Royal Caribbean Reports First Quarter 2001 Results

Apr 25, 2001, 01:00 ET from Royal Caribbean Cruises Ltd.

    MIAMI, April 25 /PRNewswire Interactive News Release/ -- Royal Caribbean
 Cruises Ltd. (NYSE:   RCL; Oslo) announced today that revenues for the first
 quarter of 2001 were $727 million, up 3 percent from $708 million in 2000.
 The increase in revenues was due primarily to an increase in capacity in the
 quarter, offset by a decline in yields.  Yields, defined as net revenues per
 available passenger cruise day, were down 11 percent for the quarter,
 primarily due to the impact of the Millennium New Year's event, which
 positively affected the first quarter of 2000.  Excluding the impact of the
 Millennium event, yields were down 4 percent.  Net income for the quarter was
 $52 million, as compared with $106 million in the first quarter of 2000.
 Earnings per share were $0.27, versus $0.55 in the prior year.
     Efforts to stimulate demand and attract first-time cruisers continued in
 the first quarter with the launch of new ad campaigns for the Royal Caribbean
 International and Celebrity Cruises brands.  Both of these ad campaigns have
 been successful in increasing brand awareness among consumers and travel
 agents, as evidenced by recent surveys from independent sources and a tripling
 in the monthly number of visitors to each of the brands' Web sites.
     The newest additions to the company's fleet, Infinity for the Celebrity
 Cruises brand and Radiance of the Seas for Royal Caribbean International,
 entered into service last month.  These ships join Celebrity's Millennium as
 the first in the industry to use smokeless gas turbine engines.
     "We know our guests are as concerned as we are about protecting the
 environment," said Richard D. Fain, chairman and chief executive officer of
 Royal Caribbean Cruises Ltd.  "We take great pride in introducing this
 technology not only because it corresponds to the desires of the consumer, but
 also because it's the right thing to do."  Both ships are heading to Alaska
 for the summer, and the company believes they will be the most innovative
 hardware available in the region.
     Also geared at the Alaska market, the company's newest division, Royal
 Celebrity Tours, took delivery of its first two rail cars -- the largest domed
 rail cars in the world -- and begins its inaugural season of operation next
 month.  A six-city whistle stop tour of the rail cars through the Midwest and
 West previewed the new premium Alaskan land product to travel agents and
 media.
     "Although this year's booking period started out strong, we are
 disappointed that the momentum did not continue as long as we would have
 liked," said Fain.  "As we all know, the slowdown of the economy is affecting
 consumer spending.  This impact, coupled with increased industry capacity,
 continues to put pressure on pricing.  As a result, we now forecast yields for
 the last nine months of 2001 to be down 2 percent on a year-over-year basis."
     "While the pricing environment remains challenging, we believe the long-
 term fundamentals of the industry remain intact.  We firmly believe our young,
 innovative fleet is competing aggressively in this market.  Our product
 offering is effectively attracting first-time cruisers and providing new
 options to our large base of loyal guests."
     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 21 ships in service and eight under construction or on firm order.
 Royal Celebrity Tours operates cruise-tour vacations in Alaska utilizing the
 world's largest glass-domed railcars.  Additional information can be found on
 www.royalcaribbean.com or www.celebritycruises.com.
     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.
     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, performances 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, weather and other
 factors described in further detail in Royal Caribbean's filings with the
 Securities and Exchange Commission.
 
                           (Financial Tables Follow)
 
                           ROYAL CARIBBEAN CRUISES LTD.
 
                       CONSOLIDATED STATEMENTS OF OPERATIONS
             (unaudited, dollars in thousands, except per share data)
 
                                                      First Quarter Ended
                                                          March 31,
                                                      2001             2000
 
           Revenues                                 $726,878         $707,786
 
           Expenses
              Operating                              456,339          403,179
              Marketing, selling and
               administrative                        112,790          108,415
              Depreciation and amortization           67,665           56,556
                                                     636,794          568,150
 
           Operating Income                           90,084          139,636
 
           Other Income (Expense)
              Interest income                          6,797            1,373
              Interest expense, net of
               capitalized interest                  (59,255)         (31,978)
              Other income (expense)                  14,871           (3,503)
                                                     (37,587)         (34,108)
 
           Net Income                                $52,497         $105,528
 
           Earnings Per Share
              Basic                                    $0.27            $0.57
              Diluted                                  $0.27            $0.55
 
           Weighted Average Shares
            Outstanding
              Basic                              192,160,596      182,466,598
              Diluted                            193,515,506      193,538,594
 
 
                                   STATISTICS
 
                                                      2001             2000
           Occupancy as a percentage of
            total capacity                            103.0%           101.7%
 
           Guest Cruise Days                       3,493,512        3,024,269
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23030471
 
 

SOURCE Royal Caribbean Cruises Ltd.
    MIAMI, April 25 /PRNewswire Interactive News Release/ -- Royal Caribbean
 Cruises Ltd. (NYSE:   RCL; Oslo) announced today that revenues for the first
 quarter of 2001 were $727 million, up 3 percent from $708 million in 2000.
 The increase in revenues was due primarily to an increase in capacity in the
 quarter, offset by a decline in yields.  Yields, defined as net revenues per
 available passenger cruise day, were down 11 percent for the quarter,
 primarily due to the impact of the Millennium New Year's event, which
 positively affected the first quarter of 2000.  Excluding the impact of the
 Millennium event, yields were down 4 percent.  Net income for the quarter was
 $52 million, as compared with $106 million in the first quarter of 2000.
 Earnings per share were $0.27, versus $0.55 in the prior year.
     Efforts to stimulate demand and attract first-time cruisers continued in
 the first quarter with the launch of new ad campaigns for the Royal Caribbean
 International and Celebrity Cruises brands.  Both of these ad campaigns have
 been successful in increasing brand awareness among consumers and travel
 agents, as evidenced by recent surveys from independent sources and a tripling
 in the monthly number of visitors to each of the brands' Web sites.
     The newest additions to the company's fleet, Infinity for the Celebrity
 Cruises brand and Radiance of the Seas for Royal Caribbean International,
 entered into service last month.  These ships join Celebrity's Millennium as
 the first in the industry to use smokeless gas turbine engines.
     "We know our guests are as concerned as we are about protecting the
 environment," said Richard D. Fain, chairman and chief executive officer of
 Royal Caribbean Cruises Ltd.  "We take great pride in introducing this
 technology not only because it corresponds to the desires of the consumer, but
 also because it's the right thing to do."  Both ships are heading to Alaska
 for the summer, and the company believes they will be the most innovative
 hardware available in the region.
     Also geared at the Alaska market, the company's newest division, Royal
 Celebrity Tours, took delivery of its first two rail cars -- the largest domed
 rail cars in the world -- and begins its inaugural season of operation next
 month.  A six-city whistle stop tour of the rail cars through the Midwest and
 West previewed the new premium Alaskan land product to travel agents and
 media.
     "Although this year's booking period started out strong, we are
 disappointed that the momentum did not continue as long as we would have
 liked," said Fain.  "As we all know, the slowdown of the economy is affecting
 consumer spending.  This impact, coupled with increased industry capacity,
 continues to put pressure on pricing.  As a result, we now forecast yields for
 the last nine months of 2001 to be down 2 percent on a year-over-year basis."
     "While the pricing environment remains challenging, we believe the long-
 term fundamentals of the industry remain intact.  We firmly believe our young,
 innovative fleet is competing aggressively in this market.  Our product
 offering is effectively attracting first-time cruisers and providing new
 options to our large base of loyal guests."
     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 21 ships in service and eight under construction or on firm order.
 Royal Celebrity Tours operates cruise-tour vacations in Alaska utilizing the
 world's largest glass-domed railcars.  Additional information can be found on
 www.royalcaribbean.com or www.celebritycruises.com.
     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.
     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, performances 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, weather and other
 factors described in further detail in Royal Caribbean's filings with the
 Securities and Exchange Commission.
 
                           (Financial Tables Follow)
 
                           ROYAL CARIBBEAN CRUISES LTD.
 
                       CONSOLIDATED STATEMENTS OF OPERATIONS
             (unaudited, dollars in thousands, except per share data)
 
                                                      First Quarter Ended
                                                          March 31,
                                                      2001             2000
 
           Revenues                                 $726,878         $707,786
 
           Expenses
              Operating                              456,339          403,179
              Marketing, selling and
               administrative                        112,790          108,415
              Depreciation and amortization           67,665           56,556
                                                     636,794          568,150
 
           Operating Income                           90,084          139,636
 
           Other Income (Expense)
              Interest income                          6,797            1,373
              Interest expense, net of
               capitalized interest                  (59,255)         (31,978)
              Other income (expense)                  14,871           (3,503)
                                                     (37,587)         (34,108)
 
           Net Income                                $52,497         $105,528
 
           Earnings Per Share
              Basic                                    $0.27            $0.57
              Diluted                                  $0.27            $0.55
 
           Weighted Average Shares
            Outstanding
              Basic                              192,160,596      182,466,598
              Diluted                            193,515,506      193,538,594
 
 
                                   STATISTICS
 
                                                      2001             2000
           Occupancy as a percentage of
            total capacity                            103.0%           101.7%
 
           Guest Cruise Days                       3,493,512        3,024,269
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23030471
 
 SOURCE  Royal Caribbean Cruises Ltd.