Royal Caribbean Cruise Lines 2009 Annual Report Download - page 60

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We are focused on ensuring adequate cash and liquidity. We are continually committed to improving our cost focus and have
implemented cost-containment initiatives including the renegotiation of long-term contracts with our vendors and a detailed emphasis
on cost control. To ensure adequate liquidity, we have discontinued our quarterly dividend commencing in the fourth quarter of 2008,
we have tactically evaluated our non-shipbuild capital expenditures and will consider further newbuild orders as market conditions
warrant; however, if a newbuild order were to be placed in the near term, a new delivery would not arrive before 2013. We anticipate
that our cash flows from operations, our current available credit facilities and our current financing arrangements will be adequate to
meet our capital expenditures and debt repayments over the next twelve-month period. In addition, we may elect to fund our
contractual obligations through other means if current conditions in the capital markets improve.
If any person other than A. Wilhelmsen AS. and Cruise Associates, our two principal shareholders, acquires ownership of more
than 30% of our common stock and our two principal shareholders, in the aggregate, own less of our common stock than such person
and do not collectively have the right to elect, or to designate for election, at least a majority of the board of directors, we may be
obligated to prepay indebtedness outstanding under the majority of our credit facilities, which we may be unable to replace on similar
terms. If this were to occur, it could have an adverse impact on our liquidity and operations.
Debt Covenants
Our financing agreements contain covenants that require us, among other things, to maintain minimum net worth and a fixed
coverage ratio and limit our net debt-to-capital ratio. Our minimum net worth and maximum net debt-to-capital calculations exclude
the impact of accumulated other comprehensive income (loss) on total shareholders’ equity. The fixed coverage ratio is calculated by
dividing net cash from operations by the sum of dividend payments plus scheduled principal debt payments in excess of any new
financings for the past four quarters (“fixed charges”). We are currently in compliance with all debt covenants. The specific covenants
and related definitions can be found in the applicable debt agreements, the majority of which have been previously filed with the
Securities and Exchange Commission. As of December 31, 2009, our net worth was $7.3 billion compared with a minimum
requirement of $5.2 billion, our net-debt-to-capital was 52.7% compared to a maximum limit of 62.5% and our fixed charge coverage
ratio exceeded the minimum requirement of 1.25x as our fixed charges for the period were $0.00.
Dividends
During fiscal year 2008, we paid out dividends totaling $128.0 million.
In November 2008 our board of directors discontinued our quarterly dividend commencing with the fourth quarter of 2008. This
decision is intended to enhance our liquidity during this period of heightened economic and financial market uncertainty.
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