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Coast4Life Cruises

Coast4Life Inc. was incorporated federally on June 3, 2001, and is in the business of offering ocean cruises along the Canadian west coast, with stops at interesting ports of call in British Columbia. The company has a September 30 year end. In 2008, the original owners sold all their Coast4Life shares to the senior management group. Between 2002 and 2011, the company grew steadily from 135 to 574 employees and from $9.4 million to more than $55.7 million in revenue. Refer to Appendix 1 for Coast4Life’s historical financial results. Its vision and mission statements follow:

Vision – Coast4Life will be the first choice for vacationers who are seeking a safe, enjoyable and unique cruise experience in the northeastern Pacific Ocean.

Mission – Coast4Life meets the needs of North American vacationers by offering safe, enjoyable and unique cruises along the coast of British Columbia at affordable prices and at a high-quality level of service. Coast4Life also strives to minimize the effects of cruising on the ecology along the BC coast and maximize the safety of customers, staff and marine life by ensuring that the ships used are well maintained and that environmental and safety regulations are not only met, but exceeded.

Coast4Life had two ships. The first ship, which was called the Coastal Native, was acquired in 2001 at the bargain price of $20.1 million. In 2008, Coast4Life purchased another cruise ship, the Natural Splendour, at a cost of $53.1 million. It was five years old and did not require any refurbishment before being put into service.

In the cruise industry, passenger capacity is based on the assumption that there are two passengers per cabin (also called staterooms) although often a room is occupied by more than two people.

Coast4Life keeps its ships well maintained and has a policy that a ship must be refurbished at a dry dock every two years during the winter months. Prior to 2008, during the winters that the Coastal Native was not...