SLSD

Thank you so much for posting your blog entries on your experiences.

Fletcher, please tell us about Reine. How far was the drive and how long did it take? Did you reserve your car ahead of time?

I have noticed that we are not going to some well known scenic ports, but I am sure we will have a great time anyway. Perhaps SB planned their itineraries late--and missed the opportunity to dock in some ports. That would not surprise me. There are sea days and scenic cruising days interspersed among these ports.

For sure!

Thank you galeforce. I've read that Stavanger has nice old town to explore.

I'm looking to you experienced Seabourners to guide me as I begin looking at ports on our upcoming Seabourn (June 11- June 25) Copenhagen to Copenhagen cruise up the Norwegian coast. Specifically, I would like to know your opinion (from your personal experience) as to which of the following ports can be easily enjoyed on our own and which lend themselves to taking an excursion or hiring a guide. Any details you can offer are very much appreciated. Alesund, Norway Svolvaer (Lofoten) Tromso Storstappen Island Honningsvag Loen (Olden) Skjolden Stavanger Farsund Skagen, Denmark

We are expecting to have a wonderful time and hope that we meet.

One reason we sail on Seabourn is the fact that we don't have to opt for more costly suite to enjoy all that Seabourn has to offer. I appreciate the fact that the more expensive suites offer more space and perhaps a few other perks--but the extra space and few perks do not interest us at all. Like others, we would rather cruise more often than spend our traveling dollars on a larger suite. We have always been quite comfortable in a standard veranda suite. I'm sure we could even make do with a suite without a veranda if we had to. Personally, we love the Seabourn business model. All of this being said, I do believe that frequent SB cruisers who are well known by crew and officers may get a bit more attention when they sail.

I am expecting it to be a scenic trip with less than the most exciting ports. That is ok with us! Some of my favorite days cruising have been the scenic cruising days.

I noticed that the SB excursions seem much higher than in the past. I haven't gotten to the planning stage for ports yet. I'll probably be asking some questions in another thread. we may try some independent excursions. We'll see. I'm pretty laid back about that part of the trip. I'm just glad we are finally going!

All I could think of during the pandemic when it came to cruising was how much I wanted to do the Norwegian fjords! I know it took us a long time to get with the program, but Mr. SLSD was somewhat resistant. He loves cruising but was hesitant about all the hassles involved because of covid and airline travel. We are going to pack as if our luggage will be lost. In other words, packing smartly in our carry ons so that we could survive. Nancygp, As I get organized, I'll start another thread asking for advice about what to do at various ports. Just today, we received notice of an itinerary change and we have just booked the cruise.

We have never done the Norwegian fjords itinerary and have wanted to do it. So--we have booked the June 11th-June 25th Copenhagen to Copenhagen on Ovation.

We have finally booked our first post covid cruise and I have a question. I hope it is a question that is allowed here. If you are a United States based cruiser, who is your preferred travel insurance purveyor? In the past, we have used various--but I have never really had a handle on what is the best option.

We've both turned 70 since our last pre-pandemic cruise, but I have always seen the Seabourn passenger clientele as a mostly older group. In fact, each time we board, we remark to each other that the passengers are quite old! So you and we--fit right end. There are usually a few passengers in their 30s, some in the 40s, with the majority being in their 50s and up. I've met plenty of passengers in their 80s and have enjoyed their company. People in their 70s and 80s are definitely NOT outliers.

This sounds wonderful to me. We subscribe to English Home magazine and I enjoy seeing the restored old homes--so much older than anything we have here in Dallas of course.

We prefer Ovation and Encore to the older ships. We are NOT pool loungers, so the issue of the pool area being the same size is not an issue for us. We also enjoy the TK Grill Bar and the generally updated look of the ships. We've sailed on full ships and they did not seem crowded to us.

We have also sailed in 624 on Sojourn and loved it. So convenient. We been on higher decks on other cruises and preferred 624!

Thank you for your commentary Shark b8!

Mr. and Mrs. Fudge, Thank you for your humor and your willingness to take us along on your fun journey. I always enjoy your posts.

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."