Carnival plc(US:CUK)2020-07-14 15:30Financial Data and Key Metrics Changes - The company has secured over $10 billion in new capital to enhance liquidity and extend debt maturity [5][21][43] - The monthly average cash burn rate for the second half of 2020 is estimated to be $650 million, significantly lower than previous quarters [50][51] - Available liquidity at the end of the second quarter was $7.6 billion, including $6.9 billion in cash [56] Business Line Data and Key Metrics Changes - The company plans to reduce ship deliveries from nine to five through fiscal 2021, deferring over $3 billion in capital expenditures [24][40] - A total of 13 less efficient ships are expected to leave the fleet, representing a nearly 9% reduction in current capacity [25][40] Market Data and Key Metrics Changes - Cumulative advance bookings for the full-year 2021 remain within historical ranges, with prices down in the low to mid single-digit range [48] - Approximately 45% of the 2021 bookings are from new guests, indicating strong demand despite the pandemic [49] Company Strategy and Development Direction - The company aims to emerge as a leaner, more efficient organization focused on maximizing cash generation and reducing debt [6][44] - The strategy includes staggering the reintroduction of capacity to manage yields effectively [39][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the unprecedented challenges faced by the travel and tourism industry due to COVID-19 but expresses confidence in the company's ability to adapt and recover [10][11] - The company is actively working on health and safety protocols to ensure a safe return to cruising, with plans to resume operations in Germany and Italy [34][43] Other Important Information - The company has engaged with medical experts to develop return-to-cruise protocols and is preparing for a phased resumption of operations [5][30] - The company has significantly reduced nonessential capital expenditures by over $2 billion [22][23] Q&A Session Summary Question: Free cash flow potential moving forward - Management highlighted the strong cash flow generation potential, with $5.5 billion generated in 2019, and plans to pay down debt over time [64][66] Question: Booking patterns for next year - Management noted encouraging booking patterns, with substantial new bookings and a strong performance from brands like AIDA and Costa Europe [68][74] Question: Clarification on available capacity for sale - Management clarified that the available capacity for sale includes nearly all ships, with only a few exceptions due to itinerary changes [77][79] Question: Discussions with CDC and EU guidelines - Management stated that discussions with the CDC are ongoing, focusing on handling ships during the pause, while also engaging with various authorities for resuming operations [81][85] Question: AIDA launch and constrained capacity - Management indicated that initial occupancy would be below 50%, but even at that level, positive cash flow could be generated [99][101]