final ppt (rcl)

8/12/2019 Final Ppt (Rcl)

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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%



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Profitability

5.53% 4.45%



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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

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