Royal Olympic Q3 Earnings

Royal Olympic Cruises (ROC) has reported net income of $7.6 million, or $0.54 per share, on revenues of $57.1 million for its third quarter ended Aug. 31, 2001, compared to net income of $10.4 million, or $0.74 per share, on revenues of $51.3 million for the same quarter a year ago.

With net income decreasing by 26.9 percent, net income per passenger day dropped by 45 percent in the third quarter, from $32.55 in 2000 to $17.80 in 2001. ROC reported occupancy of 82.8 percent during third quarter 2001, versus 90.3 percent in 2000.

According to a statement by management, "During the third quarter of this financial year the company operated almost all of its vessels on Aegean and Eastern Mediterranean cruises. In the aftermath of the terrorist attacks on Sept. 11, a significant number of the company's advanced bookings were cancelled."

As of Aug. 31, 2001, ROC had approximately $7.6 million in cash. According to management, "These funds, along with cash from operations, are expected to be the company's principal source of capital to fund its debt-service requirements."

A spokesperson confirmed that ROC has recently laid off around 45 employees in Piraeus, New York, London and Paris, with downsizing spread evenly across accounting, hotel and technical departments.

ROC also recently announced that it "expected" the long-delayed Olympia Explorer to begin service from Venice in spring/summer 2002. According to a statement, "ROC delegates and representatives from Blohm+Voss in Hamburg had a very constructive meeting in Piraeus regarding the delivery of the Olympia Explorer." Delivery of the ship had originally been slated for April 27, 2001.

At press time, the Olympia Voyager was temporarily out of service for a thorough check prior to its transfer to U.S.-based cruising out of Houston starting this winter and continuing through April 2003. The Triton and Olympic Countess were still in service in Greece, while the remainder of the fleet had entered its normal winter lay-up.

ROC reported a net loss of $14.8 million, or $0.98 per share, on revenues of $102.6 million for the nine months ended Aug. 31, 2001, compared to net income of $175,000, or $0.01 per share, on revenues of $87.3 million for the same period a year ago. ROC attributed the net loss to interest expenses and depreciation related to the Olympia Voyager as well as losses on financial instruments.

For the nine-month period, net income per passenger day dropped from a net gain of $0.32 per passenger day in 2000 to a net loss of $19.68 in 2001. Occupancy during this period decreased from 79.0 percent in 2000 to 77.0 percent in 2001.

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