Regent Seven Seas Reports Decline in Third Quarter Profit
By Theresa Norton Masek
November 08, 2011 11:11 AM
Regent Seven Seas Cruises on Nov. 8 reported net income of $19.5 million for the third quarter ended Sept. 30, compared to net income of $27.7 million for the same period last year. Adjusted EBITDA was $40.6 million on revenue of $151.3 million for the third quarter of 2011, compared to adjusted EBITDA of $47.5 million on revenue of $152.1 million for the third quarter of 2010.
Net yield was up 3.9 percent driven by higher pricing with net per diem up 3 percent and occupancy increasing 0.8 percentage points. The company said the third quarter included a 6.8 percent reduction in capacity caused by a 17-day scheduled dry-dock for Seven Seas Voyager. There were no dry-docks in the third quarter of 2010.
“Regent’s luxury cruise experience continues to be very well received by both our guests and travel agency partners. We are thrilled with the record occupancy and yields we were able to obtain in the third quarter,” said company Chairman and CEO Frank Del Rio. “The Seven Seas Voyager’s dry-dock in September completes the ambitious $100 million-plus upgrade program that we embarked upon nearly four years ago, and we believe the results are impressive.”
Fuel expense increased 44.7 percent, or $3 million. Regent said its economic hedging strategy partially offset this increase. Other expenses included $5 million primarily attributable to the Voyager’s 17-day dry-dock.