Carnival (US:CCL)2023-09-29 14:02Financial Performance - Passenger Cruise Days (PCDs) increased to 25.8 million in Q3 2023 from 17.7 million in Q3 2022, representing a 46% increase [124] - Occupancy percentage rose to 109% in Q3 2023 compared to 84% in Q3 2022, indicating a strong demand for cruises [124] - Passenger ticket revenues reached $4.546 billion in Q3 2023, up from $2.595 billion in Q3 2022, a growth of 75% [127] - Onboard and other revenues increased to $2.308 billion in Q3 2023 from $1.711 billion in Q3 2022, a rise of 35% [127] - Operating income for Q3 2023 was $1.624 billion, a significant improvement from an operating loss of $279 million in Q3 2022 [127] - Total revenues for the nine months ended August 31, 2023, were $16.197 billion, compared to $8.329 billion for the same period in 2022, reflecting a 94% increase [127] - The company reported an adjusted EBITDA of $1.624 billion for Q3 2023, compared to an adjusted loss of $279 million in Q3 2022 [127] - Revenues increased by $2.5 billion to $6.9 billion in Q3 2023 from $4.3 billion in Q3 2022, driven by a full fleet in service and higher occupancy levels [129] Operational Metrics - The average fuel consumption per thousand ALBDs improved to 31.1 metric tons in Q3 2023 from 33.4 metric tons in Q3 2022 [124] - Occupancy rates improved to 109% in Q3 2023 compared to 84% in Q3 2022, with ALBDs increasing to 23.7 million from 21.0 million [129] - NAA segment revenues rose by $1.7 billion to $4.6 billion in Q3 2023, with occupancy at 111% compared to 92% in Q3 2022 [130] - Europe segment revenues increased by $0.8 billion to $2.1 billion in Q3 2023, with occupancy at 106% compared to 73% in Q3 2022 [131] Cost Management - Fuel cost per metric ton consumed decreased to $636 in Q3 2023 from $958 in Q3 2022, a reduction of 34% [124] - Operating costs and expenses rose by $0.5 billion to $3.9 billion in Q3 2023, attributed to the resumption of cruise operations and increased occupancy [132] - Fuel costs decreased by $199 million to $468 million in Q3 2023, primarily due to lower fuel prices [133] - Selling and administrative expenses increased by $89 million to $713 million in Q3 2023, driven by higher administrative costs related to cruise operations [134] Cash Flow and Liquidity - Net cash flows from operating activities improved by $4.9 billion to $3.4 billion for the nine months ended August 31, 2023, compared to a net cash outflow of $1.6 billion in the same period in 2022 [148] - As of August 31, 2023, the company had $5.7 billion in liquidity, including $2.8 billion in cash and cash equivalents [145] - The working capital deficit increased to $6.3 billion as of August 31, 2023, compared to $3.1 billion as of November 30, 2022, primarily due to a decrease in cash and an increase in customer deposits [146] Debt Management - The company repaid $200 million of short-term borrowings and $6.8 billion of long-term debt [153] - Debt issuance costs amounted to $116 million, while debt extinguishment costs were $67 million [153] - The company issued $3.0 billion of long-term debt and net proceeds of $1.2 billion from a public offering of common stock [153] - The composition of the company's debt as of August 31, 2023, included 63% fixed rate and 5% floating rate [154] - The company had 17% of its debt in EUR fixed rate and 15% in EUR floating rate [154] - Net repayments of short-term borrowings totaled $114 million, with an additional $1.1 billion of long-term debt repaid [153] - The company raised $89 million from the issuance of common stock and purchased $82 million of ordinary shares under its Stock Swap Program [153] - The company continues to maintain its hedging strategies with no material changes in market risk exposure since the 2022 Form 10-K [153] - The company’s financial strategy includes managing interest rate risks through swaps [154] - The overall debt management strategy reflects a significant focus on long-term debt issuance and repayment [153] Future Outlook - The company anticipates continued pressure on profitability due to rising fuel prices and inflationary pressures [123]