Royal Caribbean Cruise Lines 2006 Annual Report Download - page 15

Our revenues are seasonal based on demand for cruises. Demand
is strongest for cruises during the summer months and holidays.
We reported historical total revenues, operating income, income
before cumulative effect of a change in accounting principle, cumu-
lative effect of a change in accounting principle, net income and
earnings per share as shown in the following table (in thousands,
except per share data):
Year Ended December 31,
2006 2005 2004
Total revenues $ 5,229,584 $ 4,903,174 $ 4,555,375
Operating income $ 858,446 $ 871,565 $ 753,589
Income before
cumulative effect
of a change in
accounting
principle $ 633,922 $ 663,465 $ 474,691
Cumulative effect
of a change in
accounting
principle1–52,491 –
Net income $ 633,922 $ 715,956 $ 474,691
Basic earnings per share:
Income before
cumulative effect
of a change in
accounting
principle $ 3.01 $ 3.22 $ 2.39
Cumulative effect
of a change in
accounting
principle1$–$ 0.25 $ –
Net income $ 3.01 $ 3.47 $ 2.39
Diluted earnings per share:
Income before
cumulative effect
of a change in
accounting
principle $ 2.94 $ 3.03 $ 2.26
Cumulative effect of a
change in
accounting
principle1$–$ 0.22 $ –
Net income $ 2.94 $ 3.26 $ 2.26
1In the third quarter of 2005, we changed our method of accounting for drydocking
costs from the accrual in advance to the deferral method (see Note 2.
Summary of
Significant Accounting Policies
to our consolidated financial statements.)
The following table presents historical operating data as a percent-
age of total revenues for the last three years:
Year Ended December 31,
2006 2005 2004
Passenger ticket revenues 73.4 73.6 73.7
Onboard and other revenues 26.6 26.4 26.3
Total revenues 100.0% 100.0% 100.0%
Cruise operating expenses
Commissions,
transportation and other 17.6 17.5 18.1
Onboard and other 6.3 6.3 6.6
Payroll and related 9.6 10.4 10.7
Food 5.3 5.5 5.9
Fuel 9.2 7.5 5.5
Other operating 14.1 13.8 15.1
Total cruise operating
expenses 62.1 61.0 61.9
Marketing, selling and
administrative expenses 13.4 13.0 12.9
Depreciation and
amortization expenses 8.1 8.2 8.7
Operating income 16.4 17.8 16.5
Other income (expense) (4.3) (4.3) (6.1)
Income before cumulative
effect of a change in
accounting principle 12.1 13.5 –
Cumulative effect of a change
in accounting principle – 1.1 –
Net income 12.1% 14.6% 10.4%
Unaudited selected historical statistical information is shown in the
following table (amounts exclude Pullmantur):
Year Ended December 31,
2006 2005 2004
Passengers Carried 3,600,807 3,476,287 3,405,227
Passenger Cruise Days 23,849,606 23,178,560 22,661,965
APCD 22,392,478 21,733,724 21,439,288
Occupancy 106.5% 106.6% 105.7%
ROYAL CARIBBEAN CRUISES LTD. 13
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)