Jump to content
Cruise Critic Community

RCG Q2 Earnings Released

livingonthebeach
 Share

Recommended Posts

The_Big_M

The_Big_M

Posted
Posted
16 minutes ago, MakingUpForLostTime said:

GAAP would not allow recognition of prepaid as revenues.

 

Why not? The tickets are the same i.e. they're not only reported on sailing otherwise the $107m passenger ticket revenues would also be 0.

Link to comment
Share on other sites
Seville2Cabo

Seville2Cabo

Posted
Posted

I actually think, all things considered, they are in decent shape. Taking no other actions, they should be able to get to October next year. But they will get some cash when 2022/23 bookings open up and they still have the ability to cut cost and reduce burn rate.  Plus, if the news on treatment or vaccine is positive,  they should have other options to raise cash.  Another billion in savings or financial options will get them to 2022.  If there is no cruising by then, the world economy is in the tank as well.

 

Stock market seems to agree.  Before the Q2 report, most analysts had them as buy or hold.  Did not see any sell advice, but did not look at all the analysts 

  • Like 2
Link to comment
Share on other sites
drsel

drsel

Posted
Posted
Third quarter net loss will be much greater, maybe the stock will jump another 10%.  
As it always happens in the stock market, when a large, normally profitable company reports a huge loss due to extraordinary circumstances; the market thinks that the worst is over and all bad news is already factored in.
hence the stock price jumps.
Link to comment
Share on other sites
zekekelso

zekekelso

Posted
Posted

As someone who once worked on reported corporate earnings, they aren’t particularly meaningful for any given quarter. It’s the long term trends that matter. And the individual line items. 

One thing you want to do is stick as much bad news into a quarter that’s going to be bad anyway. 

  • Like 1
Link to comment
Share on other sites
twangster "Live from...." Rare

twangster

Posted
Posted
2 hours ago, jwc1027 said:

Richard Fain live on CNBC and when asked when cruising will return he said with COVID nothing is certain. Ok...guess we got that nailed down.

 

Ask a silly question, get a silly answer.  No one knows the answer to that question.  

Link to comment
Share on other sites
Dave0311

Dave0311

Posted
Posted

I think I figured it out. There's a footnote that says "Due to the three-month reporting lag, we include Silversea Cruises' result of operations from January 1 through March 31 for the quarters ended June 30, 2020 and 2019 and from October 1 through March 31 for the six months ended June 30, 2020 and 2019." I bet that's the source of the revenues on the income statement.

Link to comment
Share on other sites
MakingUpForLostTime

MakingUpForLostTime

Posted
Posted
25 minutes ago, Dave0311 said:

I think I figured it out. There's a footnote that says "Due to the three-month reporting lag, we include Silversea Cruises' result of operations from January 1 through March 31 for the quarters ended June 30, 2020 and 2019 and from October 1 through March 31 for the six months ended June 30, 2020 and 2019." I bet that's the source of the revenues on the income statement.

Yes that seems to be it. So the actual operational quarter loss is bigger than reported and the company with all its cash (borrowed) is still insolvent. The key is their ability to use deposit money to stay afloat. If delays continue then customers will want their deposit money back and wait and see on future deposits. The future is bleak as 17.7B in debt has its costs going forward with ships not filled to capacity for a few years. Not good.

Link to comment
Share on other sites
zekekelso

zekekelso

Posted
Posted (edited)
8 hours ago, MakingUpForLostTime said:

It’s not revenue. It’s a prepaid. GAAP matching principal. Unless RCI does not adhere to GAAP. Who knows?


A quick search turned up Carnivals 2019 financials. As expected, cruise payments are unearned revenue when received. They are recognized as revenue at the end of the cruise for trips less than 10 days and on a prorata basis for longer cruises. Same treatment for cruise itself as well as any prepaid onboard spending. 
 

I would assume Royal has a similar treatment. Anyone got a link to their statements? 

Edited by zekekelso
Link to comment
Share on other sites
ONECRUISER

ONECRUISER

Posted
Posted
8 hours ago, The_Big_M said:

 

People buying drink packages, excursions and so on online in advance maybe.

Know I did when deals were great Apr/May. Saved over $5000 in future Cruise reductions Nov2020-Nov2021. Then multiple 2021 drink packages dropped from $68 to $39, soda from $13.50 to $7.50. Had 2 Cruises canceled 3.5 weeks ago, got refunds last Thurs. Canceled one on my own same day others were canceled, got FCC last Fri.

Link to comment
Share on other sites
taglovestocruise

taglovestocruise

Posted
Posted
5 hours ago, Dave0311 said:

I'm curious what the passenger ticket revenues are as well. Since no cruises departed this quarter that I'm aware of, all the money they took in from customers should still be sitting in customer deposits, no?

No, is correct. Monies coming in goes right back out to repay canceled cruises and canceled cruise planner refunds. 

Link to comment
Share on other sites
The_Big_M

The_Big_M

Posted
Posted
10 hours ago, MakingUpForLostTime said:

It’s not revenue. It’s a prepaid. GAAP matching principal. Unless RCI does not adhere to GAAP. Who knows?

 

I understand that but they report 107m as ticket revenue for the period. Even though there were no revenue cruises operated in April - June in the group.

Link to comment
Share on other sites
The_Big_M

The_Big_M

Posted
Posted
7 hours ago, Dave0311 said:

I think I figured it out. There's a footnote that says "Due to the three-month reporting lag, we include Silversea Cruises' result of operations from January 1 through March 31 for the quarters ended June 30, 2020 and 2019 and from October 1 through March 31 for the six months ended June 30, 2020 and 2019." I bet that's the source of the revenues on the income statement.

 

Thanks, that would seem to tally. Agree with the subsequent post from MUFLT.

Link to comment
Share on other sites
Ourusualbeach

Ourusualbeach

Posted
Posted
3 hours ago, zekekelso said:


A quick search turned up Carnivals 2019 financials. As expected, cruise payments are unearned revenue when received. They are recognized as revenue at the end of the cruise for trips less than 10 days and on a prorata basis for longer cruises. Same treatment for cruise itself as well as any prepaid onboard spending. 
 

I would assume Royal has a similar treatment. Anyone got a link to their statements? 

Yes, Royal reports in a similar manner, it’s documented in their quarterly and annual reports. Google RCCL corporate.

Link to comment
Share on other sites
Baron Barracuda

Baron Barracuda

Posted
Posted

Read through the 10Q and saw little to celebrate.  Only excuse for stock run-up is relief that numbers weren't worse.  Forget the income statement and focus on how balance sheet has changed since y/e.  $4B in cash (up $3B ) is nice, however roughly $1B of it may disappear as customer refunds.   Meanwhile total debt rose from $11B to $17B while stockholder equity is down 25% from $12B to $9B.  Skeptical they can get their $250MM/ month burn rate much lower so figure without help or a miracle cure they can last a year.   If I were Fain and Liberty I'd be looking at the current $60 stock price as a gift and promptly issue a bunch of new equity.

Link to comment
Share on other sites

Please sign in to comment

You will be able to leave a comment after signing in



Sign In Now
 Share
Go to topic listing
  • Forum Jump
    • Categories
      • Welcome to Cruise Critic
      • Hurricane Zone 2024
      • Cruise Insurance Q&A w/ Steve Dasseos of Tripinsurancestore.com June 2024
      • New Cruisers
      • Cruise Lines “A – O”
      • Cruise Lines “P – Z”
      • River Cruising
      • ROLL CALLS
      • Cruise Critic News & Features
      • Digital Photography & Cruise Technology
      • Special Interest Cruising
      • Cruise Discussion Topics
      • UK Cruising
      • Australia & New Zealand Cruisers
      • Canadian Cruisers
      • North American Homeports
      • Ports of Call
      • Cruise Conversations
×
×
  • Create New...