Summary
Royal Caribbean Cruises Ltd. (RCL) issued this Form 6-K on October 4, 2004, to provide investors with an update on the financial impact of a series of hurricanes that affected its sailings in the third and fourth quarters of 2004. The company expects a total earnings impact of approximately $0.12 to $0.13 per share due to lost revenue and increased expenses. Despite these disruptions, strong summer bookings have helped to partially offset the negative effects. Management now forecasts full-year 2004 earnings per share to be in the range of $2.25 to $2.35. While the hurricanes caused a direct hit to earnings, the company's ability to maintain strong booking trends, particularly in Net Yields for the third quarter (expected to be slightly better than previously forecast), indicates resilience. RCL plans to provide further details on its financial outlook during its earnings release and conference call scheduled for October 21, 2004.
Key Highlights
- 1Hurricanes impacted Q3 and Q4 2004 sailings, resulting in an estimated earnings reduction of $0.10 for Q3 and $0.02-$0.03 for Q4.
- 2Financial impact is a combination of lost revenue and increased expenses.
- 3Strong summer bookings are partially mitigating the hurricane's financial impact.
- 4Q3 2004 Net Yields are now expected to be slightly better than the previously forecasted 10%-11% increase.
- 5Full-year 2004 earnings per share are projected to be between $2.25 and $2.35, despite the hurricane disruptions.
- 6The company will release its Q3 earnings and provide further outlook details on October 21, 2004, with a conference call scheduled for the same day.