Summary
Carnival Corporation & plc reported a net income of $37 million for the first quarter of 2013, a significant turnaround from a net loss of $139 million in the same period of 2012. This improvement was driven by a $227 million increase in operating income, largely due to the absence of a substantial goodwill and trademark impairment charge of $173 million recognized in the prior year related to its Ibero brand, as well as improved operating efficiencies and a rebound in the EAA cruise brands' performance. Revenues remained relatively flat year-over-year, with total revenues at $3.593 billion in Q1 2013 compared to $3.582 billion in Q1 2012. While cruise passenger ticket revenues saw a slight decline, onboard and other cruise revenues increased, contributing positively. Despite the revenue stability, the company managed to reduce its operating costs and expenses by $95 million, primarily due to lower commissions, transportation, and other related expenses, and a decrease in fuel costs. The company's financial position shows a strong liquidity position with $5.9 billion available, though it reported a working capital deficit of $5.0 billion, which management stated is typical for their business model due to significant customer deposits collected in advance.
Financial Highlights
51 data points| Cost of Revenue | $2.60B |
| SG&A Expenses | $460.00M |
| Operating Expenses | $3.45B |
| Operating Income | $145.00M |
| Interest Expense | $83.00M |
| Net Income | $37.00M |
| EPS (Basic) | $0.05 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 776.00M |
| Shares Outstanding (Diluted) | 778.00M |
Key Highlights
- 1Achieved net income of $37 million in Q1 2013, a substantial improvement from a net loss of $139 million in Q1 2012.
- 2Consolidated revenues were stable at $3.593 billion for Q1 2013, compared to $3.582 billion in Q1 2012.
- 3Operating costs and expenses decreased by $95 million (3.5%) year-over-year, contributing to the improved profitability.
- 4The absence of a $173 million Ibero goodwill and trademark impairment charge from Q1 2012 significantly boosted the current quarter's net income.
- 5The company generated $399 million in net cash from operating activities in Q1 2013, an increase of 24% from $322 million in the prior year.
- 6Carnival declared a dividend of $0.25 per share, consistent with the prior year's first quarter.
- 7A total of $241 million was invested in capital projects, including $60 million for new shipbuilding.