Kloster Cruise has reported net income of $ 17.8 million on revenues of $219.9 million for the second quarter ended June 30, 1994 compared to net income of $6.1 million on revenues of $234.5 million in the same quarter last year. The 1994 second quarter results also included a $35.1 million gain on the sale of Royal Viking Line.
For the first six months of 1994, Kloster reported net income of $4.3 million on revenues of $444.9 million compared to a loss of $17.9 million on revenues of $441.1 million for the first six months of 1993.
Kloster Cruise is presently comprised of Norwegian Cruise Line and Royal Cruise Line.
According to Kloster Cruise, the company anticipated softness in second quarter revenues and initiated expense controls, which it said essentially offset the impact on the company's operating income.
Revenue reduction year-over-year were also caused in part by capacity reduction of 1.8 percent, reflecting three vessels leaving and two vessels entering the NCL and RCL fleets. The company also said that consumer interest in the 50th Anniversary D-Day celebrations had been over-estimated.
The 1994 second quarter gain realized by the sale of RVL was partially offset by a non-cash charge of $8.2 million for translation losses on foreign currency denominated debt and extraordinary write-offs of $1.2 million relating to the early repayment of debt.
In the second quarter of 1993, the company had an $11.2 million non-cash foreign exchange gain on its debt, as well as extraordinary charges of $1.3 million again for the early repayment of debt. For the second quarter of 1994, operating income was $17 million, essentially equal to 1993 second quarter level of $17.3 million.
Excluding Sale of RVL
Excluding the gain on the sale of RVL, non-cash translation of debt, and extraordinary items, Kloster posted a net loss of $7.9 million for the second quarter and $16.4 million for the first six months of 1994, compared to a net loss of $3.9 million for the second quarter of 1993 and $17.3 million for the ftrst six months of last year.
Per Diems Up
Kloster also reported 934,300 passenger cruise days for the second quarter and 1,858,572 for the six month period, and average per diems of $235 for the second quarter and $239 for the ftrst six months of 1994 compared to $232 and $230 respectively for the same period last year.
The sale of RVL has made it possible for Kloster Cruise to decrease its debt burden and improve its liquidity. The total interest bearing debt has been reduced from $987 million as of December 31, 1993 to $883 million as of June 30, 1994.
"The second quarter was highlighted by the successful sale of RVL and a concurrent debt refinancing which were important strategic steps for the company," said Adam Aron, President and CEO.
At press time, Kloster Cruise's parent company, YARD, traded for NOK 44 on the Oslo Stock Exchange up slightly.