Carnival: Voyages Already Cash Flow Positive; Posts Adj. Loss In Q3

Carnival Corporation & plc (CCL,CCL.L,CUK) said its third quarter voyages were cash flow positive and the company expects this trend to continue. Booking volumes for all future cruises during the third quarter were higher than booking volumes during the first quarter of 2021, albeit not as robust as the second quarter of 2021, primarily due to lower booking volumes in August 2021. Occupancy was 54% for the quarter. U.S. GAAP net loss was $2.8 billion and adjusted net loss was $2.0 billion for the third quarter of 2021.

Carnival ended the third quarter with $7.8 billion of liquidity. The company believes it has sufficient liquidity to get back to full operations. As of August 31, 2021, eight of the company's nine brands have resumed guest operations. The company plans to resume guest cruise operations with 61% of its capacity by November 30, 2021, and with 75% of its capacity by June 2022.

The company's monthly average cash burn rate for the third quarter was $510 million, better than previous guidance and in line with the $500 million monthly average cash burn rate for the first half of 2021. The company expects the monthly average cash burn rate for the fourth quarter to be higher than the prior quarters of 2021, due to the timing of incremental restart expenditures.

Carnival said the gradual resumption of its guest cruise operations continues to have a material impact on all aspects of business, including liquidity, financial position and results of operations. Carnival expects a net loss on both a U.S. GAAP and adjusted basis for the quarter and year ending November 30, 2021.

Total customer deposits increased $630 million to $3.1 billion as of August 31, 2021 from $2.5 billion as of May 31, 2021.

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