CUK Q2 2022 Earnings

Call Details

• Call Title: Carnival Cruise Lines Q2 2022 Earnings Call
• Date: June 24, 2022 at 2:00 PM UTC
• Management Team:
  • Arnold Donald (President and Chief Executive Officer)
  • Mickey Arison (Chairman)
  • David Vernon (Chief Financial Officer)
  • Beth Roberts (Senior Vice President, Investor Relations)
  • Josh Weinstein (Chief Operations Officer)

Call Summary

Financial Performance

• Second quarter revenue increased nearly 50% sequentially versus first quarter 2022.
• Adjusted EBITDA for the first half of 2022 was negative approximately $900M due to restart-related spending and dry dock expenses.
• The company carried over 1.6 million guests in Q2 2022.
• Occupancy across ships in service was 69% in Q2 2022, up from 54% in Q1 2022.
• Available capacity increased by 25% sequentially, which drove an over 60% sequential improvement in passengers carried.
• Adjusted cruise costs excluding fuel on an ALBD basis were up 23% versus Q2 2019.

Guidance

• The company expects adjusted EBITDA to be positive for the third quarter of 2022.
• Occupancy is expected to build throughout 2022 and return to historical levels in 2023.
• Full year 2022 adjusted cruise costs excluding fuel are expected to be in the mid-teens higher versus 2019.
• The cumulative advance book position for full year 2023 is at the higher end of the historical range and at higher prices versus 2019.
• Relaxation of travel testing protocols is expected to deliver material benefits realized in 2023 and beyond.
• With over 90% of capacity back in operations, ship-level cash contribution is expected to grow in Q3 2022.