Royal Caribbean Cruises Ltd. has announced their fourth quarter earnings
of $38.3 million, or $0.20 pershare, compared to a net loss of ($39.0) million, or ($0.20) per share, in 2001. Included in the fourth quarter of 2002 are net proceeds of $33.0
million, or $0.17 per share, related to the termination of the proposed DLC
merger with P&O Princess. Fourth quarter earnings are better than those
previously predicted by the company due to better than expected yield
Net yields (net revenue per available passenger cruise day) for the fourth
quarter were up 10.6% compared to previous guidance of 7% to 9%. As a
result, net yields for the full year were only 0.7% below the level
experienced in 2001.
"Obviously, the fourth quarter of 2001 was greatly impacted by the
aftermath of 9/11," said Bonnie S. Biumi, Acting Chief Financial Officer of
Royal Caribbean Cruises Ltd. "Nevertheless, a double digit yield
improvement in the face of a double digit capacity increase amply
demonstrates the strength of our brands."
For the full year 2002, net income
was $351.3 million, or $1.79 per share,
compared with $254.5 million, or $1.32 per share, in 2001. Included in 2002
are net proceeds of $33.0 million, or $0.17 per share, related to the
termination of the proposed DLC merger with P&O Princess and a charge of
$20.0 million, or $0.10 per share, recorded in connection with a litigation
settlement. Excluding the impact of these items, net income for 2002 would
have been $338.3 million, or $1.72 per share. Earnings for 2001 were
negatively impacted by the events of September 11 and ships out of service.
The comparable figures for 2001 were $318.9 million, or $1.65 per share.
Revenues for the year were up 9.2% at $3.4 billion, compared with $3.1
billion in 2001. The increase in revenues for the year was due to a 15.0%
increase in capacity, partially offset by the 0.7% decline in yields and a
decrease in the air/sea mix from 24.0% in 2001 to 14.2% in 2002.
For the year operating costs were $2.1 billion, up from $1.9 billion in
2001, but down 5.0% on a per available passenger cruise day basis. The
company believes changes in running expenses (i.e., those expenses directly
associated with shipboard operations) and SG&A to be a more relevant
measure of its ability to control costs in a manner that positively impacts
the bottom line. Running and SG&A expenses for the year (excluding fuel,
the Brilliance of the Seas lease payments, the litigation settlement and
the costs associated with September 11th) were down 4.8% on a per available
passenger cruise day basis.