01—Abstract
Summary
Summary of the 10-Q/A filed April 6, 2009. Cited figures are marked; the original filing is the authoritative source.
Carnival Corporation & plc's (CCL) Q1 2009 10-Q filing details its share repurchase programs and activities.
The company continues to utilize its general repurchase authorization and a specific "Stock Swap" program, which involves issuing CCL common stock to fund the repurchase of CCL ordinary shares. As of April 1, 2009, there was $787 milliona remaining under the general repurchase authorization. The company's strategy for the Stock Swap program is to exploit pricing discrepancies between the two share classes to potentially repurchase Carnival plc shares at a discount while issuing Carnival Corporation stock.
02—Key points
Key Highlights
- As of April 1, 2009, Carnival had $787 million remaining under its general share repurchase authorization.
- The "Stock Swap" program allows the company to issue Carnival Corporation common stock to fund the repurchase of Carnival plc ordinary shares.
- The Stock Swap program is strategically employed when Carnival plc shares trade at a significant discount to Carnival Corporation shares.
- During the period December 1, 2008, through February 28, 2009, Carnival sold 450,000 shares of Carnival Corporation common stock for gross proceeds of $10 million.
- The net proceeds from the Stock Swap program sales ($9 million) during the specified period were primarily used to repurchase Carnival plc ordinary shares.
- The average price paid for Carnival plc shares repurchased in February 2009 was $20.28 per share.
- Shareholder approval for Carnival plc ordinary share repurchases is required annually and is valid until the earlier of the 2009 annual general meeting or October 21, 2009.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2009, Carnival Corp kept $0.09.
- Revenue$2.86B100.0%
- Cost of revenue−$1.85B64.6%
- Gross profit$1.01B35.4%
- Operating costs−$703.0M24.5%
- Operating income$311.0M10.9%
- Interest, other & tax−$51.0M1.8%
- Net income$260.0M9.1%
04—Financials
Financial Highlights
Figures from 10-Q/AQ1 FY2009filed April 6, 2009Financial Statements
| Revenue | $2.86B |
| Cost of Revenue | $1.85B |
| Gross Profit | $1.01B |
| SG&A Expenses | $392.00M |
| Operating Expenses | $2.55B |
| Operating Income | $311.00M |
| Interest Expense | $96.00M |
| Net Income | $260.00M |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.33 |
05—Questions
Frequently Asked Questions
What is the "Stock Swap" program and why is Carnival using it?
The "Stock Swap" program is a mechanism where Carnival Corporation issues its common stock in the U.S. market and uses the proceeds to repurchase Carnival plc ordinary shares in the UK market. The company uses this program when Carnival plc shares are trading at a significant discount to Carnival Corporation shares, aiming to achieve an economic benefit through these repurchases.
How much authorization does Carnival have for share repurchases?
Carnival has a general repurchase authorization with $787 million remaining as of April 1, 2009. Additionally, there was an authorization for up to 19.2 million Carnival plc ordinary shares under the "Stock Swap" program. Specific share repurchase authorizations require annual shareholder approval.
What were the recent activities related to the share repurchase programs?
Between December 1, 2008, and February 28, 2009, Carnival sold 450,000 shares of its common stock under the Stock Swap program, generating $10 million in gross proceeds. These net proceeds were primarily used to repurchase Carnival plc ordinary shares, with 450,000 shares repurchased at an average price of $20.28 per share in February 2009.
Are there any expiration dates for these repurchase programs?
The general repurchase authorization does not have an expiration date, but it can be discontinued at any time. Repurchases of Carnival plc ordinary shares under the general authorization require annual shareholder approval, valid until the earlier of the conclusion of the 2009 annual general meeting or October 21, 2009. The Stock Swap program, as detailed in the filing, had a Joint Shelf Registration Statement that expired on March 9, 2009, but a new one was filed and became effective.
06—Continue