01—Abstract
Summary
Summary of the 10-Q filed March 27, 2024. Cited figures are marked; the original filing is the authoritative source.
Carnival Corporation & plc reported a net loss of $214 milliona for the first quarter of fiscal year 2024, a significant improvement from the $693 million loss in the prior year period.
This turnaround was driven by a substantial increase in revenues, with passenger ticket revenue up 26%b and onboard and other revenue up 15%, reflecting a 12% increase in occupancy and higher ticket prices due to strong demand. The company also saw a decrease in net interest expense due to lower total debt. Despite the improved top-line performance and reduced net loss, the company's liquidity remains a key area to monitor.
While Carnival reported $5.2 billionc in liquidity at the end of the quarter, comprising $2.2 billion in cash and $3.0 billion in available borrowings under its revolving facility, significant capital expenditures for new ship construction continue. The company is actively managing its substantial debt load, which stood at over $30 billion net of unamortized costs, and remains compliant with its debt covenants.
02—Key points
Key Highlights
- Net loss narrowed significantly to $214 million from $693 million in the prior year period, driven by strong revenue growth.
- Total revenues increased by 22% to $5.4 billion, with passenger ticket revenue up 26% and onboard and other revenue up 15%.
- Occupancy increased to 102% from 91% in the prior year, reflecting strong demand and pricing power.
- Operating expenses increased by 12% to $3.7 billion, driven by higher capacity and associated costs, partially offset by lower fuel expenses.
- Interest expense, net of capitalized interest, decreased by 13% to $471 million due to a reduction in total debt.
- The company has $5.2 billion in liquidity, including $2.2 billion in cash and cash equivalents and $3.0 billion available under its revolving facility.
- Capital expenditures for new shipbuilding and improvements were substantial at $2.1 billion for the quarter.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2024, Carnival Corp lost $0.04.
- Revenue$5.41B100.0%
- Cost of revenue−$3.71B68.5%
- Gross profit$1.70B31.5%
- Operating costs−$1.43B26.4%
- Operating income$276.0M5.1%
- Interest, other & tax−$490.0M9.1%
- Net income−$214.0M4.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed March 27, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $5.41B$4.43B | +22.0% |
| Cost of Revenue | $3.71B$3.31B | +11.9% |
| Gross Profit | $1.70B$1.12B | +51.7% |
| SG&A Expenses | $813.00M$712.00M | +14.2% |
| Operating Expenses | $5.13B$4.60B | +11.4% |
| Operating Income | $276.00M-$172.00M | +260.5% |
| Interest Expense | $471.00M$539.00M | −12.6% |
| Net Income | -$214.00M-$693.00M | +69.1% |
| EPS (Basic) | $-0.17$-0.55 | +69.1% |
| EPS (Diluted) | $-0.17$-0.55 | +69.1% |
| Shares Outstanding (Basic) | 1.26B1.26B | +0.3% |
| Shares Outstanding (Diluted) | 1.26B1.26B | +0.3% |
05—Questions
Frequently Asked Questions
What was Carnival's financial performance in the first quarter of fiscal year 2024?
Carnival Corporation & plc reported a net loss of $214 million for the first quarter of fiscal year 2024, an improvement from a net loss of $693 million in the same period last year. Total revenues increased by 22% to $5.4 billion, driven by higher passenger ticket and onboard revenues, increased occupancy, and stronger pricing.
How has Carnival's liquidity and debt situation evolved?
The company maintained $5.2 billion in liquidity at the end of the quarter, consisting of $2.2 billion in cash and $3.0 billion available under its revolving facility. Total debt was $30.7 billion net of unamortized costs. Carnival is actively managing its debt and remains compliant with its debt covenants.
What are the key drivers behind the revenue increase?
The significant revenue increase was primarily driven by a 12% rise in occupancy to 102%, continued strength in demand leading to higher ticket prices, and a 4.2% increase in capacity (Available Lower Berth Days). This performance was observed across both the North America and Europe segments.
What significant capital expenditures did Carnival undertake?
Carnival invested $2.1 billion in investing activities during the quarter, primarily for its ongoing new shipbuilding program ($1.7 billion) and ship improvements and replacements ($0.4 billion).
06—Continue