RoyalCaribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping group,says it has identified an error in the previous accounting treatment of interest expense relating to its amortization of certain financing fees and has revised its past financial statements to reflect the correct accounting.
“Second quarter EPS was 47 cents before the Interest Expense Revision. After adjusting for the revision, the company reported earnings of 43 cents per share which is the midpoint of previous guidance range of 40 cents to 45 cents,” the company said in a statement.
“Excluding the Interest Expense Revision, full year 2011 EPS guidance is now expected to be $3.05 to $3.15, reflecting a 10 cent reduction to prior guidance oncontinuing pricing softness for Eastern Mediterranean sailings, partially offset by strong cost savings. The Interest Expense Revision is forecasted toreduce 2011 EPS by 20 cents resulting in full year 2011 EPS guidance of $2.85 to$2.95,” RCCL continued.