10-QPeriod: Q1 FY2024

CARNIVAL CORP Quarterly Report for Q1 Ended Feb 29, 2024

Filed March 27, 2024For Securities:CCL

Summary

Carnival Corporation & plc reported a net loss of $214 million 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% 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 billion 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.

Financial Highlights

49 data points
Beta

Revenue

$5.41B

31.5% Gross Margin

Net Income

-$214.00M

-4.0% Net Margin

EPS (Diluted)

$-0.17

Total Assets

$49.76B

Cash & Equivalents

$2.24B

Free Cash Flow

-$370.00M

Financial Statements
Beta
Revenue$5.41B
Cost of Revenue$3.71B
Gross Profit$1.70B
SG&A Expenses$813.00M
Operating Expenses$5.13B
Operating Income$276.00M
Interest Expense$471.00M
Net Income-$214.00M
EPS (Basic)$-0.17
EPS (Diluted)$-0.17
Shares Outstanding (Basic)1.26B
Shares Outstanding (Diluted)1.26B

Key Highlights

  • 1Net loss narrowed significantly to $214 million from $693 million in the prior year period, driven by strong revenue growth.
  • 2Total revenues increased by 22% to $5.4 billion, with passenger ticket revenue up 26% and onboard and other revenue up 15%.
  • 3Occupancy increased to 102% from 91% in the prior year, reflecting strong demand and pricing power.
  • 4Operating expenses increased by 12% to $3.7 billion, driven by higher capacity and associated costs, partially offset by lower fuel expenses.
  • 5Interest expense, net of capitalized interest, decreased by 13% to $471 million due to a reduction in total debt.
  • 6The 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.
  • 7Capital expenditures for new shipbuilding and improvements were substantial at $2.1 billion for the quarter.

Frequently Asked Questions

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.

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.

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.

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).