Summary
This 8-K filing by Royal Caribbean Cruises Ltd. (RCL) for the period ending September 30, 2001, provides a quarterly financial report for the third quarter. The company reported a decrease in net income to $159.2 million, or $0.82 per diluted share, from $201.5 million, or $1.04 per diluted share, in the same quarter of the prior year. This decline was primarily attributed to the adverse impact of the September 11, 2001 terrorist attacks, which resulted in an estimated $21.3 million in lost revenues and extra costs, as well as an additional $15.4 million in consequential costs. Despite the challenges, RCL saw a 12.6% increase in third-quarter revenues to $940.7 million, driven by a 20.1% increase in capacity due to new vessel additions. However, revenue per available passenger cruise day declined by 6.2%. The company also highlighted significant capital expenditures for fleet expansion and the subsequent postponement of several new vessel deliveries to manage capital outlays amidst a challenging operating environment.
Key Highlights
- 1Net income for Q3 2001 was $159.2 million ($0.82/share), down from $201.5 million ($1.04/share) in Q3 2000.
- 2Q3 2001 revenues increased 12.6% to $940.7 million, driven by a 20.1% increase in capacity.
- 3Gross revenue per available passenger cruise day decreased by 6.2% in Q3 2001.
- 4The September 11th terrorist attacks had an estimated negative impact of $21.3 million on revenues and costs, plus an additional $15.4 million in consequential costs.
- 5The company invested heavily in new vessels, with capital expenditures of $1.5 billion for the first nine months of 2001.
- 6RCL has postponed deliveries of several new vessels (Serenade, Jewel, Navigator, Mariner) to manage capital expenditures and adjust to market conditions.
- 7Long-term debt increased significantly, with new note issuances totaling over $1.4 billion in the first nine months of 2001.