Monday, November 13, 2023
HomeCruiseRoyal Caribbean 2001 Q3 Earnings

Royal Caribbean 2001 Q3 Earnings

Royal Caribbean Cruises (RCC) has reported internet revenue of $159.2 million, or $0.82 per share, on revenues of $940.7 million for the third quarter ended Sept. 30, 2001, in comparison with internet revenue of $201.5 million, or $1.04 per share, on revenues of $835.2 million for a similar quarter a yr in the past.

Based on RCC, third quarter earnings have been negatively impacted by $21.3 million, or $0.11 per share, as a result of misplaced revenues and further prices related to passengers not having the ability to attain their departure ports through the weeks following Sept. 11. Additionally included is a further $15.4 million, or $0.08 per share, in prices attributed to itinerary modifications, the closing of places of work and deferral of applications.

RCC attributed the rise in revenues to what it mentioned was a 20.1 p.c improve in capability, offset by a lower in pricing and occupancy.

“We have been doing very properly within the interval main as much as Sept. 11,” mentioned Richard Fain, chairman and CEO. “Bookings have been higher than anticipated and outcomes have been working forward of expectations. These outcomes display that the trade was in a position to proceed its worthwhile development even throughout a weak financial interval,” he added.


Reacting to the altering market circumstances, RCC has redeployed ships, largely out of Europe, into markets that predominantly concentrate on drive enterprise.

RCC has additionally lowered shoreside employees and “lowered, deferred or eradicated” plenty of initiatives in an effort to chop prices. Added Richard Glasier, CFO, “Now we have additionally modified buying specs and are working carefully with our distributors.” Based on RCI President Jack Williams, the corporate has made cuts in every single place besides in its gross sales drive. Working prices are anticipated to be down 5 p.c in 2001 and one other 5 p.c in 2002.

RCC is discussing delaying deliveries of latest ships with yards. If an settlement is reached, the Navigator of the Seas will likely be delayed to the primary quarter of 2003, the Serenade of the Seas to the fourth quarter of 2003, the Mariner of the Seas to the primary quarter of 2004, and the Jewel of the Seas to the second quarter of 2004. It will defer the corporate’s capital expenditures. (RCC executives didn’t touch upon choices which have beforehand been prolonged nor did they touch upon the opportunity of laying up or phasing out older ships.)


Tendencies RCC mentioned the Sept. 11 assaults resulted in a dramatic drop off in bookings. Instantly following the assaults, new bookings dropped by greater than 50 p.c over the earlier yr’s stage. However bookings have since recovered albeit by sturdy value stimulation and elevated journey brokers’ commissions.

Fain mentioned that on Oct. 29, Royal Caribbean Worldwide (RCI) noticed the fourth finest reserving day in its historical past, and Celeb Cruises skilled its strongest reserving day ever.

“The market has responded to cost incentives,” Fain mentioned. “That reveals we’re not coping with insurmountable issues.”

Nevertheless, the reserving sample is altering and passengers are reserving a lot nearer to crusing, in response to Williams.

Williams mentioned that RCI was working at 90 p.c load components since Sept. 11 and anticipated to complete the fourth quarter with load components within the 92 to 93 p.c vary with yields down 10 to fifteen p.c in comparison with final yr’s fourth quarter.

As for 2002, RCC executives mentioned it was too early to know what’s going to occur, though they anticipate continued discounting into the primary quarter. “There’s plenty of stock to be bought for the primary quarter,” mentioned Williams.

He mentioned that his focus was on three questions: Will folks cruise? (Final week was very encouraging, he mentioned.) The place will folks come from? (RCI has deployed ships to Baltimore, New Orleans and Galveston.) And, how a lot will they pay? (The close to­ time period options very low pricing.)

Williams additionally mentioned that promising group bookings for 2002 confirmed that there might be some upside in pricing. RCI has already moved the value level from a low of $399 for seven-day Caribbean cruises to $499 this week.

“The important thing to success on this enterprise is to know the place the value level is,” added Fain.

However maybe most necessary to RCC is the deferral of capital prices which alleviates the corporate’s debt service considerably.

Commercial. Scroll to proceed studying.

Supply hyperlink



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments