Royal Caribbean Reports 2001 Results

Royal Caribbean Cruises Ltd. announced earnings for the year of $254.5 million, or $1.32 per share, compared with $445.4 million, or $2.31 per share in 2000. Earnings were negatively impacted during the year by the events of September 11 and ships out of service, partially offset by insurance proceeds. Excluding the impact of these items, net income would have been $318.9 million, or $1.65 per share. Revenues for the year were up 9.7 percent at $3.1 billion, compared with $2.9 billion in 2000. The increase in revenues for the year was due to a 20.8 percent increase in capacity, offset by a decline in net yields (net revenue per available berth day) of approximately 9 percent.

Revenues for the fourth quarter were $656.0 million, up 2.2 percent from $642.1 million in 2000. The increase in revenues was due primarily to the increase in capacity in the quarter, partially offset by a change in yields. Net revenue yields for the quarter were down 10.7 percent, primarily due to the impact of the events of September 11. During the quarter, the company significantly reduced its cost structure. Operating expenses and SG&A were down approximately 10 percent on a per-available-berth-day basis from the same quarter in 2000. Also included in the quarter were $6.5 million, or $0.03 per share, in severance expenses related to the previously announced shoreside reduction in workforce. The company reported a net loss of $39.0 million for the quarter, as compared with net income of $30.1 million, or $0.16 per share, in the fourth quarter of 2000.