Summary
Royal Caribbean Cruises Ltd. (RCL) announced record earnings for the full year 2000, reporting a 16% increase in net income to $445 million from $384 million in 1999. This translated to diluted earnings per share of $2.31, up from $2.06 in the prior year, on revenues that grew to $2.9 billion from $2.5 billion. The company also secured a new $360 million, 5-year term loan facility with European banks, which can be utilized in 2001 and carries interest at LIBOR plus one percent. While the full year showed strong growth, the fourth quarter of 2000 experienced a slight decrease in net income to $30 million from $38 million in the same period of 1999, with diluted EPS at $0.16 versus $0.19. This decline was attributed to a 7% decrease in net revenue yields, impacted by new itineraries and the lingering effect of the Millennium New Year's event. Despite the quarterly dip, management expressed optimism for 2001, anticipating a competitive but exciting year with a strong start to the 'wave season' and positive early responses to new marketing initiatives and ship introductions, such as the "Radiance of the Seas."
Key Highlights
- 1Full-year 2000 net income reached a record $445 million, a 16% increase over 1999.
- 2Diluted earnings per share for the full year 2000 were $2.31, up from $2.06 in 1999.
- 3Total revenues for 2000 increased to $2.9 billion from $2.5 billion in the prior year.
- 4Fourth quarter 2000 net income declined to $30 million from $38 million in Q4 1999.
- 5Net revenue yields for the fourth quarter decreased by 7%, influenced by new itineraries and the Millennium event.
- 6Completed a $360 million, 5-year term loan facility with European banks.
- 7Company expressed optimism for 2001, citing strong booking trends and new ship introductions.