MIAMI, March 27, 2015 /PRNewswire-FirstCall/
-- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK)
announced non-GAAP net income of $159
million, or $0.20 diluted EPS,
for the first quarter of 2015 compared to non-GAAP net loss for the
first quarter of 2014 of $3 million,
or $0.00 per share. For the first
quarter of 2015, U.S. GAAP net income, which included unrealized
losses on fuel derivatives of $112
million, was $49 million, or
$0.06 diluted earnings per share. For
the first quarter of 2014, U.S. GAAP net loss was $20 million, or $0.03 diluted loss per share. Revenues for
the first quarter of 2015 were $3.5
billion compared to $3.6
billion in the prior year.
Carnival Corporation & plc President and Chief Executive
Officer Arnold Donald noted, "The
year is off to a strong start achieving significantly higher
earnings than the prior year and our previous guidance. Our onboard
revenue initiatives drove particularly strong improvement in the
first quarter with onboard yields more than 8 percent higher than
prior year (constant dollar)." Donald also noted that the Carnival
Cruise Line brand continued to outperform, achieving significant
revenue yield growth and remains on track for a strong year.
Additionally, Costa's Asia
operations achieved double-digit revenue yield growth, affirming
the pent-up demand in the region and building confidence in the
long-term potential for growth.
Key metrics for the first quarter 2015 compared to first quarter
2014 were as follows:
- On a constant dollar basis, net revenue yields (net revenue per
available lower berth day or "ALBD") increased 2.0 percent for 1Q
2015, which was better than the company's December guidance of flat
to up 1 percent. Gross revenue yields decreased 3.1 percent in
current dollars due to changes in currency exchange rates.
- Net cruise costs excluding fuel per ALBD increased 2.4 percent
in constant dollars primarily due to higher dry-dock costs and
advertising expenses. Costs were lower than December guidance, up
5.5 to 6.5 percent, substantially all due to the timing of expenses
between quarters. Gross cruise costs including fuel per ALBD in
current dollars declined 9.6 percent due to changes in fuel prices
and currency exchange rates.
- Fuel prices declined 38 percent to $406 per metric ton for 1Q 2015 from $654 per metric ton in 1Q 2014.
- Fuel consumption per ALBD decreased 3.7 percent in 1Q 2015
compared to the prior year.
- Changes in currency exchange rates reduced earnings by
$0.06 per share (constant
currency).
2015 Outlook
At this time, cumulative advance bookings for the remainder of
2015 are ahead of the prior year at higher prices. Since January,
booking volumes for the remainder of the year are running in line
with last year's historically high levels at higher prices.
Donald noted, "We are experiencing an ongoing improvement in
underlying fundamentals based on our successful initiatives to
drive demand. Our efforts to further elevate our guest experience
are clearly resonating with consumers and, notably, improving the
frequency and retention of our loyal guests." Donald added, "We are
also seeing results from our ongoing public relations efforts and
creative marketing campaign designed to attract new to cruise. Our
multifaceted campaign built around the Super Bowl garnered 5
billion media impressions before the commercial aired and has
exceeded 10 billion impressions to date." Donald also noted
that the recent delivery of Britannia, the largest cruise
ship built for Britain and
christened by Her Majesty Queen Elizabeth II, drew international
acclaim and showcased cruising on a global scale.
Based on current booking strength, the company expects full year
2015 net revenue yields to increase 3 to 4 percent on a constant
currency basis, which excludes translation and transactional
currency impacts, compared to the prior year. This is one
full point better than December guidance on a constant currency
basis. On a constant dollar basis, which does not exclude the
unfavorable transactional impact of currency, the company still
expects yields to be approximately 2 percent higher than the prior
year. The company expects net cruise costs excluding fuel per ALBD
for full year 2015 to be up 2 to 3 percent compared to the prior
year on a constant dollar basis, which is better than December
guidance of up 3 percent, due primarily to the favorable
transactional currency impact.
Since December, unfavorable changes in currency exchange rates
(constant currency) have reduced full year 2015 earnings
expectations by $219 million, or
$0.28 per share. However, this impact
has been significantly offset by the improvement in the
company's operating performance, resulting in just a $0.05 reduction to the midpoint of December
guidance.
Taking the above factors into consideration, the company
forecasts full year 2015 non-GAAP diluted earnings per share to be
in the range of $2.30 to $2.50,
compared to 2014 non-GAAP diluted earnings of $1.93 per share.
Looking forward, Donald stated, "Consistent with many global
companies, the strengthening of the U.S. dollar has hampered our
full year earnings expectations, masking the 3 to 4 percent
(constant currency) yield increase our collective brands are
expecting to achieve. Our successful initiatives to drive both
ticket and onboard revenue yields have improved our financial
performance and we remain on track toward our goal of achieving
double-digit return on invested capital in the next three to four
years."
Second Quarter 2015 Outlook
Second quarter constant dollar net revenue yields are expected
to increase 2 to 3 percent compared to the prior year. Net cruise
costs excluding fuel per ALBD for the second quarter are expected
to be up 6.5 to 7.5 percent on a constant dollar basis compared to
the prior year. The increase is driven by higher annual dry-dock
costs primarily all of which will be incurred in the second
quarter. Changes in fuel prices net of fuel derivatives and
currency exchange rates (constant currency) are expected to benefit
second quarter earnings by $74
million compared to the prior year, or $0.09 per share.
Based on the above factors, the company expects non-GAAP diluted
earnings for the second quarter 2015 to be in the range of
$0.11 to $0.15 per share versus 2014
non-GAAP earnings of $0.09 per
share.
Selected Key
Forecast Metrics
|
|
|
Full Year
2015
|
|
Second Quarter
2015
|
Year over year
change:
|
|
Current
Dollars
|
|
Constant
Dollars
|
|
Current
Dollars
|
|
Constant
Dollars
|
Net revenue
yields
|
|
(3.5) to
(4.5)%
|
|
1.5 to
2.5%
|
|
(4.0) to
(5.0)%
|
|
2.0 to 3.0%
|
Net cruise costs
excl. fuel / ALBD
|
|
(3.0) to
(4.0)%
|
|
2.0 to
3.0%
|
|
(0.5) to
0.5%
|
|
6.5 to 7.5
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
2015
|
|
|
Second Quarter
2015
|
|
Fuel price per metric
ton
|
|
$ 406
|
|
|
|
|
$ 402
|
|
|
|
Fuel consumption
(metric tons in thousands)
|
|
3,190
|
|
|
|
|
810
|
|
|
|
Currency:
Euro
|
|
$1.10 to
€1
|
|
|
$1.08 to
€1
|
|
Sterling
|
|
$1.50 to
£1
|
|
|
$1.49 to
£1
|
|
Australian
dollar
|
|
$0.78 to
A$1
|
|
|
$0.77 to
A$1
|
|
Canadian
dollar
|
|
$0.80 to
C$1
|
|
|
$0.79 to
C$1
|
|
Conference Call
The company has scheduled a conference call with analysts at
10:00 a.m. EDT (2:00 p.m. GMT) today to discuss its 2015 first
quarter results. This call can be listened to live, and additional
information can be obtained, via Carnival Corporation & plc's
Web site at www.carnivalcorp.com and www.carnivalplc.com.
Carnival Corporation & plc is the largest cruise company in
the world, with a portfolio of cruise brands in North America, Europe, Australia and Asia, comprised of Carnival Cruise Line,
Holland America Line, Princess Cruises, Seabourn, AIDA Cruises,
Costa Cruises, Cunard, P&O Cruises (Australia) and P&O Cruises (UK).
Together, these brands operate 101 ships totaling 216,000 lower
berths with nine new ships scheduled to be delivered between 2015
and 2018. Carnival Corporation & plc also operates Holland
America Princess Alaska Tours, the leading tour companies in
Alaska and the Canadian Yukon.
Traded on both the New York and
London Stock Exchanges, Carnival Corporation & plc is the only
group in the world to be included in both the S&P 500 and the
FTSE 100 indices. Additional information can be found
on www.carnival.com, www.hollandamerica.com,
www.princess.com, www.seabourn.com, www.aida.de,
www.costacruise.com, www.cunard.com, www.pocruises.com.au,
and www.pocruises.com.
Cautionary Note Concerning Factors That May Affect Future
Results
Carnival Corporation and Carnival plc and their respective
subsidiaries are referred to collectively in this release as
"Carnival Corporation & plc," "our," "us" and "we." Some of the
statements, estimates or projections contained in this release are
"forward-looking statements" that involve risks, uncertainties and
assumptions with respect to us, including some statements
concerning future results, outlooks, plans, goals and other events
which have not yet occurred. These statements are intended to
qualify for the safe harbors from liability provided by Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements other than statements of
historical facts are statements that could be deemed
forward-looking. These statements are based on current
expectations, estimates, forecasts and projections about our
business and the industry in which we operate and the beliefs and
assumptions of our management. We have tried, whenever possible, to
identify these statements by using words like "will," "may,"
"could," "should," "would," "believe," "depends," "expect," "goal,"
"anticipate," "forecast," "project," "future," "intend," "plan,"
"estimate," "target," "indicate" and similar expressions of future
intent or the negative of such terms.
Forward-looking statements include those statements that may
impact, among other things, the forecasting of our non-GAAP
earnings per share; net revenue yields; booking levels; pricing;
occupancy; operating, financing and tax costs, including fuel
expenses; net cruise costs per available lower berth day; estimates
of ship depreciable lives and residual values; liquidity; goodwill,
ship and trademark fair values and outlook. Because
forward-looking statements involve risks and uncertainties, there
are many factors that could cause our actual results, performance
or achievements to differ materially from those expressed or
implied in this release. This note contains important
cautionary statements of the known factors that we consider could
materially affect the accuracy of our forward-looking statements
and adversely affect our business, results of operations and
financial position. It is not possible to predict or identify
all such risks. There may be additional risks that we consider
immaterial or which are unknown. These factors include, but
are not limited to, the following:
- general economic and business conditions;
- increases in fuel prices;
- incidents, the spread of contagious diseases and threats
thereof, adverse weather conditions or other natural disasters and
other incidents affecting the health, safety, security and
satisfaction of guests and crew;
- the international political climate, armed conflicts, terrorist
and pirate attacks, vessel seizures, and threats thereof, and other
world events affecting the safety and security of travel;
- negative publicity concerning the cruise industry in general or
us in particular, including any adverse environmental impacts of
cruising;
- geographic regions in which we try to expand our business may
be slow to develop and ultimately not develop how we expect;
- economic, market and political factors that are beyond our
control, which could increase our operating, financing and other
costs;
- changes in and compliance with laws and regulations relating to
the protection of persons with disabilities, employment,
environment, health, safety, security, tax and other regulations
under which we operate;
- our inability to implement our shipbuilding programs and ship
repairs, maintenance and refurbishments on terms that are favorable
or consistent with our expectations;
- increases to our repairs and maintenance expenses and
refurbishment costs as our fleet ages;
- lack of continuing availability of attractive, convenient and
safe port destinations on terms that are favorable or consistent
with our expectations;
- continuing financial viability of our travel agent distribution
system, air service providers and other key vendors in our supply
chain and reductions in the availability of, and increases in the
prices for, the services and products provided by these
vendors;
- disruptions and other damages to our information technology and
other networks and operations, and breaches in data security;
- failure to keep pace with developments in technology;
- competition from and overcapacity in the cruise ship and
land-based vacation industry;
- loss of key personnel or our ability to recruit or retain
qualified personnel;
- union disputes and other employee relationship issues;
- disruptions in the global financial markets or other events
that may negatively affect the ability of our counterparties and
others to perform their obligations to us;
- the continued strength of our cruise brands and our ability to
implement our strategies;
- additional risks to our international operations not generally
applicable to our U.S. operations;
- our decisions to self-insure against various risks or our
inability to obtain insurance for certain risks at reasonable
rates;
- litigation, enforcement actions, fines or penalties;
- fluctuations in foreign currency exchange rates;
- whether our future operating cash flow will be sufficient to
fund future obligations and whether we will be able to obtain
financing, if necessary, in sufficient amounts and on terms that
are favorable or consistent with our expectations;
- risks associated with our dual listed company arrangement;
- uncertainties of a foreign legal system as Carnival Corporation
and Carnival plc are not U.S. corporations and
- the ability of a small group of shareholders to effectively
control the outcome of shareholder voting.
Forward-looking statements should not be relied upon as a
prediction of actual results. Subject to any continuing obligations
under applicable law or any relevant stock exchange rules, we
expressly disclaim any obligation to disseminate, after the date of
this release, any updates or revisions to any such forward-looking
statements to reflect any change in expectations or events,
conditions or circumstances on which any such statements are
based.
CARNIVAL
CORPORATION & PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) (in millions, except per share
data)
|
|
|
|
Three Months
Ended
February 28,
|
|
|
|
2015
|
|
2014
|
|
Revenues
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
Passenger tickets
|
|
$ 2,632
|
|
$ 2,727
|
|
Onboard and other
|
|
889
|
|
850
|
|
Tour and other
|
|
10
|
|
8
|
|
|
|
3,531
|
|
3,585
|
|
|
|
|
|
|
|
Operating Costs
and Expenses
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
Commissions, transportation and other
|
|
586
|
|
620
|
|
Onboard and other
|
|
111
|
|
114
|
|
Payroll and related
|
|
467
|
|
481
|
|
Fuel
|
|
318
|
|
523
|
|
Food
|
|
239
|
|
245
|
|
Other ship operating
|
|
598
|
|
594
|
(a)
|
Tour and other
|
|
16
|
|
15
|
|
|
|
2,335
|
|
2,592
|
|
Selling and
administrative
|
|
529
|
|
521
|
|
Depreciation and
amortization
|
|
401
|
|
405
|
(a)
|
|
|
3,265
|
|
3,518
|
|
|
|
|
|
|
|
Operating
Income
|
|
266
|
|
67
|
|
|
|
|
|
|
|
Nonoperating
(Expense) Income
|
|
|
|
|
|
Interest income
|
|
2
|
|
2
|
|
Interest expense, net
of capitalized interest
|
|
(57)
|
|
(72)
|
|
Losses on fuel derivatives,
net (b)
|
|
(169)
|
|
(16)
|
|
Other income, net
|
|
10
|
|
-
|
|
|
|
(214)
|
|
(86)
|
|
|
|
|
|
|
|
Income (Loss)
Before Income
Taxes
|
|
52
|
|
(19)
|
|
Income Tax
Expense,
Net
|
|
(3)
|
|
(1)
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
$
49
|
|
$
(20)
|
|
|
|
|
|
|
|
Earnings (Loss)
Per Share
|
|
|
|
|
|
Basic
|
|
$
0.06
|
|
$
(0.03)
|
|
Diluted
|
|
$
0.06
|
|
$
(0.03)
|
|
|
|
|
|
|
|
Non-GAAP Earnings
Per Share-Diluted (c)
|
|
$
0.20
|
|
$
0.00
|
|
|
|
|
|
|
|
Dividends Declared
Per Share
|
|
$
0.25
|
|
$
0.25
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding – Basic
|
|
777
|
|
776
|
|
Weighted-Average
Shares Outstanding – Diluted
|
|
779
|
|
776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) In the first quarter of 2015,
we revised and corrected the accounting for one of our brands'
marine and technical spare parts in order to consistently expense
them fleetwide. Had we not revised, this accounting may have
resulted in material inconsistencies to our financial statements in
the future. Accordingly, we will revise all other previously
reported results in future filings. This revision increased
our 2014 other ship operating and depreciation expenses by
$4 million and $1 million, respectively.
(b) During the three months ended
February 28, 2015 and 2014, our
losses on fuel derivatives, net include net unrealized losses of
$(112) million and $(17) million and realized (losses) gains of
$(57) million and $1 million, respectively.
(c) See the U.S. GAAP net income
(loss) to non-GAAP net income (loss) reconciliations in the
Non-GAAP Financial Measures included herein.
CARNIVAL
CORPORATION & PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED) (in millions, except par values)
|
|
|
|
|
February
28,
|
|
November
30,
|
|
|
2015
|
|
2014
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash equivalents
|
$
280
|
|
$
331
|
|
Trade and other receivables, net
|
329
|
|
332
|
|
Insurance recoverables
|
163
|
|
154
|
|
Inventories
|
332
|
|
349
|
(a)
|
Prepaid expenses and other
|
322
|
|
322
|
|
Total
current assets
|
1,426
|
|
1,488
|
|
|
|
|
|
|
Property and
Equipment, Net
|
32,294
|
|
32,819
|
(a)
|
|
|
|
|
|
Goodwill
|
3,055
|
|
3,127
|
|
|
|
|
|
|
Other
Intangibles
|
1,252
|
|
1,270
|
|
|
|
|
|
|
Other
Assets
|
687
|
|
744
|
(a)
|
|
$
38,714
|
|
$
39,448
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Short-term borrowings
|
$
874
|
|
$
666
|
|
Current portion of long-term debt
|
1,321
|
|
1,059
|
|
Accounts payable
|
594
|
|
626
|
|
Claims reserve
|
278
|
|
262
|
|
Accrued liabilities and other
|
1,198
|
|
1,276
|
|
Customer deposits
|
3,147
|
|
3,032
|
|
Total
current liabilities
|
7,412
|
|
6,921
|
|
|
|
|
|
|
Long-Term
Debt
|
6,944
|
|
7,363
|
|
|
|
|
|
|
Other Long-Term
Liabilities
|
1,008
|
|
960
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Common stock of Carnival Corporation, $0.01 par value; 1,960
shares
|
|
|
|
|
authorized; 653 shares at 2015 and 652 shares at 2014
issued
|
7
|
|
7
|
|
Ordinary shares of Carnival plc, $1.66 par value; 216 shares at
2015
|
|
|
|
|
and 2014
issued
|
358
|
|
358
|
|
Additional paid-in capital
|
8,398
|
|
8,384
|
|
Retained earnings
|
19,013
|
|
19,158 (a)
|
|
Accumulated other comprehensive loss
|
(1,339)
|
|
(616)
|
|
Treasury stock, 59 shares at 2015 and 2014 of Carnival
Corporation
|
|
|
|
|
and
32 shares at 2015 and 2014 of Carnival plc, at cost
|
(3,087)
|
|
(3,087)
|
|
Total shareholders' equity
|
23,350
|
|
24,204
|
|
|
$
38,714
|
|
$
39,448
|
|
(a) Inventories and other assets
were reduced by $15 million and
$115 million, respectively, and
property and equipment was increased by $46
million as a result of the previously noted revision. As of
November 30, 2014, the cumulative
impact of this revision was an $84
million (or ($0.11) diluted
earnings per share) reduction in retained earnings, which was
primarily incurred from 2010 through 2014.
CARNIVAL
CORPORATION & PLC
OTHER INFORMATION
|
|
|
|
Three Months
Ended
February 28,
|
STATISTICAL
INFORMATION
|
|
2015
|
|
2014
|
ALBDs
(in thousands) (a)
|
|
18,584
|
|
18,286
|
Occupancy percentage (b)
|
|
103.1%
|
|
102.9%
|
Passengers carried (in thousands)
|
|
2,463
|
|
2,408
|
Fuel
consumption in metric tons (in thousands)
|
|
783
|
|
800
|
Fuel
consumption in metric tons per ALBD
|
|
0.042
|
|
0.044
|
Fuel
cost per metric ton consumed
|
|
$ 406
|
|
$ 654
|
Currencies
|
|
|
|
|
U.S. dollar to €1
|
|
$ 1.17
|
|
$ 1.37
|
U.S. dollar to £1
|
|
$ 1.53
|
|
$ 1.65
|
U.S. dollar to Australian dollar
|
|
$ 0.81
|
|
$ 0.89
|
U.S. dollar to Canadian dollar
|
|
$ 0.82
|
|
$ 0.91
|
|
|
|
|
|
CASH FLOW
INFORMATION
|
|
|
|
|
Cash
from operations
|
|
$ 771
|
|
$ 477
|
Capital
expenditures
|
|
$ 942
|
|
$ 353
|
Dividends paid
|
|
$ 194
|
|
$ 194
|
(a) ALBD is a standard measure of
passenger capacity for the period, which we use to approximate rate
and capacity variances, based on consistently applied formulas,
that we use to perform analyses to determine the main non-capacity
driven factors that cause our cruise revenues and expenses to vary.
ALBDs assume that each cabin we offer for sale accommodates two
passengers and is computed by multiplying passenger capacity by
revenue-producing ship operating days in the period.
(b) In accordance with cruise industry
practice, occupancy is calculated using a denominator of ALBDs,
which assumes two passengers per cabin even though some cabins can
accommodate three or more passengers. Percentages in excess of 100%
indicate that on average more than two passengers occupied some
cabins.
CARNIVAL
CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES
|
|
Consolidated gross
and net revenue yields were computed by dividing the gross and net
cruise revenues by ALBDs as follows (dollars in millions, except
yields) (a) (b):
|
|
|
Three Months Ended
February 28,
|
|
2015
|
2015
Constant
Dollar
|
2014
|
Passenger ticket
revenues
|
$ 2,632
|
$ 2,774
|
$ 2,727
|
Onboard and
other revenues
|
889
|
922
|
850
|
Gross cruise
revenues
|
3,521
|
3,696
|
3,577
|
Less cruise
costs
|
|
|
|
Commissions, transportation and other
|
(586)
|
(632)
|
(620)
|
Onboard
and other
|
(111)
|
(116)
|
(114)
|
|
(697)
|
(748)
|
(734)
|
|
|
|
|
Net passenger ticket
revenues
|
2,046
|
2,142
|
2,107
|
Net onboard and other
revenues
|
778
|
806
|
736
|
Net cruise
revenues
|
$
2,824
|
$
2,948
|
$
2,843
|
|
|
|
|
ALBDs
|
18,583,880
|
18,583,880
|
18,286,305
|
|
|
|
|
Gross revenue
yields
|
$ 189.46
|
$ 198.87
|
$ 195.61
|
% (decrease) increase
vs. 2014
|
(3.1)%
|
1.7%
|
|
|
|
|
|
Net revenue
yields
|
$ 151.98
|
$ 158.64
|
$ 155.48
|
% (decrease) increase
vs. 2014
|
(2.3)%
|
2.0%
|
|
|
|
|
|
Net passenger ticket
revenue yields
|
$ 110.09
|
$ 115.24
|
$ 115.18
|
% (decrease) increase
vs. 2014
|
(4.4)%
|
0.1%
|
|
|
|
|
|
Net onboard and
other revenue yields
|
$ 41.88
|
$ 43.40
|
$ 40.31
|
% increase vs.
2014
|
3.9%
|
7.7%
|
|
|
|
Consolidated gross
and net cruise costs and net cruise costs excluding fuel per ALBD
were computed by dividing the gross and net cruise costs and net
cruise costs excluding fuel by ALBDs as follows (dollars in
millions, except costs per ALBD) (a) (b):
|
|
|
Three Months Ended
February 28,
|
|
|
2015
|
|
|
|
Constant
|
|
|
2015
|
Dollar
|
2014
|
Cruise operating expenses
|
$ 2,319
|
$ 2,429
|
$ 2,577
|
Cruise selling and administrative expenses
|
527
|
550
|
519
|
Gross cruise costs
|
2,846
|
2,979
|
3,096
|
Less cruise costs included above
|
|
|
|
Commissions, transportation and other
|
(586)
|
(632)
|
(620)
|
Onboard
and other
|
(111)
|
(116)
|
(114)
|
Gain on ship sale
|
2
|
2
|
-
|
Net cruise costs
|
2,151
|
2,233
|
2,362
|
Less fuel
|
(318)
|
(318)
|
(523)
|
Net cruise costs excluding fuel
|
$
1,833
|
$
1,915
|
$
1,839
|
|
|
|
|
ALBDs
|
18,583,880
|
18,583,880
|
18,286,305
|
|
|
|
|
Gross cruise costs per ALBD
|
$ 153.15
|
$ 160.29
|
$ 169.34
|
%
decrease vs. 2014
|
(9.6)%
|
(5.3)%
|
|
|
|
|
|
Net cruise costs
per ALBD
|
$ 115.76
|
$ 120.15
|
$ 129.22
|
% decrease vs.
2014
|
(10.4)%
|
(7.0)%
|
|
|
|
|
|
Net cruise costs
excluding fuel per ALBD
|
$ 98.66
|
$ 103.05
|
$ 100.61
|
% (decrease) increase
vs. 2014
|
(1.9)%
|
2.4%
|
|
|
|
|
|
CARNIVAL
CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
|
|
Non-GAAP diluted
earnings per share was computed as follows (in millions, except per
share data) (a) (b):
|
|
|
Three Months Ended
|
|
February
28,
|
|
2015
|
2014
|
Net income (loss) –
diluted
|
|
|
U.S. GAAP net income (loss)
|
$ 49
|
$ (20)
|
Gain on ship sale (c)
|
(2)
|
-
|
Unrealized losses on fuel
derivatives, net (d)
|
112
|
17
|
Non-GAAP net income (loss)
|
$
159
|
$
(3)
|
Weighted-average
shares outstanding – diluted
|
779
|
776
|
|
|
|
Earnings (loss) per
share – diluted
|
|
|
U.S. GAAP earnings (loss) per share
|
$ 0.06
|
$ (0.03)
|
Gain on ship sale (c)
|
-
|
-
|
Unrealized losses on fuel
derivatives, net (d)
|
0.14
|
0.02
|
Non-GAAP earnings per share
|
$ 0.20
|
$
0.00
|
|
|
|
Notes to Non-GAAP Financial Measures
(a) We use net cruise revenues per ALBD
("net revenue yields"), net cruise costs per ALBD and net cruise
costs excluding fuel per ALBD as significant non-GAAP financial
measures of our cruise segments' financial performance. These
measures enable us to separate the impact of predictable capacity
changes from the more unpredictable rate changes that affect our
business; gains and losses on ship sales and ship impairments, net;
and restructuring expenses that are not part of our core operating
business. We believe these non-GAAP measures provide useful
information to investors and expanded insight to measure our
revenue and cost performance as a supplement to our U.S. generally
accepted accounting principles ("U.S. GAAP") consolidated financial
statements.
Net revenue yields are commonly used in the cruise industry to
measure a company's cruise segment revenue performance and for
revenue management purposes. We use "net cruise revenues"
rather than "gross cruise revenues" to calculate net revenue
yields. We believe that net cruise revenues is a more
meaningful measure in determining revenue yield than gross cruise
revenues because it reflects the cruise revenues earned net of our
most significant variable costs, which are travel agent
commissions, cost of air and other transportation, certain other
costs that are directly associated with onboard and other revenues
and credit and debit card fees. Substantially all of our
remaining cruise costs are largely fixed, except for the impact of
changing prices and food expenses, once our ship capacity levels
have been determined.
Net passenger ticket revenues reflect gross passenger ticket
revenues, net of commissions, transportation and other costs.
Net onboard and other revenues reflect gross onboard and other
revenues, net of onboard and other cruise costs. Net
passenger ticket revenue yields and net onboard and other revenue
yields are computed by dividing net passenger ticket revenues and
net onboard and other revenues by ALBDs.
Net cruise costs per ALBD and net cruise costs excluding fuel
per ALBD are the most significant measures we use to monitor our
ability to control our cruise segments' costs rather than gross
cruise costs per ALBD. We exclude the same variable costs that are
included in the calculation of net cruise revenues to calculate net
cruise costs with and without fuel to avoid duplicating these
variable costs in our non-GAAP financial measures. In addition, we
exclude gains and losses on ship sales and ship impairments, net
and restructuring expenses from our calculation of net cruise costs
with and without fuel as they are not considered part of our core
operating business.
As a result of our revision of 2014 cruise ship operating
expenses, our previously reported gross and net cruise costs per
ALBD and net cruise costs excluding fuel per ALBD changed from
$169.11, $128.98 and $100.38
to $169.34, $129.22 and $100.61, respectively. In addition, our
previously reported U.S. GAAP net loss changed from $(15) million to $(20) million.
Furthermore, our previously reported non-GAAP net income (loss) for
2014 changed from $2 million to $(3)
million.
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL
MEASURES (CONTINUED)
We have not provided estimates of future gross revenue yields or
future gross cruise costs per ALBD because the quantitative
reconciliations of forecasted gross cruise revenues to forecasted
net cruise revenues or forecasted gross cruise costs to forecasted
net cruise costs would include a significant amount of uncertainty
in projecting the costs deducted to arrive at these measures.
As such, management does not believe that this reconciling
information would be meaningful.
In addition, because our Europe, Australia & Asia ("EAA") cruise brands utilize the euro,
sterling and Australian dollar as their functional currency to
measure their results and financial condition, the translation of
those operations to our U.S. dollar reporting currency results in
decreases in reported U.S. dollar revenues and expenses if the U.S.
dollar strengthens against these foreign currencies and increases
in reported U.S. dollar revenues and expenses if the U.S. dollar
weakens against these foreign currencies. Accordingly, we
also monitor and report these non-GAAP financial measures assuming
the 2015 period currency exchange rates have remained constant with
the 2014 period rates, or on a "constant dollar basis," in order to
remove the impact of changes in exchange rates on the translation
of our EAA brands. We believe that this is a useful measure
since it facilitates a comparative view of the changes in our
business in a fluctuating currency exchange rate
environment.
Although our constant dollar basis measure removes the foreign
currency translational impact as discussed above, it does not
remove the foreign currency transactional impact from changes in
exchange rates on our brands' revenues and expenses that are
denominated in a currency other than their functional
currency. Historically the foreign currency transactional
impact had not been significant when measuring the periodic changes
in our results of operations. However, given the continuing
expansion of our global business and the heightened volatility in
foreign currency exchange rates, we believe the foreign currency
transactional impact will be more significant in measuring our 2015
results compared to 2014, than in previous years. Together, the
foreign currency translational and transactional impacts discussed
above are referred to as on the "constant currency basis."
(b) Our consolidated financial
statements are prepared in accordance with U.S. GAAP. The
presentation of our non-GAAP financial information is not intended
to be considered in isolation from, as a substitute for, or
superior to the financial information prepared in accordance with
U.S. GAAP. There are no specific rules for determining our
non-GAAP current and constant dollar financial measures and,
accordingly, they are susceptible to varying calculations, and it
is possible that they may not be exactly comparable to the
like-kind information presented by other companies, which is a
potential risk associated with using these measures to compare us
to other companies.
(c) We believe that the gain on ship
sale recognized in the three months ended February 28, 2015 is not
part of our core operating business and, therefore, is not an
indication of our future earnings performance. As such, we
believe it is more meaningful for the gain on ship sale to be
excluded from our net income and earnings per share and,
accordingly, we present non-GAAP net income and non-GAAP earnings
per share excluding this item.
(d) Under U.S. GAAP, the realized and
unrealized gains and losses on fuel derivatives not qualifying as
fuel hedges are recognized currently in earnings. We believe
that unrealized gains and losses on fuel derivatives are not an
indication of our earnings performance since they relate to future
periods and may not ultimately be realized in our future earnings.
Therefore, we believe it is more meaningful for the
unrealized gains and losses on fuel derivatives to be excluded from
our net income and earnings per share and, accordingly, we present
non-GAAP net income and non-GAAP earnings per share excluding these
unrealized gains and losses.
We have not included in our earnings guidance the impact of
unrealized gains and losses on fuel derivatives because these
unrealized amounts involve a significant amount of uncertainty, and
we do not believe they are an indication of our future earnings
performance. Accordingly, our earnings guidance is presented
on a non-GAAP basis only. As a result, we did not present a
reconciliation between forecasted non-GAAP diluted earnings per
share guidance and forecasted U.S. GAAP diluted earnings per share
guidance, since we do not believe that the reconciliation
information would be meaningful. However, we do forecast
gains and losses on fuel derivatives by applying Brent prices to
the derivatives that settle in the forecast period.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/carnival-corporation--plc-reports-significantly-higher-first-quarter-earnings-300056899.html
SOURCE Carnival Corporation & plc