Forecasting for the Love Boat: Royal Caribbean Cruises in 1998(
Forecasting for the Love Boat: Royal Caribbean Cruises in 1998( Forecasting for the Love Boat: Royal Caribbean Cruises in 1998(
The Company's debt agreements contain covenants that require the Company, among other things, to maintain minimum liquidityamounts, net worth and fixed charge coverage ratios and limit debt to capital ratios. The Company is in compliance with allcovenants as of December 31, 1998. Following is a schedule of principal repayments on long-term debt (in thousands):YEAR----1999........................................................ $ 127,9192000........................................................ 128,0862001........................................................ 109,9822002........................................................ 259,8532003........................................................ 110,948Thereafter.................................................. 1,732,294----------$2,469,082==========NOTE 9. RETIREMENT PLANSThe Company maintains a defined contribution pension plan covering all of its full-time shoreside employees who havecompleted the minimum period of continuous service. Annual contributions to the plan are based on fixed percentages ofparticipants' salaries and years of service, not to exceed certain maximums, as defined in the plan. Pension cost was $6.9, $4.9and $4.3 million for the years 1998, 1997 and 1996, respectively.NOTE 10. OPERATING LEASESThe Company is obligated under noncancelable operating leases for various facilities, primarily office and warehouse space. Asof December 31, 1998, future minimum lease payments under noncancelable operating leases were as follows (in thousands):YEAR----1999........................................................ $ 5,1342000........................................................ 4,4442001........................................................ 4,2052002........................................................ 4,1102003........................................................ 4,023Thereafter.................................................. 26,017-------$47,933=======Total rent expense for all operating leases amounted to $6.9, $5.7 and $4.9 million for the years 1998, 1997 and 1996,respectively.NOTE 11. INCOME TAXESThe Company and the majority of its subsidiaries are not subject to U.S. corporate income tax on income generated from theinternational operation of ships pursuant to Section 883 of the Internal Revenue Code, provided that they meet certain testsrelated to country of incorporation and composition of shareholders. The Company believes that it and a majority of itssubsidiaries meet these tests. Income tax expense related to the Company's remaining subsidiaries is not significant.NOTE 13. COMMITMENTS AND CONTINGENCIESThe Company has nine ships on order. Three are Eagle-class vessels designated for the Royal Caribbean International fleet, thefirst of which, Voyager of the Seas is scheduled for delivery in the fourth quarter of 1999, followed by two sister vesselsscheduled for delivery in the third quarter of 2000 and second quarter of 2002. The Company also has two Vantage-class vesseldesignated for the Royal Caribbean International fleet scheduled for delivery in the first quarter of 2001 and second quarter of2002 and four Millennium-class vessels designated for the Celebrity Cruises fleet, scheduled for delivery in the second quarter of2000, first quarter of 2001, third quarter of 2001 and second quarter of 2002. The aggregate contract price of the nine ships,which excludes capitalized interest and other ancillary costs, is approximately $3.6 billion of which the Company deposited$144.6 million during 1998 and $74.3 million during 1997. Additional deposits are due prior to the dates of delivery of $237.4million in 1999, $88.1 million in 2000 and $25.0 million in 2001.
NOTE 14. QUARTERLY DATA (UNAUDITED)FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER------------------- ------------------- ------------------- -------------------1998 1997 1998 1997 1998 1997 1998 1997-------- -------- -------- -------- -------- -------- -------- --------(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)Revenues.............................. $659,777 $394,590 $656,456 $403,467 $744,910 $612,542 $575,148 $528,408Operating Income...................... 119,461 60,637 121,533 67,397 183,592 116,911 64,149 58,610Income Before Extraordinary Item...... 77,537 38,481 79,770 45,918 150,038 75,931 23,425 22,355Extraordinary Item.................... -- -- -- (7,558) -- -- -- ---------- -------- -------- -------- -------- -------- -------- --------Net Income............................ $ 77,537 $ 38,481 $ 79,770 $ 38,360 $150,038 $ 75,931 $ 23,425 $ 22,355======== ======== ======== ======== ======== ======== ======== ========Basic Earnings Per Share(1):Income before extraordinary item.... $ 0.45 $ 0.29 $ 0.45 $ 0.33 $ 0.87 $ 0.50 $ 0.12 $ 0.12Extraordinary item.................. -- -- -- (0.05) -- -- -- ---------- -------- -------- -------- -------- -------- -------- --------Net income.......................... $ 0.45 $ 0.29 $ 0.45 $ 0.28 $ 0.87 $ 0.50 $ 0.12 $ 0.12======== ======== ======== ======== ======== ======== ======== ========Diluted Earnings Per Share(1):Income before extraordinary item.... $ 0.44 $ 0.29 $ 0.44 $ 0.32 $ 0.82 $ 0.48 $ 0.12 $ 0.12Extraordinary item.................. -- -- -- (0.05) -- -- -- ---------- -------- -------- -------- -------- -------- -------- --------Net income.......................... $ 0.44 $ 0.29 $ 0.44 $ 0.27 $ 0.82 $ 0.48 $ 0.12 $ 0.12======== ======== ======== ======== ======== ======== ======== ========Dividends Declared Per Share.......... $ 0.08 $ 0.07 $ 0.08 $ 0.07 $ 0.09 $ 0.08 $ 0.09 $ 0.08======== ======== ======== ======== ======== ======== ======== ========
- Page 2 and 3: North America, but may fly to any p
- Page 4 and 5: Who’s OnboardObviously different
- Page 6 and 7: Demand for a Cruise VacationTo date
- Page 8 and 9: Appendix 1Cruise Industry, Demograp
- Page 10 and 11: -----------------------------------
- Page 12 and 13: According to CLIA and other trade p
- Page 14 and 15: Technological DevelopmentThe Compan
- Page 16 and 17: Cruise PricingThe Company's cruise
- Page 18 and 19: The Company has nine ships on order
- Page 20 and 21: In March 1998, the Company issued $
- Page 22 and 23: ROYAL CARIBBEAN CRUISES LTD.CONSOLI
- Page 24 and 25: ROYAL CARIBBEAN CRUISES LTD. CONSOL
- Page 26 and 27: Information about geographic areas
- Page 30 and 31: FORM 10-KSECURITIES AND EXCHANGE CO
- Page 32 and 33: The Company has signed agreements w
- Page 34 and 35: Depreciation and amortization incre
- Page 36 and 37: CARNIVAL CORPORATIONCONSOLIDATED ST
- Page 38 and 39: CARNIVAL CORPORATIONNOTES TO CONSOL
- Page 40 and 41: SELECTED FINANCIAL DATAThe selected
- Page 42 and 43: Company NameROYAL CARIBBEAN CRUISES
- Page 44: Company NameCARNIVAL CORPActual Act
NOTE 14. QUARTERLY DATA (UNAUDITED)FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER------------------- ------------------- ------------------- -------------------<strong>1998</strong> 1997 <strong>1998</strong> 1997 <strong>1998</strong> 1997 <strong>1998</strong> 1997-------- -------- -------- -------- -------- -------- -------- --------(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)Revenues.............................. $659,777 $394,590 $656,456 $403,467 $744,910 $612,542 $575,148 $528,408Operat<strong>in</strong>g Income...................... 119,461 60,637 121,533 67,397 183,592 116,911 64,149 58,610Income Be<strong>for</strong>e Extraord<strong>in</strong>ary Item...... 77,537 38,481 79,770 45,918 150,038 75,931 23,425 22,355Extraord<strong>in</strong>ary Item.................... -- -- -- (7,558) -- -- -- ---------- -------- -------- -------- -------- -------- -------- --------Net Income............................ $ 77,537 $ 38,481 $ 79,770 $ 38,360 $150,038 $ 75,931 $ 23,425 $ 22,355======== ======== ======== ======== ======== ======== ======== ========Basic Earn<strong>in</strong>gs Per Share(1):Income be<strong>for</strong>e extraord<strong>in</strong>ary item.... $ 0.45 $ 0.29 $ 0.45 $ 0.33 $ 0.87 $ 0.50 $ 0.12 $ 0.12Extraord<strong>in</strong>ary item.................. -- -- -- (0.05) -- -- -- ---------- -------- -------- -------- -------- -------- -------- --------Net <strong>in</strong>come.......................... $ 0.45 $ 0.29 $ 0.45 $ 0.28 $ 0.87 $ 0.50 $ 0.12 $ 0.12======== ======== ======== ======== ======== ======== ======== ========Diluted Earn<strong>in</strong>gs Per Share(1):Income be<strong>for</strong>e extraord<strong>in</strong>ary item.... $ 0.44 $ 0.29 $ 0.44 $ 0.32 $ 0.82 $ 0.48 $ 0.12 $ 0.12Extraord<strong>in</strong>ary item.................. -- -- -- (0.05) -- -- -- ---------- -------- -------- -------- -------- -------- -------- --------Net <strong>in</strong>come.......................... $ 0.44 $ 0.29 $ 0.44 $ 0.27 $ 0.82 $ 0.48 $ 0.12 $ 0.12======== ======== ======== ======== ======== ======== ======== ========Dividends Declared Per Share.......... $ 0.08 $ 0.07 $ 0.08 $ 0.07 $ 0.09 $ 0.08 $ 0.09 $ 0.08======== ======== ======== ======== ======== ======== ======== ========
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