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RoyalCaribbeCruises L
Andrs Billoch, Peter GiannikoKarla Laura, Hexuan Li, Jianyu Yao
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Royal Caribbean Cruises, Ltd.
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Income Analysis
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Operating Expense
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Cruise industry
Global cruise market estimated at $37.1 billion 21.6 passengers annually 7% annual growth since 1990
Cruise passengers worldwide spend an estima$18.9 billion
Industry is rapidly growing internationally Carnival Corporation, Royal Caribbean CruiseCo, and Norwegian Cruise
79.4% share of passengers and 71.8% of sharrevenues.
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Carnival Corporation
Founded in 1972 Headquarters in Miami, Florida and
London, England Operates 102 cruise ships 91,000 employees worldwide
North America:
Carnival Cruise Lines (24 ships)Holland America Line (15 ships)Princess Cruises (17 ships)Seabourn (6 ships)
Europe
Cunard Cruises in U.K. (3 sP&O Cruises (UK) (7 ships)AIDA Cruises in Germany (Costa Cruises in Southern E
Iberocruceros in Spain (3 sh
AustraliaP&O Cruises Australia (3 sh
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Capital Structure
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Capital Structure
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Liability Analysis
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Liability Analysis
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Liabilities
Financing Activities
$576.6 million in repayments of debt, proceedsand paid in dividends
Future capital commitmentsNew ship orders: 3 Quantum-class/1 Oasis-cla
Funding Needs$3.0 billion in contractual obligations
Long-term Debt Obligations$2.0 billion as revolving borrowing capacity
Debt covenantsMinimum net worth of $5.9 billion
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Shareholders Equity
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Profitability
5.95% 6.97%
Royal aribbean Carnival
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Profitability
2.37% 2.72%
Royal aribbean Carnival
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Profitability
5.53% 4.45%
Royal aribbean Carnival
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End of yearRoyal Caribbean (In thousands) Car
2013 2012 2011 2013
Operating Activities
Net income 473,692 18,287 607,421 1,078
Net cash provided by operating
activities1,412,068 1,381,734 1,455,739 2,834
Investing Activities
Net cash used in investing activities (824,538) (1,263,323) (924,565) (2,056)
Financing Activities
Net cash used in financing activities (576,626) (179,617) (676,515) (780)
Net increase (decrease) in cash and
cash equivalents9,832 (67,331) (157,743) (3)
Cash and cash equivalents at
beginning of year194,855 262,186 419,929 465
Cash and cash equivalents at end of
year204,687 194,855 262,186 462
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Profitabi
Royalaribbean Carnival$ 8 billion $ 15.5 billion
41 ships 100 ship
14200 employees 64,000 employees
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Liquidity
Current Obligation- Financially capable
WE VS Carnival
MEASUREMENT ROYAL CARIBBEAN CARNIVAL
WORKING CAPITAL (3.3) BILLION (4.8) BILLIO
CURRENT RATIO 22.4% 28.8%
ACID-TEST RATIO 10.9% 12.9%
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Debt Financing
Royal VS Caribbean in 2013
Royal: 1.9 billion liquidity
204.7 million cash
1.7 billion unsecured credit facilitie
Carnival: 6.5 billion liquidity
187 in cash
2.8 revolving credit facilities
3.5 committed export ship financin
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Capital Structure
ROE : 5.53% > 4.45% of Carnival
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Corporate Governance
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Recommendation
Would we loan money short-term to RCL?
No
Would we loan money long-term to RCL?
Yes
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Recommendation
Royals 2013 revenue = $8 billion - 41 ships(approx. $195 million per ship
Carnivals 2013 revenue = $15.5 billion - 102 ships(approx. $150 million per ship)
Royals ShareholdersStock price = $56.95 per shareROE = 5.53%EPS = 2.16
Carnivals ShareholdersStock price = 40.15 per shareROE = 4.45%EPS = 1.39
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Recommendation
Would you want to work for Royal Caribbean?
Interesting
Salary
Stock awards for key employees
Payroll and related $842 millions
Pension Plan expenses $13 millions
Employee Right
Safety, Environment and Health Department
About 80% of the on-crew-employees are represenunder a collective bargaining agreement
Future Plan
competitive compensation structure, developmentother personal and professional growth opportunitie
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Muse Wealth Co. LtdMuse Wealth Financial Service and Wealth Management
Muse Wealth Co., Ltd
Hexuan Li
06/19/14
Signat