Carnival Corporation & plc’s Long-Term Debt increased in Q1 2021 due to the company’s initiative to raise liquidity amid the pause in guest cruise operations during the COVID-19 pandemic. Specifically, Carnival raised cumulative net proceeds of **$4.4 billion** through two capital market transactions—a **$3.4 billion** senior unsecured note offering and a **$1 billion** overnight equity offering—which resulted in the debt jump from **$22,130 million** to **$26,522 million**.  **[0000815097-21-000052_ccl-20210228.htm:3]** **[CCL_184832_4]** 

Why did Long-Term Debt jump in Q1 2021?

The decrease in **Cash and Cash Equivalents** in Q2 2021 was mainly driven by a combination of factors. **Operating activities** resulted in a net cash outflow of **$(2,862) million** due to a significant net loss, which was partially mitigated by non-cash adjustments. Meanwhile, **Investing activities** contributed a net cash outflow of **$(4,155) million**, primarily due to substantial purchases of property, equipment, and short-term investments. Although **Financing activities** provided a net cash inflow of **$4,523 million**, it was not enough to offset the outflows, resulting in an overall net decrease of **$(2,474) million**.  **[0000815097-21-000074_ccl-20210531.htm:4]** 

What drove the decrease in Cash and Cash Equivalents in Q2 2021?

Carnival Corporation’s **Total Assets** increase in Q1 2021 was driven by several factors. The company experienced a boost in its liquid assets with an increase in **cash and cash equivalents** from **$9,513 million** to **$9,674 million** and a significant rise in **short-term investments** from **$0** to **$1,840 million**. Additionally, **property and equipment, net** grew by **$1,510 million** (from **$38,073 million** to **$39,583 million**), and other assets increased by **$227 million** (from **$1,594 million** to **$1,821 million**). These improvements together contributed to an overall increase of **$3,633 million** in Total Assets in Q1 2021.  **[0000815097-21-000052_ccl-20210228.htm:3]** 

What factors contributed to the Total Assets increase in Q1 2021?

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In Q3 2022, the surge in **Passenger Ticket Revenues** was driven by the **resumption of cruise operations**—reflected in an increase in occupancy to **84%** (and reaching **90%** in August)  **[CCL_996051_4]** **[CCL_996051_0]** —along with a **nearly 80% sequential revenue growth** compared to Q2, a direct result of the significant ramp-up in operations.  **[CCL_996051_4]**  Additionally, the **relaxation of COVID-19 protocols** in mid-August spurred a surge in bookings, with volumes even exceeding 2019 levels.  **[CCL_996051_5]** **[CCL_996051_9]**  Furthermore, while Future Cruise Credits (FCCs) did impact revenue per passenger day, the overall revenue benefit was enhanced by **increased advertising investments** that bolstered demand and bookings.  **[CCL_996051_4]** **[CCL_996051_0]** **[CCL_996051_1]** 

What drove the surge in Passenger Ticket Revenues in Q3 2022?

The sharp climb in **Onboard and Other Revenues** in Q3 2022 was primarily driven by several factors: **over 50% growth in pre-cruise sales of onboard activities on a per passenger cruise day basis**, **price increases coupled with greater guest spending on onboard activities**, and **accounting changes related to the introduction of bundled package offerings that shifted revenue allocation between ticket sales and onboard revenue**.  **[CCL_996051_4]** 

Why did Onboard and Other Revenues climb sharply in Q3 2022?

The significant improvement in Operating Income in Q3 2022 was driven by a combination of factors, including **improved occupancy and nearly an 80% revenue increase** from the previous quarter, significant **growth in onboard revenue** supported by a 50% increase in pre-cruise sales compared to 2019, more effective **cost management** with better control over adjusted cruise costs, and strategic **fleet optimization** through retiring less efficient ships and integrating newer ones. Additionally, while future cruise credits and currency fluctuations created some revenue challenges, increased **advertising investments** further supported the overall revenue performance and set the stage for a continued recovery.  **[CCL_996051_4]** **[CCL_996051_5]** 

What contributed to the significant improvement in Operating Income in Q3 2022?

The reduction in the net loss for **Q3 2022** was primarily driven by a **recovery in revenue** as guest cruise operations resumed. This recovery was reflected in a robust increase in occupancy—from **69% in Q2 2022 to 84% in Q3 2022** (with August reaching **90%**)—which significantly boosted revenue generation.  **[CCL_996051_4]** **[CCL_996051_5]**  Additionally, although some headwinds remained such as higher costs and fuel prices, these were offset by improved operational performance resulting from **fleet optimization** efforts that replaced less efficient ships with newer ones.  **[CCL_996051_4]**  These factors collectively helped to narrow the net loss in Q3 2022.  **[CCL_996051_4]** **[CCL_996051_5]** 

What factors helped reduce the net loss in Q3 2022?

While the documents do not provide a definitive explanation for the improvement, several factors may have contributed to the **noticeable EPS improvement** in Q3 2022. **Occupancy rates increased significantly**, with levels reaching **84% in Q3** – and even **90% in August** – which likely boosted revenue performance.  **[CCL_996051_4]**  Additionally, **onboard revenue per diems increased substantially** due to higher guest spending and pre-cruise sales, helping to improve overall financial results.  **[CCL_996051_4]**  Finally, improvements in **cost management**, including controlled cruise costs and strategic advertising investments, could also have played a role in enhancing profitability despite challenges such as rising fuel prices.  **[CCL_996051_0]** **[CCL_996051_12]** **[CCL_996051_15]** 

Why did EPS improve noticeably in Q3 2022?

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Cash and cash equivalents (USD, millions)

Short-term investments (USD, millions)

Trade and other receivables, net (USD, millions)

Inventories (USD, millions)

Prepaid expenses and other (USD, millions)

Total current assets (USD, millions)

Property and Equipment, Net (USD, millions)

Operating Lease Right-of-Use Assets (USD, millions)

Goodwill (USD, millions)

Other Intangibles (USD, millions)

Other Assets (USD, millions)

Total Assets (USD, millions)

Short-term borrowings (USD, millions)

Current portion of long-term debt (USD, millions)

Current portion of operating lease liabilities (USD, millions)

Accounts payable (USD, millions)

Accrued liabilities and other (USD, millions)

Customer deposits (USD, millions)

Total current liabilities (USD, millions)

Long-Term Debt (USD, millions)

Long-Term Operating Lease Liabilities (USD, millions)

Other Long-Term Liabilities (USD, millions)

Common stock of Carnival Corporation, $ 0.01 par value; 1,960 shares authorized; 1,104 shares at 2021 and 1,060 shares at 2020 issued (USD, millions)

Ordinary shares of Carnival plc, $ 1.66 par value; 217 shares at 2021 and 2020 issued (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive income (loss) (“AOCI”) (USD, millions)

Treasury stock, 130 shares at 2021 and 2020 of Carnival Corporation and 59 shares at 2021 and 60 shares at 2020 of Carnival plc, at cost (USD, millions)

Total shareholders’ equity (USD, millions)

Total Liabilities and Shareholders' Equity (USD, millions)

2d249c7cac10167ce5c474c364bf634433cc3d732c477e7f8579af627d7e1fbe

Passenger Ticket Revenues (USD, millions)

Onboard and Other Revenues (USD, millions)

Total Revenues (USD, millions)

Commissions, Transportation and Other Operating Expenses (USD, millions)

Onboard and Other Operating Expenses (USD, millions)

Payroll and Related Operating Expenses (USD, millions)

Fuel Operating Expenses (USD, millions)

Food Operating Expenses (USD, millions)

Other Operating Expenses (USD, millions)

Cruise and Tour Operating Expenses (USD, millions)

Selling and Administrative Expenses (USD, millions)

Depreciation and Amortization Expenses (USD, millions)

Total Operating Expenses (USD, millions)

Operating Income (Loss) (USD, millions)

Interest Income (USD, millions)

Interest Expense, Net of Capitalized Interest (USD, millions)

Other Income (Expense), Net (USD, millions)

Total Nonoperating Income (Expense) (USD, millions)

Income (Loss) Before Income Taxes (USD, millions)

Income Tax Benefit (Expense), Net (USD, millions)

Net Income (Loss) (USD, millions)

Basic Earnings Per Share (USD)

Diluted Earnings Per Share (USD)

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Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from Debt (USD, millions)

Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

1efb8eb75b84cce400b4fb9ee48d771fee771ee163f5daac0bc0b0b6364e2773

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Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (SG&A) (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

5aad26c9f608ef348ce899a187ff18e92b23506470f3ff58ee5e629a0f3fb961

Available Lower Berth Days (thousands)

Occupancy percentage (percentage)

Fuel consumption (thousands of metric tons)

Fuel cost per metric ton consumed (USD per metric ton)

Percentage of capacity operating with guests on board (percentage)

1b3807ee0898cd2b5d2494e5b50d5c29edc33b779139d1bc75328f02ac863287

- Passenger Ticket

- Onboard and Other

Europe

Cruise Support

Tour and Other

Passenger Ticket Revenue

Onboard and Other Revenue

Total Revenue

1cd9f396663e955fa9735fd6b7874a7ce776faf8bd31b180342503e9e6b0161e

North America

- North America and Australia (NAA)

Australia

- Europe and Asia (EA)

Australia and Asia

Other

- Cruise Support

- Tour and Other

0de747f6d2a88666e4d618f4b230a8769420f7dca52370396793eee1ba06fbbf

CARNIVAL (CCL)

Financials