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Royal Caribbean

Page history last edited by PBworks 15 years, 8 months ago


 

 

Royal Caribbean

 

Part of the Cruise Ship Industry

 

 

 

Royal Caribbean Cruises, Ltd. is the world's second largest cruise company. It operates three cruise brands: Royal Caribbean International (RCI), Celebrity Cruises, and Pullmantur Cruises. RCI operates 21 cruise ships with approximately 51,500 berths. Celebrity Cruises operates 9 cruise ships with approximately 15,150 berths. Pullmantur Cruises brand serves the contemporary cruise vacation segment, as well as sells land-based travel packages, including hotel and flights. It operates 5 cruise ships with approximately 4,500 berths in Europe and Latin America. Royal Caribbean Cruises was founded in 1968 and is based in Miami, Florida.

 

latest news:

http://www2.stifel.com/site/content.aspx?id=71&symbol=RCL&mode=3

 

 

 

 

 

Company and brand history

Royal Caribbean Cruise Line was founded in 1969 by Anders Wilhelmsen & Company, I.M. Skaugen & Company, and Gotaas Larsen - all Norwegian shipping companies. The newly created line put its first ship, the Song of Norway, into service a year later. The next year, the line's capacity was doubled with the addition of the Nordic Prince to the fleet. Continuing to expand, the line added the Sun Viking in 1972. After four years of successful operation, Royal Caribbean's Song of Norway became the first passenger ship to be lengthened. This was accomplished via the insertion of an 85 foot section to the vessel's severed center. Following the success of this procedure, Nordic Prince was stretched in 1980. Royal Caribbean finally received widespread global recognition when in 1982 it launched the Song of America, over twice the size of Sun Viking and at the time the third largest passenger vessel afloat (after the Norway and the QE2)

 

Royal Caribbean innovated once again with its 1986 purchase of a coastal property in Haiti for use as a private destination for its guests. This destination is now called Labadee. After a corporate restructuring in 1988, the line lauched Sovereign of the Seas, the largest passenger vessel afloat at the time. Two years later, Nordic Empress and Viking Serenade entered service for the line, continuing a rapid growth trend within the company. In the same year Royal Caribbean purchased its second private destination, Little Stirrup Cay, an island in the Bahamas, which they rechristened "Coco Cay".

 

Monarch of the Seas, the second ship of the Sovereign class, entered service the next year. The third ship of the Sovereign class, Majesty of the Seas, was delivered one year later. With a large passenger capacity and a growing market share, Royal Caribbean finally went public on the New York Stock Exchange in 1993. Over the next two years the company experienced extreme growth. A new corporate headquarters in Miami, Florida was completed, and the Nordic Prince replaced by a new vessel, the Legend of the Seas.

 

The next year brought more growth. Two more Vision class vessels entered service, the Splendour of the Seas and Grandeur of the Seas. Also in 1996, the company finalized its contracts for 130,000 ton vessels with Aker Finnyards in Finland. The trend of growth and change continued into 1997. The line's oldest ship, Song of Norway, was sold, and two new Vision-class ships entered service as Rhapsody of the Seas and Enchantment of the Seas. The company also merged with the Greek cruise line Celebrity Cruises and changed its name from "Royal Caribbean Cruise Line" to "Royal Caribbean International". The next year marked a transition to a more "strictly modern line", when the last of the company's older vessels, Song of America and Sun Viking, were retired. In 1998, Vision of the Seas came into service, the last of the Vision Class Ships. In 2004, Royal Caribbean made history again with the massive refurbishment of Enchantment of the Seas, cutting the ship in half and adding a 74 foot midsection. Grandeur of the Seas is rumored to be the next to have the massive refurbishment sometime in late 2007 or early 2008.

 

In 1999 the Voyager of the Seas, the line's newest and world's largest cruise ship entered service with much attention from the news media. The next two years saw the delivery of Voyager's sister ship, Explorer of the Seas, and the first of a new class of more environmentally friendly cruise liners, Radiance of the Seas, as well as the introduction of Royal Caribbean's "cruise tours Alaska", featuring glass-domed train cars to scenic destinations within the state and Canada. 2002 saw the debut of the Navigator of the Seas, as well as the Brilliance of the Seas, the second ship of the Radiance class. Serenade of the Seas and Mariner of the Seas were introduced the next year, and rock-climbing walls were made a feature of every Royal Caribbean ship. Jewel of the Seas followed in 2004, and the line's ship Nordic Empress was refurbished and re-christened as Empress of the Seas.

 

Construction commenced on Freedom of the Seas, the line's newest ship, at Aker Finnyards in 2005 and the vessel launched the next year as the largest passenger vessel in the world. Freedom of the Seas' sister ship, Liberty of the Seas, and Independence of the Seas of the Freedom class are scheduled to be delivered in 2007 and 2008 respectively. An even larger class, the Genesis class, will be launched in 2009, guaranteeing Royal Caribbean the ship size lead for years to come.

 

In November 2006, Royal Caribbean finalized the purchase of Pullmantur Cruises in Madrid, Spain.

 

 

more: http://en.wikipedia.org/wiki/Royal_Caribbean_Cruises_Ltd.

 

 

In the News

 

Royal Caribbean Navigates the Fuel Undertow

July 26, 2007

 

The undertow of high fuel costs continues to drag on Royal Caribbean (NYSE: RCL), but its sights are set on successfully navigating the favorable industry tailwinds. Royal's second-quarter revenue sailed ahead nearly 15% on strong ticket sales and stronger onboard revenue from gambling, alcohol, spa services operated by the likes of Motley Fool Rule Breakers pick Steiner Leisure (Nasdaq: STNR), and gifts and other goods. But higher fuel costs slowed earnings growth to 5.3%, even though management managed to control other costs swimmingly.

 

Full-year company guidance now stands below previous expectations at $2.75-$2.85, assuming that fuel costs won't do any further unexpected damage to the bottom line. In any case, Royal plans to keep expansion brisk over the next five years, with a 9.3% increase in cruise ship capacity over this time frame. This is consistent with growth rates seen in cruising since the 1970s. Royal and larger archrival Carnival (NYSE: CCL) (NYSE: CUK) collectively account for the bulk of industry capacity and growth, though Disney (NYSE: DIS) also operates a couple of cruise ships, as do smaller regional players.

 

Throw in a reasonable valuation for Royal and a 1.5% dividend yield, and the struggling stock may be worth throwing a life preserver. I don't see much upside as long as fuel continues to mute any potential near-term gains. But short-term pain can prove a good way to prepare for long-term growth, and the industry should have plenty of that is it increasingly expands overseas.

 

 

 

Financial Info

 

1. Where is the Company incorporated?

The Company is incorporated in the Republic of Liberia.

 

2. In what year was the company founded?

The Company was founded in 1968.

 

3. When and where is the annual shareholders' meeting?

The annual sharholder meeting will be held on Thursday, May 31, 2007 at 9:00 a.m. at J W Marriott Hotel, 1109 Brickell Avenue in Miami, Florida.

 

4. How large is the Company's current fleet; what are planned additions?

The Company operates a fleet of 37 cruise ships under five seperate brands: 21 under the Royal Caribbean International brand with an aggregate of 51,550 berths, 8 under the Celebrity Cruises brand with an aggregate of 13,750 berths, 2 under Azamara brand with an aggregate of 1,420 berths, 4 under Pullmantur brand with an aggregate of 4,623 berths, and 2 under Island Cruises brand with an aggregate of 2,862 berths.

 

 

*Estimated

Delivery Estimated

Capacity

 

Fleet Expansion Projects

Royal Caribbean International

Independence of the Seas 17-May-08 3,600

Genesis Class I Fall 2009 5,400

Genesis Class II Fall 2010 5,400

Celebrity Cruises

Celebrity Solstice Fall 2008 2,850

Celebrity Equinox Summer 2009 2,850

Solstice Class III Summer 2010 2,850

* Scheduled Delivery is generally 2-4 weeks before ships enter service.

 

 

5. When was Celebrity Cruises acquired, and at what cost?

In July 1997, the Company acquired the outstanding stock of Celebrity Cruise Lines Inc. for a purchase price of $515 million comprised of $245 million in cash and 7,448,276 shares of RCL common stock.

 

6. When did your stock split and what was the split?

At the May 21, 1998 shareholder meeting, an amendment to the Articles of Incorporation was approved which increased the number of authorized common shares from 100 to 500 million. The board approved a 2-for-1 stock split on June 23, 1998. The record date was July 10th and the payable date was July 31st.

 

7. How can a ship's occupancy exceed 100%?

Occupancy can exceed 100% because cruise industry practice measures capacity based on double occupancy per cabin, even though some cabins can accommodate 3 or 4 passengers. A percentage in excess of 100% reflects the effect of cabins occupied by more than 2 passengers. Occupancy during the last five years has averaged 102.4%.

 

8. When are dividends declared and record date and payment date determined?

The Company has no predetermined schedule for declaring dividends, or the date upon which a shareholder must have been the owner of the shares (record date) or the date when the dividend will actually be paid. However, the Company anticipates continuing the practice of declaring and paying dividends quarterly. (see dividend history on the web site).

 

9. Who is the Company's stock transfer agent & Registrar? Who can I contact about replacement stock certificate? To whom do I direct address changes or any inquiries about my account that contains my Royal Caribbean Cruises Ltd. shares?

 

If you are a registered shareholder (holding stock certificate) you should direct all communications regarding changes in registration or address, lost certificates, current holdings, and any other shareholder registration matters to our transfer agent: American Stock Transfer & Trust Company 10150 Mallard Creek Road, Suite 307 Charlotte, North Carolina 28288. If you are a beneficial shareholder (shares are held in a brokerage account), you should direct all account inquiries to your stockbroker. The address information for the account statements, quarterly and annual reports, and proxies you receive are maintained by your broker.

 

10. How many employees does the Company employ?

 

As of December 31, 2006, we employed approximately 4,329 full-time and 687 part-time employees worldwide in our shoreside operations. We also employed approximately 37,942 shipboard employees. As of December 31, 2006, approximately 80% of our shipboard employees were covered by collective bargaining agreements.

 

11. Does the Company have a dividend reinvestment plan for shareholders?

The Company does not have a dividend reinvestment plan.

 

12. What is the Company's common stock CUSIP Number?

The Company's common stock CUSIP number is V77 80T 103.

 

13. What is the Standard Industry Classification (SIC) code designation?

The SIC classification number is 4481.

 

14. On what exchanges are shares of common stock listed?

The Company's common stock is listed on the New York Stock Exchange (NYSE) (Primary listing) and the Oslo Stock Exchange (OSE) (secondary listing) under the symbol "RCL".

 

15. Why is the Company's common stock listed on the Norwegian exchange?

The Company wanted to make its shares more accessible to European investors who do not normally invest through the NYSE. The Oslo borse was selected as the listing exchange due to the Company's historic links to Norway and the particular focus of Norwegian investors on the shipping/cruise industry

 

16. What is the Company's Senior debt rating?

As of December 31, 2006 the Company's Senior Unsecured Notes and Debentures are rated BB- by Standard & Poor's and Ba2 by Moody's Investors.

 

17. Is there option trading on the Company's common shares?

There is option trading in the Company's common shares. Options are traded on the CBOE, AMEX and Pacific Coast exchanges.

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