Regent Seven Seas Cruises today reported results for the first quarter ended March 31, 2012.
Revenue for the first quarter of 2012 was up 15.5 percent reaching a record amount for the first quarter of $119.9 million, compared to $103.8 million in the first quarter of 2011. Adjusted EBITDA was $17.7 million for the first quarter of 2012, compared to $16.9 million for the first quarter of 2011. Net Yield for the first quarter of 2012 was up 5.2 percent driven by higher occupancy of 4.7 percentage points. In the first quarter of 2012, we had a 1.1 percent increase in capacity over the first quarter of 2011. Net income was $0.4 million for the first quarter of 2012 compared to net income of $1.5 million for the first quarter of 2011.
Commenting on the first quarter results, the Company’s Chairman and CEO, Frank Del Rio, stated, “We are exceptionally pleased by the performance of the brand with record revenue, occupancy, Net Yield and Adjusted EBITDA for the first quarter, which is a reflection of our focus on providing an extraordinary experience for our guests and travel agency partners and the fulfillment of our brand promise.”
Other key operating metrics for the first quarter of 2012 compared to the prior year are as follows:
Net Cruise Cost, excluding Fuel and Other expense, per APCD increased 1.9 percent, to $286 in 2012 compared to $281 in 2011, primarily due to increased hotel services costs driven by an increase in PDS of 6.6 percent.
Fuel expense increased 17.0 percent, or $1.8 million, reflecting higher prices. Our economic hedging strategy was able to partially offset this increase, as we recognized a $1.2 million cash benefit on executed fuel hedge contracts during the quarter that offset 66.7 percent of the price increase. The realized gain of fuel derivatives was recorded in other income (expense) as these instruments do not qualify for hedge accounting.
Other expense increased $0.2 million.