CUK Q4 2020 Earnings

Call Details

• Call Title: Carnival Cruise Lines Q4 2020 Earnings Call
• Date: January 11, 2021 at 3:00 PM UTC
• Management Team:
  • Arnold Donald (President and Chief Executive Officer, Carnival Corporation & PLC)
  • Mickey Arison (Chairman)
  • David Vernon (Chief Financial Officer)
  • Beth Roberts (Senior Vice President, Investor Relations)
  • Josh Weinstein (Chief Operations Officer)

Call Summary

Financial Performance

• Carnival ended the fiscal year with $9.5B of cash on the balance sheet, which was $1.3B higher than the end of Q3.
• The fourth quarter monthly average cash burn rate was $500M, resulting in total cash burn of $1.5B for the quarter.
• The company added $4.5B of net proceeds in Q4 from three capital market transactions, including $2.5B from ATM equity programs and $2.0B from senior unsecured notes.
• Customer deposits declined by $0.2B from $2.4B to $2.2B during the fourth quarter.
• Interest expense on existing debt was described as approximately $130M per month, or roughly $1.6B for the year under current debt.
• Preliminary depreciation for 2021 was presented as roughly $2.2B, subject to final CapEx and restart timing.

Guidance

• The company stated an objective to have all ships back in service by the end of 2021, subject to public health conditions and regulatory approvals.
• First quarter 2021 monthly average cash burn is expected to be approximately $600M, driven by restart expenditures and shifted CapEx.
• No GAAP earnings or revenue guidance was provided for 2021 on the call.
• Liquidity was described as sufficient to sustain the company through 2021 even in a zero-revenue scenario based on current capital resources.
• No specific timeline was provided for CDC technical guidance or conditional sail order milestones beyond ongoing dialogue.
• The company indicated it will monitor restart timing and may access additional debt capacity opportunistically if needed.