Royal Caribbean Cruise Lines 2002 Annual Report Download - page 16

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
14
ROYAL CARIBBEAN CRUISES LTD.
As used in this document, the terms "Royal Caribbean," "we," "our" and "us" refer to Royal
Caribbean Cruises Ltd., the term "Celebrity" refers to Celebrity Cruise Lines Inc. and the terms
"Royal Caribbean International" and "Celebrity Cruises" refer to our two cruise brands. In accor-
dance with industry practice, the term "berths" represents double occupancy capacity per cabin
even though many cabins can accommodate three or more guests.
Certain statements under this caption "Management's Discussion and Analysis of Financial
Condition and Results of Operations," in our letter to shareholders and elsewhere in this docu-
ment constitute forward-looking statements under the Private Securities Litigation Reform Act
of 1995. 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, uncertain-
ties and other factors include, but are not limited to:
• general economic and business conditions,
• vacation industry competition, including cruise industry competition,
• changes in vacation industry capacity, including cruise capacity,
• the impact of tax 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,
• emergency ship repairs,
• incidents involving cruise ships at sea,
• reduced consumer demand for cruises as a result of any number of reasons, including armed
conflict, terrorist attacks, geo-political and economic uncertainties or the unavailability of
air service,
• changes in interest rates or oil prices, and
• weather.
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.
GENERAL
SUMMARY
We reported revenues, operating income, net income and earnings per share as shown in the
following table:
Year Ended December 31,
(in thousands, except per share data)
2002 2001 2000
Revenues $3,434,347 $3,145,250 $2,865,846
Operating Income 550,975 455,605 569,540
Net Income 351,284 254,457 445,363
Basic Earnings Per Share $ 1.82 $ 1.32 $ 2.34
Diluted Earnings Per Share $ 1.79 $ 1.32 $ 2.31