Royal Caribbean Cruise Lines 2005 Annual Report Download - page 4

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Dear Fellow Shareholders:
We have achieved many milestones over the course of our 35-year history, but I can think of few years as
remarkable as 2005. Profitability soared to $663 million ($3.03 per share), an increase of 39.8 percent
over 2004, and revenues reached $4.9 billion. These results helped reduce our net debt balance by
$1.1 billion and, as a result, our net debt-to-capital ratio improved from 51.5 percent at year-end 2004
to 42.0 percent.
2005 also was a year marked by cost-containment measures implemented across the enterprise that continue
to show encouraging results. Fuel costs remain our most significant challenge, and we continue to work
aggressively to mitigate their impact with purchasing efficiencies, itinerary modifications and conservation
efforts, such as the use of alternative types of fuel and the modification of existing hardware. One exciting
initiative we will begin in early 2007 involves installing auxiliary diesel generators on several of our gas-
turbine ships to produce electricity more efficiently and inexpensively. That effort could save up to $5
million per year, per ship. Additionally, we are replacing halogen light bulbs on our ships with more
2Royal Caribbean Cruises Ltd.