Royal Caribbean Cruise Lines 2013 Annual Report Download - page 50
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PART II
As of December 31, 2013, we had liquidity of $1.9 bil-
lion, consisting of approximately $204.7 million in
cash and cash equivalents and $1.7 billion available
under our unsecured credit facilities. In 2013, we
implemented a number of actions in furtherance of
our refinancing strategy for our maturities in 2013
and 2014. We anticipate funding our 2014 maturities
and other obligations through our cash flows from
operations and our current financing arrangements.
In addition, we continue to be focused on our goal
of returning to an investment grade credit rating. We
have already made strides in this direction and further
improvements are anticipated through increasing
operating cash flow, a moderate capital expenditure
program, retiring of debt and favorable financing
programs.
RESULTS OF OPERATIONS
In addition to the items discussed above under
“Executive Overview,” significant items for 2013
include:
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$7.7 billion in 2012 primarily due to an increase in
ticket prices and onboard spending.
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billion from $5.2 billion in 2012 primarily due to an
increase in capacity, crew expenses and onboard
and other expenses.
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our 2013 and 2014 bond maturities, reduce interest
costs, improve financing terms and extend maturities.
See Note 7. Long-Term Debt to our consolidated
financial statements for further information.
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to build the third Oasis-class ship for Royal Caribbean
International with approximately 5,400 berths which
is expected to enter service in the second quarter
of 2016. We have entered into a credit agreement
to finance the purchase of the ship which includes a
sovereign financing guarantee. Pullmantur’s Atlantic
Star, which has been out of operation since 2009, was
transferred to an affiliate of STX France S.A. as part
of the consideration for the third Oasis-class ship. The
transfer did not result in a gain or loss. See Note 5.
Property and Equipment and Note 15. Commitments
and Contingencies to our consolidated financial state-
ments under Item 8. Financial Statements and Supple-
mentary Data for further information.
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build the third Quantum-class ship for Royal Caribbean
International with approximately 4,150 berths which
is expected to enter service in the second quarter
of 2016. We have entered into a credit agreement
to finance the purchase of the ship which includes a
sovereign financing guarantee. See Note 15. Commit-
ments and Contingencies to our consolidated finan-
cial statements under Item 8. Financial Statements
and Supplementary Data for further information.
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related to our profitability initiatives. In addition, we
recognized an impairment charge of $13.5 million
to write down the aircraft owned and operated by
Pullmantur Air to their fair value, and a $20.0 million
charge to write down assets classified as held for
sale as of December 31, 2013. These charges are
classified as Restructuring and related impairment
charges in our consolidated statements of compre-
hensive income (loss). Refer to Note 16. Restructuring
and Related Impairment Charges to our consolidated
financial statements under Item 8. Financial State-
ments and Supplementary Data for further informa-
tion on our profitability initiatives.
For comparability purposes, starting in 2014, we will
exclude results of the divested Pullmantur non-core
businesses from our Adjusted Net Income. In antic-
ipation of the 2014 change, we have presented the
Adjusted Net Income excluding the estimated impact
of the divested Pullmantur non-core businesses.