Good morning.
This is Josh Weinstein.
Welcome to our third quarter 2022 business update conference call, my first as CEO.
I'm joined today telephonically by our Chair, Micky Arison.
And with me here in our Miami offices, our Chief Financial Officer, David Bernstein; and our Senior Vice President of Investor Relations, Beth Roberts.
today's note be of refer forward-looking. the statement please this remarks you begin, cautionary will call Therefore, in I that our some on to Before release. press I must
to strong business to to as ground has QX a on gap than from internally relentless time, on closing in from shifted to a QX over XXXX approximately positive QX. occupancy in in XX At XX XX% We've focus gap XX% to we has trajectory. QX. in points XXXX Our been our reduced profitability. continues return points the capacity and stake put gone in The the a less to the same return over in service to service from
August, in in future achieved excluding cruise higher in despite the occupancy at per of to down differential dollar of fuel QX. the $XX ALBD, impact reduced fact, $XX the XX% adjusted month constant And from almost revenue over diems has in costs, QX per credits. we cruise In
of we fuel As million over prices. $XXX doubling third EBITDA a in to the generate result, were quarter, in able overcoming a adjusted near
yield revenue that We've expect over do composition we to dividends second into overall XXXX, as expect quarter favorable our expect to advertising making been also We our and while and the increasing seasonality finish positive. time. given breakeven EBITDA in And strategic to pay EBITDA continue trends XXXX in up be head drive to these slightly fourth XXXX. changes we we investment will fleet half negative of revenues to
X of has to delivery taking less ships XX smaller, efficient XX never been efficient very and of and exiting thanks fleet ships large ships. better the global positioned, Our of
in per is the all be peers. than XX%, our age increasing berth a count the of largest our It average will year, in public than we'll next amongst ship year actually were at younger also X means XXXX XX average our be fleet While XXXX, years. we older years nearly
fleet We with operating expect benefits and a X% efficiency, fuel and costs, include efficiency onboard larger remaining cabin overall deliver higher more XX% revenues. associated richer generate mix a of this profile platforms to experiences to in
of to also successful drive improve ships, and launching In will while capacity All Cruise address by light to innovative X there and our ROIC our significant Costa Line our line brand allowing begun the its drive-to itineraries, previously levels, XXXX of in presence reducing are by brand and growth. pre-COVID, have cruise via bottom durable cruise China highly from offering. including the portfolio of Carnival expand top X Carnival continued new brand's closure placed Costa announced on X We bolstering we operations Carnival through initiative be to ships transfer XX% the XXXX. Costa's in
nearly We during our are burn, And and closest will time. portfolio operations, over of occupancy to in These will being opportunities fleet pause cash while benefit towards once continue And the we size for decisions evaluate scale. will opportunities from to profitability. march cruise a was company our strong portfolio our return full strong even brand tailwinds. to drive provide distinct to twice next further the and the industry-leading there we as disadvantage again revenue ahead greater optimize
guests. have we our of loyal the pause, benefited Throughout dedicated the support from
of as new-to-cruise. mouth and X of efforts we new-to-cruise Now in advertising. beyond, have historically new-to-cruise of are the of you and important to grow are been About XXXX And X/X we our most know, probably capacity guests drivers attract guests. as redoubling word
prior day the out. the after unparalleled leave day XXXX, the army been the we ships, back advocates that of the than word of of we about spreading deliver and alone, building to just and over have mouth, respect XX% word With pause, guests all the carried vacation our in more quarter In in of the twice we we quarter. third carried number in experiences
been XXXX last also X we've spend our up front, just advertising having the in reached ramping levels efforts, quarters. the On
we In less was conscious than over fact, our until on resources guests. like the all was X period XXXX, months had most withstand cumulatively in more X-year efficient of channels this to re-prioritize to decision ago, past a a pause. spent advertising of at and This directed
will increasing awareness new-to-cruise. their those consideration been and our actively brands As advertising we target and increase have now investment,
new-to-cruise the an we're newcomers While are thrilled seen higher back a be them of trend will already XXXX guests, in and have get board. we And absolutely to once improving way still carrying on X/X repeat we proportion of levels.
all-inclusive great and service ships than experience, you entertainment teams a can itineraries, innovative beautiful choices, most dining personalized amazing great higher fantastic delivering are onboard anywhere a We vacation sea. the and convenient, level providing or on land and of find
case us, are land, are phenomenal a product. a we to when generating priced we The too of from telling is issue Our increasing and our not demand much We value. should to a way comes itineraries. XX% revenue profile, Net are it better. discount significant delivering Promoter the XX% be Scores at and on is do can, to which today, exactly will we based anywhere Bottom should line,
areas each to brand capabilities their begun or commercial her president understand improvement. and team traveling to with have I for and strengths, meet his
are tactics in to through We price their seize bookings capture while working and strategies to taking of interim. quickly opportunities, roadmaps the advantage all and
each management adapt focus data, the our evolving guests marketing successful; friction to while launching on target environment; as more internal more bookings, areas approaches; trade our sales lead an that multiple to brand renewed a to partners execution travel revenue above. key and differentiation speaks at allow operations, performance and segment; support of cross-brand generation This as across all continue level driver further continuing another to need points audience using cuts and relationships, sales driving brand's digital marketing improving all each and to perform and demand; agent audience; channels to and high booking effective our to in commercial we target around efficiently insights ensuring secure clarity we target brand's new-to-cruise learnings of to creative optimal a be aid to of reduce
brands leadership been presidents, them. Since throughout new The we that presidents the has been of fantastic, brands urgency real. at X actively pause characterize sessions to brand And engagement bench the energetic organization. these and X the and below welcomed these and and these our transparency brands leaders, of have sense is have brand forward began, the their new speaking have drive of actually have bolstering leaders the
XX made across with direct leadership worth are X corporate the the women. just changes last half made few months. reports Additionally, a I've in dozen of date, It's changes I to have noting now that my
focused are We diversity and actively invest talent inclusion, we'll and continue on to talent management. and in
sustainability levels. making being board. alongside significant than the than progress agenda, decade lower been fits XX% have overall peaked footprint over a reducing our set XXXX and across diversity carbon XX% we've than ago. our we've no to be probably intensity. for carbon There targets intensity strides carbon larger, Despite more greater been Now our XXXX And
realizing projects, being will and investing our We even and fleet the currently port efforts. out, itinerary benefit this upgrades optimization rolled through more of optimization destination achieve focus on technology in
successful While we biofuels this To yet, modification. towards we X working is are a end, committed for solution. excited to silver recently existing engines there no industry about completed bullet I'm without in decarbonization pilots our to using
protocols And for tone Turning now FCCs. mid-August, improvement very levels in considerably at the our XXXX, announcing for adjusting already in business meaningful current to than Pricing have volumes. book encouraging XXXX since very seen in of it booking higher business. that currently relaxation we is our a is
levels. same we a We notable improvement seen cancellation now trends. have are At considerably in than running higher time, the XXXX
trends materialize our planned We will favorable to make as expect the our summer impact operating we toward where current these the as profit. of bulk season to our we efforts continue important of accelerate and move
newbuild When to been been company. it cash priority thanks to sheet comes company for we our substantial our significantly a in our maintaining balance while Pre-pandemic, program, a to our this always structure, the has achieve generated. have investing able capital flow strong
strength and we'll time, we forward, our newbuild decisions accordingly. to committed the using sheet Going disciplined making cash and flow in over repair are rigorous be to balance
not reduce our significantly We have XXXX X XXXX. do and and We will in in commitments in deviation significant annual This us on anticipate order to X capital on ships deleveraging. years. several path set for levels the
opportunity the to for more as seized have more We sustainable future. is company more that and efficient, the emerge energized a
brands an fleet, transformed of in an a have portfolio and industry. unparalleled well-recognized under-penetrated unmatched We scale
optimize We long-term to strategically near- managing our portfolio performance. are and our
flow track cash levels have accelerate a significant to measurable delivering revenue That coming specifically historically investment-grade and opportunity so higher drive path. along free will drive and now tremendous path ROIC. by long-term opportunity pricing returning about and our we our while improvements, to occupancy In to talk profitability, growth time. credit the can over maintain high we'll We progress goals and accountability ratings targets months, that
their of of Our to plan travel we to are also I the as lenders for our improvement. port and, destination our gather strive course, suppliers, communities, more to investors, months partners, business. perspectives with guests agent in important coming and our continuous speak stakeholders
full us get factors by dedicated to vacations to now that happiness fulfill members get of it heavy I much-needed operations, unforgettable up our and our that the to has take to all and in response our and team the shore, of thanking for part. ship would and We And to and personally all pause external set get creativity, talented forward end the globally, the now innovation to skill like and lifting business and the to guests. our drive throughout team took built agility by exciting we delivering comes proactively to operations. use of of resumption to mission creating back
I'll to turn over the And now David. call
