SLSD

We are a couple and have enjoyed meeting solo travelers on SB. We still correspond with some of them. We sometimes had dinner with one or more solo travelers (not at a hosted table) and had such a good time.

Mr. SLSD offers these "casual observations" from Carnival's new 10-K filed January 27th. It is available on Carnival's website and on the SEC's Edgar website: 11:33 AM (10 minutes ago) to me Certain observations on Carnival Corp.'s new Form 10-K (filed with the SEC on Jan. 27, 2023): As compared to prior 10-Ks, the company makes far more extensive disclosures as to risks and actions underway to address climate change and its consequences and all other risks. The MD&A is no longer contained in the text but rather occupies a footnote, numbered 13. Re footnote 13, begin with the Consolidated Balance Sheet. Of course, all figures for assets and liabilities are per GAAP or going-concern basis. Pertinently, the figures on Exhibit 13 show a decline of total assets from 53.3B to 51.7B. PP&E remained the same at $38B and change (after deducting $19B of depreciation), but current assets dropped from 10.1B to 7.4B, with cash falling from $8.9B to 4B and another $2B that was in "restricted cash" on the financial statement's November 30 closing date but has "became unrestricted in December 2022." The cash figure also includes "borrowings available under our Revolving [Credit] Facility." The figures for liabilities show current liabilities in the aggregate remaining the same at $10.5B. But within that amount short term borrowings reduced from $2.8B to 200MM, reflecting last year's refinancing into long-term debt. The current portion of LTD rose from $2.4B to 1.9B. Other components of this category went up relatively small increments. One component of net assets that is a good thing is "customer deposits," rising from $3.1B to 4.9B, reflecting more customers for cruises. (The MDA explains: "Our payment terms generally require an initial deposit to confirm a reservation, with the balance due prior to the voyage. Cash received from guests in advance of the cruise is recorded in customer deposits and in other long-term liabilities on our Consolidated Balance Sheets. These amounts include refundable deposits. In certain situations, we have provided flexibility to guests by allowing guests to rebook at a future date, receive future cruise credits (“FCCs”) or elect to receive refunds in cash. We have at times issued enhanced FCCs. Enhanced FCCs provide the guest with an additional credit value above the original cash deposit received, and the enhanced value is recognized as a discount applied to the future cruise in the period used.") LTD went up with the refinancings from $28.5 to $32B. Stockholder equity continued to decline, from $12.1B to $7B....stockholders, of course, occupy the lowest rung on the priority ladder. Looking at the income statement, again these figures having been calculated under GAAP: net losses are $10.2 B in 2020, $9.5B in 2021, and $6B in 2022. So that is a good trend. Highlights of MDA discussion: Expects increases in revenue in 2023 on a per passenger basis Expects improvement in occupancy on a year-over-year basis returning to historical levels in the summer of 2023 Believes stabilization of fuel prices around November 2022 year-end prices and continued stabilization of inflationary pressures on costs "We have a substantial debt balance as a result of the pause in guest cruise operations and require a significant amount of liquidity or cash provided by operating activities to service our debt. In addition, the continued effects of the pandemic, inflation, higher fuel prices, higher interest rates and fluctuations in foreign currency rates are collectively having a material negative impact on our financial results. The full extent of the collective impact of these items is uncertain and may be amplified by our substantial debt balance." "Based on these actions and our assumptions, and considering our $8.6 billion of liquidity including cash, restricted cash from the 2028 Senior Priority Notes which became unrestricted in December 2022 and borrowings available under our $1.7 billion, €1.0 billion and £0.2 billion multi-currency revolving credit facility (the “Revolving Facility”) at November 30, 2022, we believe that we have sufficient liquidity to fund our obligations and expect to remain in compliance with our financial covenants for at least the next twelve months from the issuance of these financial statements." The important disclosure about "working capital deficit" is: "We had a working capital deficit of $3.1 billion as of November 30, 2022 compared to a working capital deficit of $0.3 billion as of November 30, 2021. The increase in working capital deficit was caused by a decrease in cash and cash equivalents, a decrease in short-term investments, an increase in customer deposits and an increase in current portion of long-term debt, and was partially offset by an increase in restricted cash and a decrease in short-term borrowings. We operate with a substantial working capital deficit. This deficit is mainly attributable to the fact that, under our business model, substantially all of our passenger ticket receipts are collected in advance of the applicable sailing date. These advance passenger receipts generally remain a current liability until the sailing date. The cash generated from these advance receipts is used interchangeably with cash on hand from other sources, such as our borrowings and other cash from operations. The cash received as advanced receipts can be used to fund operating expenses, pay down our debt, make long-term investments or any other use of cash. Included within our working capital are $4.9 billion and $3.1 billion of customer deposits as of November 30, 2022 and 2021, respectively. . . ." The MD&A ends with stock performance charts. The line is down and to the right across the last five years. Everybody who is interested in Carnival Corp.'s financial status should read this Form 10-K report carefully and in its entirety. Do not rely on my observations. ReplyForward

We'll have to see what his observations are..

I sure hope we will! I am ready, but Mr. SLSD is not! He has been pouring over the financial statement of Carnival (mostly just for fun as he has some decades experience in this sort of thing and we are on the topic). He tells me he will type up a short summary shortly. He says it is all about "what is the cash, where is it and how is it being used."

Mr. SLSD is always looking for evidence of both direct and indirect financial distress. Of course financial distress can be mixed with lapses in risk management. Financial distress can also lead to poor morale and a feeling of less obligation to communicate, especially if staff does not feel that communication with them has been adequate. Just some thoughts. I hope things improve. Be sure to let us know how parka sharing works out.

This does not sound like efficient planning or transparent communication. When you are critical Markham, I pay attention. Of course when I read your post to Mr. SLSD (the bankruptcy attorney) he said, "That is a company in financial distress."

I enjoy the poolside parties and always attend. We may be sedate and quiet, but love parties--as long as there are not raucous coarsely loud people giving the party a flavor that is not pleasant. I also don't mind children as long as they are well behaved. Family groups are also fine as long as they are well behaved and understand that they should not stand out and overpower the rest of the passengers as a group. I still want clarification from Saminina about the homeless encampment. I assumed she/he was referring to dress. Perhaps it was something else.

So you are saying the guests were poorly dressed. I've mentioned to Mr. SLSD that jeans can now be worn in the main dining room. He is not impressed. I just don't like the picture you are paining saminina. I seem to recall that we were on a cruise with you, but you didn't identify yourself so we missed meeting (I think).

We would absolutely hate it too! And this is why we have never cruised at Christmas. We are friendly, but sedate and quiet. We started cruising late in life because we thought all cruises would be the raucous groups of partiers. Finally, some friends convinced us to try Silversea years ago and we saw how civilized cruising could be. While Miami to Miami would be easy for us, I am more than slightly concerned.

Evidently, the fire was in October of 2022 and some of the statues were singed. While some knew who started the fire, no one wanted to testify for cultural reasons. Perhaps your guide didn't really want to talk about it either. https://www.pbs.org/newshour/arts/easter-island-rebounds-after-wildfire-singes-iconic-statues#:~:text=The fire covered 254 hectares,a complaint against fellow Rapanui. https://www.smithsonianmag.com/smart-news/fire-does-irreversible-damage-to-sacred-easter-island-statues-180980922/

These are fabulous photo. I remember reading some months ago that there was an unfortunate fire on Easter Island and some of the statues were burned and terribly degraded. Did your guides talk about this? Did you see the burned statues?

That too!

Interesting. It does seem like separating the working structure of the brands does make them easier to sell with a smoother transition upon sale.

I was fascinated with exactly the same things. Since reading Thor Heyerdahl's Kon Tiki when I was around twelve, I've wanted to go to Easter Island. Your photos are wonderful! Thank you for taking the time to post them with a bad wifi.

We never book a cruise directly. We always use a travel agent. I think many people are in your situation due to the very unfortunate stabilizer issue aboard Venture. The main issue for. you appears to be poor communication. Hopefully everything will work out in the end and you will receive some compensation above what you were paying for this cruise.

I hear you made to Easter Island---so glad to hear that!! I look forward to the photos!

Time of day may also make a difference. I had pretty good results posting from the OB at the beginning of tea time.

I had my best luck posting on my computer from the Observation Lounge--not our suite.

At the Club in the evening after dinner.

I agree. I loved going places I would never go but for a cruise--Malta and Corsica are two places that immediately come to mind.

Instead of saying it is too soon for the OP to cruise, why not offer reassurance and any helpful advice you might be able to offer? That's what I would want if I was in Flamin- June's situation.

I totally hear you! I can't get Mr. SLSD to commit to sailing again with Seabourn (or anyone else) until 2024! He says there are too many uncertainties (but I really think he wants to put it off due to writing projects he is working on). I do admit to have some trepidation myself about airlines issues, lost baggage issues, Covid issues---I could go on. All these things were not on my radar screen pre-Covid. I'm prepared to hear from everyone who has cruised successfully that if I am THAT anxious, I just just stay home. Not helpful! I'm looking at 2024 cruises and plan to move forward.

Yes, we always invite friends to join us at the TK Grill or a reservations needed dinner at the Colonnade.

Shark b8, It DOES seem like a lot! I read somewhere that the lines holding the ship snapped. And that's why the ship left the dock. I even saw a photo. But only that one report. It does sound like you world cruisers have been very busy!

Shark b8, Were you part of the adventure with the tenders yesterday? Or were you already back on the ship.