SECOND QUARTER 2020 SUMMARY PRELIMINARY INFORMATION
U.S.GAAP net loss of $(4.4) billion, or $(6.07)diluted EPS, for the second quarter of 2020, which includes $2.0 billionof non-cash impairment charges.
- Second quarter 2020 adjusted net loss of
$(2.4) billion, or $(3.30)adjusted EPS.
- Total revenues for the second quarter of 2020 were
$0.7 billion, lower than $4.8 billionin the prior year.
- The company’s guest cruise operations have been in a pause for a majority of the second quarter. In addition, the company is unable to definitively predict when it will return to normal operations. As a result, the company is currently unable to provide an earnings forecast. The pause in guest operations is continuing to have material negative impacts on all aspects of the company’s business. The longer the pause in guest operations continues the greater the impact on the company’s liquidity and financial position. The company expects a net loss on both a
U.S.GAAP and adjusted basis for the second half of 2020.
- Cash burn rate in the second quarter 2020 was generally in line with the previously disclosed expectation.
- Second quarter 2020 ended with
$7.6 billionof available liquidity, and the company expects to further enhance future liquidity, including through refinancing scheduled debt maturities. In addition, the company has $8.8 billionof committed export credit facilities that are available to fund ship deliveries originally planned through 2023.
- Total customer deposits balance at
May 31, 2020was $2.9 billion, including $475 millionrelated to cruises during the second half of 2020.
PREPARATION FOR THE RESUMPTION OF GUEST OPERATIONS
The company expects to resume guest operations, after collaboration with both government and health authorities, in a phased manner, with specific ships and brands returning to service over time to provide its guests with enjoyable vacation experiences. The company anticipates that initial sailings will be from a select number of easily accessible homeports. The company expects future capacity to be moderated by the phased re-entry of its ships, the removal of capacity from its fleet and delays in new ship deliveries.
In connection with its capacity optimization strategy, the company intends to accelerate the removal of ships in fiscal 2020 which were previously expected to be sold over the ensuing years. The company already has preliminary agreements for the disposal of 6 ships which are expected to leave the fleet in the next 90 days and is currently working toward additional agreements.
Health and Safety Protocols
In preparation for the resumption of its cruises, and consistent with its commitment to provide its guests with a safe and healthy environment, the company is proactively consulting and working in close cooperation with various medical policy experts and public health authorities to develop enhanced procedures and protocols for health and safety onboard its ships. The company appreciates the excellent working relationship with