Summary
Carnival Corporation & plc reported significant revenue increases in the three months ended August 31, 2021, compared to the same period in 2020, reflecting a gradual return to service for eight of its nine brands. However, the company continued to incur substantial net losses, with the nine-month period ending August 31, 2021, showing a net loss of $6.88 billion. Despite ongoing operational challenges and a continued net loss, management believes the company has sufficient liquidity to meet its obligations for at least the next twelve months, supported by $7.8 billion in cash and short-term investments as of August 31, 2021. The company's financial performance remains heavily impacted by the COVID-19 pandemic, necessitating ongoing cost-saving measures and strategic financial maneuvers, including significant debt issuances and amendments to defer principal payments. While the phased resumption of operations is a positive step, occupancy levels remain considerably lower than historical averages, and a full return to pre-pandemic performance is not expected in the near term, with management anticipating continued net losses for the remainder of 2021.
Financial Highlights
53 data points| Revenue | $546.00M |
| Cost of Revenue | $1.62B |
| Gross Profit | -$1.07B |
| SG&A Expenses | $425.00M |
| Operating Expenses | $2.60B |
| Operating Income | -$2.06B |
| Interest Expense | $418.00M |
| Net Income | -$2.84B |
| EPS (Basic) | $-2.50 |
| EPS (Diluted) | $-2.50 |
| Shares Outstanding (Basic) | 1.13B |
| Shares Outstanding (Diluted) | 1.13B |
Key Highlights
- 1Revenue for the three months ended August 31, 2021, was $546 million, a substantial increase from $31 million in the prior year, driven by the gradual resumption of guest cruise operations.
- 2The company reported a net loss of $2.836 billion for the three months ended August 31, 2021, and a net loss of $6.881 billion for the nine months ended August 31, 2021, continuing the trend from the prior year.
- 3Liquidity remains a key focus, with $7.8 billion in cash and short-term investments as of August 31, 2021. Management believes this provides sufficient liquidity for at least the next twelve months.
- 4Operating costs and expenses remain high, with $1.616 billion for the three months and $2.832 billion for the nine months ended August 31, 2021, though these figures are lower than the comparable 2020 periods due to the full pause in operations that year.
- 5Significant debt financing activities occurred, including the issuance of $7.9 billion in long-term debt for the nine months ended August 31, 2021, to bolster liquidity and refinance existing obligations.
- 6Occupancy levels are gradually recovering but remain significantly below historical norms, with occupancy at 54.2% for the three months ended August 31, 2021.
- 7Ship and other impairments totaled $475 million for the three months and $524 million for the nine months ended August 31, 2021, reflecting ongoing challenges in asset valuation due to the pandemic's impact.