Royal Caribbean Cruises has reported net income of $27.5 million or $.47 per share on revenues of $276.9 million for its second quarter ended July 2, 1993, compared to net income of $17.7 million or $.34 per share on revenues of $255.4 million for the same quarter of 1992.
Operating income for the second quarter was $405 million compared to $35.3 million for the same quarter last year, a reflection of the increased revenues and improved operating margin according to a statement from RCC. The nine-ship fleet carried 205,771 passengers compared to 209,397 last year, achieving a 97.2 percent load factor compared to 99 percent last year.
Net income for the first six months was $47.7 million or $.86 per share on revenues of $547.3 million, compared to net income of $22.1 million or $.43 per share on revenues of $470.6 million for the prior year. Operating income increased to $79.4 million in 1993 from $58.2 million in 1992.
For the six month period, costs and expenses were 85.5 percent of total revenues, compared to 87.6 percent last year. Operating income was 14.5 percent compared to 12.4 percent last year, and net income 8.7 percent compared to 4.7 percent last year. The nine-ship RCCL fleet earned 409,897 passengers compared to 385,909 in the same period in 1992.
Increased revenues and earnings for the six month period can be attributed partially to the introduction of the 2,354 passenger Majesty of the Seas last April. In addition, the company’s interest expense was favorably affected by a reduced debt burden and lower interest rates.
Richard Fain, Chairman and CEO of Royal Caribbean, also attributed the results to the line’s “Breakthrough Pricing” program which he said has led to a steady improvement in yields, which combined with cost controls, have contributed to continued earnings growth.
RCC has used the proceeds of its initial public offering to reduce its long term debt to about $800 million, 56 percent of capitalization, compared to $1.1 billion and 72 percent of its capitalization at year-end 1992.
RCC has also settled its dispute with Southwest Marine agreeing to pay $14.95 million. The amount will be capitalized as part of the asset value of the Viking Serenade and will have no material affect on the company’s financial condition or results.
