Weak Spanish economy, Costa Concordia impact behind Pullmantur impairment charge
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 04 February 2013 04 February 2013
Royal Caribbean Cruises Ltd (RCCL), the world's second largest cruise shipping group, says it conducts an analysis of the carrying value of its assets on a regular basis and in the past has pointed out the risks related to Pullmantur and the Spanish economy.
While the 2013 WAVE season is broadly off to a promising start, booking volumes and pricing are down substantially in Spain due to the impact of additional austerity measures there, the lingering impact of the Costa Concordia tragedy and other factors, the company said in a statement.
Accordingly, the company has recorded a total impairment charge of $413.9 million.
Of this amount, approximately $319.2 million relates to goodwill and the balance relates to a valuation allowance for deferred tax assets, a reduction in the value of the trademarks and an impairment charge related to three aircraft that Pullmantur owns and operates.
Regarding the impairment charge, Richard D. Fain, chairman and chief executive officer commented, "While it is appropriate that we record this impairment charge now, we remain confident in and committed to the Pullmantur brand. Despite terribly challenging multi-year economic headwinds, Pullmantur's management team has done an excellent job in maintaining the brand's market-leading position while simultaneously diversifying guest sourcing into new markets
RCCL: final quarter profit beats forecast but books $413.9 million Pullmantur charge
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 04 February 2013 04 February 2013
Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, has reported full year 2012 results and provided an initial outlook for 2013.
For the fourth quarter 2012, the group reported net income before impairment charges of $21.1 million, or $0.10 per share, versus income of $36.6 million, or $0.17 per share, in the fourth quarter of 2011. The fersh figure was above the average of $0.06 per share forecast by analysts in New York and Oslo. During the quarter the company recorded non-cash impairment charges totaling $413.9 million related to the company's Pullmantur brand.
Full year 2012 net income before impairment charges was $432.2 million, or $1.97 per share, versus income of $607.4 million, or $2.77 per share for full year 2011. Net Yields increased 3.0% on a Constant-Currency basis; 1.5% As-reported. NCC excluding fuel increased 4.2% on a Constant-Currency basis; 2.7% As-Reported.
Approximately 240 basis points of the Net Yield improvement and approximately 350 basis points of the NCC excluding fuel increases for the year relate to previously announced deployment initiatives and changes to the company's international distribution system. The company does not anticipate meaningful influences on yields or NCC measurements from changes in deployment or international distribution in 2013.
Norwegian to offer $300 million five year notes at 99.451%
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 04 February 2013 04 February 2013
Norwegian Cruise Line, a subsidiary of Norwegian Cruise Line Holdings Ltd that was recently listed on Nasdaq in New York, says it has entered into an agreement to sell $300 million aggregate principal amount of 5.00% senior unsecured notes due February 2018 in connection with a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act").
The notes are to be issued at an issue price of 99.451%.
“The Company intends to use the net proceeds from the Offering, together with borrowings under its senior secured revolving credit facilities, to redeem its $450 million 11.75% senior secured notes due 2016,” Norwegian said in a statement.
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