Royal Caribbean Cruise Lines 2010 Annual Report Download - page 5

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ROYAL CARIBBEAN CRUISES LTD. 1
2010
Annual
Report
I enjoy authoring this letter to you annually as it
provides me with an opportunity to reflect on
the past year and to communicate our goals for
the coming ones. With that in mind, I am pleased
to report that over the past year we have made
significant strides in improving our returns while
at the same time maintaining the exceptionally
high product standards that our guests have
come to expect from us. We are executing well
on our strategic objectives of global growth,
controlled costs and revenue margin expansion
and we are committed to carrying this momen-
tum forward into the coming years. It is still a
tough operating environment, macroeconomic
improvement has been modest and there are
significant geopolitical events unfolding before us,
but we are managing through these challenges
effectively and the improvement in our financial
results is tangible.
Net Income in 2010 increased 240% to $548
million, or $2.51 per share. Revenue yields grew
by over 4% while we were able to simultaneously
reduce corresponding cruise costs by almost
2%. Liquidity at year end was a very healthy
$1.6 billion, buoyed by strong cash generation
throughout the year and the addition of a sup-
plemental $525 million revolving credit facility
in the fourth quarter. These improved financial
results dovetailed a number of operational
accomplishments including the opening of addi-
tional International Offices as we march forward
globally, two extremely successful new ship
launches with the Allure of the Seas and the
Celebrity Eclipse and the delivery of amazing
vacation experiences to over 4 million guests.
Importantly, through all of this growth our guest
satisfaction ratings have risen to historical highs.
While our total returns are still below where they
need to be, we have been making rapid progress
in the right direction and are determined to con-
tinue to do so. Our progress has also been further
evidenced by our recent ratings upgrades by
Dear Fellow Shareholders
We are executing well on our strategic objectives of global growth, controlled costs and revenue margin expansion
and we are committed to carrying this momentum forward into the coming years.