What is the main purpose of this 8-K filing?

The primary purpose of this Form 6-K filing is to conform Royal Caribbean's previously filed 2002 Annual Report (Form 20-F) to new SEC regulations, specifically Regulation G and amended Item 10 of Regulation S-K, which govern the use of non-GAAP financial measures. It also provides updated statistical and financial information for select periods.

What are 'net yields' and why does the company emphasize them?

Net yields are a non-GAAP financial measure representing revenues less costs of air transportation, travel agent commissions, and certain other direct costs, calculated per available passenger cruise day. Royal Caribbean uses net yields for revenue management and considers it the most relevant measurement of their pricing performance.

What factors impacted Royal Caribbean's revenue per available passenger cruise day in 2002?

The decline in gross revenue per available passenger cruise day in 2002 was primarily attributed to a lower percentage of passengers booking air passage through the company, reduced cruise ticket prices following the September 11, 2001 events, a general softness in the U.S. economy, and increased industry capacity.

How did the company manage its expenses in 2002 compared to 2001?

Royal Caribbean reported a decrease of 2.1% in 'running expenses' (ship operations costs excluding those deducted for net yields) and marketing, selling, and administrative expenses per available passenger cruise day in 2002 compared to 2001. This suggests effective cost control measures were in place.

RCL 8-K SEC Disclosure — Jul 28, 2003

Summary

This Form 6-K filing from Royal Caribbean Cruises Ltd. (RCL) on July 28, 2003, serves to update and conform its previously filed 2002 Form 20-F to new SEC regulations regarding non-GAAP financial measures (Regulation G and amended Item 10 of Regulation S-K). The report primarily revises the Management's Discussion and Analysis section to provide more detailed statistical information and reconciliations for the years 2000, 2001, and 2002, as well as for the third and fourth quarters of 2002. Key information for investors includes changes in revenue and expenses per available passenger cruise day, with a focus on 'net yields' and 'running expenses' as key performance indicators. The filing details the impact of fleet expansion, post-9/11 economic conditions, and industry capacity on these metrics. Investors should note the company's reliance on non-GAAP measures like net yields for internal performance management.

Key Highlights

1Royal Caribbean is filing this report to comply with new SEC regulations (Regulation G and amended Item 10 of Regulation S-K) concerning non-GAAP financial measures.
2The filing revises statistical information and financial data for fiscal years 2000, 2001, and 2002, and specifically for Q3 and Q4 of 2002.
3Total revenues increased by 9.2% to $3.4 billion in 2002 from $3.1 billion in 2001, driven by a 15.0% increase in capacity, though partially offset by a 5.1% decline in gross revenue per available passenger cruise day.
4Fleet expansion, including the addition of several new ships in 2001 and 2002, was a primary driver of increased capacity.
5Net yields (a non-GAAP measure) declined 0.7% in 2002 compared to 2001, influenced by factors like lower air passage bookings by passengers and softer economic conditions post-9/11.
6Running expenses (defined as operating expenses less costs deducted to arrive at net yields) and marketing, selling, and administrative expenses per available passenger cruise day decreased by 2.1% in 2002 compared to 2001.
7Occupancy percentages remained strong, at 104.5% for 2002, up from 101.8% in 2001, indicating effective capacity utilization, where percentages over 100% signify more than two passengers per cabin.

ROYAL CARIBBEAN CRUISES LTD 8-K Report (Jul 28, 2003)

Summary

Key Highlights

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