Summary
Royal Caribbean Cruises Ltd. (RCL) filed this Form 6-K on May 7, 2002, reporting its unaudited first quarter financial results for the period ended March 31, 2002. The company reported a slight increase in net income to $52.8 million, or $0.27 per diluted share, compared to $52.5 million, or $0.27 per diluted share, in the prior year's first quarter. Revenues saw a significant increase of 10.1% to $800.0 million, driven by a 23.3% increase in capacity, although this was partially offset by a 10.7% decline in gross revenue per available passenger cruise day. Despite the revenue growth, net revenue per available passenger cruise day decreased by 6.9%, influenced by pricing actions taken after September 11, 2001, increased fleet capacity, and softness in the U.S. economy. The company also announced upcoming capital expenditures and significant commitments for new vessel deliveries, including the acceleration of the delivery of the 'Navigator of the Seas' to December 2002. Investors should note the ongoing commitment to fleet expansion and the potential impacts of industry conditions.
Key Highlights
- 1Revenue increased by 10.1% to $800.0 million in Q1 2002, driven by a 23.3% increase in capacity.
- 2Net income remained relatively flat at $52.8 million ($0.27/share diluted) for Q1 2002, compared to $52.5 million ($0.27/share diluted) in Q1 2001.
- 3Net revenue per available passenger cruise day decreased by 6.9% in Q1 2002, attributed to post-9/11 pricing adjustments and increased capacity.
- 4Operating expenses increased by 10.1% in Q1 2002, largely due to increased capacity.
- 5Marketing, selling, and administrative expenses decreased by 9.5% in Q1 2002, reflecting timing of activities and cost reduction initiatives.
- 6The company has six ships on order with an aggregate contract price of approximately $2.6 billion.
- 7The delivery of 'Navigator of the Seas' has been moved to December 2002, impacting projected capital expenditures for 2002 and 2003.