P&O PRINCESS CRUISES PLC Preliminary Report On the Financial Results For the Fourth Quarter and Full Year Ended 31 December 2000.Business Editors LONDON--(BUSINESS WIRE)--Feb. 15, 2001 P&O Princess Cruises Princess Cruises is an American cruise line, based out of Santa Clarita, California, that operates cruise ships also shares the same building with Cunard Line headquarters. It is one of the many cruise lines operated by the Carnival Corporation. (NYSE NYSE See: New York Stock Exchange :POC (Proof Of Concept) See PoC exploit. POC - Point Of Contact ) today announced its financial results for the fourth quarter and full year for 2000. In 2000 the company became an independently listed company listed company n → compañía cotizable listed company n → société cotée en Bourse listed company list n → , grew by 22% and produced a return on capital of 12.7%. Peter Ratcliffe Ratcliff or Ratcliffe may refer to a place or a person. Places in the United Kingdom:
"While we believe that trading conditions will remain competitive in 2001, the company looks forward to an improving situation," added Peter Ratcliffe. Cruising Cruising may mean:
Key points for the year -- Earnings per share of 40.1 cents in line with market expectations -- Operating profit of $373.6 million representing a return on capital of 12.7% -- 22% growth in passenger cruise days and net yields down 4% on a like for like basis -- Significant expansion in UK with introduction of Aurora and in Germany with acquisition of AIDA and Seetours Key points for the fourth quarter -- Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $15.9 million, with a small profit after interest and tax, before a one-off (1) One at a time. CD-ROM recorders (CD-R drives) are commonly called one-off machines because they write one CD-ROM at a time. (2) Only once. Software that is written to solve a specific problem only one time is sometimes called a one-off. exceptional write down on the sale of Victoria -- 26% increase in passenger cruise days -- Net yields down 13% on a like for like basis as previously anticipated 2001 Outlook -- Positive earnings expected in the first quarter -- Significantly reduced yield decline in first quarter -- Solid bookings for UK, Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). and Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. -- Princess Princess is the feminine form of prince (from Latin princeps, meaning citizen). Most often, the term has been used for the consort of a prince, or her daughters, women whose station in life depended on their relationship to a prince and who could be disowned and stripped bookings in line with previous year, pricing lower -- Our expectations for full year earnings are within the range of current market forecasts.
P&O PRINCESS CRUISES
SUMMARISED GROUP PROFIT AND LOSS ACCOUNT FOR THE 3 MONTHS
AND YEAR ENDED 31 DECEMBER 2000
Three months to Twelve months to
31 December 31 December
2000 1999 2000 1999
(Unaudited) (Unaudited) (Audited) (Audited)
US$ million
Turnover
(gross revenue) 484.8 465.3 2,423.9 2,111.6
Direct operating
costs (343.8) (295.7) (1,558.0) (1,301.9)
Selling and
administrative
expenses (88.5) (82.6) (348.2) (304.5)
Depreciation and
amortisation (36.7) (30.1) (144.6) (116.9)
(469.0) (408.4) (2,050.8) (1,723.3)
Operating profit 15.8 56.9 373.1 388.3
Share of operating
results
of joint ventures 0.1 - 0.5 -
Total operating
profit 5.9 56.9 373.6 388.3
Loss on disposal
of ships (6.0) - (6.7) (4.8)
Profit on sale of
businesses - - 0.2 -
Profit before
interest 9.9 56.9 367.1 383.5
Net interest and
similar items (13.9) (6.1) (49.1) (25.7)
Profit/(loss)
before
taxation (4.0) 50.8 318.0 357.8
Taxation 0.6 (6.5) (41.3) (47.0)
Profit/(loss) after
taxation (3.4) 44.3 276.7 310.8
Equity minority
interests (0.2) (0.5) (2.6) (0.5)
(3.6) 43.8 274.1 310.3
Proposed dividend
for the year (83.1) -
Retained profit for
the year 191.0 310.3
Basic earnings
per share (0.7)c 6.4c 40.1c 45.5c
Basic earnings
per ADS $(0.03) $0.26 $1.60 $1.82
Dividend per share 12.0c -
Dividend per ADS $0.48 -
Three months to Twelve months to
31 December 31 December
2000 1999 2000 1999
Operating statistics
Passenger cruise days
North America 1,430,931 1,235,578 5,902,352 5,262,186
Europe and Australia 801,352 533,405 2,828,308 1,870,639
Total 2,232,283 1,768,983 8,730,660 7,132,825
Occupancy
North America 98.1% 99.5% 99.9% 100.4%
Europe and Australia 96.5% 98.3% 97.9% 98.8%
Total 97.6% 99.1% 99.3% 100.0%
Change in Net Revenue
Yields
Like for Like
- excluding on board
revenue (13)% (4)%
- including on board
revenue (11)% (3)%
Like for Like is defined as movements in net revenue yields after
adjusting for the effects of the higher priced cruises over the
Millennium, changes in exchange rates and changes in the mix of
cruises.
Commentary on results
Fourth quarter results
In the fourth quarter, passenger cruise days increased by 26% over
the same period in 1999. Within this, Princess increased by 16% in
North America as a result of the introduction of Ocean Princess
earlier in the year, offset by the transfer of Sky Princess to
Australia in November, and P&O Cruises increased by 47% in the UK as a
result of the introduction of Aurora earlier in the year.
As previously reported, net revenue yields (a measure of average
prices achieved) for the quarter, were, on a like for like basis, 13%
lower excluding on board revenue, and 11% lower including on board
revenue. This resulted primarily from the competitive conditions in
North America, with the Caribbean and transcanal trades being the most
affected. The unsettled situation in Israel required us to suspend
calls at ports in that country which did result in reduced carryings
for the cruises concerned. This reduced the results by around $3
million.
Operating profit for the fourth quarter was $15.9 million compared
with $56.9 million in 1999, reflecting the lower yields and $4 million
of additional costs due to the higher price of fuel. There was an
exceptional $6 million accounting write down of the book value of
Victoria for which we have just entered into a contract for sale. The
prior period comparison is also affected by the $18 million of
additional income in the fourth quarter of 1999 on cruises which
spanned the Millennium. After interest and tax, for the fourth quarter
of 2000 we recorded a loss of $3.4 million, including the Victoria
write down of $6 million, against $44.3 million profit in 1999.
Year to 31 December 2000
For the year as a whole, passenger cruise days increased by 22% to
over 8.7 million. Within this, Princess grew by 12% in North America
due to the introduction of Ocean Princess in February, and P&O Cruises
by 32% in the UK due to the introduction of Aurora in April. The
remaining increase in passenger carryings resulted from the
acquisitions of the German businesses AIDA, in November 1999, and
Seetours, in April 2000.
Princess had a strong first quarter and another successful summer
season in Alaska and Europe. As noted above, pricing conditions were
challenging for Princess in the Caribbean and transcanal trades in the
fourth quarter. In the UK, P&O Cruises performed well, enjoying
revenue stability after Aurora added approximately 45% to capacity
from April. AIDA also performed well, with higher yields than achieved
in the previous year, prior to acquisition. Overall, net revenue
yields for the group compared to 1999 were, on a like for like basis,
4% lower excluding on board revenue, and 3% lower including on board
revenue, with the reduction resulting mainly from the lower yields
experienced in the fourth quarter.
Total operating profit for the year was $373.6 million against
$388.3 million for 1999, reflecting the lower yields, higher fuel
prices which increased costs by some $30 million, adverse exchange
rate movements which impacted operating profit by $6 million and a $7
million net reduction in the benefit of Millennium cruises, offset by
an underlying reduction in unit costs. Return on operating assets
remained strong at 12.7%. After interest and tax, profits were $276.7
million compared with $310.8 million for 1999. Earnings per share/ADS
were 40.1c/$1.60 against 45.5c/$1.82 for 1999.
Dividend
The Board is proposing a maiden dividend for the company of 12
cents per share. Subject to approval by the shareholders, this
dividend will be paid on 4 May 2001 to shareholders on the register on
6 April 2001. Unless they have elected otherwise, ordinary
shareholders will receive their dividend in sterling, converted at the
exchange rate on 18 April 2001. Holders of ADS will receive their
dividends, proposed at 48 cents per ADS, in US dollars.
As indicated in the Listing Particulars, we believe that the level
of dividends should be set by our peers in the sector. Consequently we
intend to pay dividends on a quarterly basis, with the full year
dividend divided into four approximately equal installments. The first
quarterly dividend for 2001 is expected to be 3 cents per share,
giving a base annual dividend of 12 cents per share. Although, this is
lower than the illustrative dividend indicated at the time the
demerger was announced a year ago, the Board considers it appropriate
for a growth company such as ourselves. We remain committed to
maintaining an efficient capital structure and will continue to ensure
funds are returned to shareholders where appropriate, consistent with
maintaining our financial position.
Expectations for 2001
As we have indicated in previous announcements, whilst trading
conditions for the first quarter of 2001 have been competitive,
particularly in the Caribbean, they are improved compared to those for
the fourth quarter of 2000. As a result Princess has experienced a
significantly lower level of yield reduction than in the previous
quarter. There has been some yield pressure for P&O Cruises in the UK
where capacity has increased by 45% year on year, and the 2000
comparative includes a highly successful two month charter of
Victoria. For the Group as a whole we anticipate that net revenue
yields, including on board spend, will be 6% lower, on a like for like
basis, than for the first quarter of 2000, as compared with the 11%
decline experienced in the previous quarter.
We will not, of course, have the benefit of the Millennium cruises
that added $11 million to the first quarter result last year. We will
also be incurring some one off costs as a result of our office
relocation in Los Angeles. Nevertheless, subject to unforeseen
circumstances, we do expect to improve on the fourth quarter result
and anticipate positive earnings per share of 2-3 cents.
For the remainder of the year, it is more difficult to estimate
the likely revenue yields. However, the booking situation in the UK,
Germany and Australia is solid with bookings and yields ahead of the
position this time last year. For Princess, the so-called "wave"
season is progressing well with the overall proportion of capacity
booked so far broadly in line with last year. Pricing for bookings
taken to date for the second and third quarters is somewhat lower than
at this time a year ago, particularly in the shoulder periods around
the peak summer season, but above the final average yield for 2000
sailings in the same periods.
It is early days as far as bookings for the fourth quarter are
concerned, but the outlook is positive when compared to the final
quarter of 2000 given the difficult final quarter of 2000 and the
entry of Golden Princess alongside her sister ship Grand Princess,
with its strong earning potential, into the fall 7 day Caribbean
trade.
It would appear that booking trends for the industry as a whole
are positive and this may make it possible to obtain price increases
as the year progresses. However, if this were not to be the case, on
current trends we would anticipate net revenue yields, including on
board revenue, to be 1-2% lower than 2000 on a like for like basis.
On the cost side, we expect to benefit from the improved cost
structure of Golden Princess when she joins the fleet in May. In
addition, we are implementing a number of cost reduction initiatives,
including Princess' office relocation from Century City to Valencia in
north Los Angeles county and the relocation of the United Kingdom
customer service centre from central London to Southampton. Overhead
costs will rise in Germany as we prepare for our significant expansion
in 2002. Nevertheless, subject to any increase in fuel costs from
their current levels, we anticipate achieving a reduction in unit
costs in excess of our annual target of 2%.
The 2001 results will benefit from the reduction in our tax rate
from 13% to around 5%. We expect to elect for the new UK tonnage tax
regime during the year and, although we may not enter the regime until
2002, our tax charge will benefit immediately as we will no longer be
required to provide for deferred tax on UK profits.
Overall, assuming a 1-2% yield reduction, and with the usual
caveats that apply to any projections, our current expectation for
full year 2001 earnings per share are within the range of current
market forecasts.
Business outlook
We remain positive on the prospects for the cruise industry.
Although there has been pressure on pricing in North America recently,
demand for cruising in the United States is continuing to grow and has
not yet matured. Clearly a strong United States economy would be
advantageous to us, but we believe that the industry can continue to
grow even in the event of more difficult economic conditions. We
expect the same drivers of demographics, rising disposable income and,
most importantly, product satisfaction, that are growing cruising in
North America to grow the European and other international markets.
However, the industry is at a much earlier stage of development in
these markets and has the potential for sustained growth rates, as
penetration into the overall vacation market increases.
With P&O Cruises in the UK and Seetours in Germany, we are a
leading cruise operator in two of the largest vacation markets outside
North America. We intend to build on these positions in the near term.
In addition to the two new ships we have on order for the AIDA brand,
Crown Princess will move to the German market in spring 2002 and we
expect Regal Princess to join her in 2004. In the UK we have one new
ship on order, and have today announced that Ocean Princess, to be
renamed Oceana, will transfer to the P&O Cruises fleet from Princess
in the final quarter of 2002. As these redeployments take place,
Victoria, which we have announced the sale of today, and Arkona will
be withdrawn from the UK and German markets respectively.
In both the UK and Germany we already enjoy high levels of
consumer awareness for our brands, with a significant passenger base
in these markets and have products tailored specifically for nationals
of these countries. Whilst the build up of overhead and marketing
expenditure in preparation for expansion in Germany will restrict
returns in the short term, we do believe that these strengths,
together with the fleet expansion through newbuildings and
redeployments, should result in returns above the cost of that capital
and drive earnings growth.
Princess Cruises will benefit over the next four years from the
delivery of four new Grand Princess sisters, as well as two new
panamax design ships. These ships will have industry leading
proportions of balcony cabins, and will be purpose built to deliver
the personal choice in dining and entertainment experience that our
target market desires. They have also been ordered at competitive
prices.
With the introduction of these new ships being offset by
redeployments of other vessels to the European markets, Princess'
capacity is now expected to grow at an average of around 10 percent
per annum over the next four years. This growth rate is consistent
with historic levels, which we believe will make it less likely for us
to need the lever of price to stimulate demand to meet this increased
supply. In addition, with their improved cost structure as compared
with the overall existing fleet, including those vessels being
withdrawn, the new ships should help to reduce unit costs for
Princess, as well as improve the quality of the product and the
revenue potential.
Princess Cruises strives to innovate and differentiate its
product. We have just introduced true restaurant style (personal
choice) dining on Grand Princess and will be rolling this out across
the fleet. We have also recently launched our new "where i belong"
marketing campaign, aimed at our target market of the 45-plus
experienced traveller and focussing on the segments with the fastest
growing demographics and disposable income. Princess continues to
enjoy strong levels of brand awareness and support from the travel
agent community, and has a leading position in the destination trades.
We do not seek to be a market leader in the Caribbean, but with a
modest year round presence and four sister ships to Grand Princess
joining the fleet, we believe their lower cost structure and higher
revenue potential will allow us to compete effectively in this trade,
notwithstanding our relatively small share.
Finally, we believe that we can continue to improve the cost
structure of the Group and bring it more closely into line with that
of our major competitors. We expect to benefit from economies of scale
both shoreside and in the fleet as we grow by 65% in the next four
years, the introduction of large, more cost effective ships, taking the
average vessel size from 1,450 berths to 1,850 over four years, and
the integration of our systems and purchasing across our global
operations. Cost control will be a focus for management going
forwards. Our target remains to reduce unit costs by 2% per annum,
whilst maintaining the quality of our product and not compromising our
operating standards.
We have a solid financial base with a debt to capital employed
ratio of 28%, a stable tax structure and a current return on capital
of over 12% which positions us well for the future.
Approved by the Board on 15 February 2001
77 New Oxford Street
London, WC1A 1PP, UK
SUMMARISED GROUP BALANCE SHEET AS AT 31 DECEMBER 2000
2000 1999
US$ million
Goodwill 121.0 14.2
Ships 3,608.0 3,036.0
Properties and other
fixed assets 219.6 199.7
Investments 10.9 8.4
Stocks 79.8 78.9
Debtors 318.6 264.6
4,357.9 3,601.8
Net borrowings (Note 5) (967.0) (632.1)
Other creditors and provisions (927.1) (773.2)
Equity minority interests (0.2) (7.7)
2,463.6 2,188.8
Equity shareholders' funds (Note 2) 2,463.6 2,188.8
SUMMARISED GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2000
2000 1999
US$ million
Net cash inflow from operating activities 532.3 483.9
Returns on investments and servicing of finance (75.9) (39.1)
Taxation (34.3) (13.7)
Capital expenditure and financial investment
Purchase of ships (749.8) (233.6)
Purchase of other fixed assets (45.9) (58.6)
Disposal of ships 14.7 (2.0)
Disposal of other fixed assets 0.2 -
Net cash outflow for capital expenditure
and financial investment (780.8) (294.2)
Acquisitions and disposals
(Purchase)/disposal of subsidiaries (14.7) 1.5
Net cash (outflow)/inflow before financing (373.4) 138.4
Net cash inflow/(outflow) from financing 565.8 (113.2)
Increase in cash in the period 192.4 25.2
Movement in net borrowings:
Net cash (outflow)/inflow before financing (373.4) 138.4
Net investment by P&O 1.2 117.7
Amortisation of bond issue costs (0.2) -
Borrowings of subsidiaries acquired - (173.7)
Exchange movements in borrowings 37.5 16.4
Movement in net borrowings (334.9) 98.8
NOTES
1 Basis of preparation
P&O Princess Cruises plc acquired the cruise business of The
Peninsular and Oriental Steam Navigation Company ("P&O") on 23 October
2000. The acquisition was effected by way of a share exchange between
that company and its shareholders.
The consolidated financial statements have been prepared using
merger accounting principles as if the businesses comprising P&O
Princess Cruises had been part of P&O Princess Cruises for all periods
presented, since they have been under common control throughout this
period. Businesses acquired from or disposed of to third parties
during the periods presented have been accounted for using acquisition
accounting, from or to the date control passed.
The consolidated financial statements have been prepared in
conformity with accounting principles generally accepted in the United
Kingdom ("U.K. GAAP") under the historical cost convention, and in
accordance with applicable U.K. accounting standards.
2 Reconciliation of movements in shareholders' funds
Year to Year to
31 December 31 December
2000 1999
US$ million
Profit for the financial year 274.1 310.3
Exchange movements (5.5) (2.6)
Total recognised gains and losses 268.6 307.7
Dividends (83.1) -
New shares issued 41.3 -
Shares to be issued 46.8 -
Net investment by P&O 1.2 117.7
Net increase to shareholders' funds 274.8 425.4
Shareholders' funds at beginning
of year 2,188.8 1,763.4
Shareholders' funds at end of year 2,463.6 2,188.8
Shares to be issued consists of the estimated value of the outstanding
consideration in respect of the acquisition of the 49% minority
interest in AIDA Cruises Ltd.
3 Segmental analysis
Year to 31 Year to 31
December December
2000 1999 2000 1999
Turnover Total operating profit
US$million
North America 1,796.7 1,680.9 279.6 300.2
Europe and Australia 627.2 430.7 94.0 88.1
2,423.9 2,111.6 373.6 388.3
Year to 31 Year to 31
December December
2000 1999 2000 1999
Net operating assets Return on average
excluding goodwill net operating assets
US$million
North America 2,200.0 1,969.2 13.3% 15.3%
Europe and Australia 977.1 660.9 11.2% 15.2%
3,177.1 2,630.1 12.7% 15.3%
Return on net operating assets represents total operating profit
before goodwill amortisation divided by average net operating assets
excluding goodwill.
4 Earnings per share is calculated using the weighted average number
of shares in issue of 684.2 million (1999 681.2 million)
5 Net borrowings include bank loans, issued loan notes and bonds of
$1,054.0 million (1999 $210.6 million), short term borrowings and
overdrafts of $163.9 million (1999 $39.1 million) and loans to P&O
of $3.7 million (1999 loan from P&O $445.6 million) less cash of
$247.2 million (1999 $63.2 million).
6 The financial information set out above does not constitute the
Company's statutory accounts for the years ended 31 December 1999
and 31 December 2000. The company was formed during 2000 as part
of the creation of the P&O Princess Cruises Group following
demerger from The Peninsular and Oriental Steam Navigation
Company. The 2000 report and accounts will be delivered to the
registrar of companies following the Company's annual general
meeting. The auditors have reported on these accounts; their
report was unqualified and did not contain statements under
section 237 (2) or (3) of the Companies Act 1985.
QUARTERLY CONSOLIDATED UNAUDITED PROFIT
AND LOSS ACCOUNTS FOR 2000
US$million Q1 Q2 Q3 Q4 Total
2000 2000 2000 2000 2000
Turnover (gross
revenue) 519.0 642.0 778.1 484.8 2,423.9
Direct
operating
costs (344.6) (405.0) (464.6) (343.8) (1,558.0)
Selling and
administrative
expenses (80.5) (91.4) (87.8) (88.5) (348.2)
Depreciation and
amortisation (33.8) (37.3) (36.8) (36.7) (144.6)
(458.9) (533.7) (589.2) (469.0) (2,050.8)
Operating Profit 60.1 108.3 188.9 15.8 373.1
Share of
operating
results of
joint venture - - 0.4 0.1 0.5
Total operating
profit 60.1 108.3 189.3 15.9 373.6
Loss on disposal
of ships - - (0.7) (6.0) (6.7)
Profit on sale
of assets - 0.2 - - 0.2
Profit before
interest 60.1 108.5 188.6 9.9 367.1
Net interest
and similar
items (8.3) (13.3) (13.6) (13.9) (49.1)
Profit before
taxation 51.8 95.2 175.0 (4.0) 318.0
Taxation (6.7) (12.4) (22.8) 0.6 (41.3)
Profit/(loss)
after taxation 45.1 82.8 152.2 (3.4) 276.7
Equity minority
interests (0.4) (0.4) (1.6) (0.2) (2.6)
44.7 82.4 150.6 (3.6) 274.1
Earnings
per share 6.6c 12.1c 22.1c (0.7)c 40.1c
Earnings
per ADS $0.26 $0.49 $0.88 $(0.03) $1.60
Dividends
per share 12.0c
Dividends
per ADS $0.48
Operating
statistics
Passenger
cruise days
North America 1,436,190 1,531,576 1,503,655 1,430,931 5,902,352
Europe and
Australia 557,495 685,660 783,801 801,352 2,828,308
Total 1,993,685 2,217,236 2,287,456 2,232,283 8,730,660
Occupancy
North America 99.9% 100.1% 101.6% 98.1% 99.9%
Europe and
Australia 95.8% 97.3% 101.4% 96.5% 97.9%
Total 98.7% 99.2% 101.5% 97.6% 99.3%
CHANGES IN NET YIELD INDEX
The following table shows the trend in net revenue yields, including
on board revenue, expressed in US dollars, for North America and
Europe and Australia using 1995 as a base year with net revenue yield
in that year indexed to a value of 100.0.
Years ended 31 December
1995 1996 1997 1998 1999 2000
Change in net
revenue yields
(including onboard
revenue)
North America 100.0 102.5 106.5 110.7 111.5 106.3
Europe and
Australia 100.0 105.9 123.8 124.4 120.1 107.7
Total 100.0 103.5 111.6 114.8 114.4 106.7
Net revenue has historically been defined as gross revenue (turnover)
from the sale of cruises less the cost of sales (primarily travel
agent commissions) and the flight component of a fly-cruise. In order
to ensure consistency with the figures published by our peers in the
sector, we have published net revenue figures that include on board
revenue.
CAPACITY INCREASES
The estimated passenger cruise days for the period 2001 to 2004 are
shown below. This information takes account of the newbuild programme,
ship transfers and the company's current projections for ship
withdrawals.
Passenger cruise days
(millions) North UK Germany Australia Group
America
Total 2000 5.90 1.99 0.55 0.29 8.73
Quarter 1 2001 1.39 0.55 0.15 0.11 2.20
Quarter 2 2001 1.54 0.56 0.15 0.11 2.36
Quarter 3 2001 1.66 0.57 0.16 0.10 2.49
Quarter 4 2001 1.61 0.55 0.16 0.11 2.43
Total 2001 6.20 2.23 0.62 0.43 9.48
Total 2002 6.9 2.3 1.2 0.4 10.8
Total 2003 7.6 2.7 1.8 0.4 12.5
Total 2004 8.7 3.2 2.1 0.4 14.4
The number of berths and the implied growth in our geographic segments
is shown in the table below:
---------- Lower berths ----------
Segment Current Transfers/ Transfers/ Projected Average
capacity on order withdrawals capacity growth in
in 2004 pcds
North America 15,660 14,480 (5,840) 24,300 10%
United Kingdom 6,210 4,620 (700) 10,130 13%
Germany 1,700 5,720 (510) 6,910 40%
Australia 1,200 - - 1,200 8%
Total 24,770 24,820 (7,050) 42,540 13%
CAPACITY DEPLOYMENT
The planned capacity deployment within North America for the period
2000 to 2002 is as follows:
2000 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year
Passenger cruise
days (millions)
Alaska - 0.51 0.90 - 1.41
Caribbean 0.69 0.29 - 0.64 1.62
Europe - 0.23 0.41 0.07 0.71
Mexico 0.15 0.06 0.01 0.03 0.25
Panama Canal 0.33 0.16 0.01 0.34 0.84
Exotics and
other 0.27 0.28 0.17 0.35 1.07
1.44 1.53 1.50 1.43 5.90
2001 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year
Passenger cruise
days (millions)
Alaska - 0.46 0.80 - 1.26
Caribbean 0.76 0.36 0.24 0.76 2.12
Europe - 0.27 0.38 - 0.65
Mexico - 0.04 0.04 0.21 0.29
Panama Canal 0.32 0.22 0.01 0.22 0.77
Exotics and
other 0.31 0.19 0.19 0.42 1.11
1.39 1.54 1.66 1.61 6.20
2002 Full Year
Passenger cruise days (millions)
Alaska 1.4
Caribbean 2.3
Europe 0.8
Mexico 0.4
Panama Canal 0.7
Exotics and other 1.3
6.9
CAPITAL EXPENDITURE COMMITMENTS
P&O Princess Cruises had nine ships on order as at 31 December 2000,
which are scheduled for delivery from 2001 to 2004. As at 31 December
2000, the Group had incurred $376.5 million of capital expenditure in
respect of these ships excluding capitalised interest of $25.0
million. The future capital commitments (including contract stage
payments, design and engineering fees and various owner supplied items
and excluding capitalised interest) by year in respect of ships on
order are set out below:
Ship deliveries Delivery Commitment
Date $'m
2001
Golden Princess Second quarter 01 522.5
2002
Star Princess First quarter 02
AIDAvita First quarter 02 992.9
Coral Princess Fourth quarter 02
2003
AIDA unnamed First quarter 03
Island Princess Second quarter 03 906.7
Diamond Princess Third quarter 03
2004
P&O Cruises unnamed Second quarter 04 750.1
Sapphire Princess Second quarter 04
3,172.2
P&O Princess Cruises also has fixed price options with Chantiers
d'Atlantique to build two 1,970 berth vessels for delivery in 2004.
These options expire in June 2001.
OPERATING STATISTICS Definitions Passenger cruise days (pcds) means the number of passengers who could be carried on board (defined by lower berth Noun 1. lower berth - the lower of two berths lower built in bed, bunk, berth - a bed on a ship or train; usually in tiers capacity) multiplied mul·ti·ply 1 v. mul·ti·plied, mul·ti·ply·ing, mul·ti·plies v.tr. 1. To increase the amount, number, or degree of. 2. Mathematics To perform multiplication on. by the available cruise days. Cruises that begin in one accounting period and end in another have their pcds apportioned ap·por·tion tr.v. ap·por·tioned, ap·por·tion·ing, ap·por·tions To divide and assign according to a plan; allot: "The tendency persists to apportion blame as suits the circumstances" accordingly; the financial results are treated similarly. Occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy is calculated by dividing the achieved pcds by the offered pcds. Since the former includes upper berths Noun 1. upper berth - the higher of two berths upper built in bed, bunk, berth - a bed on a ship or train; usually in tiers whereas the latter includes only lower berths, the occupancy can exceed 100%. Net revenue has historically been defined as gross revenue (turnover) from the sale of cruises less the cost of sales (primarily travel agent commissions) and the flight component of a fly-cruise. In the future, in order to ensure consistency Consistency can refer to:
Like for Like is defined as movements in net revenue yields after adjusting for the effects of the higher priced cruises over the Millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. , changes in exchange rates and changes in the mix of cruises. About P&O Princess Cruises plc P&O Princess Cruises plc is one of the largest international cruise companies with some of the strongest cruising brand names: Princess Cruises in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ; P&O Cruises in the UK and in Australia; AIDA (language) AIDA - 1. A functional dialect of Dictionary APL by M. Gfeller. ["APL Arrays and Their Editor", M. Gfeller, SIGPLAN Notices 21(6):18-27 (June 1986) and SIGAPL Conf Proc]. 2. and Seetours in Germany and Swan Hellenic Swan Hellenic is a British cruise line specialising in tours of historical or cultural interest aimed at the upper end of the cruise market. It began in the 1950s when the Swan travel agency, operated by two brothers by the name of Swan, was asked to organise a tour for also in the UK. It is a leading provider of cruises to Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States , the Caribbean, Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , the Panama Canal Panama Canal, waterway across the Isthmus of Panama, connecting the Atlantic (by way of the Caribbean Sea) and Pacific oceans, built by the United States (1904–14) on territory leased from the republic of Panama. and other Exotic exoticnot native, not indigenous. destinations. The current complement of 17 ships offering 24,770 berths is set to grow in the next four years with the addition of 9 ships offering a further 19,620 berths. P&O Princess Cruises has approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 19,000 employees worldwide and in 2000 generated revenue of over $2 billion ((pound)1.4 billion). Headquartered in London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , P&O Princess Cruises' ordinary shares are quoted on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. and as ADSs on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (under the symbol "POC"). Website: www.poprincesscruises.com Statements in this report on financials relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc matters that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performances or achievements of P&O Princess Cruises to be materially different from any future results, performances or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such factors include general economic and business conditions, changes in cruise industry capacity and competition, changes in tax and other laws and regulations affecting P&O Princess Cruises and other factors, which are described in further detail in P&O Princess Cruises' filings with the Securities and Exchange Commission and the UK Listing Authority. |
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