What were Royal Caribbean's key financial results for the second quarter of 2002?

For the second quarter of 2002, Royal Caribbean reported net earnings of $66.7 million, or $0.34 per diluted share. This compares to $81.7 million, or $0.42 per diluted share, in the same quarter of 2001. Total revenues were $821.8 million, largely unchanged from the prior year.

What is the outlook for Royal Caribbean's yields for the rest of 2002?

The company's outlook for the remainder of the year has improved. They forecast yields for the third quarter of 2002 to be down 2-4% year-over-year, and yields for the fourth quarter are expected to be up 4-6% year-over-year. For the full year 2002, yields are projected to be down 2-3%.

Are there any significant executive changes mentioned in this filing?

Yes, Richard J. Glasier, who served as Executive Vice President and Chief Financial Officer for 17 years, is leaving to become President of Argosy Gaming Company. Bonnie Biumi, currently Vice President and Treasurer, will assume the role of acting Chief Financial Officer.

What is the company's current debt and liquidity position?

As of June 30, 2002, Royal Caribbean's total debt was $5.6 billion, with a net debt to capital ratio of 56.6%. The company had approximately $1.6 billion in liquidity, comprising $600 million in cash and cash equivalents and an undrawn $1 billion revolving credit facility.

RCL 8-K SEC Disclosure

Summary

Royal Caribbean Cruises Ltd. (RCL) filed an 8-K on August 2, 2002, primarily detailing its second-quarter 2002 financial results and a significant executive change. The company reported second-quarter earnings of $66.7 million, or $0.34 per diluted share, a decrease from $81.7 million, or $0.42 per diluted share, in the prior year. Despite the earnings dip, Net Revenues per Available Passenger Cruise Day ('Yields') were down only 3.3%, outperforming earlier guidance. The company highlighted improving outlooks for the third and fourth quarters, with expected yield increases, and expressed optimism about the industry's resilience post-September 11th. A notable event is the departure of Richard J. Glasier, Executive Vice President and Chief Financial Officer, after a 17-year tenure, to assume the presidency of Argosy Gaming Company. Bonnie Biumi, Vice President and Treasurer, will serve as acting CFO, bringing her extensive financial experience to the role. The report also touches on fleet expansion, financing of new vessels, and ongoing strategic considerations, including the proposed combination with P&O Princess.

Key Highlights

1Second-quarter 2002 earnings were $66.7 million ($0.34/share), down from $81.7 million ($0.42/share) in Q2 2001.
2Net Revenues per Available Passenger Cruise Day ('Yields') declined 3.3% in Q2 2002, better than the guided 5-7% decrease.
3The company anticipates yield improvements for the remainder of 2002, with Q3 down 2-4% and Q4 up 4-6% year-over-year.
4Richard J. Glasier, CFO, is leaving after 17 years to become President of Argosy Gaming Company; Bonnie Biumi will serve as acting CFO.
5Total revenues for the quarter were $821.8 million, flat year-over-year, impacted by lower passenger airfare purchases.
6Operating costs (excluding fuel) per available berth day saw a significant Q2 decline of 13.2%, contributing to improved cost control.
7The company took delivery of two new ships: Constellation (Celebrity Cruises) and Brilliance of the Seas (Royal Caribbean International).

ROYAL CARIBBEAN CRUISES LTD 8-K Report (Aug 2, 2002)

Summary

Key Highlights

Frequently Asked Questions