01—Abstract
Summary
Summary of the 10-Q filed April 3, 2013. Cited figures are marked; the original filing is the authoritative source.
Carnival Corporation & plc reported a net income of $37 milliona 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 millionb 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 millionc, 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.
02—Key points
Key Highlights
- Achieved net income of $37 million in Q1 2013, a substantial improvement from a net loss of $139 million in Q1 2012.
- Consolidated revenues were stable at $3.593 billion for Q1 2013, compared to $3.582 billion in Q1 2012.
- Operating costs and expenses decreased by $95 million (3.5%) year-over-year, contributing to the improved profitability.
- The absence of a $173 million Ibero goodwill and trademark impairment charge from Q1 2012 significantly boosted the current quarter's net income.
- The company generated $399 million in net cash from operating activities in Q1 2013, an increase of 24% from $322 million in the prior year.
- Carnival declared a dividend of $0.25 per share, consistent with the prior year's first quarter.
- A total of $241 million was invested in capital projects, including $60 million for new shipbuilding.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2013filed April 3, 2013Financial Statements
Q1 FY2013 against Q1 FY2012
| Line item | Q1 FY2013Q1 FY2012 | Change |
|---|---|---|
| Cost of Revenue | $2.60B$2.69B | −3.5% |
| SG&A Expenses | $460.00M$421.00M | +9.3% |
| Operating Expenses | $3.45B$3.66B | −5.9% |
| Operating Income | $145.00M-$82.00M | +276.8% |
| Interest Expense | $83.00M$88.00M | −5.7% |
| Net Income | $37.00M-$139.00M | +126.6% |
| EPS (Basic) | $0.05$-0.18 | +127.8% |
| EPS (Diluted) | $0.05$-0.18 | +127.8% |
| Shares Outstanding (Basic) | 776.00M778.00M | −0.3% |
| Shares Outstanding (Diluted) | 778.00M778.00M | 0.0% |
05—Questions
Frequently Asked Questions
What was Carnival's profitability in the first quarter of 2013 compared to the prior year?
Carnival Corporation & plc reported a net income of $37 million for the three months ended February 28, 2013, a significant improvement from a net loss of $139 million in the same period of 2012. This turnaround was primarily driven by higher operating income and the absence of impairment charges recorded in the prior year.
How did Carnival's revenues perform in the first quarter of 2013?
Total revenues remained largely flat, standing at $3.593 billion for the three months ended February 28, 2013, compared to $3.582 billion for the same period in 2012. While cruise passenger ticket revenues slightly decreased, onboard and other cruise revenues saw an increase.
What is the company's cash flow and liquidity situation?
The company generated $399 million in net cash from operating activities in the first quarter of 2013, an increase from $322 million in the prior year. Carnival reported overall liquidity of $5.9 billion at the end of the quarter, consisting of cash and cash equivalents, available borrowing under credit facilities, and committed ship financings, indicating a strong ability to meet its financial obligations.
Were there any significant charges or impairments during this period?
In the first quarter of 2013, there were no significant impairment charges. However, in the prior year's first quarter (ended February 29, 2012), Carnival recognized a $173 million goodwill and trademark impairment charge related to its Ibero brand, which significantly impacted the previous year's results.
06—Continue