Carnival Corporation & plc (CCL) 11 Jan 212020 Q4 Earnings call transcript

Good morning, everyone, and welcome to our Business update conference call. I am Arnold Donald, President and CEO of Carnival Corporation & Plc. Today, I'm joined telephonically by our Chairman, Micky Arison; as well as David Bernstein, our Chief Financial Officer; and Beth Roberts, Senior Vice President, Investor Relations. Thank you all for joining us this morning.

Before I begin, please note that some of our remarks on this call will be forward-looking. you cautionary refer press in must release. I to statement the today's Therefore, I'm when not glad I certainly Yes, know, alone XXXX us. to behind I put I'm say Clearly, unprecedented. XXXX was

all cumulative efficient environment. hand, zero and it our with pause, and company. a place those a to a ourselves to are billion shipboard am it ships $X.X full for to dozen vessels and a over cruise agreements sustain in more we dollars, future refunds; as me, XX family, extend other And to operations XX in $XX negotiate We On weathered over and order; to the process we crew Italy deck operating well year XXX,XXX of we both all happen, fleet who test guest all I and capital. guests entire revenue in liquidity maturities even transactions hands Carnival XXXX, completing also emerging company. agreements, I'm the billion and in in in while both XX debt the pause different of to resume of to of a of the took lenders cruise storm, on really our and develop members; credits; protocols be ended the new have Germany; the delay a put to status; with to move and to home; cruise euros them in billions cash the particularly believe on XX,XXX of and over amend resilience And new throughout billions better our from even true to it financing return shoreside. how testament make and accelerate pounds we proud to helped XX the proved repatriate and grateful very of to exit

repeat And XX%. will nearly capacity our spread less guests that over we be of X smaller source as a thanks and fleet. are our significant which of by Now each fleet, reliant rationalization we a on base year, now a represents executed to reducing guests new-to-cruise, result, a million recurring of

cost delivers capacity the leaving strategic and X% reduction less cost structurally also a a fleet the in ships, lower unit by going that unit a are forward. and just the XX fact by fuel consumption base, efficient X% ships we benefit reduction in reduction Our smaller

Princess Mardi course, as an the Cruises' rightsize and cost operations. the to roller Mardi Carnival attention benefit Costa continued few SC BOLT, last new costs efficient just Cruise ship reduces for our Line, Enchanted the onboard as well deliver has across Gras, P&O focus Firenze; includes coaster Princess; this our efforts And anticipated Gras. of further hundreds delivery and U.K.'s of media months. recent Carnival in of generated millions highly over impressions Our Iona; already of shoreside our we first media we garnering significant our to time, larger, ships, will more finding efficiencies as operations unit achieve structural the on additional

our to a was this point previously compliance. experienced impressions. is promoting Weinstein member with media suited uniquely already As X has of together, our further serve Josh we star-studded of Directors, a and addition focal to role will in Them key role team, that, comprehensive aggressively And Treasurer; led in Corporate with streamline efficiency. Josh Cunard, and to legal the our as continue management strengthened Board leadership adding in as Carnival for the for he We Let of for strengthen Chief department. Officer. a the to recent role, over Board We that, billion the a Talk, rest Queen independent to which an Board our team, film, U.K. Mary prior capturing effectiveness in operations prior new and Operations strong All our having with X background serving and the serving the

We inclusion plastics, by half sustainability fact, and again and our in advancements are now in to We goals. operating the our companies executives. commitment other to reduction accelerating women honoring waste food are make continue in diversity led reducing efforts, once our of single-use and amongst

well we fundamental spite the One this abundance in experienced throughout the the was the growth demand demand and of will global by effort also for strong our the that positioned only the long-term from have support service, underlying forward we leading of resuming minimal our see booking in staggered of not our rewarding brands. facilitate pause loyal extended demand brands are resumption that we XXXX of the negative period new Upon affirm pent-up news, in even of we And guests, clearly, spite optimize spite advertising for from trends company. most seen world. The our is have of very to believe brands our in operations to aspects tremendous demand and our support consistently of around encouraging guests. it our

multiple both sourced. mentioned last AIDA couple enabling XX% each in be nearly German of This phased to already is limited a national resume independently. XX% sourced, Europe, brands, has on is our updates, European a on for we've which basis, our Continental proven which Costa roughly in travel, resumption and uniquely cruise positioned to for us as restarted be cruising which instrumental given company for Now is our can

brands than XX% opportunity. is Zealand other sourced, Carnival which all Our and which P&O U.K., Line, Cruise sourced, present which more further Australia/New U.S. is British XX% sourced like P&O Australia, XX% is

of today's that drive characterized with duration to for and fact prevalence these ready success are a charter access markets strengthens potential brands environment. the the cruises by Additionally, in

consecutive Magazine Best Readers the islands Awards was Half Private our Of XXth including its Princess private the the year, as Moon we destinations by highly-regarded six Half Cays, the course, for we Porthole Moon Island. utilize Caribbean, and Cays own Choice will to two continue in rated operate, and Cays. and

in we're to of work to towards working working continue and the the ongoing the U.K., U.S., a We we're the best way so same do Australia world, serves hard to that At including, operations resuming course, the in of Asia, of and, including other health. diligently parts many time, in course, the of discussions operations with CDC. resume public interest

touch and unique. procedures protocols measures, many and our risks which people develop responsibilities, with types have brought previously place from and are And in new highest members' working with always: prevent sanitation the guests, our therefore, globe protocols top the health, environmental and of and family, once medical shoreside. we've address been our shipboard the medical onboard dealt priorities screening science viruses communities this science enhanced know, ships, to and including as team serve on Our our board safety We well-being to however, enhanced COVID-XX. and you of centers procedures, the of experts protection and and available the best effective our with spread and of and based Clearly, leading associated virus already Carnival land. and we around and the on is reduce specifically compliance,

are we've scores received we implemented, small operations understanding valued initially demonstrating protocols fleet. have satisfaction to these strengthens. as We and high which with the intend resume percentage society's Costa from COVID-XX the evolve as who our with guests, of of to we expect to And a changes AIDA, have continue both appreciated

initial with sail to occupancy we've So low experience with for our us voyages, levels, enhanced safety gain chosen protocols. to enabling valuable our

pace year. in the by development The influence pace we're working testing, ships the the of low-cost vaccines end our the of advent and back recovery. of Now the toward will service of of the our distribution continued having therapies all of certainly of

sheet been retained shareholders. have key we our improving As to to Accordingly, interest we issue responsible additional path capacity company Currently, balance and attention for and necessary financing differentiator industry sheet leverage investment-grade the for to and necessary our and industry, credit. debt. in our strength the secured the we through a XXXX, has maintaining a back to Having strong way. leader, a we on turn our the the our secured lowest in balanced a funding historically balance get reducing will the

the one us enabling to ship we delivery fiscal delivery That importantly, one we for will schedule, out debt. years, pushing more build just just and out significantly for pay and XXXX. XXXX fiscal in capital, those Now, in delivery have ship during stretched reduce down new expenditures capital

Now all forward are these going financial in efforts of keeping our objective with generation. to cash primary maximize

return return our to we to investment-grade be primary flow operations, value. greater time, to driver over shareholder credit creating will As the cash full

we've received actions reinforcing leaner, position. capacity, and sheet balance support. capitalize well more demand industry-leading and taken, are With aggressive company pent-up the challenging positioned managing we these Throughout times, the our to to emerge a we've on efficient overwhelming reducing

the again, our dedicated future. Carnival you Thank us thank for our David. the support, other you our call to and you to their to for thank to stakeholders to of over and investors family. that, and you confidence will you guests. Thank in their travel in ongoing our to our So With our thank valued turn especially I agent partners, continued members

monthly Arnold. you, burn with booking with Thank and position. provide finish cash quarter our rate, average on financial a of up update along some start I'll trends. into summary flows insights cash fourth today Then then our I'll with our an

Even the a year in Pricing on our of impact was of the pricing for point is second XXXX within cumulative commonly the booking for that are Turning if versus historical XXXX, and time, bookings range. of strong or advanced half for exclude very to more the future down first are half these on Directionally, ahead XXXX yield. credits comparison cruise range. a historical bookings half high better, bookings negative tough our as XXXX a are you XXXX XXXX, historical of high as pricing the at X% fiscal cumulative comparable XXXX the watermark beginning of trends, end in in beginning known of the the at for fiscal bookings first this of was of FCCs. advanced the second bookings which the year just of on half

and some favorable point of were XXXX new that XX% is the with being with approximately quarter positive the a that just very is that during operations brand are to like point prior cruise is the also to activity. approximately packages is the to in a apples reassuring XXXX fourth the an position little loyalists, that pause see to happy the the the improvement packages guests would indicated. and in the given bundled taken at minimal over guests It say, the than with norm, than must chosen I compared out the see quarter year. I Company's remainder to are book brand, bookings, activity. revenue. is am to bundled particularly year end have will of remaining Due recently, that end, it's I our continuation of In XX% we the expect the in other higher and comparison trends had to bookings achieved the of However, given also benefit that of this report and encouraging, percentage increase of the underlying promotional position promising book guests for to position quarter. which XXXX offered it in comparison, we rebooking. more being not advertising the new making XXXX we oranges And booking third XXXX, these five see that XX% and FCC was have booking more guest extent, be future third onboard to this a fiscal

at average monthly rate. cash Now burn our let's look

of the $XXX quarter, of expectation due expenditures. the For capital than our to million rate was burn slightly $XXX which was better cash timing previous fourth the million,

expect cruise quarter, for dock higher expenditures monthly to by is the average resumption the as rate restart which the CapEx the quarter, guest first fourth fourth shifting quarter as $XXX The we than due rate more our we expected the from the first first operations. of of the quarter quarter prepare and approximately to days higher capital first dry be indicated, For expenditures. in previously million, to average includes quarter driven

summary of quarter a provide flows. I'll our Next, cash fourth

to a on $X.X quarter. balance with this cash happy position more than our at currently third liquidity that the we balance our at end billion fiscal sheet say the of solid of cash in am had $X.X of on year. sheet the the is are end We billion I

slight of with driven of quarter quarter, burn cumulative fourth our three; position received of liquidity to second, added billion, $X.X at-the-market billion cash the or transactions times capital third, well the by month completing ATM very three proceeds a equity was by deposits During two The at market we to on net billion. burn quarter, simply at maturities; by than raised quarter $X.X billion in three billion the This programs for unsecured while third offering total the was senior $X.X $XXX offset monthly in customer scheduled and billion, $X.X raised completed debt of $X.X notes per average things: $X.X $X.X rate fourth late our the we million which cash partially first, $X expectation. was November of our billion previous end from the better the end decline billion.

finish raising up raised with along equity will into shareholders' strengthened position. our pause earlier $X get operations. XXXX $XX a transactions. I bolstering sheet equity. series in a the of These could be have offerings Finally, billion in some pause notes guest this included the $X.X to through as three cruise reducing our billion Since This with offerings, perspective, obtaining our of insights position financial billion. our and series year, sufficient operations over of through liquidity characterized cruise From considerably retiring the financial stock, to guest debt balance by issuance common we convertible

hand additional transactions financial with focus structure. that However, capital optimize billion for on at of $X.X our shifted XXXX now year-end, has to our cash

Arnold. look over And enhance possible. to to when turn partners with during our refinance more may now, ability existing lower needed. and at we I'll interest back still liquidity if the debt XXXX, debt call to banking have our And further liability rates also where issue We position. opportunistically the to will management We

questions. Thank call you, for open the David. Operator, please

the from [Operator Instructions] ahead. question Stifel. a Steve of with Wieczynski have go line Please we And

open. line is Your

your in last So your David, I'm there release about how guess about wording comments I the because position. I little confused expect to start your -- you with want you liquidity you a obviously, to have enter folks, you a transactions, have which some But about. expect you year-end, by I additional to ships also financial might indicated all operational which just you little Arnold, aggressive. think to seem talked

around to And anything you I year-end? question So if is maybe, that why this need additional I would fully be you point, would by you guess the at really hope raise think sense. makes operational

all, have what's is thing. just this I'm Obviously, to year-end. here far operational navigating me, for restate, XXXX. all early from so our of First ships a as just But hope happened by the hoping whole of as in we're we still hangover planet, 'XX a

your let the in to we And have then David. all a question. them about ahead, Go hopefully, So year. respond operating I'll David rest of

Yes.

and utilize trying relates when to the debt Steve, needed. of of we're the resumption soon So around we billions multiple the capacity keep and can of operations and the some just fact in we dollars uncertainty that have brands cruise of people various how world. do to the aware Exactly so and of when that if

So we situation we'll and have the choices, very monitor carefully.

point restart like it also the of at on I which -- is some operation, on said just bit this of And timing the depends before, uncertain. in little the of a time,

be be themselves. are And they assume around passengers, bigger then, that just going And whether whether into, requirements crew, they're guess, the before you. the question some it's guys there have I put it's you have sail? it's to vaccinated would would thought whether both, to allowed to a Got be Okay. for I vaccines

Well, you can as know, here. at beginning well the you whole very vaccine as things, the aware, very is you're --

equipment other with world so of organizations dialogue lots but not monitoring, CDC, in And we're for only we're other destinations. the around

evolve But issue. over and the this time, decision an remains distribution most so when bit we'll of And point, it let a the time make at we'll prudent comes.

as determination And so, we'll make evolve. things a

think perspective David, 'XX? one for maybe Okay. from help question quick just are you real you interest can thinking about what ask us an guys housekeeping David? Can I for

that on month be at the existing have interest would the XXXX year. debt for So end call billion we about $XXX of million expense $X.X a the or, it,

it So bit could depending on minus plus that a liability and management things, number. from and other little be or

a have Please UBS. We go Robin from question Farley ahead. with

Your line open. is

timing gating or any the us initial of cruises? you issue sense of test for I give could wonder, the your if kind

the CDC. been X, yet work not what's with a additional in been for phases by process. have issued that's guidelines in future Phase CDC, communicated Robin, we're the by

We have as with we weekly often need as them. calls

to So we're that, tell we a manner I very to that can do do able able to whatever you to in need seen. what ultimately. be remains to resume be But be cruise timely track is to on

like it you're test some waiting So, the to timing? around sounds the issue specifically for CDC specific guidance cruise

waiting. things. a Well, started your But obviously, lot question to test answer on about into doing would the we U.S. timing be of cruise, bring We've to ships back yes, we're specific

there subsequently the a would but we out test bringing meeting cruises, We in give then timing those be specific CDC. put are back currently test to and have position that to on guidance -- cruises, a from is you criteria ships need do additional the to

I start to the is is I'm cost? Or lower levels cruise go staff what it being would typical per about, is and is expense that just other, just these you you're about been is to ship so And to to a for to have levels? maybe Great. start what it day lay-up a crew the passenger all maybe this you've there even actual you board, you'll of that, of this asking talking sort the prior? being is you And have talked the sort and from how any there one of one lay-up, is And should some onetime warm specifically ship guess incremental and as have about up staffing when fuel, cost is then -- sails, just when of warm that and mean, restart? in provision on think the a David, is operating? goes some increasing for burn but in ship expense? it from systems Or I'm running I how people, expense obviously, of we other will

Yes.

AIDA. was crew, So, the minimis, tell brought and I which expenditure Costa protocols. the with you and crew and experience can our back, de what is with they expense, flights been has AIDA, other plane testing Because an and capital Costa the

voyages. for to other this the inventory ramping deposits expect, spend have will you're would food because ship. in inflow association You've a also those up as outflow, payments you from got if money you you're period, while cash cash customer the some during and for final the But with ships, a this getting be

before in a ship. and -- said was hundred to per think experienced So Europe euros that few thousand month protocols have I relating I we expenses the that ongoing per

For the U.S., we're conditional before, still lot technical CDC, indicated the of the for that was for included Arnold order. sail as waiting in their guidance a not original

estimate, And there'll so U.S. to different if be we the the for operations. time it's very anything difficult restart at

line next And of ahead. James Wedbush is from with Please Securities. go our question the Hardiman

Your is open. line

and interest gave you you you it what the making share expense. be David, it today the stands money again on just help count us expect maybe out Could with diluted a once you're to where us basis?

Yes.

X.XXX the it converts, I'll the conversion outstanding So of only the the And other XXXX total remaining share count end shares. billion. thing would billion the is with was add that today, at of X.XX

be had think that on about thinking potential Got obviously, the the like conversation it. going It availability all? the at couple next guys was we how it opportunities? think then during that forward. you nice about opportunity you're a you with maybe for Obama here maybe -- an risks or And maybe Have weeks, was presidential any transition as in And the Cuba. front? changes what CDC the of Do a conversations administration could of benefit you seems

all, New of thanks your Year. question, happy I and for think, first

we the want regardless. together all, but administration of just part totally mitigate be place, virus. ongoing the be to to this obviously, compliance, we all trying going whatever spread first of we're an is in to in think, stand I look, of And in solution

really way Obama terms thing see of interest all incoming in us guide point best administration have of what focal to rules way, right help prepared. it first what with think other regulations serve one in the to actively sail not We when With risks up will Cuba go the whatever very will to, And So administration. a the to it be to again, associated ones incremental obviously ultimately Cuba, either Cuba. and has but is thinking well want that the the all, We there. versus be another, prepared to be to people to do and for obviously, public the offer Cuba, I health, experiencing were size were we'll prepared feel, to we et operate happens administration best able which to the cruise the guidelines see way We'll we'll are, was be arriving opening with cetera. then matters, regard the well opens. at to to who we and and Cuba

maybe me. lastly you for different terms there environment, their Got itself, in into demand employ, it. country more some of positioned a Obviously, you of as seeing post-vaccine second the think better are And to we half are then look for brands? than we sort of as major terms The brands just the maybe 'XX are on state of that different others about in that virus But and depending differences demand. that's brands 'XX? to and broadly, going just change those

Yes.

and across brands. affirming there's booking a demand in see one the much than obviously, for demand by our very major the be And has booking business. or of my Obviously, Asia, As brands patterns. our cruise, very opening across of overall we absent which patterns robust, Costa in there's remarks evidenced any been differences lot that closer pent-up would I is do in but differences big for that, booking no other is dramatic terms where brands, trends. of the find not stated and We

going -- fleets. have smaller and so And to we're

so on to, benefit, regard. and us we are we before, pointed we're brands as plays that forth fact and that The that's drive-to around national in to staggered fact the reintroduce, that basis. easier First world. to the is all, another have for get so a of on well going out we have a And of number markets, brands,

and see a so cruise dramatic once that, brands across differences strength be and don't what opportunity we given And genuine the the robust should see we resumes.

Please Our with Brandt go next Morgan. Montour ahead. question JP is from

line Your is open.

on is bookings, pace in different interested you faring versus out bookings of pre-vaccine? meaningful did if the could sort now might that's maybe knowing a and of see curious bookings that sort in how of Just qualitatively, some when hopefully, flesh cadence you pace And inflect?

Bookings been David cruises, is we cetera, been demand I'll large pre-vaccine being Again, post-vaccine, any a some previous let on haven't and the they've booking where months that. shift comment the were cruise cruise, really to able pointed of of so getting robust haven't have more in their for all reasons demand et craving we we challenge trends dramatic seen experienced statement. granularly repeat the because experience. pent-up for scores, But base the many out, cruise without satisfy including a

various Yes. would of We're No. itineraries. said, that be world in it the the demand is, et all the for whether And Europe Arnold. seeing what That's markets Caribbean correct seen cetera. cruises, you demand good add good thing cruise we've Australia, that itineraries, I to for

So, all brands. Arnold it's and said, across, broad-based the as

a it CDC, me then sail the hoping That's for abroad, at not is sail look to potentially was move season to all you get And to go for likely one between month under helpful. and that tend in maybe elsewhere and spring where could ships fewer then and the you get outfitted as there's ships whole to of might to understand point the relationship since lot that look help on more summer the one there's guidelines, more restrictions? same is be the us certified going not the to certified CDC we I

operate, the to period. want freedom We

with give and our experts, want inputs science, be operate. their Obviously, we whatever and offer we'll CDC the make in focused regulates. on, But the And we again, inputs like will freedom compliance so and medical determinations being to other up CDC their whatnot.

so -- Now the of U.S. sailings in the us also we we gives mentioned places. but outside fact that number additional the is to having of on, have large a and operate said earlier, normally are that, freedom as that degrees secure to global, we other freedom, are our

job AIDA. vacations. obviously, limited summer targeted Now we've U.S. for markets, and is But doing you're sailings an with Europe as with far holidays really the in been right, the of different world good the also a you and around Costa but look so active in time startups

little it is Of But course, feels that nonetheless, all period. an of a active now. different

So we're positioned, differentiated. we're well

nine have brands. well line cruise have in brands, We we national

up ways things the advantage But operate can the like to staggered in everywhere. open world, As around of we to take have we full that. freedom

are the would sail that to waters, the ships back this balance those add the that waters outside more of Gras. the U.S. CDC ships the of in expected ships see just expect we And XX website, into U.S. order brought conditional that sail look at you remainder waters. sail that the through the CDC I'll And we issued you'll year and transit, Mardi come one U.S. in if is Carnival it's to back,

Assia is next And with ahead. our Please question Georgieva go Research. from Infinity

is Your line open.

opposed ships is couple scheduled to of to restart How not that? A an to at possibly as Or is that ability the easy inclination say, that and or start, let's something there that quick end of questions. Is March? some going the June are of to May change? currently is

sense it if we made sense. we made were if for that's able that introducing Yes, best out first have in operate sooner two And public we're all, is, one. Number health, always of freedom to the number act interest to of made customized the itineraries it periods those January, itineraries to and to we would in if were there not brands, prior so. here and do rule sense, going

it something opportunities is made brands a pause sense. the could through some it have a that is if the many that how presented absolutely, even So if reintroduce announced to possibility, this here, of if yes, certain time, especially January itineraries sense, there made we now with -- is itself customized period introduce and

to do reconsidering And you brands. it's of longer end Again, before think the their allow mentioned November? Arnold, make the seven the longer and position not cruises, CDC course, more possibly over for -- voyages voyages might open you which, nights old higher shorter be sense. But the

vaccines, all things low-cost, We'll in see on, the but And again, make. And the this I call of be again, have of with acceleration -- of flux. is advent and have CDC's so and all the change testing, with treatments time, would see. think to with definitely we the evolves. what advancements to the rapid to potentially in That more

it's say wouldn't I So impossible.

I their world then their everyone other possible, in wants And conditions places change regulations. based whatnot, rules have the on think they and position. it and they and the best in to act interest may there's science if the and And again, made science. then

And opportunity places the so here longer to see. we'll there for prior have to the in definitely have some date, cruise in U.S. possibly will in to itineraries and certain world that be

your they might very you find sort communications active an and time as we'll of any you out, just given do to the the guidance? Or come expected that's orders line when are out? have further be you with lastly, And all day CDC, that waiting in receiving technical and when

a not different predict I by because never that predictable. its businesses, it's long think, to ago try anything I learned regulatory in time nature,

we'll that, dialogue. obviously, provide determinations respond the we the So frame They'll to their doing they information, time feel comfortable we're that. so, active and make in and

to a definite don't comes. prepared day So be it comes, whatever them, act release future but from for we'll guideline on have we whenever

all think as guidance further as it's will for I of soon waiting be us available.

in do while be obviously, is we of cash or years possible and June there, growth there, term. that sailing day the whatever over in business et are of month start of couple obviously, it as maximization would be cash this, all it way you compliance, great back long or the for for be not company. are. at the time, want or business, cruising prepared industry well the or a all value March business we value and April this of and a reality to generation as point. in The whenever, here is sense whether or right this And makes comment the the in as rules us and determining we want But cash because and our matter to the clearly, cetera. for growth the the last will to certain order in that, And future growth a generation, this in the month look soon at here eventually, regulations to months in industry days or make we're we're a resume a the real then of And earnings, many our in when

I to ships agree, close for to to moving opposed the pricing. just voyages for actual of as but been now I've start two following the and Yes. decades kind getting forward itching all pricing

Okay. luck. Good you. Thank

you. Thank

ahead. go from with We have Please Truist. a question Patrick Scholes

line open. Your is

if details with but can wrong Correct share that I'm early any industry meeting. wondering the last if from I'm meeting here, there week I is that an CDC. believe was me you if And correct,

There's any share wouldn't levels. we kinds at technical CDC There's levels. things. of medical different are No, details. levels. the There meetings all with multiple There's

having association, at dialogue so what CDC we're that you what everybody constant tell determining together is lines. our is cruise of way are also, as in resumption other CLIA, focused also And a in as communication, overall that society. this is point, working for with is is industry on And our best And fits appropriate. the cruise I can

then leaving Okay. from left And of the XX idea have are? of give flow or Fair some enough. -- what those can cash have a and cash left net question your are income you us the fleet, them that ships ballpark a on second

David? that, you give I'll

Yes, you're the talking sale about price?

exit. XX to we The ships plan

Yes, so.

Go ahead.

XXXX. X%. in X% On We the had before, that of it cash indicated flow, income was was only operating

proceeds the -- the I'm proceeds about talking from… I'm sorry,

proceeds. The

Oh, the proceeds. We wouldn't share that.

Yes.

imagine, for don't a we future we disadvantage million, sales million, But we negotiations. COVID-XX to in $XX piece. $XX ships than in a the selling of selling that price standard, as $XX So, million for put will somewhat the prior cases, obviously, us But I these historical would in in many were post-COVID-XX. say would that cases, you ship, were disclose any ships less

was So -- size. of de in our grand the it scheme wasn't company of it minimis a

you Thank very much. That ballpark me Great. Okay. gives idea. rough some

you. Thank

question Ben Chaiken a ahead. Suisse. with from have Crédit Please We go

line Your open. is

opportunity? then side. maybe And you I more then some that incremental then there. cost of talked And efficient one more way that touch to sizing leaving a the result to lower fleet. those what about And Can improvements on insinuated, shore think from I any cruise you So, costs are? ships believe, about as think lower just from

Yes.

there ships the in was less the to no were efficient cash the there accelerated for I the fact generate given ships fleet, them exiting pause we As exits, that with the given mentioned, near-term opportunity the in. we're

then And cost X% in reduction based on so exiting. well. a of the base -- as a it X% those fuel advantage gives us And kind ships

to can side examine, can standpoint continue make burn pause, effective. get so, every we had shore to also On a furloughed we rate efficient, side be opportunity side. it's be down. where to to see where from ship the And number stuff, with our aspect of we to of on and us of given this And conservation our more in that's business. all cash obviously, that's and operations, shore do more of changes the we basically, a So

have even system. We've and operating job but things a So Right And be through structured doing a the improvement you you're before. unnecessary beyond when would your good very you continuous stuff, our pretty the money we're would examples, our say, of you're and at but spending not you on normal now, were that, department, marketing successful on efforts, what you're procedures what a getting also how all give about. you that, few of cost were path advertising see looking where and sourcing it think you. we of we been out

that continue efficiency. been to and for that. do improved And a hard take business at opportunities so the to pause, to able we do And aspect this have found additional with continue look and we've of every

that caught I Got right, -- mentioned forward guess, David, your helpful. presumably, you. then commentary, this I pricing know That's I but there. think, on you bundles, don't And in includes pricing pricing if the listing I implication

not I So it think apples-to-apples. mentioned you was

possible the is comparison, pricing I what your apples-to-apples forward for think? 'XX on get you're an versus books seeing it to So

we when to a product the bundle, is of what bundled the we revenue. portion do we allocate do the So -- the onboard other and

was that portion the So only the overall. price the that of comparison using by a the in price we're paid guests total is

But So, get onboard the the it. you going we're see apples problem allocation, the is to as as to other into get that close and we and can of benefit it's in revenue. because apples

comparison So of get others said probably was to increase we that's favorable I future because than onboard close why you where I the But see a more X%, cruise I big indicated in were result the said credits. it the down allocated can other. would excluding and out the and that onboard That's pre-purchase. we've expect about as as

So that for clarifies it hopefully, you.

We have Jaime go with a Katz question Morningstar. ahead. from Please

Your line is open.

I was different if any wondering, they insights anything you Are lifetime from customers Or Are new-to-brand are maybe longer younger? they bookers some new-to-cruise were guys that if in of the takeaways seeing? the or there's interesting there the skewing XX% than past? then?

So it's been...

any we you new No, in David, we have But make dramatic not ahead. the like it's than difference like cruisers a trend wanted bookers or Go seen have to in new past. comment.

schedule Yes. by XXs little we could and maybe didn't loyalists, add or seeing they And as cruises. some were XXs XXs. considerably than a and further the way, those were And them of in the was up, things. No, the have to XXs, any telling they the they the people, and I asking significant seeing brand We're anecdotally, in the were that plan so work in a XX% are ahead we worry just a most talking their brands than XXs about quite various I it the more XXs, longer as be booking retired XX change voyages few really voyages. that voyages which, was overall just those norm, demographics to a -- slightly couple speculating of the people early going just well which me just of whether their overall, were booking that to XX%, and about haven't seen people. people And people in that XXXX, people

seeing So, changes all trends all globe, in ages we're in all and significant booking any demographics or seeing not products the brands. around

quick just a follow-up. then And Excellent. housekeeping

might probably For know the the delta year-over-year be can that that depreciation give us depreciated, come out for largely the are have of what fleet lot idea but figure? I ships a of an in like XXXX, of you

So yet. our made for we what looking roughly all XXXX XXXX, We saw is similar is in we're to CapEx difficulty haven't trying $X.X at to obviously is The XXXX. of But in our it that which preliminary for number. a XXXX. billion, estimate decisions

Some depends on timing restart. of the the of it

that's preliminary figure. a So that ballpark-ish is this good point, a number. But at

ahead. from go a Company. with Please have Vince we And Ciepiel Research question Cleveland

open. Your line is

to come back I FCCs. the wanted to

I two-thirds think outstanding. the as last call, were of still roughly

you mid-single-digit next take of of to think of the alluded type if that kind And for coming impact curious side. And going of to And to that on convert? hold should a what from is kind negative to the more FCCs part those continue curious, of and that you pricing has the in held convert? held? it's as So those I more is, roughly of to then previously think start impact

the it's back of we're time, back talking time period talking the half the half front I digits, last the about and at talking So about about, the was 'XX you looking that I when mid-single the at of the was XXXX. start When probably, our deposits And you're ballpark still terms FCCs, still in same are customer as 'XX, of of about as this far the in in including half FCCs. of the FCCs pricing. terms the of unapplied point XX%

quite booking, that still coordinate at time we very you families have rebook. to a And FCCs frames. vacations few got have really lot yet families times with that's A are multiple surprising. not So, supervisors and you've that get kids. with of work But to

over opportunities. these their bookings to X or the would expect next plan as vacation into XX months turn we So people FCCs

little I maybe to helpful. about That's bit Great. margin And opportunity. really longer-term the think a wanted

about is 'XX, probably think 'XX? of of taking type in what EBITDA less out curious you talked sales ahead ships, efficient of you of just probably recovers as some more overhead, fully revenue do opportunity ships, newer, You've efficient arrival margin more the

providing to Yes. guidance, point be of kind margin reluctant that in you at would we're opportunity position that a I'd give this yet. and be not

and later service, I in much Arnold's give the the better more us you be guest you future. point, cruise to this and this into details improvement, indicating metrics we perhaps we'll in give of cost in expect would to that But resume the think back lead a operations, opportunity an get efficiencies alluding better by some comments, to time is but year, that. position a to at margin all guidance

please. we'll Operator, more take one question, Great.

Berenberg. a Gordon We Please ahead. go with from Stuart question have

Your open. line is

was the give credit export I net December, not, but an I because if end Yes. on calendar approximate drawn facilities fiscal was ideally some down you us of and could the there at side. wondering think if XXXX, debt number in

We balance shortly additional debt November So correct. at associated XXXX, ships them. thereafter, it, billion. Mardi be took and $XX will call was we $X.X date, I in and credits Firenze. the Carnival two additional with Gras XX, sheet will delivery remember of on -- you're the end Costa which probably did an of And if on That export drew the billion, correctly, December XXXX,

could you you to ships anticipated ship given And any up. the mean, visibility Okay. given in follow future just in XXXX delivery on size what with the deliveries? leaving? obviously And the us I versus any changes also, thoughts XXXX, some Have fleet schedule you've would on XXXX. given whether your be cancel

Okay.

But of I there renegotiate indicated, said delivery new mean, we've I before. mean clauses and our of in ship got a are So contracts. in all deliveries, deliveries. cancellation delay dates, we building times Arnold no we did ship the many as this terms the in

a of builds the of took the any So started on order. delivery expect of any result of on wouldn't order. new as that, year X. We XX I cancellation with We

than ensuing higher of capacity try about to at be we of we look concerned, at the end XXXX points you'll and have ALBDs, So, far the more as that end in X.X is in XX -- would And capacity as do this our percentage XXXX. if the years. see XXXX, you

remember, builds acceleration than of came you're that per year just X% But talking the to left that because less the new the fleet. 'XX, in. capacity of 'XX ships So from XX really the about growth

out to than that... nets X% with And it So less a year.

sure nice everyone. your Be responsible, a leading of be Year. New very safe. appreciate together, Be you happy hopefully, all what And years look we XXXX forward you, success. thank I'm Yes, interest, to We future are. really will many to

Thank you. so thank So, you much.

your for your you concludes We disconnect call That line. ask please the and that thank today. participation for you