FORM 6-K
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
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PURSUANT TO RULES 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2002
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ROYAL CARIBBEAN CRUISES LTD.
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1050 Caribbean Way, Miami, Florida 33132
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(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.]
Form 20-F x Form 40-F
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[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.]
Yes No x
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[If "Yes" is marked indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-_____.]
Contact: Michael Sheehan or Erin Williams
(305) 539-6572 or (305) 539-6153
For Immediate Release
ROYAL CARIBBEAN CHIEF FINANCIAL OFFICER ACCEPTS POSITION
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WITH ARGOSY GAMING COMPANY
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MIAMI -- July 10, 2002 -- Capping a distinguished 17-year career with Royal
Caribbean Cruises Ltd. (NYSE, OSE: RCL), Richard J. Glasier, executive vice
president and chief financial officer, will leave the company this month to
become president of Argosy Gaming Company (NYSE: AGY) in Alton, Illinois. The
move will return Glasier to the gaming industry, where he worked for Ramada Inns
for nearly a decade in gaming and hotel operations.
"The company has been able to grow at the rate it has and expand with the
vigor it has, in large part, due to Dick's guidance and leadership," said Royal
Caribbean's Chairman and CEO Richard Fain. "We are far stronger today, thanks to
his efforts, and we are far better set for the future. This company is indebted
to him, as am I personally. We wish him the best of luck in his new position."
Bonnie Biumi, currently vice president and treasurer, will serve as acting
chief financial officer. Biumi, who has been in her current position for three
years, has a long-standing relationship with the company, serving as senior
manager on the account for auditors PricewaterhouseCoopers as far back as Royal
Caribbean's initial public offering. Immediately prior to joining Royal
Caribbean, Biumi served as chief financial officer of Neff Corporation, a
Miami-based NYSE equipment rental company.
"While I look forward to assuming my new role," said Glasier, "I leave
behind an industry and a company that have provided me with many rewarding
relationships and experiences. I leave confident that Royal Caribbean is
well-positioned to continue to take advantage of its strong growth opportunities
and wish the management team much success in the future."
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 24 ships in service and four under construction or on firm order. Royal
Celebrity Tours operates land-tour vacations in Alaska and Canada utilizing the
world's largest glass-domed railcars. Additional information can be found on
www.royalcaribbean.com, www.celebritycruises.com or www.rclinvestor.com.
# # # # # # #
Contact: Lynn Martenstein or Erin Williams
(305) 539-6570 or (305) 539-6153
For Immediate Release
ROYAL CARIBBEAN REPORTS SECOND QUARTER RESULTS
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MIAMI - July 25, 2002 - Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) today
announced second quarter earnings were $66.7 million or $0.34 per share. This
compares to $81.7 million or $0.42 per share for the second quarter of 2001. Net
revenues per available passenger cruise day ("Yields") were down 3.3%, which was
significantly better than previous guidance of a decline in the range of 5 to
7%. At June 30th, the company's net debt to capital ratio was 56.6% and
liquidity was approximately $1.6 billion.
The outlook for the remainder of the year also continues to improve from earlier
guidance, and the company currently forecasts that yields for the third quarter
of 2002 will be down 2 to 4%, while yields in the fourth quarter will be up 4 to
6% from the same quarters in 2001. For full year 2002, yields are expected to be
down 2 to 3% from 2001.
Revenues for the quarter were $821.8 million, essentially unchanged from the
same quarter prior year. The impact of an increase in capacity was offset by the
decrease in yields and a significant decline in the number of guests purchasing
air transportation from the company. The trend for more of the company's guests
to drive to the point of embarkation or to arrange for their own air
transportation continues. As a result, the percentage of guests booking air
travel through the company dropped from 26.7% in the second quarter of 2001 to
14.5% in 2002.
"The recovery from the events of September 11th has been extremely encouraging
from both a pricing and occupancy perspective," said Chairman & CEO Richard D.
Fain. "The industry and our company are proving to be very resilient, and this
leads me to be very optimistic about the company's future performance."
The company previously gave guidance that it expected total operating costs
(operating plus SG&A expenses) excluding fuel for the full year to drop 5% on a
per available berth day basis. The drop in the second quarter was in fact
significantly higher, at 13.2%. Contributing to this decline was reduced air
transportation costs associated with fewer passengers purchasing air tickets
from the company and lower commission costs associated with lower ticket prices.
Due to the anticipated return to more normal air/sea levels and an increase in
commissions as well as certain timing issues, the company believes that the
previous guidance continues to be accurate.
The change in the sale of air tickets to guests has only a minimal impact to the
company's net income. Therefore, 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. For the quarter, running and
SG&A expenses excluding fuel were down 6.9% on an available berth day basis. For
the year, the company expects these costs to improve 3.5 to 4.0% on the same
basis.
In mid-June, Royal Caribbean International received the EFFIE award for its "Get
Out There" campaign. "The success of our marketing campaign is best evidenced by
the improvement in our sales," said Fain. "However, we are gratified to also
have received the recognition of an EFFIE, which is widely considered to be the
top advertising effectiveness award within the advertising and marketing
industries. We hope to see similar results from the launch of the new Celebrity
campaign later this month." As a result of the continued focus on sales and
marketing efforts and the improvement in the yield environment, the company has
decided to increase the budget for SG&A, and now anticipates full year expense
to be between $430 and $440 million. This range represents a 13 to 14% drop in
the company's comparable SG&A expense per available berth day from 2001.
During the quarter the company took delivery of Constellation, the last of the
Celebrity newbuilds on order. The delivery of Constellation grows the Celebrity
fleet to a total of nine ships, which have an average age of approximately 4
years. Celebrity's fleet was recently recognized by the U.S. Coast Guard for its
superior environmental operations with the 2002 William M. Benkert Award for
Environmental Excellence.
The company has also added Brilliance of the Seas to its fleet, the second in
the 2,100-passenger Radiance-class series for Royal Caribbean International. The
ship, which has noise and vibration measurements one-fourth of what is specified
in the contract, has achieved the highest rating ever measured for these
qualities by the classification society Det Norske Veritas.
In connection with the delivery of Constellation, the company utilized an export
financing facility, which has a floating rate of LIBOR plus 1.5% and amortizes
over eight and one half years. Brilliance of the Seas was financed through a
long-term operating lease. The term of the lease is 25 years and is cancelable
in years 10 and 18. The effective interest rate of the lease is approximately
5.75%.
Following delivery of Constellation, total debt as of June 30, 2002 was $5.6
billion. Cash and cash equivalents were approximately $600 million as of that
date, and the company's $1 billion revolving credit facility was fully undrawn,
for liquidity of $1.6 billion. The company also has available export financing
facilities for approximately $600 million for the deliveries of Serenade of the
Seas and Jewel of the Seas.
The company has options for construction of two additional Radiance-class ships
for delivery in 2005 and 2006. In light of the uncertainty relating to the
proposed combination with P&O Princess, the company has extended the expiration
date on these options to September 20, 2002.
Based upon the company's current estimates of revenues and expenses, it believes
the consensus of analyst estimates for 2002 full year EPS to be reasonable.
Looking forward, the booking period for 2003 is just beginning. This, coupled
with the limited visibility resulting from the current close-in booking
environment, makes it difficult to provide guidance for next year. However, if
2003 yields return to 2001 levels, the company expects that it will meet or
exceed current consensus for 2003 full year results.
Separately, the company disclosed that it expects to incur approximately $25
million in costs related to the proposed combination with P&O Princess. If the
transaction is completed as contemplated, these costs, together with additional
success fees, will be capitalized as part of the overall transaction. In the
event the combination does not occur, these costs will appear as part of
operating expenses in the quarter that the final determination about the
transaction is made.
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. A slide
presentation will accompany the conference call, and is also available for
viewing at www.rclinvestor.com.
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 24
ships in service and four under construction or on firm order. Royal Celebrity
Tours operates unique land-tour vacations in Alaska, Canada and Europe.
Additional information can be found on www.royalcaribbean.com,
www.celebritycruises.com or 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, performance 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, reduced consumer demand for
cruises as a result of any number of reasons, including armed conflict or
political instability, availability of air service, the delivery schedule of new
vessels, unplanned service outages of vessels, changes in interest rates or oil
prices and other factors described in further detail in Royal Caribbean's
filings with the Securities and Exchange Commission. The above examples may not
be exhaustive as we operate in a continually changing business environment, and
new risks emerge from time to time. We undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
(Financial Tables Follow)
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ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)
Second Quarter Ended Six Months Ended
June 30, June 30,
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2002 2001 2002 2001
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Revenues $ 821,804 $ 821,674 $ 1,621,757 $ 1,548,552
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Expenses
Operating 498,865 504,003 1,001,503 960,342
Marketing, selling and administrative 107,271 107,469 209,347 220,259
Depreciation and amortization 85,148 74,927 167,975 142,592
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691,284 686,399 1,378,825 1,323,193
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Operating Income 130,520 135,275 242,932 225,359
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Other Income (Expense)
Interest income 2,485 4,945 6,712 11,742
Interest expense, net of capitalized interest (67,008) (63,279) (135,276) (122,534)
Other income (expense) 703 4,772 5,145 19,643
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(63,820) (53,562) (123,419) (91,149)
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Net Income $ 66,700 $ 81,713 $ 119,513 $ 134,210
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Earnings Per Share:
Basic $ 0.35 $ 0.43 $ 0.62 $ 0.70
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Diluted $ 0.34 $ 0.42 $ 0.61 $ 0.69
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Weighted average shares outstanding:
Basic 192,406 192,209 192,366 192,185
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Diluted 196,413 193,093 195,962 193,304
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STATISTICS
Second Quarter Ended Six Months Ended
June 30, June 30,
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2002 2001 2002 2001
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Occupancy as a percentage of total capacity 104.4% 103.0% 104.1% 103.0%
Guest Cruise Days 4,273,498 3,842,016 8,618,300 7,335,528
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ROYAL CARIBBEAN CRUISES LTD.
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(Registrant)
Date: August 2, 2002 By: /s/ JACK WILLIAMS
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Jack Williams
President and COO