Royal Caribbean Cruises Ltd.

Good morning. My name is Shelby, and I'll be your conference operator today. At this time, I would like to welcome everyone to Royal Caribbean Group's Business Update and Second Quarter 2020 Earnings Call. All participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. I would now like to introduce Chief Financial Officer, Mr. Jason Liberty. Mr. Liberty, the floor is yours.

Thank you, Shelby. Good morning, everyone, and thank you for joining us today for our business update and second quarter earnings call. Joining me are Richard Fain, our Chairman and Chief Executive Officer, Michael Bayley, President and CEO of Royal Caribbean International, and Corolla Mangolini, our Vice President of Investor Relations. During this call, we will be referring to a few slides which have been posted on our investor website, www.rclinvestor.com. Before we get started, I would like to refer you to our notice about forward-looking statements, which is on our first slide. During this call, we will be making comments that are forward-looking. These statements do not guarantee future performance and do involve risks and uncertainties. Examples are described in our SEC filings and other disclosures. Please note that we do not undertake to update the information in our filings as circumstances change. Also, we will be discussing certain non-GAAP financial measures which are adjusted as defined and a reconciliation of all non-GAAP historical items can be found on our website. Richard will begin the call by providing a strategic overview of the business. I will then follow up with a recap of our second quarter results. I will then provide an update on our latest liquidity action and then give an update on the booking environment and our outlook. We will then open up the call for your questions. Richard.

Thank you, Jason, and good morning, everyone. Thank you for joining us this morning. While it definitely seems like an eternity, it's been five months since COVID-19 upended our lives. Every one of those days has been a challenge to all of us on every level. The impact on us on individuals, as families, as businesses, probably most importantly, as communities have been profound, sometimes even humbling. During these five months, we at the Rourke-Ribbon Group have been working on scenarios that were unimaginable for us just a while ago, from massive crew repatriations and bid capital raises to developing new fleet-wide health and safety protocols, all while working remotely. It's been and continues to be a monumental effort. But first and foremost, I want to especially acknowledge the shipboard and shoreside teams that have worked tirelessly on the unprecedented crew repatriation effort. To date, over 43,000 or more than 98% of our crew hailing from some 90 nations have made it safely home to their families and their loved ones. We continue to work with the governments of the restricted countries to reunite the last few of our crew with their families. It was and still is a very complex and expensive task with shifting regulations and restrictions across multiple countries. Our teams were simply remarkable, overcoming the multitude of challenges that came daily their way. I particularly want to thank our shipboard employees who are, and always have been, the heart and soul of our operation. Their patience and their understanding during this horrible process has been extraordinary. While there are always exceptions, the vast bulk of these people have been supportive and understanding during a really awful time for them and everyone else, and that's actually helped to accelerate the process. Lastly, looking forward, as we get our crew home and settled, we're thinking about the future. I joke that by the time we get our last crew member home, we'll have to start all over again. Frankly, I can't wait to welcome them back on board when the time is right. In parallel, our terrific finance and legal teams have been working round the clock, working to get us enough liquidity to get through these extraordinary times. With our strong brands, great reputation, and a solid balance sheet, we've been able to access the capital markets and to negotiate with governments, vendors, shipyard operators and others to improve our various financial terms. Now, while accessing capital and deferred debt payments are critical, another important liquidity action we can take is cash burn. To this end, our operating teams expect to have the whole fleet in their expected level of layup by the end of this month. They are reviewing every single expense account to further improve our cash conservation goals. On top of all these efforts, most of our capital projects have been delayed or canceled as we don't know how long it will take to get beyond this epidemic. These are painful, but these are necessary decisions. I have to say that these five months have been the longest five months any of us can remember. Now, since the crisis began, We extended our suspension of operations seven times now through October 31st for most voyages. But it's fair to say that there is still a lot of uncertainty. Against this backdrop, we will not rush to return to service until we are confident that we have figured out the changes that we must make to offer our guests and crews strong health and safety protocols with the enjoyable experience that they rightly expect. We believe that our healthy Healthy Return to Service Program will help get us there. As I mentioned before, this new program will focus on four key aspects. Upgraded screening of guests and crew prior to boarding, enhanced health processes and protocols onboard, a special focus on addressing the destination we visit, and lastly, procedures for addressing any reports of exceptions. We recognize that this is extremely complex. Therefore, besides our dedicated internal teams, we, in cooperation with Norwegian Cruise Line, have assembled an expert panel called the Healthy Sail Panel. It's tasked to help us develop comprehensive and multifaceted set of enhanced health and safety protocols. We think they will address the key aspects of our return to service program given the challenges of COVID-19. We've also recently created the position of Global Chief Public Health Officer, who will raise our standards for enhancing and implementing all the protocols and recommendations fleet-wide. As with all we do, we want our measures to go above and beyond what's expected of us. As most of you know, a ship has very special features, and some of those make it more challenging, but some of those provide real opportunities and so we are all looking at our ships with an open mind and an imaginative core. From the arrival at the terminal with contactless check-in via our app to touchless payment options, we're reviewing every step of the experience. For example, we have developed a new innovative way to muster where our passengers will be able to view the safety information on their app or interactive stateroom TV and then check in at their assembly station at their leisure. No more crowds. This is one small part of the enhancements we're working on and we'll share many more when the time is right. Now as we work and prepare to sail with the new protocols, there are also some other important positive signs on the horizon. There are noteworthy advances in treatments, many new drugs are undergoing critical trials, testing and tracing are ramping up, and vaccines seem to be making great progress. Never before has so much coordinated effort, resources, focus and technology been applied to solve such a problem. But while COVID-19's impact is significant, what hasn't changed is that people, you, our guests and our employees are at the heart of this cruise line. We have been both humbled and surprised with the amount of bookings we're seeing for 2021 with literally no marketing efforts and, frankly, very little good news. You've heard me say before that revenue management is more of an art than a science, and that is more true today than ever. But the tone of our bookings, especially as we get into the second half of 2021, has been encouraging. Our guests want to come back. Families want and need the vacation. That is what makes us innovative, inspired, and resilient. We are more determined than ever to come back strong with new ideas to make sure that our guests feel confident and safe in choosing their vacation with us. I cannot leave this call without expressing my appreciation to the men and women of Royal Caribbean who continue to display such loyalty under such trying circumstances. This pandemic and the steps that have to be taken to control it are causing massive pain and suffering throughout our company. They are disrupting our lives and our way of life. The impact on our society and our way of life is profound and that impact will last long after the current crisis ends. We will get through this and we need to focus our attention in doing so and doing so in a manner that preserves the amazing attributes of cruising. My parents' generation was indelibly imprinted with the experience of the Great Depression, and I think our current generations will be imprinted with the many experiences that are affecting us today. Our task will be to ensure that we are responding appropriately and innovatively to the demands of society as we emerge. Based on the information available to us today, I'm confident that we're taking the right steps to do so. Cruising has taken the economic impact of the acute phase of this pandemic as hard as any industry I can think of, but we are ready to rejoin the rest of society in the recovery. In fact, once we get past this acute phase, the experience cruising offers has the potential for being one of the ways society comes back together. Humans are social animals and cruising will, in the near future, be able to offer people a meaningful and enjoyable way to safely fulfill this basic human need. People want to be together, and we will be ready to welcome them aboard. And our bookings for next year indicate that our guests feel the same. With that, I'll pass the microphone back to Jason. Jason?