Summary
This 8-K/A filing from Royal Caribbean Cruises Ltd. (RCL) serves as an amendment to their previously filed Third Quarterly Report for Q3 2001. The primary purpose of this amendment is to correct the apportionment of the company's debt between current and long-term liabilities as of September 30, 2001. Investors should note the significant increase in total assets and liabilities, reflecting ongoing investments in property and equipment, alongside a notable shift in the composition of long-term debt. The filing also provides crucial updates on the company's shipbuilding program and associated capital expenditures, including deferred delivery dates for several new vessels, which will impact future cash outflows.
Key Highlights
- 1Amendment to Q3 2001 financial report to correct debt classification on the balance sheet.
- 2Consolidated Balance Sheets as of September 30, 2001, show Total Assets of $9.9 billion and Total Liabilities of $6.0 billion (current + long-term).
- 3Current portion of long-term debt increased to $234.3 million as of September 30, 2001, compared to $109.9 million at December 31, 2000.
- 4Total Long-Term Debt stands at $4.9 billion as of September 30, 2001.
- 5Six ships on order with an aggregate contract price of approximately $2.6 billion.
- 6Delivery dates for 'Serenade of the Seas' and 'Jewel of the Seas' have been postponed to Q4 2003 and Q2 2004, respectively.
- 7Planned capital expenditures are approximately $2.1 billion for 2001, $1.1 billion for 2002, and $1.1 billion for 2003, reflecting revised project schedules.
Frequently Asked Questions
The primary reason for this amended filing is to correct the classification of debt on the Consolidated Balance Sheets as of September 30, 2001. Specifically, the apportionment between current and long-term debt has been revised.
The amendment shows an increase in the current portion of long-term debt from approximately $110 million at the end of 2000 to $234 million as of September 30, 2001. While the total long-term debt stands at $4.9 billion, this shift in the current portion indicates more debt is maturing within the next twelve months.
The postponement of deliveries for several new ships, including 'Serenade of the Seas' and 'Jewel of the Seas', has led to a revision of capital expenditure plans. Total capital expenditures are now expected to be approximately $2.1 billion in 2001, $1.1 billion in 2002, and $1.1 billion in 2003, reflecting deferred spending due to these schedule changes.
The company currently has six ships on order with an aggregate contract price of about $2.6 billion. While delivery dates for some of these vessels have been adjusted, the company continues to evaluate opportunities for future ship contracts, acquisitions, and strategic alliances, which could be financed through debt, equity, or operational cash flows.