Summary
Carnival Corporation & plc's (CCL) third-quarter 2014 report shows a solid performance with a notable increase in net income and operating income compared to the prior year. Total revenues for the quarter increased due to higher ticket prices, increased capacity, and favorable currency translation, while onboard and other revenues also saw a significant boost from increased guest spending. The company successfully managed its operating costs, benefiting from the non-recurrence of prior year impairment charges and lower fuel prices, leading to improved profitability. Financially, Carnival demonstrated a strong operational cash flow generation, which was utilized to fund its capital expenditure program, including shipbuilding and fleet improvements. Despite a reported working capital deficit, the company highlighted that a significant portion of this is due to customer deposits, and that adjusted working capital remains manageable given its business model and access to revolving credit facilities. The company also provided positive forward-looking statements regarding advance bookings for 2015, anticipating net revenue yield growth, while also signaling planned increases in net cruise costs excluding fuel due to investments in new emissions technology.
Financial Highlights
49 data points| Cost of Revenue | $2.76B |
| SG&A Expenses | $481.00M |
| Operating Expenses | $3.65B |
| Operating Income | $1.29B |
| Interest Expense | $69.00M |
| Net Income | $1.24B |
| EPS (Basic) | $1.60 |
| EPS (Diluted) | $1.60 |
| Shares Outstanding (Basic) | 776.00M |
| Shares Outstanding (Diluted) | 778.00M |
Key Highlights
- 1Net income for the three months ended August 31, 2014, increased to $1,247 million, up from $934 million in the same period of 2013.
- 2Consolidated revenues rose by 4.5% to $4,947 million for the quarter, driven by increases in passenger ticket revenues and onboard/other revenues.
- 3Operating income saw a substantial increase of 36.5% to $1,298 million, reflecting improved revenue and controlled operating costs.
- 4The company experienced a 2.2% increase in capacity (ALBDs) for the quarter compared to the prior year.
- 5Net cruise costs excluding fuel per ALBD increased slightly by 2.1%, largely due to capacity expansion, with a positive outlook on future fuel cost mitigation through technology investments.
- 6Carnival's outlook for the full year 2015 anticipates net revenue yield growth, although net cruise costs excluding fuel are expected to increase due to investments in air emissions technology.
- 7The company continues to manage its debt effectively, with a focus on maintaining investment grade credit ratings and returning capital to shareholders through dividends and share buybacks.