Royal Olympic Announces Third Quarter Results

Royal Olympic Cruise Lines Inc., reported that third quarter net revenues increased by 11.3 percent to $57.1 million compared to the same period last year. For the nine months ended August 31, 2001, revenues increased by 17.6 percent to $102.6 million compared to $87.3 million during the same period in 2000. The growth in revenues in the third quarter is attributable to an improved summer cruise season and the introduction of Seawing, which contributed $8 million.

Operating expenses increased by 20.4 percent or $5.5 million to $ 32.6 million for the third quarter of 2001, compared to $ 27.0 million for the same period last year. The increase in operating expenses was mainly due to the introduction of Seawing, which contributed $4.5 million, and the re-introduction of Apollon which did not operate in 2000 and contributed $3.4 million in 2001. The increase was partly offset by a decrease in operating expenses of Stella Oceanis of $1.9 million as the vessel was in lay-up in 2001. For the nine months ended August 31, 2001, operating expenses increased by 23.8 percent to $71.3 million, compared to $57.6 million for the same period last year due to the Seawing, Apollon and the operation of Olympia Voyager for the full period. Ebitda was $16.5 million for the third quarter ended August 31, 2001, which was slightly below EDITDA of $17.2 million in the same period last year and which is a positive outcome, when the situation in the Eastern Mediterranean and especially in Israel and Palestine are taken into consideration. For the nine months ended August 31, 2001, EBITDA was $12.3 million, which is comparable to the EBITDA of $12.2 million for the same period last year. Selling and administrative expenses increased by 13.8% or $1.0 million to $8.0 million for the third quarter of 2001 compared to $7.0 million in the same period last year. The increase was primarily due to intensified marketing expenses to support the expected launch of “Olympia Explorer”. The Company’s net cash used in operating activities was $9.4 million for the nine months ended August 31, 2001, compared to $10.9 million provided by operating activities for the same period last year. This was primarily due to the increased interest expense in 2001 compared to 2000, resulting mainly from the operation of the Olympic Voyager for the full period. Net cash used in investing activities (capital expenditure) for the nine months ended August 31, 2001 amounted to $16.2 million, compared to $172 million for the corresponding period last year, due to the introduction of the “Olympic Voyager” in June 2000. Net cash provided by financing activities for the nine months ended August 31, 2001, was $17.1 million, compared to $167.3 million for the same period last year, again due to the introduction of “Olympic Voyager”.