Royal Caribbean Cruise Ltd. has announced net income of $106.7 million or $1.80 per share on revenue of $1.1 billion for the year ended December 31, 1993, compared to net income of $60.6 million or $1.17 per share on revenue of $1.0 billion for the prior year.
Operating income for 1993 was $161.5 million, compared to $138.3 million in 1992.
Operating costs were $951.3 million in 1993, compared to $874.5 million in 1992.
The net income margin was 9.6 percent in 1993 compared to 6.0 percent in 1992; the operating margin was 14.5 percent compared to 13.7 percent; and operating costs were 85.5 percent of revenues in 1993 compared to 86.3 percent in 1992.
According to a statement form RCCL, the company’s earnings growth is a reflection of the expanded fleet capacity, improved yields, cost containment and significant capital structure improvement. Passenger cruise days increased resulting from the addition of the Majesty of the Seas in April 1992.
Passenger cruise days were 5,074,830 in 1993 compared to 4,840,645 in 1992.
Fourth Quarter
With the same capacity in the fourth quarter ended Dec. 31, 1993 and 1992, RCCL reported 1,285,282 passenger days in the fourth quarter of 1993 compared to 1,253,219 in the same quarter the previous year.
Net income was reported to be $18.5 million or $0.28 per share on total revenues of $263.8 million for the fourth quarter in 1993, compared to net income of $7.8 million or $0.15 per share on revenues of $255.4 million for the fourth quarter in 1992.
Operating income was basically flat at $29.7 million compared to $29.0 million for the same quarter in 1992.
Operating expenses were $29.7 million in 1993 compared to $29.0 million in 1992. Increased net income was achieved mainly through reduced interest expense.
The net income margin was seven percent for the fourth quarter in 1993 compared to 3.1 percent for the same quarter in 1992; the operating margin was 11.3 percent compared to 11.4 percent; and operating costs were 88.7 percent of revenues in this past fourth quarter compared to 88.6 percent in 1992.
1994
A company spokesperson said that RCCL expected modest yield improvement in 1994.
In addition, net income is expected to be boosted by a change in vessel depreciation policy extending the estimated service lives from 25 to 30 years and higher residual value on certain vessels. According to a company statement, this change in vessel depreciation brings the company’s policy in line with its competitors and is expected to reduce depreciation expense by approximately $10 million.
At press time Royal Caribbean Cruises traded at $27 5/8 on the New York Stock Exchange compared to a 52-week high/low of $29 – $15 5/8.
