Royal Caribbean Cruises has reported net income of $51,4 million or $0,81 per share on revenues of $273,6 million for the first quarter ended March 31, 1995, compared to net income of $35,4 million or $0,56 per share on revenues of $288,7 million for the first quarter of 1994.
Royal Caribbean pointed out, however, that the 1995 results include a one-time gain of $19,2 million or $0,30 per share on the sale of the Nordic Prince.
Secondly, primarily due to the calendarization of first quarter revenues, the first quarter of 1995 had approximately 3,5 percent less capacity than in 1994. The company estimated that the net impact of the calendarization was approximately $4,5 million.
Taking these extraordinary factors into account, Royal Caribbean largely reponed flat results quarter over quarter.
According to a prepared statement, the cruise line will continue to experience lower potential cruise days compared to last year until the introduction of the Legend of the Seas. The second quarter will have 2,6 percent less capacity than in 1994 because of the calendarization and the sale of the Nordic Prince.
The second quarter will also be affected by lower booking patterns that have been experienced since late last year, according to RCCL. The company said it has responded by initiating a series of marketing and yield management programs designed to expand the market and attract prospective cruisers.
Richard Fain, Chairman and CEO of Royal Caribbean, said that the arrival of the Legend of the Seas will have a "very favorable impact on our profitability." He said that the first of a new generation Royal Caribbean ships has design and amenities reflecting travelers' desires for a cruise vacation designed for the 21st century.
RCCL also reponed 1.175.255 cruise days for the first quarter of 1995, corresponding to a capacity utilization of 97.1 percent, compared to 1,268,870 passenger cruise days and a 101,3 percent utilization rate in the first quarter of 1994.
There are also unconfrrmed reports that the Song of Norway is the next RCCL ship to be put up for sale. The 1,012-passenger Nordic Prince was recently sold for $55 million.