White Pass & Yukon

[John]

From the Carnival Corp Annual Report

We have a 45% noncontrolling interest in the White Pass & Yukon Route (“White Pass”) that includes port,
railroad and retail operations in Skagway, Alaska. White Pass provided an immaterial amount of services
to us in 2023, 2022 and 2021. As a result of the effects of the pause and subsequent resumption of our guest
cruise operations on the 2022 and 2021 Alaska seasons, we evaluated whether our investment in White
Pass was other than temporarily impaired and performed impairment assessments. As a result of our
assessments, we recognized impairment charges for 2022 and 2021 of $30 million and $17 million in other
income (expense), net. As of November 30, 2023, our investment in White Pass was $53 million, consisting of
15
$21 million in equity and a loan of $32 million. As of November 30, 2022, our investment in White Pass
was $50 million, consisting of $18 million in equity and a loan of $32 million.

[learmoia]

I read that 3 times and still don't exactly understand what it gets at.

Investment equity went from $21m in 2022 to $33m in 2023?

How is the rest of the cruse industry preforming compared to WPY?

[Dave V]

I read that 3 times and still don't exactly understand what it gets at.

Investment equity went from $21m in 2022 to $33m in 2023?

How is the rest of the cruse industry preforming compared to WPY?

Oh, good. I'm not the only one then who read that multiple times and still said "Whuuuuuuuuut?" I didn't want to ask because I assumed it was supposed to be explanatory and that I was simply being dense.

Can we get some subtitles please?

[John]

As I read it - Carnival Corporation owns 45% of the operation, and that they increased their investment to $53 million total in 2023 - of which $21M was shares, and a loan to the railroad of $32M - which I suspect has either a repayment or some sort of conversion to ownership stake ..

I had to read it a couple of times as well - but the intent was to highlight the fact that the Carnival brand cruise lines are continuing to increase their ownership of more of the experience in the various ports (as are the other lines) - whether private islands, shore excursion operators, or hotels.

I'm heading to Denali this summer and am booked on Holland America ( a Carnival Brand ) .. they are getting a cut on lodging at the Park, the transportation through Alaska (which they contracted out of Seattle) ..  Btw, I will be doing the Alaska RR from Denali down to Anchorage to do a southbound voyage, and also going back to do the White Pass - interested in seeing the new motive power ..

[Dave V]

OK, so for us dumb kids... This is good for the WP&YR, right? 

[John]

Probably.  Gives them cash flow to maintain the ROW for sure

[learmoia]

I noticed the loan value didn't go up so that's good...

Where did you find that @John ?   Even for corporate speak that I'd poorly worded..  (but it looked like a block of text may have been accidently moved in the paragraph...)

[John]

I noticed the loan value didn't go up so that's good...

Where did you find that @John ?   Even for corporate speak that I'd poorly worded..  (but it looked like a block of text may have been accidently moved in the paragraph...)

I'm a shareholder - so I get it prior to the annual meeting .. I do a few cruises each year - and it gets me some extra on board credit .. ever since the COVID thing when they shut down the stock tanked, so I have to hold it until I can get some of the money back before I dump it ..  It's attached .. Page 15

[Point353]

Buy a cruise and get a free train ride: https://cruisetipstv.com/holland-offers-free-white-pass-excursion/

[cv_acr]

Equity (value of the property) went up by $3M from Nov. 2022-Nov. 23. Not bad.

The "impairment charges" I'm pretty sure would be accounting marking down losses from cancelled and restricted services due to the COVID pandemic in those years.

[cv_acr]

Oh, good. I'm not the only one then who read that multiple times and still said "Whuuuuuuuuut?" I didn't want to ask because I assumed it was supposed to be explanatory and that I was simply being dense.

If you're a corporate accountant it probably is.

[wm3798]

Good old vertical integration and consolidation.  How to build your monopoly before anybody notices.

Lee

[nkalanaga]

Or, more generously, a good way to preserve an attraction that might bring more customers to your main business.  I doubt that there were too many companies interested in buying a narrow gauge railroad to nowhere.  Without Carnival it probably wouldn't have run much longer.