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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, 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 [ ]
[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.
CONTACT: LYNN MARTENSTEIN (305-539-6573)
OR ERIN WILLIAMS (305-539-6153)
FOR IMMEDIATE RELEASE
ROYAL CARIBBEAN REPORTS RECORD THIRD-QUARTER EARNINGS
MIAMI - October 20, 1999 - Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL)
announced record third-quarter results today. Net income increased 13.3% to
$170.0 million, or $0.92 per share, in the third quarter of 1999, compared to
$150.0 million, or $0.82 per share, in the same quarter of 1998.
Revenues were $734.5 million for the third quarter of 1999, as compared
with $744.9 million for the same quarter in 1998. The change was attributable to
a 2.8% drop in capacity primarily as a result of SONG OF AMERICA leaving the
fleet earlier this year. Occupancy for the quarter was 109.0%, on par with last
year's 109.4%. Pricing for the period was also strong. As a result, gross
revenue yields (gross revenue per available passenger cruise day) increased 1.4%
and net revenue yields were up even more. Operating expenses and SG&A were down
for the quarter, both in absolute dollars and as a percent of revenue. Overall
the company's profit margins improved during the quarter as compared to 1998.
Net income for the nine months ended September 30, 1999 increased 12.4%
to $345.5 million, or $1.88 per share, compared to $307.3 million, or $1.70 per
share for the same period last year. Revenues were $2.0 billion for the nine
months ended September 30, 1999, compared to $2.1 billion for the same period in
1998. Capacity was down 4.4%, while occupancy was 105.4%, compared to 106.4% in
the prior year. Higher pricing and lower operating expenses resulted in strong
growth in net income.
"We are very pleased with our ability to continue to improve revenue
yields while at the same time achieving cost efficiencies", said Richard D.
Fain, Chairman & Chief Executive Officer. "The market is absorbing new capacity
well, and we look forward to delivery of our new ships, starting with VOYAGER OF
THE SEAS." VOYAGER OF THE SEAS' first revenue voyage begins November 21st.
Royal Caribbean Cruises Ltd. is a global cruise company operating a
fleet of 16 vessels under two cruise brands, Royal Caribbean International and
Celebrity Cruises. The company has nine additional ships on order. The first of
three Eagle-class ships, VOYAGER OF THE SEAS, is scheduled for service in 1999,
followed by two sister vessels scheduled for delivery in 2000 and 2002.
more . . .
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ROYAL CARIBBEAN REPORTS RECORD THIRD-QUARTER EARNINGS
Two Vantage-class vessels are scheduled for delivery in 2001 and 2002. Four
Millennium-class vessels are scheduled for delivery between 2000 and 2002. The
company currently operates cruises visiting Alaska, the Bahamas, Bermuda,
Canada, the Caribbean, Europe, Hawaii, Mexico, New England, the Panama Canal,
Russia and Scandinavia. For additional information about Royal Caribbean, visit
the line's Internet sites 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,
---------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues $ 734,460 $ 744,910 $ 1,962,170 $ 2,061,143
------------ ------------ ----------- ------------
Expense
Operating 393,198 415,106 1,130,021 1,214,101
Marketing, selling and administrative 92,787 94,238 271,480 275,497
Depreciation and amortization 50,250 51,974 145,944 146,959
------------ ------------ ------------ ------------
536,235 561,318 1,547,445 1,636,577
------------ ------------ ------------ ------------
Operating Income 198,225 183,592 414,725 424,586
------------ ------------ ------------ ------------
Other Income (Expense)
Interest income 2,573 5,528 4,628 12,449
Interest expense, net of capitalized interest (30,812) (42,162) (99,987) (128,380)
Other income (expense) (14) 3,080 26,149 (1,310)
------------ ------------ ------------ ------------
(28,253) (33,554) (69,210) (117,241)
------------ ------------ ------------ ------------
Net Income $ 162,972 $ 150,038 $ 345,515 $ 307,345
============ ============ ============ ============
Basic Earnings per Share
Net income $ 0.98 $ 0.87 $ 1.98 $ 1.78
============ ============ ============ ============
Weighted average shares outstanding 169,942,219 168,835,302 169,450,157 167,129,189
============ ============ ============ ============
Diluted Earnings Per Share
Net income $ 0.92 $ 0.82 $ 1.88 $ 1.70
============ ============ ============ ============
Weighted average shares outstanding 184,253,792 182,484,976 183,637,455 180,821,437
============ ============ ============ ============
</TABLE>
- ----------------------------
STATISTICS
<TABLE>
<CAPTION>
Third Quarter Year to Date
---------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Occupancy as a percentage of total capacity 109.0% 109.4% 105.4% 106.4%
Passenger Cruise Days 3,001,719 3,099,564 8,330,453 8,796,604
</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.
(Registrant)
Date: November 3, 1999 By: /s/ RICHARD J. GLASIER
--------------------------------------
Richard J. Glasier
Executive Vice President
and Chief Financial Officer
