CUK Q3 2021 Earnings

Call Details

• Call Title: Carnival Cruise Lines Q3 2021 Earnings Call
• Date: September 24, 2021 at 2:00 PM UTC
• Management Team:
  • Arnold Donald (President and Chief Executive Officer of Carnival Corporation and PLC)
  • Nikki Arison (Chairman)
  • David Vernon (Chief Financial Officer)
  • Beth Roberts (Senior Vice President, Investor Relations)

Call Summary

Financial Performance

• Third quarter occupancy across ships in service was 54% for Q3 2021.
• North American brands' occupancy for Q3 2021 was 68%, while European brands' occupancy was 47%.
• Occupancy improved month-to-month in Q3 2021, moving from 39% in June to 51% in July and to 59% in August.
• Ships in service during Q3 2021 generated nearly $90 million of ship-level cash contribution in the quarter.
• The company's monthly average cash burn rate in Q3 2021 was $510 million per month, versus $500 million per month in the first half of 2021.
• The company reported carrying over half a million guests year-to-date and was carrying around 50,000 guests on any given day.

Guidance

• The company expects cash from operations for the whole company to turn positive at some point early in 2022, which is forward-looking guidance from the call.
• The company expects to have nearly 65% of fleet capacity in service by New Year's Day and to have the full fleet back in service by the end of the first half of 2022.
• Fourth quarter available lower birth dates (ALBDs) are expected to be 10.3 million, representing approximately 47% of total fleet capacity.
• The monthly average cash burn rate for the fourth quarter is expected to be higher than the monthly average rate for the first nine months of 2021 due to timing of capital expenditures and restart/drydock spending.
• The company expects most restart-related elevated ship operating costs and one-time restart expenses to end with 2022 and not reoccur in fiscal 2023.
• The company stated it believes there is potential to generate higher EBITDA in 2023 compared to 2019, subject to completion of fleet rollout and MARKET conditions.