Carnival (CCL)2024-09-30 13:17Financial Performance - Third quarter net income was $1.7 billion, a 60% increase compared to 2023, and adjusted net income outperformed June guidance by $170 million[2] - Record operating income of $2.2 billion exceeded 2023 levels by $554 million, a 34% increase[4] - Net income for Q3 2024 reached $1.735 billion, significantly higher than $1.074 billion in Q3 2023, a 61.5% growth[26] - Operating income for Q3 2024 was $2.178 billion, compared to $1.624 billion in Q3 2023, a 34.1% rise[26] - Net income increased from $1.074 billion in August 2023 to $1.735 billion in August 2024[31] - Adjusted EBITDA increased from $2.221 billion in August 2023 to $2.822 billion in August 2024[31] Revenue Growth - Third quarter revenues reached an all-time high of $7.9 billion, up $1.0 billion compared to the prior year[2] - Passenger ticket revenue increased to $5.239 billion in Q3 2024, up from $4.546 billion in Q3 2023, representing a 15.2% growth[26] - Onboard and other revenue rose to $2.657 billion in Q3 2024, compared to $2.308 billion in Q3 2023, a 15.1% increase[26] - Total revenues for the nine months ended August 31, 2024, were $19.083 billion, up from $16.197 billion in the same period in 2023, a 17.8% increase[26] Cost Management - Adjusted cruise costs excluding fuel per ALBD (in constant currency) decreased compared to 2023 and were significantly better than June guidance[4] - Adjusted cruise costs per ALBD for the three months ended August 31, 2024, were $124.44, a 0.2% increase compared to the same period in 2023[36] - Adjusted cruise costs excluding fuel per ALBD for the three months ended August 31, 2024, were $103.97, a 0.4% decrease compared to the same period in 2023[36] - Adjusted cruise costs for the nine months ended August 31, 2024, were $9,430 million, compared to $8,817 million in the same period in 2023[36] - Adjusted cruise costs per ALBD for the nine months ended August 31, 2024, were $131.56, a 1.6% increase compared to the same period in 2023[36] - Adjusted cruise costs excluding fuel per ALBD for the nine months ended August 31, 2024, were $110.00, a 2.2% increase compared to the same period in 2023[36] Debt and Liquidity - The company prepaid $625 million of debt in Q3 2024, bringing total prepayments to $7.3 billion since the beginning of 2023[9] - Cash and cash equivalents decreased to $1.522 billion as of August 31, 2024, from $2.415 billion as of November 30, 2023[27] - Long-term debt reduced to $26.642 billion as of August 31, 2024, from $28.483 billion as of November 30, 2023[27] - Liquidity decreased from $5.392 billion in November 2023 to $4.519 billion in August 2024[28] - Debt decreased from $30.572 billion in November 2023 to $28.856 billion in August 2024[28] - Cash from operations decreased from $1.834 billion in August 2023 to $1.205 billion in August 2024[32] Customer Deposits and Bookings - Total customer deposits reached a third quarter record of $6.8 billion, surpassing the previous third quarter record of $6.3 billion as of August 31, 2023[4] - Customer deposits increased to $6.436 billion as of August 31, 2024, up from $6.072 billion as of November 30, 2023[27] - Cumulative advanced bookings for full year 2025 are above the previous 2024 record with prices (in constant currency) ahead of prior year[6] Operational Metrics - Passenger cruise days (PCDs) increased from 25.8 million in August 2023 to 28.1 million in August 2024[29] - Occupancy percentage increased from 109% in August 2023 to 112% in August 2024[29] - Passengers carried increased from 3.6 million in August 2023 to 3.9 million in August 2024[29] - ALBDs (Available Lower Berth Days) for the three months ended August 31, 2024, were 25.2 million, compared to 23.7 million in the same period in 2023[36] - ALBDs for the nine months ended August 31, 2024, were 71.7 million, compared to 68.1 million in the same period in 2023[36] Earnings and Margins - Earnings per share (diluted) for Q3 2024 were $1.26, up from $0.79 in Q3 2023, a 59.5% increase[26] - Gross margin per diems increased by 16% from $90.45 in August 2023 to $104.49 in August 2024[34] - Net yields increased by 8.7% from $215.22 in August 2023 to $233.87 in August 2024[34] Fuel Expenses - Fuel expenses rose to $515 million in Q3 2024, compared to $468 million in Q3 2023, a 10% increase[26] Non-GAAP Financial Measures - Adjusted EBITDA for full year 2024 is expected to be approximately $6.0 billion, up over 40% compared to 2023 and better than June guidance by nearly $200 million[2][7] - Adjusted return on invested capital ("ROIC") for full year 2024 is expected to be approximately 10.5%, an improvement of approximately 5.0 percentage points compared to 2023[7] - Adjusted free cash flow for 2024 is expected to be over $3.0 billion[9] - The company uses non-GAAP financial measures such as adjusted net income, adjusted EBITDA, and adjusted free cash flow to assess performance and liquidity[37] - Constant currency reporting removes the impact of exchange rate changes to provide a comparative view of business performance[45] Cruise and Tour Operating Expenses - Cruise and tour operating expenses for the three months ended August 31, 2024, were $4,303 million, compared to $3,921 million in the same period in 2023[36]