Summary
Carnival Corporation & plc reported a decline in revenues and net income for the three and six months ended May 31, 2009, compared to the same periods in 2008. This downturn is primarily attributed to the adverse impact of the economic recession on consumer spending for cruise tickets and onboard services, as well as a stronger U.S. dollar against the euro and sterling. Despite the revenue challenges, the company managed operating expenses effectively, largely due to lower fuel prices and currency benefits. Net income for the three months ended May 31, 2009, was $264 million, or $0.33 per diluted share, down from $390 million, or $0.49 per diluted share, in the prior year. For the six months, net income was $524 million, or $0.66 per diluted share, compared to $626 million, or $0.78 per diluted share, in the prior year. Cash flow from operations remained solid, but was impacted by a decrease in customer deposits due to booking trends. The company continues to invest in its shipbuilding program, with significant capital expenditures. Carnival has taken steps to preserve cash, including suspending its quarterly dividend and maintaining a strong liquidity position through committed credit facilities. Management anticipates sufficient cash flow and financing to meet its obligations and capital commitments for the foreseeable future.
Financial Highlights
26 data points| Revenue | $2.95B |
| Cost of Revenue | $1.89B |
| Gross Profit | $1.06B |
| SG&A Expenses | $393.00M |
| Operating Expenses | $2.60B |
| Operating Income | $353.00M |
| Interest Expense | $90.00M |
| Net Income | $264.00M |
| EPS (Basic) | $0.34 |
| EPS (Diluted) | $0.33 |
Key Highlights
- 1Total revenues decreased by 12.7% for the three months ended May 31, 2009 ($2.9 billion vs. $3.4 billion in 2008) and 11.0% for the six months ended May 31, 2009 ($5.8 billion vs. $6.5 billion in 2008), driven by economic downturn and currency headwinds.
- 2Net income for the three months ended May 31, 2009, was $264 million ($0.33/share), down from $390 million ($0.49/share) in 2008. For the six months, net income was $524 million ($0.66/share), down from $626 million ($0.78/share) in 2008.
- 3Operating costs decreased significantly due to lower fuel prices (down 43% per metric ton) and the stronger U.S. dollar, partially offsetting revenue declines.
- 4The company's capacity, measured in Available Lower Berth Days (ALBDs), increased by 5.9% for the quarter and 4.1% for the six months, reflecting new ship deliveries.
- 5Net revenue yields (a key performance indicator) decreased significantly on both a reported and constant dollar basis, reflecting weaker pricing power in the challenging economic environment.
- 6Cash flow from operations for the six months was $1.4 billion, a decrease from $1.8 billion in the prior year, impacted by lower customer deposits.
- 7Carnival has suspended its quarterly dividend and is focused on preserving cash, with $4.8 billion in liquidity available as of May 31, 2009, including cash, credit facilities, and committed financing.