Royal Caribbean Cruises Ltd. (RCL)
announced that net income for the second quarter of 2003 was $55.7 million, or $0.28 per share. This compares to $66.7 million, or $0.34 per share, for the second quarter of 2002. Revenues for the second quarter of 2003 were $905.8 million, up 10.2% from $821.8 million in 2002. The increase in revenues was primarily due to a 15.5% increase in capacity, partially offset by a 4.6% decline in gross yields. The decrease in gross yields was primarily associated with lower cruise ticket prices and occupancy levels, partially offset by an increase in shipboard revenues. Net yields for the second quarter of 2003 decreased 4.8% from the second quarter of 2002, which was significantly better than the company's previous guidance of a decline of 6% to 9%.
"We are pleased that the post war recovery is turning out to be better than we originally anticipated," said Richard D. Fain
, chairman and chief executive officer of Royal Caribbean Cruises Ltd. "While we will continue to feel the effects for the rest of this year, we remain focused on building our brands and look forward to recovering net yields lost from the unfortunate events of the past two years."
During July, the company received $50 million in additional commitments under the terms of its unsecured revolving credit facility. The additional commitments have increased the availability under the facility to $550 million and will not alter any of the facility's existing terms. Assuming interest rates remain at their historically low levels for the remainder of the year, the company now estimates that interest expense for 2003 will be in the range of $265 million to $275 million.