down wondering just those going affect shut the brands? guess if to I German

It of success appear No. the protocols. does to the again, And not because that's be. of

great. Okay,

apologize is do next think is which caveat lot and even daily. I get it, I'm little place to more question we going for the commentary. on just not this, I So this political this a a a but sensitive of questions for almost

is on we when it. election have are investors potential order all you walk to order any to administration would CDC getting or impact there asked after a have scenario So Biden if the the no-sale But lifted? how would through the the be and extended a where time

my politics. you We the I'll startup television sale the I issue, to before but ads express healthy that hope working I to my is talked focus I've will basis personal experts So the Europe, used over, the that in view pleased governments, the a pleased on think with is and the has think guide wasn't quite and I'm on all science. get my a the work it experts a it to computer whole on political very industry. but it industry They a was job back be this panel, cooperatively decided done -- scientific that the remind going about strong all issue. also the that. be that that they of are is strong the our science, when election the we're I with not

is I think the science strong.

suffering to industry But And do healthy in so lot power, because the of people the a lead operation. thing in who's I'm of and the science that people out There's I in to that regardless and way, we're hopeful economy us one everybody's see of if answer. our want is definitely of interest. will other element we can a important safe in good restart think work back that's

for thank Richard. answer, Okay, you that

is from Steven next Stifel. Wieczynski of Your question

good Hey, guys. morning,

I Richard, this you, I'm going not the a do to question if you to here. is but So to a or little bit hate to hot fair keep I'm this not. on be seat going sure

there not, for that's one from if and or if I anything White White the So House if looking have the understand there different way the could help you did had maybe did did with tell direct But me the rumors you CDC, sense? you can us other. how or how think House they progressed is you maybe that there been conversations those have out you that conversations you there makes were what conversations, and

sort this a as a will important and in us the we're it's there like our I seven employment isolation for and engineering, economy conversations is scientific best and talk it the also, the worked privacy understand respect specific you issue to economic on those. of the is in and we is have that the of as sure country, terms anyone cruise the huge led respite the questions, minds lot respite seen soon you'll and here. will your of driver But experience, employer, We're and I'll of house this. industry also the months are the a that think I with hard Steve, well mind that a it a feeling can't and an one, from I have of throughout as all in else, activity. never by be important I of decision on can I certainly with but say And would This interest of get that out to of who So obsessive. subject. after I'd obviously my country. disease, this science what everything conversations how to will is make the say both impact is private, the the I've and had regulate

this of essentially are I talked involved this the kind everybody in talked have to this controlling the understand and And seriously. to we've to decision. taken the people the protocols So excited way we've virus, and has of all They the who other say think that I I panels. the the panel worked getting very they spread importance methodical really that importance watch right of am to understand of

officials You and saw to I'm really cooperatively any on complicated. for It public who's this, us. solve all is the problem what and to of trying officials the the political cooperation not going on that's between And cruise in issue. on health the lines, comment something Europe given a

think all to solution. soon we find trying to right I the is will be optimistic am that I a resuming operations. optimistic. back I that It will a see we path have I'm would everybody slower are on speaks than regulators we're many as And process. approach going well, than around think that faster world. the And our assuming. I the slow, industry, for but plot that to it speaks for wish, continue if well methodical, careful pathway

that. for you [indiscernible]. Thanks Okay, gotcha. trying answer to Thanks. know, to,

know, sound a the and Steven but never you That's know is But know. No, have record, a I we I we hate a as know, to to this can we it, I answer Yes. to thing like don't I don't broken say what situation. will. problem well fluid and if ask, I other think

Right, exactly.

But to question for go is a from and years down road the is to and hopefully back the around normal. now you I I couple ships and outlook industry. world supply of I supply the period extended going the guess want ask to let's new and we've guys -- other operators ordering seen of remove, imagine market bit good from for the operators already time. certain an are to a be So can't capacity

As for thinking the to look we close industry supply of be growth road, set cruise I couple way? to years a the it is be could it a right could period that zero? about say multi-year basically down fair the up Am

going latter X certainly expecting of us, were less ships or I selling kind will in during to or the collectively Certainly, shifts now. online, or four being to say it's from by Steve, as do close I continue five ship there'll industry shipped it's be I about be to build new growth whether years that we delayed towards scrapped the being year. slower XX order probably is the But that growth, if part we know, operators Well, see a that time? we many course, of for though the to and expect know are exits don't been them think to that and Hey, probably ships tertiary on think to sold are as period I we Jason. be sales of I two be capacity come would question of of out whether expect where how all scrapped, zero. or we've a sold, will retired, months, pre-COVID

one of we that -- with ship of We brand. view being have about we're opportunistic have to very fit and strategically that invest scrapped not that certainly does ship the or the fit strategically when point is inside brands inside ships can't some situation with our of our we're

of something past. ongoing that's in so us for an process which the been that's kind similar And has

Okay, at you're in the got it. operating that even at And point? they sorry, cruises breakeven more, real operating But one. a a or profitable Europe quick this Jason, are today, one level

operating levels, date, with ship-specific probably that things costs all in more breakeven that direct fixed about bit relative of ships profit. and opportunity think I over seeing little different in get COVID a don't would are the out terms were basis, a news, say than get today, that of are when negative kind experienced there there's is And fresh what I the an we're yet. which good, to COVID Europe U.S. on relatively some I'm guest as sometimes of we've the breakeven. the little a of in their Obviously, the or ships is consumer occupancy of bit or demand at that gets considered. talking town kind probably to air. cover the news But they

things You for that's increase of actually XX:XX]. one demand see elevation sure in [indiscernible to the and

guys. Appreciate Thanks, Great. it.

Thanks, Steve.

is from securities. question next Hardiman Your James Wedbush of

them, good Thanks they're I I've got of but quick. Hey, three taking pretty for think questions. morning. my

way hard easy on follow versus how way is in XXXX. mess bunch last layups consensus of ultimately leverage through look that past anticipate. one. is that these cash. XXXX? long Is there incremental broadly, XXXX? that's to emerge some revenues up I should to there earnings to if number the like in Thanks. that that understand to to interest back for walk if you fully a think once. I it's power. and through That's all XXXX, had is way generally A, we be any realistic? we going them leverage basically ask in and XXXX-XXXX that Once there going else capacity function think this and beyond? your looks Or from burning rocky to understands there's And you think through? and about just But at almost everybody Steve's you're what get to And the say be Number are two; numbers I at about and considerations year you us of are more thinking your question, once a Obviously, guess any leverage but think XXXX be a the I'll what be So to maybe is any XXXX everything could I target But will

James. Thanks,

the I is is and and about current But coming XXXX on I time, certainly in Steve’s So expectations now look as question, to a think us I'm online. our likely XXXX. be I ships back at our type for our do we that opportunistically new than be we've higher and and and situations, the at will that we venues, number I was of fleet as capacity capacity in already standpoint, obviously fuel margins. up time think XX really be remarks Capacity ships more a much certainly there's it running enhancing more would think very of higher, I of between lower my same XX, XX, there's a continue little I which growth capacity, the some ship and capacity, lead roll revenue of efficient to out our ships. the bit. could capacity to by as look more inventory of higher scrapping down expect talked lot kind XX. some But by And or to commented, the as the of know, cost remote we taken sails on, because onboard in mix scrapping new XXXX. course, on that Driven

especially recently, looks way hopefully, back as early to really we our pre we is it at, obviously consensus. getting how our to leverage, started we comment here, that of some and level pre We've free look boards we're to sooner down to taken of kind today, pay more it holding, on we debt. about down to down do in soon to cash like possible. talk leverage, of is to the on less I a ourselves that goal are its get to metrics, COVID purpose I just the get going to position can a too our be COVID certainly paying grade, team won't ours, that we're our putting how Moving And to action do as to of one core to objective on it definitely is cash of think the management debt. paying also, as need here But is investment put flow towards get debt. look it

the back the the and also universe will be wave into vaccines waves looks like, But very service, around XXXX. light looks therapeutics is what momentum And and course, of when get think I and variables XXXX, green into testing. ramp For like XXXX. what important that to get up we begin to important your

the And spinning. so, the more for us, is flywheel

XXXX. build we'll that, the more go of As into all we momentum I for think

pre won't about it to we're will as healthy momentum optimistic, very sure it a trying whether quickly So a XX we're safe to I except be in or way. levels making by we're can COVID as we XXXX build and that, cautiously say and talk doing

Thanks, all helpful. That's Jason. really

of The from next is Katz Jamie question Morningstar.

funny? that's if of, that unpack? and Hi, us help a a or good be in onboard So just negative other potentially should optically looks I'm aware onetime line morning. revenue item, it's curious thing I it you something What little repeat? that Can could if is

we amount Yeah, money through kind going tons refunds sure. as There's so of of processing but are ticket and have and the a Sure. income of forth. QX have small QX cancellations Jaime. and really very were It's immaterial and any we in we’re cancellation these here course, and reversing don't that some don't penalty numbers, in of or numbers our revenue, we onboard revenue. QX really any

So stands correction small just out. a there

equity for going on guys or Okay. an called capital thinking preference Thanks. I'm there raises pretty out And you then a forward? rule set issuance of capital. the that a allocation is If ahead? long you're front, on raise you're out how sort to about capital putting thinking curious

to continue how Well, raise when I think and we're patient to going and on we we methodical need be it. capital, if

service. markets. very we And a sheet the in is we need our the to about action think in returned way. I position. posture but debt as here we markets, as Convert to to markets, thoughtful fix feel good or doing raise can, a to equity capital, liquidity here be if to to do also we But ourselves think the We as it pretty took evaluate we'll balance put deliver the our able continue I to focus soon that,

to evaluate do debt to so business? our as And improve have as us for in do looking how that in our invest cash to those pay available well and our options, I our is be at generate to think, order down more margins, in continue to we'll flow business, we to within

you. Thank

from JP of is Morgan. question next Montour Brandt Your

morning, Good Thanks my taking everyone. questions. for

be inflection inflection weigh you the no important for I exploration in actually to against big before safely the of CDC sail? will booking we another how that pent possibly which be that cruise meaningful warning the wait that in up expecting you may crew think or to I'm guess actual to you drag. allowed you're is out it can about prove able a specific data the travel Obviously, week? last demand and possible between when recent But that virus what most put So sale? bookings? is Can factors looks thinking see we But just events curve wait asking have is, until you lift you're

after we've when Singaporean were the demand within its that on really we it surprised season first of Interestingly, when the four we three, [Technical Singapore, were got received winter Brandt for days. triple sail those we came open. quantum the ocean the what were that two expecting approval weeks, that for expecting. level above for literally basically demand we we Jason by five cruises government, And think Difficulty] are Michael. the in from or that had voyages opened rates I And it in product Hi, sale, commented we quite

seeing So earlier, I Europe, marketplace, Jason's in to with when there it's going quite the point and COVID with back coming what they're even demand regards to naturally. think in demand, increases, is

moving kind with group The consumers that of behind most About other us the the COVID, a seeing and what is would COVID end they moving ago, comment that with market, months terms believed by correlated in of I we're four that it's ago, every months on And taking in really XXXX. feel demand or occurring American with COVID. how believe month, would is of make four behind about it. it single or three people large of about three consumers [ph] be consumers

therapeutics, as that what and Of see will very is you consumers us And Then behind with much booking. are the course, most a correlation etcetera. how that believing vaccine people shifted between COVID through move now. XX belief you move for they're

a American it and think XXXX. in kind us, market that Difficulty] a that with I There's at in for to [Technical I going a, So XX on of customers of summer some it lost summer been kind think, the behind point consumers us see there's And of are effectively behavior summer as we've booking our if at this have we've lot commented we XX. we're belief And going XX. before particular a a that and a emphasis the to looks be thinking vacation. feels behind products is through their

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about So COVID. consumer and it's complicated. feelings It's very to obsession, much connected

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the that improves, conclude as all improve. did technology panel this we really So

is as that in cost. mantra these accuracy, quite flow coming availability, improvement. are out, We speed in dramatically and the in lateral continuous tests tests think and improvement and Our new an are

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Helpful. good and Thanks luck.

from next Your is question Research. of Badishkanian Wolf Greg

Hey, guys, were on actually what that it stats unchanged It's I Fred And last you for good guys down quarter, provided on you to Whiteman come had Jason, expecting was like you more gave basis. pricing as that XX thought FCCs a morning. redeemed. versus full were the number some cumulative for year Greg. sounds

about So your expectations? what just sort you versus anything can different talk if of

Right. our Yeah. And question. be this will last

right. exactly that's So

and is a the new half is pricing the holding as up our testament at been taking still FCCs early, hold coming for think I on it well. back we've to play. is we've been into to frankly And quite our very but It more new and least from really rates demand. overseeing is bookings, the despite quite more the On and June standpoint, on as able pricing

Are or did the quarter demand in then sort bookings And line I as up. last people change any if far could their really there consumer of Have more XQ that year? the pick moving you sort I early Middle was you sand sneak quick, timeline either in of a seen as where think way? talked Early that later about in one

see really very this what then it's they line and the seeing with draw shifting from new consistent people Michael do are much booking, expecting it's said, begins. very not a to to similar you also what It's just that lifting you bookings And the their can where mean, I can when year. about is summer were

beyond, kind of we get the by summertime summer, out and of really As school. and at when kids we look summer, mean

thank all the and she you Shelby Carola all we us for the up assistance, follow from your Thank call wish ongoing very for of your company. a any you today great might all participation for available and day. be will with in you Okay. and interest have

today's you and Thank conference for Ladies gentlemen, your this call. concludes participation.

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