Summary
Carnival Corporation & plc reported mixed financial results for the second quarter and first six months of fiscal year 2012, ending May 31, 2012. For the second quarter, the company reported net income of $14 million ($0.02 per diluted share), a significant decrease from $206 million ($0.26 per diluted share) in the prior year. This decline was primarily attributed to unrealized losses on fuel derivatives and the ongoing impact of the Costa Concordia incident. Despite a decrease in cruise ticket revenues due to a stronger U.S. dollar and lower occupancy, onboard and other revenues saw a slight increase. For the first six months of fiscal year 2012, the company reported a net loss of $125 million ($0.16 per diluted share), a stark contrast to a net income of $358 million ($0.45 per diluted share) in the same period last year. This loss was exacerbated by substantial impairment charges related to Ibero goodwill and trademarks, in addition to the impact of fuel derivative losses and the Costa Concordia incident. While capacity increased year-over-year, revenue growth was muted by currency headwinds and challenges in the European market. The company is actively managing its liquidity, with significant cash on hand and available credit facilities, and anticipates that its operating cash flow will be sufficient to fund its capital expenditure program and debt obligations.
Financial Highlights
51 data points| Cost of Revenue | $2.48B |
| SG&A Expenses | $431.00M |
| Operating Expenses | $3.29B |
| Operating Income | $253.00M |
| Interest Expense | $87.00M |
| Net Income | $14.00M |
| EPS (Basic) | $0.02 |
| EPS (Diluted) | $0.02 |
| Shares Outstanding (Basic) | 779.00M |
| Shares Outstanding (Diluted) | 779.00M |
Key Highlights
- 1Net income for the three months ended May 31, 2012, was $14 million, a substantial decrease from $206 million in the prior year, impacted by fuel derivative losses and the Costa Concordia incident.
- 2For the six months ended May 31, 2012, the company reported a net loss of $125 million, compared to a net income of $358 million in the same period last year, largely due to impairment charges and fuel derivative impacts.
- 3Consolidated revenues for the three months ended May 31, 2012, were $3.538 billion, a slight decrease from $3.620 billion in the prior year, impacted by currency headwinds and lower occupancy.
- 4Consolidated revenues for the six months ended May 31, 2012, were $7.120 billion, an increase from $7.039 billion in the prior year, driven by increased capacity and onboard spending, partially offset by currency impacts.
- 5Operating costs and expenses for the three months ended May 31, 2012, remained flat at $2.478 billion compared to the prior year, despite increased fuel prices and capacity, due to currency impacts and insurance proceeds.
- 6Operating costs and expenses for the six months ended May 31, 2012, increased to $6.949 billion from $6.525 billion in the prior year, primarily due to higher fuel prices and impairment charges.
- 7The company ended the quarter with $900 million in cash and cash equivalents, and maintained strong liquidity with $5.9 billion available through cash, credit facilities, and committed ship financings.