<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF NOVEMBER, 2000
ROYAL CARIBBEAN CRUISES LTD.
--------------------------------------------------------------------------------
(TRANSLATION OF REGISTRANT'S NAME INTO ENGLISH)
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]
<PAGE> 2
ROYAL CARIBBEAN CRUISES LTD.
QUARTERLY FINANCIAL REPORT
THIRD QUARTER 2000
<PAGE> 3
ROYAL CARIBBEAN CRUISES LTD.
INDEX TO QUARTERLY FINANCIAL REPORT
PAGE
----
Consolidated Statements of Operations 1
for the Third Quarters and Nine Months Ended
September 30, 2000 and 1999
Consolidated Balance Sheets as of 2
September 30, 2000 and December 31, 1999
Consolidated Statements of Cash 3
Flows for the Nine Months Ended
September 30, 2000 and 1999
Notes to the Consolidated Financial 4
Statements
Management's Discussion and 7
Analysis of Financial Condition and
Results of Operations
<PAGE> 4
ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
<TABLE>
<CAPTION>
Third Quarter Ended September 30, Nine Months Ended September 30,
--------------------------------- --------------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
REVENUES $ 835,210 $ 734,460 $ 2,223,727 $ 1,962,170
----------- ----------- ----------- -----------
EXPENSES
Operating 444,888 393,198 1,238,666 1,130,021
Marketing, selling and administrative 96,650 92,787 309,338 271,480
Depreciation and amortization 57,506 50,250 168,725 145,944
----------- ----------- ----------- -----------
599,044 536,235 1,716,729 1,547,445
----------- ----------- ----------- -----------
OPERATING INCOME 236,166 198,225 506,998 414,725
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE)
Interest income 1,037 2,573 4,920 4,628
Interest expense, net of capitalized interest (39,539) (30,812) (102,865) (99,987)
Other income (expense) 3,833 (14) 6,230 26,149
----------- ----------- ----------- -----------
(34,669) (28,253) (91,715) (69,210)
----------- ----------- ----------- -----------
NET INCOME $ 201,497 $ 169,972 $ 415,283 $ 345,515
=========== =========== =========== ===========
EARNINGS PER SHARE
Basic $ 1.05 $ 0.98 $ 2.19 $ 1.98
=========== =========== =========== ===========
Diluted $ 1.04 $ 0.92 $ 2.15 $ 1.88
=========== =========== =========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 192,019 169,942 188,492 169,450
=========== =========== =========== ===========
Diluted 193,011 184,254 192,726 183,637
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
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ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
As of
-----------------------------
September 30, December 31,
2000 1999
----------- -----------
ASSETS (unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 195,577 $ 63,470
Trade and other receivables, net 40,246 53,459
Inventories 26,890 26,398
Prepaid expenses 44,557 51,050
----------- -----------
Total current assets 307,270 194,377
PROPERTY AND EQUIPMENT - at cost less accumulated depreciation 6,763,468 5,858,185
GOODWILL - less accumulated amortization of $125,589 and
$117,778, respectively 291,577 299,388
OTHER ASSETS 390,148 28,561
----------- -----------
$ 7,752,463 $ 6,380,511
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $ 109,882 $ 128,086
Accounts payable 156,405 103,041
Accrued liabilities 209,672 209,104
Customer deposits 452,067 465,033
----------- -----------
Total current liabilities 928,026 905,264
LONG-TERM DEBT 3,214,536 2,214,091
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Preferred stock -- 172,200
Common stock 1,920 1,812
Paid-in capital 2,042,047 1,866,647
Retained earnings 1,571,832 1,225,976
Treasury stock (5,898) (5,479)
----------- -----------
Total shareholders' equity 3,609,901 3,261,156
----------- -----------
$ 7,752,463 $ 6,380,511
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 6
ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
<TABLE>
<CAPTION>
Nine Months Ended September 30,
-------------------------------
2000 1999
----------- -----------
<S> <C> <C>
Operating Activities
Net income $ 415,283 $ 345,515
Adjustments:
Depreciation and amortization 168,724 145,944
Changes in operating assets and liabilities:
Decrease (increase) in trade and other receivables, net 13,213 (15,807)
(Increase) decrease in inventories (492) 1,484
Decrease (increase) in prepaid expenses 6,493 (169)
Increase in accounts payable 53,364 2,567
Increase in accrued liabilities 568 437
(Decrease) increase in customer deposits (12,966) 68,362
Other, net 939 3,125
----------- -----------
Net cash provided by operating activities 645,126 551,458
----------- -----------
INVESTING ACTIVITIES
Purchase of property and equipment (1,157,636) (379,937)
Investment in convertible preferred stock (305,044) --
Net proceeds from vessel transfer to joint venture 47,680 --
Other, net (13,725) (3,803)
----------- -----------
Net cash used in investing activities (1,428,725) (383,740)
----------- -----------
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt 1,060,000 --
Repayment of long-term debt (77,759) (73,483)
Proceeds from issuance of common stock -- 450,210
Dividends (69,429) (58,528)
Other, net 2,894 5,948
----------- -----------
Net cash provided by financing activities 915,706 324,147
----------- -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 132,107 491,865
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 63,470 172,921
----------- -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 195,577 $ 664,786
=========== ===========
SUPPLEMENTAL DISCLOSURE
Interest paid, net of amount capitalized $ 89,045 $ 95,032
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 7
ROYAL CARIBBEAN CRUISES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BASIS FOR PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
In the opinion of management, the accompanying unaudited Consolidated Financial
Statements contain all normal recurring accruals necessary for a fair
presentation. The Company's revenues are seasonal and results for interim
periods are not necessarily indicative of the results for the entire year.
The interim unaudited Consolidated Financial Statements should be read in
conjunction with the audited Consolidated Financial Statements and notes thereto
for 1999.
NOTE 2 - EARNINGS PER SHARE
Below is a reconciliation between basic and diluted earnings per share for the
quarters and nine months ended September 30, 2000 and 1999 (in thousands, except
per share amounts):
<TABLE>
<CAPTION>
THIRD QUARTER ENDED SEPTEMBER 30, 2000 THIRD QUARTER ENDED SEPTEMBER 30, 1999
--------------------------------------- --------------------------------------
INCOME SHARES PER SHARE INCOME SHARES PER SHARE
---------- --------- --------- --------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Income $ 201,497 $ 169,972
Less: Preferred stock
dividends -- (3,127)
---------- ----------
Basic EPS $ 201,497 192,019 $ 1.05 $ 166,845 169,942 $ 0.98
========== ==========
Effect of Dilutive
Securities:
Stock options 992 3,663
Convertible preferred
stock -- -- 3,127 10,648
---------- --------- ---------- ----------
Diluted EPS $ 201,497 193,011 $ 1.04 $ 169,972 184,254 $ 0.92
========== ========= ========== ========== ========== ==========
NINE MONTHS ENDED SEPTEMBER 30, 2000 NINE MONTHS ENDED SEPTEMBER 30, 1999
--------------------------------------- --------------------------------------
INCOME SHARES PER SHARE INCOME SHARES PER SHARE
---------- --------- --------- --------- --------- -----------
Net Income $ 415,283 $ 345,515
Less: Preferred stock
dividends (1,933) (9,381)
---------- ----------
Basic EPS $ 413,350 188,492 $ 2.19 $ 336,134 169,450 $ 1.98
========== ==========
Effect of Dilutive
Securities:
Stock options 1,421 3,539
Convertible preferred
stock 1,933 2,813 9,381 10,648
---------- --------- ---------- ----------
Diluted EPS $ 415,283 192,726 $ 2.15 $ 345,515 183,637 $ 1.88
========== ========= ========== ========== ========== ==========
</TABLE>
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NOTE 3 - OTHER ASSETS
In July 2000, the Company purchased a new issue of convertible preferred stock,
denominated in British Pound Sterling, for approximately $305 million from First
Choice Holidays ("First Choice"). The convertible preferred stock carries a
6-3/4% coupon. If converted, the Company's holding would represent a less than
20% interest in First Choice.
In addition, the Company entered into a joint venture with First Choice to
launch a European cruise line. As part of the transaction, VIKING SERENADE was
transferred from the Company's fleet at a valuation of approximately $95.4
million. The contribution of VIKING SERENADE represents the Company's 50%
investment in the joint venture as well as approximately $47.7 million towards
the purchase price of the convertible preferred stock. The contribution of
VIKING SERENADE resulted in a deferred gain of approximately $3.8 million which,
for accounting purposes, was recorded as a reduction of the Company's investment
in the joint venture. The Company will continue to operate VIKING SERENADE under
a charter agreement until Spring 2002.
NOTE 4 - SHAREHOLDERS' EQUITY
The Company redeemed all outstanding shares of the convertible preferred stock
on April 14, 2000. The shares of the convertible preferred stock stopped trading
on the NYSE prior to the April 14th redemption date, and dividends ceased to
accrue on the shares of convertible preferred stock on April 14th.
During the third quarters ended September 30, 2000 and 1999, the Company
declared cash dividends on common shares of $0.13 and $0.11 per share,
respectively. For the nine months ended September 30, 2000 and 1999, the Company
declared aggregate cash dividends on common shares of $0.35 and $0.29,
respectively.
NOTE 5 - COMMITMENTS AND CONTINGENCIES
CAPITAL EXPENDITURES. The Company currently has a total of 10 ships on order for
an additional capacity of 24,000 berths. The aggregate contract price of the 10
ships, which excludes capitalized interest and other ancillary costs, is
approximately $4.1 billion of which the Company has deposited $319.0 million.
Additional deposits are due prior to the dates of delivery of $114.3 million in
2000, $144.1 million in 2001, $121.8 million in 2002 and $27.8 million in 2003.
The Company anticipates that overall capital expenditures will be approximately
$1.4, $2.1 and $1.5 billion for 2000, 2001 and 2002, respectively.
LITIGATION. In January 2000, the Company entered into a settlement with the
State of Alaska resolving a civil lawsuit relating to the Company's waste
disposal practices in Alaska. The settlement calls for the Company to make
payments totaling $3.3 million, which were accrued in 1999.
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Beginning in August 1996, several purported class action suits were filed
alleging that Royal Caribbean International and Celebrity should have paid
commissions to travel agents on a portion of the port charges that were included
in the price of cruise fares. The suits seek damages in an unspecified amount.
Similar suits are pending against other companies in the cruise industry. In
December 1998, a Florida state court dismissed one of the suits for failure to
state a claim under Florida law and in May 2000, the Florida Circuit Court of
Appeals upheld the dismissal. The Company is not able at this time to estimate
the timing or impact of these proceedings on the Company.
In April 1999, a lawsuit was filed in the United States District Court for the
Southern District of New York on behalf of current and former crew members
alleging that the Company failed to pay the plaintiffs their full wages. The
suit seeks payment of (i) the wages alleged to be owed, (ii) penalty wages under
U.S. law and (iii) punitive damages. In November 1999, a purported class action
suit was filed in the same court alleging a similar cause of action. The Company
is not able at this time to estimate the impact of these proceedings on the
Company; there can be no assurance that such proceedings, if decided adversely,
would not have a material adverse effect on the Company's results of operations.
The Company is routinely involved in other claims typical to the cruise
industry. The majority of these claims are covered by insurance. Management
believes the outcome of such other claims which are not covered by insurance are
not expected to have a material adverse effect upon the Company's financial
condition or results of operations.
OTHER. The Company has commitments through 2014 to pay a minimum amount for its
annual usage of certain port facilities (in thousands):
Year
-----
2000 $ 10,020
2001 12,447
2002 14,295
2003 13,807
2004 14,623
Thereafter 138,510
---------
$ 203,702
=========
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ROYAL CARIBBEAN CRUISES LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
AS USED IN THIS DOCUMENT, THE TERMS "ROYAL CARIBBEAN", "WE", "OUR" AND
"US" REFER TO ROYAL CARIBBEAN CRUISES LTD., THE TERM "CELEBRITY" REFERS TO
CELEBRITY CRUISE LINES INC. AND THE TERMS "ROYAL CARIBBEAN INTERNATIONAL" AND
"CELEBRITY CRUISES" REFER TO OUR TWO CRUISE BRANDS.
Certain statements under this caption "Management's Discussion and
Analysis of Financial Condition and Results of Operations", include
forward-looking statements under the Private Securities Litigation Reform Act of
1995. These forward-looking statements are subject to risks, uncertainties and
other factors, which may cause our actual results, performance or achievements
to differ materially from the future results, performance or achievements
expressed or implied in those forward-looking statements. Examples of these
risks, uncertainties and other factors include:
o general economic and business conditions,
o cruise industry competition,
o the impact of tax laws and regulations,
o changes in other laws and regulations,
o pending or threatened litigation,
o the delivery schedule of new vessels,
o emergency ship repairs,
o incidents involving cruise vessels at sea,
o reduced consumer demand for cruises as a result of any number
of reasons, including armed conflict or political instability,
o changes in interest rates and
o weather.
RESULTS OF OPERATIONS
SUMMARY. Net income for the third quarter of 2000 increased 18.5% to
$201.5 million or $1.04 per share on a diluted basis compared to $170.0 million
or $0.92 per share for the same period in 1999.
Third quarter revenues were $835.2 million compared to $734.5 million for the
same period in 1999. The increase in revenues is primarily the result of an
increase in capacity
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associated with VOYAGER OF THE SEAS, which entered service in the fourth quarter
of 1999 and MILLENNIUM, which entered service in July 2000.
For the nine-month period ended September 30, 2000, net income increased 20.2%
to $415.3 million or $2.15 per share as compared to $345.5 million or $1.88 per
share in 1999. Revenues increased 13.3% to $2.2 billion for the nine-month
period ended September 30, 2000 as compared to $2.0 billion for the same period
in 1999. The increase in revenues for the nine-month period is primarily due to
the increase in capacity associated with VOYAGER OF THE SEAS and MILLENNIUM.
The following table presents statements of operations data as a percentage of
total revenues:
<TABLE>
<CAPTION>
==============================================================================================
THIRD QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------- -----------------
2000 1999 2000 1999
------ ------ ------ ------
<S> <C> <C> <C> <C>
Revenues 100.0% 100.0% 100.0% 100.0%
Expenses
Operating 53.3 53.5 55.7 57.6
Marketing, selling and administrative 11.6 12.6 13.9 13.8
Depreciation and amortization 6.8 6.8 7.6 7.4
------ ------ ------ ------
Operating Income 28.3 27.1 22.8 21.2
Other Income (Expense) (4.2) (4.0) (4.1) (3.6)
------ ------ ------ ------
Net Income 24.1% 23.1% 18.7% 17.6%
====== ====== ====== ======
==============================================================================================
</TABLE>
Our revenues are seasonal due to variations in rates and occupancy percentages.
REVENUES. Revenues for the third quarter of 2000 increased 13.7% to
$835.2 million compared to $734.5 million for the same period in 1999. The
increase in revenues for the third quarter was due to a 17.9% increase in
capacity partially offset by a 3.6% decline in gross revenue per available lower
berth ("Gross Yield"). The increase in capacity is primarily associated with the
addition to our fleet of VOYAGER OF THE SEAS in November 1999 and MILLENNIUM in
July 2000. The decline in Gross Yield was due to lower cruise ticket prices, a
lower percentage of guests electing to use our air program and lower shipboard
revenue per diems due to a higher use of concessionaires onboard the Royal
Caribbean International vessels in 2000. Concessionaires pay us a net
commission, which is recorded as revenue, in contrast to in-house operations,
where shipboard revenues and related cost of sales are recorded on a gross
basis. Net revenue per available lower berth ("Net Yield") declined by less than
1% for the quarter. Occupancy for the third quarter of 2000 increased to 109.7%
compared to 109.0% for the same quarter in 1999.
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Revenues for the first nine months of 2000 increased 13.3% to $2.2 billion from
$2.0 billion for the first nine months of 1999. The increase in revenues was
primarily due to a 14.8% increase in capacity and higher prices on our
Millennium New Year's cruises, partially offset by the increased use of
concessionaires as discussed above, and a decrease in the percentage of guests
electing to use our air program. Occupancy increased to 105.9% for the nine
months ended September 30, 2000 from 105.4% for the nine months ended September
30, 1999.
EXPENSES. Operating expenses increased 13.1% to $444.9 million for the
third quarter of 2000 compared to $393.2 million for the same period in 1999.
For the nine months ended September 30, 2000, operating expenses increased 9.6%
to $1.2 billion compared to $1.1 billion in 1999. The increase for the quarter
and nine months ended September 30, 2000 is primarily due to additional costs
associated with the increased capacity discussed previously and an increase in
fuel costs, partially offset by a decrease in air expense due to a lower
percentage of guests electing to use our air program as well as lower shipboard
cost of sales due to the increased use of concessionaires as discussed
previously. Included in nine months ended September 30, 1999 is a $14.0 million
charge related to a settlement with the U.S. Department of Justice. Excluding
the settlement, operating expenses as a percentage of revenues decreased from
56.9% for the first nine months of 1999 to 55.7% for the first nine months of
2000.
Marketing, selling and administrative expenses increased 4.2% to $96.7
million for the third quarter of 2000 from $92.8 million in 1999, and increased
13.9% to $309.3 million for the first nine months of 2000 from $271.5 million
for the comparable period in 1999. The increase is due primarily to television
advertising costs associated with our new ad campaign to promote brand
awareness, as well as increased investment in information technology spending
and staffing levels to support our capacity growth. As a percentage of revenue,
marketing, selling and administrative expenses decreased to 11.6% from 12.6% in
the third quarter of 1999, and for the nine months ended September 30, 2000
increased to 13.9% from 13.8% for the same period in 1999. The decrease for the
quarter can be attributed to the timing of approximately $6 to $8 million of
certain marketing and other expenses, which normally would be incurred in the
third quarter, but were deferred and will now be incurred in the fourth quarter
of 2000.
Depreciation and amortization increased 14.4% to $57.5 million in the
third quarter of 2000 from $50.3 million in 1999 and 15.6% to $168.7 million for
the first nine months of 2000 from $145.9 million for the same period in 1999.
The increase is due to incremental depreciation associated with the addition to
the fleet of VOYAGER OF THE SEAS in November 1999 and MILLENNIUM in July 2000
and shoreside capital expenditures primarily related to information technology
in support of our growth plans.
OTHER INCOME (EXPENSE). Gross interest expense (excluding capitalized
interest) was $51.2 million in the third quarter of 2000 compared to $40.4
million in 1999, and $134.8 million for the nine months ended September 30, 2000
versus $123.0 million for the same period in 1999. Capitalized interest
increased $2.1 million and $8.8 million for
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the quarter and nine months ended September 30, 2000, respectively, due to an
increase in expenditures related to the ships under construction.
Included in Other income (expense) for the quarter and nine months
ended September 30, 2000 is approximately $4.3 million of dividend income from
the First Choice preferred shares. Also included in the nine months ended
September 30, 2000 is $5.9 million of compensation received from the shipyard
related to the late delivery of Celebrity's MILLENNIUM. Included in Other income
(expense) for the nine months ended September 30, 1999 is approximately $26.5
million of loss-of-hire insurance resulting from ships out of service.
LIQUIDITY AND CAPITAL RESOURCES
SOURCES AND USES OF CASH. Net cash provided by operating activities was
$618.1 million for the first nine months of 2000 compared to $551.5 million for
the first nine months of 1999. The increase was primarily due to higher net
income.
In July 2000, we purchased a new issue of convertible preferred stock
from First Choice for $305.0 million. In addition, we entered into a joint
venture with First Choice. As part of the transaction, VIKING SERENADE was
transferred from our fleet at a valuation of $95.4 million. The contribution of
VIKING SERENADE represents our 50% investment in the joint venture, as well as
$47.7 million in proceeds used towards the purchase price of the convertible
preferred stock.
During the first nine months of 2000, we paid quarterly cash dividends
on our common stock of $66.3 million as well as quarterly cash dividends on our
preferred stock, totaling $3.1 million.
We made principal payments totaling $77.8 million during the first nine
months of 2000 under various term loans and capital lease agreements. In
connection with the delivery of MILLENNIUM and EXPLORER OF THE SEAS and the
purchase of convertible preferred shares, we drew $1.1 billion on various credit
facilities.
Our capital expenditures were $1.2 billion for the first nine months of
2000 compared to $379.9 million during the first nine months of 1999. Capital
expenditures for the first nine months of 2000 were primarily associated with
the deliveries of MILLENNIUM and EXPLORER OF THE SEAS as well as deposits for
ships under construction. Included in capital expenditures in 1999 are deposits
of $132.4 million for ships under construction.
Capitalized interest increased to $31.9 million in the first nine
months of 2000 from $23.0 million in the first nine months of 1999. The increase
is due to an increase in expenditures related to ships under construction.
FUTURE COMMITMENTS. We currently have 10 ships on order for an
additional capacity of 24,000 berths. The aggregate contract price of the 10
ships, which excludes capitalized interest and other ancillary costs, is
approximately $4.1 billion of which we have deposited $319.0 million. Additional
deposits are due prior to the dates of delivery of
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$114.3 million in 2000, $144.1 million in 2001, $121.8 million in 2002 and $27.8
million in 2003. We anticipate that overall capital expenditures will be
approximately $1.4, $2.1 and $1.5 billion for 2000, 2001 and 2002, respectively.
We have options to purchase two additional Radiance-class vessels
(formerly known as Vantage-class) with delivery dates in the second quarters of
2005 and 2006. The options have an aggregate contract price of $804.6 million.
We have the right to cancel the first option on or before December 11, 2000. We
have the right to cancel the second option on or before delivery of RADIANCE OF
THE SEAS, which is currently scheduled for the first quarter of 2001.
We had $3.3 billion of long-term debt as of September 30, 2000, of
which $109.9 million is due during the twelve month period ending September 30,
2001.
As a normal part of our business, depending on market conditions,
pricing and our overall growth strategy, we continuously consider opportunities
to enter into contracts for the building of additional ships. We may also
consider the sale of ships. We continuously consider potential acquisitions and
strategic alliances. If any of these were to occur, they would be financed
through the incurrence of additional indebtedness, the issuance of additional
shares of equity securities or through cash flows from operations.
FUNDING SOURCES. As of September 30, 2000, our liquidity was
approximately $1.0 billion consisting of $168.6 million in cash and cash
equivalents and $865.0 million available under various credit facilities.
Capital expenditures and scheduled debt payments will be funded through a
combination of cash flows provided by operations, drawdowns under the available
credit facilities, the incurrence of additional indebtedness and sales of
securities in private or public securities markets. In addition, the agreements
related to six of the 10 ships on order require the shipyards to make available
export financing for up to 80% of the contract price of the vessels.
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INCORPORATION BY REFERENCE
This report on Form 6-K is hereby incorporated by reference in registrant's
Registration Statement on Form F-3 (File No. 333-89015) filed with the
Securities and Exchange Commission.
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 16, 2000 By /s/ Richard J. Glasier
----------------------------
Richard J. Glasier
Executive Vice President and
Chief Financial Officer
12
