Carnival (US:CCL)2024-09-30 15:31Revenue Growth - Passenger ticket revenues increased by $693 million, or 15%, to $5.2 billion in 2024 from $4.5 billion in 2023, driven by strong demand and higher ticket prices [117]. - Onboard and other revenues rose by $349 million, or 15%, to $2.7 billion in 2024 from $2.3 billion in 2023, attributed to higher onboard spending and increased occupancy [118]. - The NAA segment's passenger ticket revenues increased by $480 million, or 16%, to $3.4 billion in 2024 from $3.0 billion in 2023, supported by a 10% capacity increase in ALBDs [119]. - Passenger ticket revenues increased by $2.1 billion, or 19%, to $12.6 billion in 2024 from $10.6 billion in 2023, comprising 66% of total revenues [128]. - The Europe segment's passenger ticket revenues increased by $784 million, or 21%, to $4.5 billion in 2024 from $3.7 billion in 2023 [130]. Capacity and Occupancy - The company experienced a 6.2% capacity increase in ALBDs for the three months ended August 31, 2024, compared to the same period in 2023 [112]. - Occupancy percentage improved to 112% for the three months ended August 31, 2024, up from 109% in the same period of 2023 [111]. - The company reported a 2.9 percentage point increase in occupancy for passenger ticket revenues, contributing to revenue growth [117]. Operating Expenses and Income - Operating expenses increased by $1.1 billion, or 10%, to $11.8 billion in 2024 from $10.7 billion in 2023, driven by a 5.3% capacity increase in ALBDs [131]. - Consolidated operating income increased by $1.4 billion to $3.0 billion in 2024 from $1.6 billion in 2023 [136]. - The NAA segment's operating income increased by $781 million to $2.2 billion in 2024 from $1.5 billion in 2023 [136]. Financial Position and Cash Flow - The working capital deficit increased to $8.6 billion as of August 31, 2024, compared to $6.2 billion as of November 30, 2023 [140]. - Net cash flows from operating activities increased by $1.7 billion to $5.0 billion during the nine months ended August 31, 2024, compared to $3.4 billion for the same period in 2023 [141]. - Capital expenditures for the nine months ended August 31, 2024, were $4.0 billion, primarily for the delivery of new ships [142]. - As of August 31, 2024, the company had $4.5 billion in liquidity, including $1.5 billion in cash and cash equivalents and $3.0 billion in borrowings available under the Revolving Facility [145]. Debt and Financial Compliance - The company is in compliance with all applicable covenants under its debt agreements as of August 31, 2024 [146]. - 62% of the company's debt is at a fixed rate, with 23% in EUR fixed rate, 3% in floating rate, and 11% in EUR floating rate [149]. - There have been no off-balance sheet arrangements that could materially affect the company's consolidated financial statements [147]. - The company has not experienced any material changes in its exposure to market risks since the last reporting period [148]. Regulatory and Market Risks - The company is facing risks from geopolitical uncertainties, inflation, and climate change, which could adversely affect future financial results [102]. - The company anticipates a potential annual impact of approximately $200 million from a global minimum tax expected to take effect in 2026 [109]. - The EU ETS will impact the company starting January 1, 2024, with an estimated cost of approximately $50 million in 2024 [109]. Internal Controls and Legal Proceedings - There have been no changes in internal control over financial reporting that materially affected the company during the quarter ended August 31, 2024 [151]. - The company's disclosure controls and procedures have been evaluated and deemed effective as of August 31, 2024 [150]. - Legal proceedings related to regulatory inquiries and investigations are referenced in the company's consolidated financial statements [153]. Interest Expense - Interest expense decreased by $248 million, or 16%, to $1.4 billion in 2024 from $1.6 billion in 2023 due to a decrease in total debt and lower average interest rates [137].