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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 January, 1999
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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
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[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
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[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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Contact: Lynn Martenstein or Rich Steck
(305) 539-6573
FOR IMMEDIATE RELEASE
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ROYAL CARIBBEAN REPORTS A 90% INCREASE IN 1998 RESULTS
MIAMI - (February 1, 1999) - Royal Caribbean Cruises Ltd. (NYSE, OSE:RCL)
announced today a 91% increase in comparable earnings to $348.8 million or $1.93
per share in 1998, on a diluted basis as compared to $182.7 million or $1.20 per
share in 1997. Net income for 1998 as reported, was $330.8 million, which
includes a $.05 per share charge related to the previously announced plea
agreement with the U.S. Department of Justice, and a $.05 per share reduction in
earnings related to the grounding of the MONARCH OF THE SEAS. Net income for
1997 as reported, was $175.1 million which included an extraordinary loss of
$7.6 million or $.05 per share related to the early extinguishment of debt.
Revenues increased 36.0% to $2.6 billion, as compared to $1.9 billion in 1997.
The increase in revenues was due to a 31.2% increase in capacity and an increase
in revenue per available lower berth ("Yield"). The acquisition of Celebrity
Cruises accounted for approximately two-thirds of the capacity increase, while
additions to the Royal Caribbean International fleet comprised the balance of
the increase. The Yield improvement was a result of improved cruise ticket
pricing and higher occupancy levels, which were 105.2% in 1998 as compared to
104.2% in 1997.
On a comparable basis, earnings for the fourth quarter of 1998 increased to
$32.5 million or $.17 per share as compared to $22.4 million or $.12 per share
in 1997. Net income as reported, for the fourth quarter of 1998 was $23.4
million or $.12 per share which includes a $.05 per share reduction in earnings
related to the cancellation of two cruises on MONARCH OF THE SEAS. Revenues for
the fourth quarter of 1998 increased 8.8% to $575.1 million from $528.4 million
in 1997, as a result of a 6.6% increase in capacity and an increase in Yield.
more. . .
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ROYAL CARIBBEAN REPORTS A 90% INCREASE IN 1998 RESULTS
2-2-2-2
"Our 1998 performance was nothing short of spectacular, with both brands
achieving record results," said Richard D. Fain, Chairman and Chief Executive
Officer. "These results reflect the culmination of a seamless merger with
Celebrity Cruises, outstanding market conditions, the continued acceptance of
our two great brands by both consumers and the trade, significant margin
improvements realized by higher revenue yields, and continued progress in
reducing costs as a percentage of revenue. To achieve such a significant
increase in net income on only a 36% increase in revenue, not only underscores
the power of our brands, but the high degree of operating leverage we
capitalized on through our state-of-the-art yield management systems. As always,
we are extremely grateful to the over 20,000 employees, shipboard and shoreside,
who have worked tirelessly to provide such a wonderful experience for our
guests."
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; three Eagle-class ships on order, the first of which,
VOYAGER OF THE SEAS is scheduled for service in 1999, followed by two sister
vessels scheduled for delivery in 2000 and 2002; two Vantage-class vessels
scheduled for delivery in 2001 and 2002; and two Millennium-class vessels
scheduled for delivery in 2000 and 2001. The Company currently operates cruises
visiting 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>
(Unaudited)
Fourth Quarter Ended Year Ended
December 31, December 31,
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1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES $ 575,148 $ 528,408 $2,636,291 $1,939,007
---------- ---------- ---------- ----------
EXPENSES
Operating 379,627 350,581 1,593,728 1,219,268
Marketing, selling and administrative 83,717 75,918 359,214 272,368
Depreciation and amortization 47,655 43,299 194,614 143,816
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510,999 469,798 2,147,556 1,635,452
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OPERATING INCOME 64,149 58,610 488,735 303,555
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OTHER INCOME (EXPENSE)
Interest income 3,463 2,128 15,912 4,666
Interest expense, net of capitalized interest (39,489) (42,088) (167,869) (128,531)
Other income (expense) (4,698) 3,704 (6,008) 2,995
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(40,724) (36,256) (157,965) (120,870)
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INCOME BEFORE EXTRAORDINARY ITEM 23,425 22,354 330,770 182,685
EXTRAORDINARY ITEM -- -- -- (7,558)
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NET INCOME $ 23,425 $ 22,354 $ 330,770 $ 175,127
========== ========== ========== ==========
BASIC EARNINGS PER SHARE*
Income before extraordinary item $ 0.12 $ 0.12 $ 1.90 $ 1.22
Extraordinary item -- -- -- (0.05)
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Net income $ 0.12 $ 0.12 $ 1.90 $ 1.17
========== ========== ========== ==========
DILUTED EARNINGS PER SHARE*
Income before extraordinary item $ 0.12 $ 0.12 $ 1.83 $ 1.20
Extraordinary item -- -- -- (0.05)
---------- ---------- ---------- ----------
Net income $ 0.12 $ 0.12 $ 1.83 $ 1.15
========== ========== ========== ==========
</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>
Fourth Quarter Year to Date
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1998 1997 1998 1997
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<S> <C> <C> <C> <C>
Occupancy as a percentage of total capacity 101.6% 100.8% 105.2% 104.2%
Passenger Cruise Days 2,811,302 2,615,285 11,607,906 8,759,378
</TABLE>
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###
Contact: Lynn Martenstein or Rich Steck
(305) 539-6573
FOR IMMEDIATE RELEASE
---------------------
ROYAL CARIBBEAN TO BUILD SECOND "PROJECT VANTAGE" SHIP
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MIAMI - January 11, 1999 - Royal Caribbean Cruises Ltd. (NYSE:RCL) announced
today that it has exercised its option with Meyer Werft shipyard in Papenburg,
Germany, to build a second 85,000-ton Vantage class vessel for Royal Caribbean
International at a contract cost of approximately $350 million.
This second Vantage class ship will be a sister to the 2,000-guest vessel
currently under construction in Papenburg. The first Vantage ship is scheduled
to be delivered in February, 2001; the second in June, 2002. Both will be built
to Panamax standards, enabling them to transit the Panama Canal, and will be
powered by environmentally friendly gas turbines.
"Our taking the option for a second Vantage vessel is testimony to our faith in
the continued growth of the cruise industry," said Richard D. Fain, Royal
Caribbean's chairman and CEO. "In fact, in the first two years of the new
millennium, we'll take delivery of four new ships, with a combined capacity of
over 10,000 new berths at a cost of almost two billion dollars - a commitment
that clearly measures our belief in cruising's dynamic future."
With rotating propulsion pods mounted under the hull, the Vantage class ships
will be extremely fast for vessels of this size, enabling them to offer some
unusual itineraries. The gas turbines powering the Vantage ships will be
extremely quiet and vibration free. The reduced space required by these small
but powerful turbines means additional onboard space will be available for
public areas, guest accommodations and activity centers.
more...
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ROYAL CARIBBEAN TO BUILD SECOND "VANTAGE" SHIP
2-2-2-2
"We will be incorporating, on a somewhat smaller scale, many of the design
features and technological advancements featured on our Eagle-class ships," Fain
added. "The Vantage vessels will keep Royal Caribbean in the forefront of
contemporary ship development."
Royal Caribbean International is operated by Royal Caribbean Cruises
Ltd., a global cruise company which also operates Celebrity Cruises. Royal
Caribbean International's fleet consists of 12 vessels in service and five ships
on order. The ships currently visit Alaska, the Bahamas, Bermuda, Canada, the
Caribbean, Europe, Hawaii, Mexico, New England, the Panama Canal and
Scandinavia.
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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: February 3, 1999 By: /s/ RICHARD J. GLASIER
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Richard J. Glasier
Executive Vice President
and Chief Financial Officer
