Skip to content
AnalystLens

CARNIVAL CORP Quarterly Report for Q2 Ended May 31, 2006

Filing Date
Filed June 30, 2006
Period End
May 31, 2006
Security
CCL
In the record · 2016–202610-K1210-Q348-K166

CCL filed 12 annual reports (10-K), 34 quarterly reports (10-Q) and 166 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Oct ’16Oct ’16
  2. FY2018 annual report10-K · Jan ’19Jan ’19
  3. Material agreement8-K · Nov ’21Nov ’21
  4. Material agreement8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-Q filed June 30, 2006. Cited figures are marked; the original filing is the authoritative source.

Carnival Corporation & plc reported solid financial results for the six months ended May 31, 2006, with net income of $631 milliona, a decrease from $736 million in the prior year period, primarily due to increased fuel costs and the adoption of new accounting standards for share-based compensation.

Revenues increased year-over-year, driven by both higher passenger volumes and improved net revenue yields, demonstrating the company's pricing power and ability to grow its top line. Despite increased operating costs, particularly fuel, the company's strong operational performance and strategic capital allocation, including significant investments in new shipbuilding and shareholder returns through dividends and share repurchases, highlight its financial resilience. Management provided a positive outlook for the remainder of fiscal year 2006, projecting diluted earnings per share between $2.65b and $2.75, signaling continued growth and profitability.

02—Key points

Key Highlights

  1. Net income for the six months ended May 31, 2006, was $631 million, compared to $736 million in the same period of 2005.
  2. Total revenues for the six months ended May 31, 2006, increased to $5.125 billion from $4.914 billion in the prior year period.
  3. Net cruise revenues increased by 5.1% to $4.06 billion for the six months ended May 31, 2006.
  4. Net cruise costs increased by 10.3% to $2.77 billion for the six months ended May 31, 2006, significantly impacted by a 51.5% rise in fuel costs.
  5. The company paid $404 million in dividends and purchased $473 million of treasury stock during the six months ended May 31, 2006, demonstrating a commitment to shareholder returns.
  6. Carnival changed its accounting method for dry-dock costs from deferral to direct expense, impacting reported expenses and net income for the periods presented.
  7. The company anticipates full-year 2006 diluted earnings per share to be between $2.65 and $2.75.

03—Questions

Frequently Asked Questions

  1. What was the primary driver of the decrease in net income for the six months ended May 31, 2006?

    The decrease in net income was primarily driven by a significant increase in fuel costs, which rose by 51.5% per metric ton, and the adoption of new accounting standards for share-based compensation (SFAS No. 123(R)), which increased expenses.

  2. How did revenue performance compare year-over-year?

    Total revenues increased by 4.3% to $5.125 billion for the six months ended May 31, 2006, compared to $4.914 billion in the same period of 2005. This growth was fueled by a 3.8% increase in available lower berths (ALBDs) and a 1.3% increase in net revenue yields.

  3. What significant changes were made to accounting policies during this period?

    Carnival elected to change its method of accounting for dry-dock costs from the deferral method to the direct expense method. This change, adopted in accordance with SFAS No. 154, has been retrospectively applied to all prior periods presented, impacting the comparability of financial statements.

  4. What is the company's outlook for the remainder of fiscal year 2006?

    Management projected diluted earnings per share for the full year 2006 to be between $2.65 and $2.75, based on expected fuel prices and currency exchange rates at that time.

04—Continue

← View all 10-Q filings