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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULES 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF OCTOBER, 1998
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ROYAL CARIBBEAN CRUISES LTD.
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1050 CARIBBEAN WAY, MIAMI, FLORIDA 33132
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
[INDICATE BY CHECK MARK WHETHER THE REGISTRANT FILES OR WILL FILE
ANNUAL REPORTS UNDER COVER FORM 20-F OR FORM 40-F.]
FORM 20-F X FORM 40-F
----- -----
[INDICATE BY CHECK MARK WHETHER THE REGISTRANT BY FURNISHING THE
INFORMATION CONTAINED IN THIS FORM IS ALSO THEREBY FURNISHING THE INFORMATION TO
THE COMMISSION PURSUANT TO RULE 12g3-2(b) UNDER THE SECURITIES EXCHANGE ACT OF
1934.]
YES NO X
----- -----
[IF "YES" IS MARKED INDICATE BELOW THE FILE NUMBER ASSIGNED TO THE
REGISTRANT IN CONNECTION WITH RULE 12g-3-2(b): 82 _____].
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News From
Royal Caribbean Cruises Ltd.
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Public Relations Office
1050 Caribbean Way, Miami, Florida 33132
305/539-6573
Contact: Lynn Martenstein or Rich Steck
(305) 539-6573
FOR IMMEDIATE RELEASE
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ROYAL CARIBBEAN CRUISES LTD. DOUBLES PROFITS IN THE THIRD QUARTER
MIAMI - (October 22, 1998) - Royal Caribbean Cruises Ltd. (NYSE, OSE:RCL) today
reported record third quarter revenue, operating income and net income. Third
quarter net income jumped 98% to $150.0 million, or $0.82 per share on a
diluted basis, from $75.9 million, or $0.48 per share in 1997. The net income
improvement was the result of increased capacity, improved yields, and lower
operating costs as a percent of revenues.
Operating income increased 57.0% to $183.6 million for the third quarter of
1998 from $116.9 million for the same period in 1997, driving the operating
income margin to a record 24.6%, versus 19.1% in 1997, a jump of 5.5 percentage
points.
Third quarter revenue increased 21.6% to a record $744.9 million on a 13.4%
increase in capacity, compared to $612.5 million for the same period in 1997.
Both brands continued to expand their customer base while improving yield
performance. Occupancy levels reached a record 109.4%, compared to 107.6% for
the same period in 1997, while rates (per diems) increased 5.5%, resulting in a
yield improvement of 7.2%, versus 1997.
"The third quarter was simply outstanding," said Richard D. Fain, Chairman and
Chief Executive Officer. "It marked yet another record financial performance
for the Company, one fueled by both excellent revenue management and expense
control. Complemented by the fundamental strength of the cruise industry, our
merger of Celebrity Cruises with Royal Caribbean International has now proved
to be one of the best marriages in the cruise industry."
MORE. . .
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ROYAL CARIBBEAN REPORTS RECORD THIRD QUARTER RESULTS 2-2-2-2
For the nine-month period ended September 30, 1998, revenue increased 46.1% to
$2.1 billion, compared to $1.4 billion in 1997, surpassing the $1.9 billion
generated for all of 1997. Operating income was $424.6 million compared to
$244.9 million in 1997, an improvement of 73.3%. Net income increased more than
100% to $307.3 million or $1.70 per share on a diluted basis, compared to
$152.8 million or $1.06 per share in 1997. Included in the 1997 results is an
extraordinary charge of approximately $0.05 per share, associated with the
early extinguishment of debt.
"These results reflect the hard work and dedication of all of our employees.
Our employees are, and will remain, the most important asset of this Company. I
congratulate all of them on this outstanding performance," said Richard D.
Fain.
Royal Caribbean is a global cruise company operating two cruise brands, Royal
Caribbean International and Celebrity Cruises. The brands' combined fleet
consists of 17 vessels in service with a capacity of over 31,000 berths. Six
ships are on order, for an additional capacity of 15,200 berths, which include:
three Eagle-class ships, the first of which, VOYAGER OF THE SEAS is scheduled
for service in the fall of 1999, followed by two sister vessels scheduled for
delivery in 2000 and 2002; one Vantage-class vessel scheduled for delivery in
2001 and two Millennium-class vessels scheduled for delivery in 2000 and 2001.
The ships currently visit Alaska, the Bahamas, Bermuda, Canada, the Caribbean,
Europe, Hawaii, Mexico, New England, the Panama Canal and Scandinavia. For
additional information about Royal Caribbean, visit the line's Internet site on
the World Wide Web at http://www.royalcaribbean.com,
http://www.celebrity-cruises.com or http://www.rclinvestor.com.
Certain statements in this news release are forward-looking statements. Such
forward-looking statements are not guarantees of future performance and involve
known and unknown risks, uncertainties and other factors, which may cause the
actual results, performances or achievements to differ materially from future
results, performance or achievements expressed or implied in such
forward-looking statements. Such factors include general economic and business
conditions, changes in cruise industry competition, weather and other factors
described in further detail in Royal Caribbean's filings with the Securities
and Exchange Commission.
(Financial Tables Follow)
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ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)
<TABLE>
<CAPTION>
THIRD QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------------------- -----------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
REVENUES $ 744,910 $ 612,542 $ 2,061,143 $ 1,410,599
------------- ------------- ------------- -------------
EXPENSES
Operating 415,106 362,980 1,214,101 868,687
Marketing, selling and administrative 94,238 85,567 275,497 196,450
Depreciation and amortization 51,974 47,084 146,959 100,517
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561,318 495,631 1,636,557 1,165,654
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OPERATING INCOME 183,592 116,911 424,586 244,945
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OTHER INCOME (EXPENSE)
Interest income 5,528 1,576 12,449 2,538
Interest expense, net of capitalized interest (42,162) (43,198) (128,380) (86,444)
Other income (expense) 3,080 642 (1,310) (709)
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(33,554) (40,980) (117,241) (84,615)
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INCOME BEFORE EXTRAORDINARY ITEM 150,038 75,931 307,345 160,330
EXTRAORDINARY ITEM -- -- -- (7,558)
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NET INCOME $ 150,038 $ 75,931 $ 307,345 $ 152,772
============= ============= ============= =============
BASIC EARNINGS PER SHARE*
Income before extraordinary item $ 0.87 $ 0.50 $ 1.78 $ 1.14
Extraordinary item -- -- -- (0.06)
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Net income $ 0.87 $ 0.50 $ 1.78 $ 1.08
============= ============= ============= =============
DILUTED EARNINGS PER SHARE*
Income before extraordinary item $ 0.82 $ 0.48 $ 1.70 $ 1.11
Extraordinary item -- -- -- (0.05)
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Net income $ 0.82 $ 0.48 $ 1.70 $ 1.06
============= ============= ============= =============
Weighted average shares outstanding 182,484,976 158,831,766 180,821,437 144,389,760
============= ============= ============= =============
</TABLE>
* Earnings per share is computed after giving effect to the two-for-one stock
split effective July 31, 1998. Prior year amounts have been restated.
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STATISTICS
<TABLE>
<CAPTION>
Third Quarter Year to Date
----------------------------- -----------------------------
1998 1997 1998 1997
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<S> <C> <C> <C> <C>
Occupancy as a percentage of total capacity 109.4% 107.6% 106.4% 105.6%
Passenger Cruise Days 3,099,564 2,689,141 8,796,604 6,144,095
</TABLE>
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ROYAL CARIBBEAN CRUISES LTD.
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(Registrant)
Date: October 30, 1998 By: /s/ RICHARD J. GLASIER
---------------------------------
Richard J. Glasier
Executive Vice President
and Chief Financial Officer
