Royal Caribbean names William L. Kimsey lead director; announces plan to elect directors annually
Quarterly dividend increases to $0.25 per common share
MIAMI, Sept. 11, 2013 -- Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) today
announced that its board of directors had named its first lead director,
approved a plan to replace staggered terms for directors with annual
election, and more than doubled the quarterly dividend on its common
shares.
The moves, which were approved unanimously at the board's September 11th
meeting, reflect the board's continuing efforts to enhance its
corporate governance structure and drive long-term value creation for
its shareholders.
The board elected William L. Kimsey as its lead director. Mr. Kimsey,
who is the former chief executive officer of Ernst & Young Global,
Ltd., has served on the board since 2003 and is Chairman of the
company's Audit Committee. Mr. Kimsey also serves on the board of
directors of Accenture PLC and Western Digital Corporation. As lead
director, he will be the liaison between the board's non-management
members and Chairman and Chief Executive Officer Richard D. Fain. He
will preside at meetings of the non-management directors, will advise
and approve the content and scheduling of board meetings and
discussions, and will be available for discussion with major
shareholders.
Said Fain: "I'm delighted that Bill Kimsey has agreed to become our lead
director. He's been a consistent source of wise counsel, and his voice
will be even more important as we move forward."
Said Kimsey: "I am pleased by the steps our board has taken to further
enhance our corporate governance, and I look forward to working with my
fellow directors and management to improve shareholder value."
The board of directors also adopted changes to its bylaws as a result of
which candidates elected to the board will serve one-year terms, and
will stand for re-election annually thereafter, effective with the slate
of directors to be elected at the company's 2014 annual meeting. This
implements a proposal adopted by shareholders at the company's May 2013
annual meeting.
Today's actions demonstrate the company's commitment to continuous
improvement in its corporate governance practices following the 2011
termination of the Shareholders' Agreement between Royal Caribbean's two
largest shareholders, AWilhelmsen & Co and Cruise Associates.
Under that agreement, the two groups exercised effective control of the
company, with key decisions - including the selection of directors, the
choice of top management, and the approval of major capital
expenditures - made at the discretion of the two shareholders.
"The board's decisions affirm our focus on robust corporate governance.
These steps are a sensible progression forward from our earlier
governance structure," said Tom Pritzker, chairman of the company's
nominating and corporate governance committee.
The board also approved an increase of the quarterly cash dividend to $0.25 per common share, payable October 8, 2013 to shareholders of record September 24, 2013. This represents an exceptional jump, more than doubling the previous $0.12 per common share dividend level.
Said Fain: "Dividends are an increasingly important component of total
shareholder return. This dividend increase was made possible by our
profitability improvement program and our improving financial position.
It reflects our confidence in our ability to grow our investment
returns into the future, given strengthening results and modest capacity
growth."
Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) is a global cruise
vacation company that owns Royal Caribbean International, Celebrity
Cruises, Pullmantur, Azamara Club Cruises and CDF Croisieres de France,
as well as TUI Cruises through a 50 percent joint venture. Together,
these six brands operate a combined total of 41 ships with an additional
six under construction contracts. They operate diverse itineraries
around the world that call on approximately 455 destinations on all
seven continents. Additional information can be found on www.royalcaribbean.com, www.celebritycruises.com, www.pullmantur.es, www.azamaraclubcruises.com, www.cdfcroisieresdefrance.com or www.rclinvestor.com.
Certain statements in this release relating to, among other things, our
future performance constitute forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These statements
include, but are not limited to, statements regarding expected financial
results and the costs and yields expected in future periods. Words
such as "anticipate," "believe," "could," "estimate," "expect," "goal,"
"intend," "may," "plan," "project," "seek," "should," "will," and
similar expressions are intended to identify these forward-looking
statements. Forward-looking statements reflect management's current
expectations, are inherently uncertain and are subject to risks,
uncertainties and other factors, which could cause our actual results,
performance or achievements to differ materially from the future
results, performance or achievements expressed or implied in those
forward-looking statements. Examples of these risks, uncertainties and
other factors include, but are not limited to the following: the impact
of the economic environment on the demand for cruises, the impact of the
economic environment on our ability to generate cash flows from
operations or obtain new borrowings from the credit or capital markets
in amounts sufficient to satisfy our capital expenditures, debt
repayments and other financing needs, the uncertainties of conducting
business internationally and expanding into new markets, changes in
operating and financing costs, vacation industry competition and changes
in industry capacity and overcapacity, emergency ship repairs,
including the related lost revenue, the impact of ship delivery delays,
ship cancellations or ship construction price increases, financial
difficulties encountered by shipyards or their subcontractors and
incidents or adverse publicity concerning the cruise vacation industry
and the unavailability or cost of air service.
More information about factors that could affect our operating results
is included under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in our most recent annual report on Form 10-K and subsequent
quarterly reports on Form 10-Q, copies of which may be obtained by
visiting our Investor Relations web site at www.rclinvestor.com or the SEC's web site at www.sec.gov.
Undue reliance should not be placed on the forward-looking statements
in this release, which are based on information available to us on the
date hereof. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Source: Royal Caribbean Cruises Ltd.
