FORM 6-K
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
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PURSUANT TO RULES 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of April, 2002
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ROYAL CARIBBEAN CRUISES LTD.
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1050 Caribbean Way, Miami, Florida 33132
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(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.]
Form 20-F x Form 40-F
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[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.]
Yes No x
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[If "Yes" is marked indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-_____.]
Contact: Lynn Martenstein or Erin Williams
(305) 539-6570 or (305) 539-6153
For Immediate Release
ROYAL CARIBBEAN REPORTS FIRST QUARTER 2002 RESULTS
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MIAMI - (April 24, 2002) - Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL)
announced today that net income for the first quarter was $53 million,
essentially the same as the first quarter of 2001. Earnings per share were $0.27
for the first quarter in both 2002 and 2001. Net income for the quarter was
negatively impacted by $5 million in guest and travel agent related expenses due
to the unanticipated drydock of two ships.
Revenues for the first quarter of 2002 were up 10%, at $800 million compared to
$727 million in 2001. The increase in revenues was due primarily to an increase
in capacity, offset by a decline in yields (net revenues per available passenger
cruise day). Yields were down 7% for the first quarter of 2002 compared to the
first quarter of 2001, primarily as a result of pricing actions taken in the
months immediately following the terrorist attacks of September 11. Bookings
during these months were taken at significantly discounted prices. By January,
pricing on new bookings for the first quarter was only marginally lower than
during the same period the prior year.
On an available passenger cruise day basis, operating and SG&A expenses were
down 14% for the quarter. On the same basis, SG&A costs for the quarter were
down 27%. This reduction was achieved through cost containment measures taken by
the company, as well as the timing of marketing expenses. Certain operating
expenses were also lower due to the impact of September 11 on the travel
industry. In particular, travel agent commissions were lower due to lower cruise
pricing, and air travel expenses were lower due to reduced air/sea levels. The
percentage of passengers who chose to book their air passage through Royal
Caribbean dropped from 31% in the first quarter of 2001 to 20% this year. Both
commission and travel costs are expected to return to more normal levels as the
year progresses. The company anticipates that full year operating and SG&A
costs, excluding fuel costs, will be down approximately 5% on an available
passenger cruise day basis.
"We are extremely pleased with the speed and strength of the industry's
recovery," said Richard D. Fain, Chairman and CEO of Royal Caribbean Cruises
Ltd. "Clearly, the powerful fundamentals of our company and our industry have
been proven in recent months. I am encouraged both by the recovery of pricing
levels and by the company's ability to manage costs. We are committed to
continuing our efforts on both fronts."
In recent weeks, pricing has returned to pre-September 11 levels. Looking
forward, based on current pricing trends and booking levels, yields are expected
to be down 5-7% in the second and third quarters relative to 2001. Booking
patterns continue to be closer in than in prior years and visibility for the
fourth quarter is therefore limited.
The company will introduce Constellation, the fourth Millennium-class ship, in
May, and Brilliance of the Seas, the second of the Radiance-class series, in
July. The company is also considering asking the shipyard to accelerate by a few
weeks the delivery of Navigator of the Seas, the fourth Voyager-class ship. If
so, the ship would be delivered in December 2002 in time to take advantage of
the holiday sailings. The company has also announced that it will deploy six
ships in the Europe next year, more than doubling its product offerings there.
"Our new ships continue to generate strong consumer demand in the marketplace,"
said Fain. "Based on the improved pricing trends in the market and the timing of
the holiday season, we think a slightly earlier delivery date for Navigator of
the Seas may provide an advantageous revenue opportunity."
The company has scheduled a conference call at 10 a.m. today to discuss its
earnings. This call can be listened to, either live or on a delayed basis, on
the Company's investor relations web site at www.rclinvestor.com.
Royal Caribbean Cruises Ltd. is a global cruise vacation company that operates
Royal Caribbean International, Celebrity Cruises, and Royal Celebrity Tours.
Royal Caribbean International and Celebrity Cruises have a combined total of 22
ships in service and six under construction. Royal Celebrity Tours operates
land-tour vacations in Alaska and Canada utilizing the world's largest
glass-domed railcars. Additional information can be found on
www.rclinvestor.com, www.royalcaribbean.com and www.celebritycruises.com.
Certain statements in this news release are forward-looking statements. Such
forward-looking statements are not guarantees of future performance and involve
known and unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements to differ materially from future
results, performance or achievements expressed or implied in such
forward-looking statements. Such factors include general economic and business
conditions, changes in cruise industry competition, reduced consumer demand for
cruises as a result of any number of reasons, including armed conflict or
political instability, availability of air service, the delivery schedule of new
vessels, unplanned service outages of vessels, changes in interest rates or oil
prices and other factors described in further detail in Royal Caribbean's
filings with the Securities and Exchange Commission. The above examples may not
be exhaustive as we operate in a continually changing business environment, and
new risks emerge from time to time. We undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Financial Tables Follow
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ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)
First Quarter Ended March 31,
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2002 2001
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Revenues.......................................... $ 799,953 $ 726,878
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Expenses
Operating....................................... 502,638 456,339
Marketing, selling and administrative........... 102,076 112,790
Depreciation and amortization................... 82,827 67,665
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687,541 636,794
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Operating Income.................................. 112,412 90,084
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Other Income (Expense)
Interest income................................. 4,227 6,797
Interest expense, net of capitalized interest... (68,268) (59,255)
Other income (expense).......................... 4,442 14,871
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(59,599) (37,587)
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Net Income........................................ $ 52,813 $ 52,497
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Earnings Per Share:
Basic........................................... $ 0.27 $ 0.27
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Diluted......................................... $ 0.27 $ 0.27
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Weighted average shares outstanding:
Basic........................................... 192,325 192,161
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Diluted......................................... 195,509 193,516
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STATISTICS
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2002 2001
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Occupancy as a percentage of total capacity....... 103.9% 103.0%
Guest Cruise Days................................. 4,344,802 3,493,512
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ROYAL CARIBBEAN CRUISES LTD.
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(Registrant)
Date: April 30, 2002 By: /s/ BONNIE S. BIUMI
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Bonnie S. Biumi
Vice President and Treasurer