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Q2 2014 Royal Caribbean Cruises Ltd. Earnings Conference Call
Thursday, July 24, 2014 10:00 a.m. ET
RCL (Common Stock)
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Updated 08/27/14
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1050 Caribbean Way
Miami, FL 33132
Phone (305) 539-6000
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800-937-5449
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Royal Caribbean Cruises Ltd.
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Royal Caribbean Reports Record Third Quarter Earnings And Comments On Current Environment

MIAMI, Oct. 28 /PRNewswire-FirstCall/ -- Royal Caribbean Cruises Ltd. (NYSE: RCL; Oslo) today announced its earnings for the third quarter of 2008.

Key Highlights

-- Third quarter 2008 net income rose to a record $411.9 million, or $1.92 per share, compared to $395.0 million, or $1.84 per share in 2007. Business conditions for the quarter were about as expected, but operating expenses were lower.

-- The strengthening of the U.S. dollar impacted third quarter yields and expenses by corresponding amounts versus expectations. Net Yields improved 0.7% for the quarter.

-- Net Cruise Costs per APCD increased 5.0%, and Net Cruise Costs excluding fuel per APCD decreased 2.3%, both significantly better than previous guidance.

-- For the full year 2008, the company expects earnings per share to be $2.73 to $2.78, based on today's fuel prices.

-- While the company's order book remains solid, there has been a significant deterioration recently in new bookings due to economic and financial turmoil. The company expects fourth quarter yields to decrease approximately 4% to 5%. Just over half of the decline from prior guidance is due to the stronger U.S. dollar.

-- The company's liquidity as of September 30 was comparable to historical levels at approximately $1.4 billion.

-- The company has financing commitments and/or financing guarantees available for all of its vessels on order.

-- The previously announced $125 million cost savings initiatives are in place and the company expects to meet this target.

"While we are pleased with our third quarter results, the operating environment has changed dramatically in recent weeks," said Richard D. Fain, chairman and chief executive officer. "We are focused on responding to this challenge, but it is reassuring to know that our liquidity is good, that we entered this period with a solid order book, and that we have a business model that has proven resilient during tough times."

Third Quarter 2008 Results

Royal Caribbean Cruises Ltd. today announced record net income for the third quarter 2008 of $411.9 million, or $1.92 per share, compared to net income of $395.0 million, or $1.84 per share, in 2007. This improvement was due primarily to increased capacity, higher yields, and lower net cruise costs, partially offset by higher fuel prices. As previously announced, these figures also include the receipt of a legal settlement of $17.6 million. Higher fuel prices increased costs by $65.1 million, or $0.30 per share. While fuel costs per metric ton increased 46% versus 2007, they were $48 per metric ton, or $0.07 per share lower than previous guidance. Selling, general and administrative expense was $17.2 million, or $0.08 per share better than previous guidance due primarily to timing and management's focus on cost containment.

Significant strengthening of the U.S. dollar during the quarter affected Net Revenue Yield and Net Cruise Cost per APCD compared to previous guidance, but largely offset one another and were not material to the company's third quarter net income. Absent this currency fluctuation, Net Revenue Yields for the quarter would have been consistent with previous guidance. Net Cruise Costs per APCD would still have been lower than previous guidance due to fuel pricing, timing and continued cost focus.

Key metrics for the quarter were as follows:
  • Net Yields increased 0.7% to $219 per APCD.

  • Excluding fuel, Net Cruise Costs per APCD decreased 2.3%.

  • Fuel expenses increased 46%, while fuel expenses per APCD increased 42% as a result of hedging and energy saving initiatives. The average at-the-pump price for the quarter was $669 per metric ton versus $457 per metric ton in 2007.

  • Net Cruise Costs per APCD increased 5.0%.

Revenue Environment

The company noted that new bookings slowed considerably during the month of September, but have leveled off over the last couple of weeks. "As we have seen during other challenging periods, our customers are delaying their further out purchase decisions," said Brian J. Rice, executive vice president and chief financial officer. "It is too early to respond to this atmosphere in a systematic way, but we have attracted short term volume in the traditionally weak fourth quarter using discounts. Had the value of the U.S. dollar not strengthened, we would be forecasting flat yields in the fourth quarter."

Cost Savings Initiatives Update

In conjunction with the release of the company's second quarter earnings, a $125 million cost cutting initiative was announced. The initiative was primarily targeted at the company's general and administrative expenses and was specifically designed to preserve the company's guest experience, trade relationships and global expansion efforts. The program is on track to deliver the announced 2009 cost savings and has produced better than expected results in 2008. Given the success of the program, the company is reiterating its previous guidance to reduce 2009 Net Cruise Costs excluding fuel per APCD to 2007 levels.

Fuel Expense Guidance

The company does not forecast fuel prices and its cost guidance for fuel is based on current at-the-pump prices net of any hedging impacts. Based on today's fuel prices, the company has included $686 million in fuel expenses in its full year 2008 guidance. This figure is $86 million, or $0.40 per share, lower than its previous guidance. Assuming the company's fuel costs correlate with movement in the price of WTI, a $10 change in WTI per barrel, would equate to a $10 million change in the company's fuel expense for the fourth quarter.



                                  Fourth Quarter 2008     Full Year 2008
                                  -------------------     --------------

    Consumption (metric tons in
      thousands)                        322                  1,219
    Fuel Expenses                    $146 Million          $686 Million
    Percent Hedged (forward
      consumption)                      55%                   55%
    Impact of $10 Change in
     WTI/BBL                         $10 Million           $10 Million

The company also noted that current 2009 fuel cost projections have dropped from $890 million in its previous guidance to $635 million currently. This drop of $255 million equates to $1.19 in EPS improvement. For 2009 the company's fuel consumption is 39% hedged, and assuming the company's fuel costs correlate with movement in the price of WTI, a $10 change in WTI per barrel, would equate to a $51 million change in the company's fuel expense for the full year. Historically, the company's price at-the-pump has correlated well with WTI, but over the past few quarters fluctuations in this relationship have caused volatility in these estimations.

Guidance Summary

    The company provided the following estimates for the fourth quarter and
full year 2008, as compared to the fourth quarter and full year 2007,
respectively.



                               Fourth Quarter 2008         Full Year 2008
                               -------------------         --------------

    Earnings Per Share           $0.05 - $0.10             $2.73 to $2.78
    Capacity                          2.9%                      5.2%
    Net Yields                    (4%) - (5%)                 Approx. 1%
    Net Cruise Costs per APCD     Approx. (3%)                Approx. 3%
    Net Cruise Costs per APCD,
     excluding Fuel               Approx. (1%)               (1%) - (2%)
    Depreciation and
     Amortization              $133 to $138 Million     $519 to $524 Million
    Interest Expense            $88 to $93 Million      $328 to $333 Million

In summarizing the company's third quarter 2008 results and outlook Fain added, "The company's performance, during a period of such economic uncertainty and unprecedented market volatility, is a testament to our business model. Nonetheless, we are taking proactive steps to respond to these challenges. Our strong brand positioning, a management team focused on cost improvement and the most innovative fleet in the industry provide a strong and stable platform from which to weather a difficult 2009 and to capture the eventual benefit of a rebounding economy and a more optimistic consumer."

Liquidity and Financing Arrangements

As of September 30, 2008, liquidity was $1.4 billion, including cash and cash equivalents and the undrawn portion of the company's unsecured revolving credit facility.

In response to recent events in the credit markets, the company provided more details about its Newbuild financing arrangements.

The company took delivery of the Celebrity Solstice on October 24. The vessel was financed through a $519.1 million loan facility with KfW Ipex-Bank GMBH and BNP Paribas S.A. The facility is a 12-year unsecured loan bearing interest of LIBOR plus 45 basis points, or a total of 4.28% at today's interest rates.

The company has four additional Solstice Class vessels under construction in Germany, all of which have committed bank financing arrangements and include financing guarantees for a portion of the financed amount from HERMES (Euler Hermes Kreditrersicherungs AG), the export credit agency of the German government. The terms of the financing guarantees and bank commitments are similar to those established for the Celebrity Solstice and are executable at the company's option.

The company also has two Oasis Class vessels for its Royal Caribbean International brand under construction in Finland, both of which have commitments for financing guarantees which can be used at the company's option. Oasis of the Seas is scheduled for delivery in the fourth quarter of 2009 and Allure of the Seas is scheduled for delivery in late 2010. The guarantee commitments are from Finnvera, the export credit agency of Finland and provide potential lenders with government guarantees of up to 80% of the financed amount.

The company expects that these financing arrangements will be adequate to meet its ongoing operations and capital expenditure requirements and the company does not anticipate any other requirements to access the capital markets in the foreseeable future.

Capital Expenditures and Capacity Guidance

Based on current ship orders, projected capital expenditures for 2008, 2009, 2010, 2011, and 2012, estimates are $2.1 billion, $2.1 billion, $2.2 billion, $1.0 billion, and $1.0 billion, respectively. Projected capacity increases for the same five years are estimated at 5.2%, 6.9%, 12.8%, 7.1%, and 3.0%, respectively.

Conference Call Scheduled

The company has scheduled a conference call at 10 a.m. Eastern Daylight Time today to discuss its earnings. This call can be heard, either live or on a delayed basis, on the company's investor relations web site at www.rclinvestor.com.

Terminology

Available Passenger Cruise Days ("APCD")

APCDs are our measurement of capacity and represent double occupancy per cabin multiplied by the number of cruise days for the period.

Gross Cruise Costs

Gross Cruise Costs represent the sum of total cruise operating expenses plus marketing, selling and administrative expenses.

    Gross Yields
    Gross Yields represent total revenues per APCD.

Net Cruise Costs

Net Cruise Costs represent Gross Cruise Costs excluding commissions, transportation and other expenses and onboard and other expenses. In measuring our ability to control costs in a manner that positively impacts net income, we believe changes in Net Cruise Costs to be the most relevant indicator of our performance. We have not provided a quantitative reconciliation of projected Gross Cruise Costs to projected Net Cruise Costs due to the significant uncertainty in projecting the costs deducted to arrive at this measure. Accordingly, we do not believe that reconciling information for such projected figures would be meaningful.

Net Debt-to-Capital

Net Debt-to-Capital is a ratio which represents total long-term debt, including current portion of long-term debt, less cash and cash equivalents ("Net Debt") divided by the sum of Net Debt and total shareholders' equity. We believe Net Debt and Net Debt-to-Capital, along with total long-term debt and shareholders' equity are useful measures of our capital structure.

Net Revenues

Net Revenues represent total revenues less commissions, transportation and other expenses and onboard and other expenses.

Net Yields

Net Yields represent Net Revenues per APCD. We utilize Net Revenues and Net Yields to manage our business on a day-to-day basis as we believe that it is the most relevant measure of our pricing performance because it reflects the cruise revenues earned by us net of our most significant variable costs, which are commissions, transportation and other expenses and onboard and other expenses. We have not provided a quantitative reconciliation of projected Gross Yields to projected Net Yields due to the significant uncertainty in projecting the costs deducted to arrive at this measure. Accordingly, we do not believe that reconciling information for such projected figures would be meaningful.

Occupancy

Occupancy, in accordance with cruise vacation industry practice, is calculated by dividing Passenger Cruise Days by APCD. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.

Passenger Cruise Days

Passenger Cruise Days represent the number of passengers carried for the period multiplied by the number of days of their respective cruises.

Royal Caribbean Cruises Ltd. is a global cruise vacation company that operates Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Cruises and CDF Croisieres de France. The company has a combined total of 38 ships in service and six under construction. It also offers unique land-tour vacations in Alaska, Asia, Australia, Canada, Europe, Latin America and New Zealand. Additional information can be found on www.royalcaribbean.com, www.celebrity.com, www.pullmantur.es, www.azamaracruises.com or www.rclinvestor.com.

Certain statements in this news release are forward-looking statements. Words such as "anticipate", "believe", "could", "estimate", "expect", "goal", "intend", "may", "plan", "project", "seek", "should", "will", and similar expressions are intended to help identify these forward-looking statements. Forward-looking statements do not guarantee future performance and may involve risks, uncertainties and other factors, which could 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, but are not limited to the following: general economic and business conditions, vacation industry competition and changes in industry capacity and overcapacity, the impact of tax and environmental laws and regulations affecting our business or our principal shareholders, the impact of changes in other laws and regulations affecting our business, the impact of pending or threatened litigation, the delivery of scheduled new ships, the impact of emergency ship repairs, including the related lost revenue, the impact of problems encountered at shipyards, including industrial actions, shipyard insolvency or financial difficulties, the impact on prices of new ships due to shortages in available shipyard facilities, component parts and shipyard consolidations, negative incidents involving cruise ships including those involving the health and safety of passengers, reduced consumer demand for cruises as a result of any number of reasons, including geo-political and economic uncertainties and the unavailability or cost of air service, fears of terrorist attacks, armed conflict and the resulting concerns over safety and security aspects of traveling, the impact of the spread of contagious diseases, the availability under our unsecured revolving credit facility, cash flows from operations and our ability to obtain new borrowings and raise new capital on terms that are favorable or consistent with our expectations to fund operations, debt payment requirements, capital expenditures and other commitments, the impact of a prolonged economic downturn on the demand for cruises, the impact of disruptions in the global financial markets on the ability of our counterparties and others to perform their obligations to us, changes in our stock price or principal shareholders, the impact of changes in operating and financing costs, including changes in foreign currency, interest rates, fuel, food, payroll, insurance and security costs, the unavailability of ports of call, weather, and other factors described in further detail in Royal Caribbean Cruises Ltd.'s filings with the Securities and Exchange Commission. The above examples are not exhaustive and new risks emerge from time to time. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, certain financial measures in this news release constitute non-GAAP financial measures as defined by Regulation G. A reconciliation of these items can be found on our investor relations website at www.rclinvestor.com.

                           Financial Tables Follow



                           ROYAL CARIBBEAN CRUISES LTD.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                 (unaudited, in thousands, except per share data)

                                   Quarter Ended          Nine Months Ended
                                   September 30,            September 30,
                              -----------------------  ----------------------
                                 2008        2007         2008        2007
                              ----------  ----------   ----------  ----------

     Passenger ticket
      revenues                $1,498,221  $1,423,179   $3,676,201  $3,360,586
     Onboard and other
      revenues                   565,168     530,413    1,400,047   1,297,459
                              ----------  ----------   ----------  ----------
          Total revenues       2,063,389   1,953,592    5,076,248   4,658,045
                              ----------  ----------   ----------  ----------
     Cruise operating
      expenses
       Commissions,
        transportation and
        other                    375,638     356,471      918,313     844,784
       Onboard and other         168,145     148,218      363,980     316,792
       Payroll and related       170,269     153,106      487,851     432,686
       Food                       90,432      87,062      255,530     236,044
       Fuel                      207,274     140,655      539,807     384,070
       Other operating           263,903     263,732      763,365     741,736
                              ----------  ----------   ----------  ----------
          Total cruise
           operating
           expenses            1,275,661   1,149,244    3,328,846   2,956,112
     Marketing, selling and
      administrative
      expenses                   191,115     199,169      592,604     578,547
     Depreciation and
      amortization expenses      134,706     122,345      386,373     360,021
                              ----------  ----------   ----------  ----------
     Operating Income            461,907     482,834      768,425     763,365
                              ----------  ----------   ----------  ----------
     Other income (expense)
       Interest income             5,620       5,704       11,143      16,655
       Interest expense, net
        of interest
        capitalized              (80,560)    (85,270)    (239,594)   (251,266)
       Other income
        (expense)                 24,920      (8,268)      32,269       3,821
                              ----------  ----------   ----------  ----------
                                 (50,020)    (87,834)    (196,182)   (230,790)
                              ----------  ----------   ----------  ----------
     Net Income               $  411,887  $  395,000   $  572,243  $  532,575
                              ==========  ==========   ==========  ==========

     Earnings Per Share:
     Basic                    $     1.93        1.85   $     2.68  $     2.50
                              ==========  ==========   ==========  ==========
     Diluted                  $     1.92        1.84   $     2.67  $     2.49
                              ==========  ==========   ==========  ==========

     Weighted-Average Shares
      Outstanding:
     Basic                       213,524     213,039      213,445     212,667
                              ==========  ==========   ==========  ==========
     Diluted                     214,172     214,295      214,334     214,170
                              ==========  ==========   ==========  ==========


                                   STATISTICS

                                   Quarter Ended           Nine Months Ended
                                   September 30,             September 30,
                              -----------------------  ----------------------
                                  2008        2007         2008        2007
                              ----------  -----------  ----------  ----------
     Occupancy                    107.8%      109.1%       105.5%      106.4%

     Passenger Cruise Days     7,487,096   7,277,757   20,719,165  19,711,739

     APCD                      6,945,217   6,668,881   19,640,167  18,526,888



                            ROYAL CARIBBEAN CRUISES LTD.
                            CONSOLIDATED BALANCE SHEETS
                         (in thousands, except share data)

                                                          As of
                                              ------------------------------
                                               September 30,     December 31,
                                                   2008             2007
                                                (unaudited)
     Assets
     Current assets
       Cash and cash equivalents               $   301,963       $   230,784
       Trade and other receivables, net            324,131           313,640
       Inventories                                 114,290            96,813
       Prepaid expenses and other assets           146,841           137,662
       Derivative financial instruments            158,629           213,892
                                               -----------       -----------
          Total current assets                   1,045,854           992,791

     Property and equipment, net                13,143,055        12,253,784
     Goodwill                                      782,183           797,791
     Other assets                                  799,594           937,915
                                               -----------       -----------
                                               $15,770,686       $14,982,281
                                               ===========       ===========

     Liabilities and Shareholders' Equity
     Current liabilities
       Current portion of long-term debt       $   430,861       $   351,725
       Accounts payable                            222,631           222,895
       Accrued interest                            138,132           132,450
       Accrued expenses and other
        liabilities                                451,922           401,224
       Customer deposits                         1,158,151         1,084,359
       Hedged firm commitments                     139,635           146,642
                                               -----------       -----------
          Total current liabilities              2,541,332         2,339,295
     Long-term debt                              5,597,943         5,346,547
     Other long-term liabilities                   611,100           539,096

     Commitments and contingencies

     Shareholders' equity
       Preferred stock ($0.01 par value;
        20,000,000 shares authorized;
        none outstanding)                                -                 -
       Common stock ($0.01 par value;
        500,000,000 shares authorized;
        223,870,166 and 223,509,136
        shares issued, September 30,
        2008                                         2,239             2,235
       and December 31, 2007,
        respectively)
       Paid-in capital                           2,947,528         2,942,935
       Retained earnings                         4,591,052         4,114,877
       Accumulated other comprehensive
        (loss) income                              (96,288)          120,955
       Treasury stock (11,066,615 and
        11,026,271 common shares at
        cost, September 30, 2008 and
        December 31, 2007, respectively)          (424,220)         (423,659)
                                               -----------       -----------
          Total shareholders' equity             7,020,311         6,757,343
                                               -----------       -----------
                                               $15,770,686       $14,982,281
                                               ===========       ===========



                            ROYAL CARIBBEAN CRUISES LTD.
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (unaudited, in thousands)

                                                      Nine Months Ended
                                                        September 30,
                                                  --------------------------
                                                    2008              2007
                                                -----------       -----------
     Operating Activities
     Net income                                 $  572,243        $  532,575
     Adjustments:
        Depreciation and amortization              386,373           360,021
     Changes in operating assets and
      liabilities:
        Increase in trade and other
         receivables, net                          (16,835)         (146,569)
        Increase in inventories                    (18,528)          (11,532)
        Increase in prepaid expenses and
         other assets                               (9,165)          (60,020)
        Decrease in accounts payable                (1,652)           (4,730)
        Increase in accrued expenses and
         other liabilities                          67,330           212,871
        Increase in customer deposits               73,404           273,372
        Other, net                                  (8,406)            4,065
                                                -----------       -----------
     Net cash provided by operating activities  $1,044,764         1,160,053
                                                -----------       -----------

     Investing Activities
     Purchases of property and equipment        (1,413,347)       (1,225,065)
     Cash received on settlement of
      derivative financial instruments             256,338            49,782
     Loans and equity contributions to
      unconsolidated affiliates                    (41,429)                -
     Other, net                                    (11,317)           (6,749)
                                                -----------       -----------
     Net cash used in investing activities      (1,209,755)       (1,182,032)
                                                -----------       -----------

     Financing Activities
     Debt proceeds                               1,143,682         1,904,979
     Debt issuance costs                           (13,400)          (10,134)
     Repayments of debt                           (762,826)       (1,515,101)
     Dividends paid                               (128,045)          (66,339)
     Proceeds from exercise of common
      stock options                                  3,656            16,932
     Other, net                                     (4,318)           (1,818)
                                                -----------       -----------
     Net cash provided by financing activities     238,749           328,519
                                                -----------       -----------

     Effect of exchange rate changes on cash        (2,579)              846

     Net increase in cash and cash equivalents      71,179           307,386
     Cash and cash equivalents at
      beginning of period                          230,784           104,520
                                                -----------       -----------
     Cash and cash equivalents at end of period $  301,963        $  411,906
                                                ===========       ===========

     Supplemental Disclosure
     Cash paid during the period for:
        Interest, net of amount capitalized     $  226,172        $  190,995
                                                ===========       ===========



                         ROYAL CARIBBEAN CRUISES LTD.
                       NON-GAAP RECONCILING INFORMATION
                                 (unaudited)

      Gross Yields and Net Yields were calculated as follows (in thousands,
       except APCD and Yields):

                                  Quarter Ended           Nine Months Ended
                                  September 30,             September 30,
                             -----------------------   ----------------------
                                2008         2007         2008         2007
                             ---------    ---------    ---------    ---------

     Passenger ticket
      revenues             $ 1,498,221  $ 1,423,179  $ 3,676,201  $ 3,360,586
     Onboard and other
      revenues                 565,168      530,413    1,400,047    1,297,459
                           -----------  -----------  -----------  -----------
     Total revenues          2,063,389    1,953,592    5,076,248    4,658,045
                           ===========  ===========  ===========  ===========
     Less:
       Commissions,
        transportation
        and other              375,638      356,471      918,313      844,784
       Onboard and other       168,145      148,218      363,980      316,792
                           -----------  -----------  -----------  -----------
     Net revenues          $ 1,519,606  $ 1,448,903  $ 3,793,955  $ 3,496,469
                           ===========  ===========  ===========  ===========

     APCD                    6,945,217    6,668,881   19,640,167   18,526,888
     Gross Yields          $    297.09  $    292.94  $    258.46  $    251.42
     Net Yields            $    218.80  $    217.26  $    193.17  $    188.72


      Gross Cruise Costs and Net Cruise Costs were calculated as follows (in
       thousands, except APCD and costs per APCD):

                                  Quarter Ended           Nine Months Ended
                                  September 30,             September 30,
                               --------------------      -------------------
                                2008         2007         2008         2007
                               ------       ------       ------       ------

     Total cruise
      operating expenses   $ 1,275,661  $ 1,149,244  $ 3,328,846  $ 2,956,112
     Marketing, selling
      and administrative
      expenses                 191,115      199,169      592,604      578,547
                           -----------  -----------  -----------  -----------
     Gross Cruise Costs      1,466,776    1,348,413    3,921,450    3,534,659
                           ===========  ===========  ===========  ===========
     Less:
       Commissions,
        transportation
        and other              375,638      356,471      918,313      844,784
       Onboard and other       168,145      148,218      363,980      316,792
                           -----------  -----------  -----------  -----------
     Net Cruise Costs      $   922,993  $   843,724  $ 2,639,157  $ 2,373,083
                           ===========  ===========  ===========  ===========

     APCD                    6,945,217    6,668,881   19,640,167   18,526,888
     Gross Cruise Costs
      per APCD             $    211.19  $    202.19  $    199.66  $    190.79
     Net Cruise Costs per
      APCD                 $    132.90  $    126.52  $    134.38  $    128.09


      Net Debt-to-Capital was calculated as follows (in thousands):

                                     As of
                           September 30,  December 31,
                           ---------------------------
                               2008           2007
                           -------------  ------------
     Long-term debt, net
      of current portion   $ 5,597,943   $ 5,346,547
     Current portion of
      long-term debt           430,861       351,725
                           -----------   -----------
     Total debt              6,028,804     5,698,272
     Less: Cash and cash
      equivalents              301,963       230,784
                           -----------   -----------
     Net Debt              $ 5,726,841   $ 5,467,488
                           ===========   ===========

     Total shareholders'
      equity               $ 7,020,311   $ 6,757,343
     Total debt              6,028,804     5,698,272
                           -----------   -----------
     Total debt and
      shareholders' equity  13,049,115    12,455,615
                           ===========   ===========
     Debt-to-Capital             46.2%         45.7%
     Net Debt                5,726,841     5,467,488
                           -----------   -----------
     Net Debt and
      shareholders' equity $12,747,152   $12,224,831
                           ===========   ===========
     Net Debt-to-Capital         44.9%         44.7%

SOURCE Royal Caribbean Cruises Ltd.
CONTACT: Ian Bailey, or Michael Sheehan, both of Royal Caribbean Cruises
Ltd., +1-305-982-2625
Web site: http://www.royalcaribbean.com
http://www.rclinvestor.com
(RCL)