CARNIVAL
CORPORATION & PLC REPORTS RECORD THIRD QUARTER EARNINGS
MIAMI, Sept. 26, 2016 -- Carnival Corporation & plc
today reported its results for the third quarter ended August 31, 2016. The results of Carnival
Corporation and Carnival plc have been consolidated and include
results on a U.S. GAAP and adjusted basis.
3Q Highlights
- 3Q net revenue yields increased 2.7% in constant currency
compared to prior year, toward the top end of the June guidance
range, up 2% to 3%
- 3Q net cruise costs excluding fuel per available lower berth
day (“ALBD”) increased 5.5% in constant currency compared to prior
year, better than June guidance, up 6% to 7%, due to the timing of
certain expenses
- 3Q adjusted net income was $1.4
billion, or earnings per share (diluted) of $1.92, before U.S. GAAP unrealized gains on fuel
derivatives and other net charges totaling $7 million in gains
Outlook
- At this time, cumulative advance bookings for the first half of
next year are ahead of the prior year at considerably higher
prices
- FY 2016 net revenue yields are expected to increase
approximately 3.5% compared to the prior year, on a constant
currency basis
- FY 2016 net cruise costs excluding fuel per ALBD are expected
to be up approximately 1.5% compared to the prior year, on a
constant currency basis
- FY 2016 adjusted earnings per share are expected to be in the
range of $3.33 to $3.37, compared to
June guidance of $3.25 to $3.35 and
$2.70 per share in FY 2015
- 4Q 2016 adjusted earnings per share are expected to be in the
range of $0.55 to $0.59, compared to
$0.50 in 4Q 2015
President and Chief Executive Officer
Arnold Donald commenting on these
results:
“We delivered the strongest quarterly earnings in our company’s
history affirming our ongoing efforts to expand consumer demand in
excess of measured capacity increases and leverage our industry
leading scale. Revenues during the peak summer season were
bolstered by strong performances from both our North American and
European brands and across all major deployments including the
Caribbean, Alaska and Europe.”
“We are well on track to deliver nearly 25 percent earnings
growth in 2016. With cash from operations expected to reach a
record $5 billion this year, we
continue to fund our growth and return cash to shareholders. During
the third quarter we repurchased $700
million of Carnival Corporation shares bringing the
cumulative total to $2.5 billion in
share repurchases over the past year.”
“Looking forward, we are well positioned for continued earnings
growth given the current strength of our booking and pricing trends
in 2017.”
MEDIA
CONTACT INVESTOR
RELATIONS CONTACT
Roger
Frizzell
Beth Roberts
001 305 406
7862 001
305 406 4832
Conference Call
The company has scheduled a conference call with analysts at
3:00 p.m. BST (10:00 a.m. EDT) today to discuss its 2016 third
quarter results. This call can be listened to live, and
additional information can be obtained, via Carnival Corporation
& plc’s Web site at http://www.carnivalcorp.com/ and
http://www.carnivalplc.com/.
Carnival Corporation & plc is the largest cruise company in
the world, with a portfolio of 10 cruise brands in North America, Europe, Australia and Asia, comprised of Carnival Cruise Line,
Fathom, 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 225,000 lower
berths with 18 new ships scheduled to be delivered between 2016 and
2022. 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 http://www.carnival.com/, http://www.fathom.org/,
http://www.hollandamerica.com/, http://www.princess.com/,
http://www.seabourn.com/, http://www.aida.de/,
http://www.costacruise.com/, http://www.cunard.com/,
http://www.pocruises.com.au/,
and http://www.pocruises.com/.
Carnival
Corporation & plc Reports Record Third Quarter Earnings
MIAMI, Sept. 26, 2016 /PRNewswire/ -- Carnival
Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced U.S.
GAAP net income of $1.4 billion, or
$1.93 diluted EPS, for the third
quarter of 2016 compared to U.S. GAAP net income for the third
quarter of 2015 of $1.2 billion, or
$1.56 diluted EPS. Third quarter 2016
adjusted net income of $1.4 billion,
or $1.92 adjusted EPS, was higher
than adjusted net income of $1.4
billion, or $1.75 adjusted
EPS, for the third quarter of 2015. Adjusted net income excludes
unrealized gains and losses on fuel derivatives and other net
charges, totaling $7 million in gains
for the third quarter 2016 and $149
million of losses for the third quarter 2015. Revenues for
the third quarter of 2016 were $5.1
billion, $0.2 billion higher
than the $4.9 billion in the prior
year.
Carnival Corporation & plc President and Chief Executive
Officer Arnold Donald noted, "We
delivered the strongest quarterly earnings in our company's history
affirming our ongoing efforts to expand consumer demand in excess
of measured capacity increases and leverage our industry leading
scale. Revenues during the peak summer season were bolstered by
strong performances from both our North American and European
brands and across all major deployments including the Caribbean, Alaska and Europe," Donald added.
Key metrics for the third quarter 2016 compared to the prior
year were as follows:
- Gross revenue yields (revenue per available lower berth day or
"ALBD") increased 0.6 percent. Net revenue yields on a
constant currency basis increased 2.7 percent for 3Q 2016, toward
the top end of the June guidance range of up 2 to 3 percent.
- Gross cruise costs including fuel per ALBD decreased 0.2
percent. Net cruise costs excluding fuel per ALBD on a constant
currency basis increased 5.5 percent, better than June guidance of
up 6 to 7 percent, due to the timing of certain expenses.
- Changes in fuel prices (including realized fuel derivatives)
and changes in currency exchange rates increased earnings by
$0.02 per share.
Highlights during the third quarter included the grand opening
of the Arison Maritime Center in Almere, Netherlands, named for Carnival Corporation
& plc Chairman Micky Arison and
his father, the late Ted Arison, who
founded the company. The 110,000-square-foot purpose built
facility is a major expansion from the existing training center
that opened in 2009. The center will provide comprehensive safety
and skills training for bridge and engineering officers. The
facility includes four bridge and engine room simulators and is
expected to train over 6,500 officers annually across the company's
10 brands.
The company also signed a memorandum of agreement with
shipbuilders Meyer Werft and
Meyer Turku for the construction of
three new 180,000-ton cruise ships. Two of the ships, to be
built in Finland, will be added to
the Carnival Cruise Line fleet in 2020 and 2022. The third ship, to
be constructed in Germany, will
join the P&O Cruises UK fleet in 2020. All three vessels
will be fully powered by Liquefied Natural Gas, the world's
cleanest burning fossil fuel. In conjunction with these new
ship orders, the delivery dates for two previously contracted
ships, one for AIDA Cruises and one for Costa Cruises, will shift
from 2020 to 2021 to ensure a measured pace of capacity growth over
the coming years.
Outlook
At this time, cumulative advance bookings for the first half of
next year are ahead of the prior year at considerably higher
prices. Since June, booking volumes for the first half of next year
are lower than the prior year, as there is less inventory remaining
for sale, at significantly higher prices.
The company continues to expect full year 2016 net revenue
yields to be up approximately 3.5 percent compared to the prior
year, on a constant currency basis. The company continues to expect
full year net cruise costs excluding fuel per ALBD to be up
approximately 1.5 percent compared to the prior year, on a constant
currency basis.
Taking the above factors into consideration, the company has
increased its full year 2016 adjusted earnings per share guidance
to be in the range of $3.33 to $3.37,
compared to the June guidance range of $3.25
to $3.35 and 2015 adjusted earnings per share of
$2.70.
Donald commented, "We are well on track to deliver nearly 25
percent earnings growth in 2016. With cash from operations expected
to reach a record $5 billion this
year, we continue to fund our growth and return cash to
shareholders. During the third quarter we repurchased $700 million of Carnival Corporation shares
bringing the cumulative total to $2.5
billion in share repurchases over the past year."
Donald added, "Looking forward, we are well positioned for
continued earnings growth given the current strength of our booking
and pricing trends in 2017."
Fourth Quarter 2016 Outlook
Fourth quarter constant currency net revenue yields are expected
to be up approximately 3 percent compared to the prior year. Fourth
quarter constant currency net cruise costs excluding fuel per ALBD
are expected to be higher by approximately 1 percent compared to
the prior year. Based on the above factors, the company expects
adjusted earnings per share for the fourth quarter 2016 to be in
the range of $0.55 to $0.59 versus
2015 adjusted earnings per share of $0.50.
Selected Key Forecast
Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
2016 |
|
Fourth Quarter
2016 |
Year over year change: |
|
Current
Dollars |
|
Constant
Currency |
|
Current
Dollars |
|
Constant
Currency |
Net revenue yields |
|
Approx 1.0% |
|
Approx 3.5% |
|
Approx 1.5% |
|
Approx 3.0% |
Net cruise costs excl. fuel / ALBD |
|
Approx 0.5% |
|
Approx 1.5% |
|
Approx 0.5% |
|
Approx 1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
2016 |
|
Fourth Quarter
2016 |
Fuel price per metric ton |
|
$285 |
|
$332 |
Fuel consumption (metric tons in thousands) |
|
3,250 |
|
830 |
Currency: Euro |
|
$1.11 to €1 |
|
$1.11 to €1 |
Sterling |
|
$1.38 to £1 |
|
$1.30 to £1 |
Australian dollar |
|
$0.74 to A$1 |
|
$0.76 to A$1 |
Canadian dollar |
|
$0.76 to C$1 |
|
$0.76 to C$1 |
Conference Call
The company has scheduled a conference call with analysts at
10:00 a.m. EDT (3:00 p.m. BST) today to discuss its 2016 third
quarter results. This call can be listened to live, and
additional information can be obtained, via Carnival Corporation
& plc's Web site at http://www.carnivalcorp.com/ and
http://www.carnivalplc.com/.
Carnival Corporation & plc is the largest leisure
travel company in the world, and among the most profitable and
financially strong in the industry. With a portfolio of 10
cruise brands in North
America, Europe, Australia and Asia, comprised
of Carnival Cruise Line, Fathom, 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 visiting over 700 ports
around the world and totaling 225,000 lower berths with 18 new
ships scheduled to be delivered between 2016 and
2022. 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 http://www.carnival.com/,
http://www.hollandamerica.com/, http://www.princess.com/,
http://www.seabourn.com/, http://www.aida.de/,
http://www.costacruise.com/, http://www.cunard.com/,
http://www.pocruises.com.au/, http://www.pocruises.com/ and
http://www.fathom.org/.
MEDIA
CONTACT INVESTOR
RELATIONS CONTACT
Roger
Frizzell
Beth Roberts
1 305 406
7862 1
305 406 4832
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 our outlook including, among other things, the forecasting
of our net revenue yields; booking levels; pricing; occupancy;
operating, financing and tax costs, including fuel expenses;
currency exchange rates; net cruise costs excluding fuel per
available lower berth day; estimates of ship depreciable lives and
residual values; liquidity; goodwill, ship and trademark fair
values and adjusted earnings per share. 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:
- Incidents, such as ship incidents, security incidents, the
spread of contagious diseases and threats thereof, adverse weather
conditions or other natural disasters and the related adverse
publicity affecting our reputation and the health, safety, security
and satisfaction of guests and crew;
- Economic conditions and adverse world events affecting the
safety and security of travel, such as civil unrest, armed
conflicts and terrorist attacks;
- Changes in and compliance with laws and regulations relating to
environment, health, safety, security, tax and anti-corruption
under which we operate;
- Disruptions and other damages to our information technology and
other networks and operations, and breaches in data security;
- Ability to recruit, develop and retain qualified
personnel;
- Increases in fuel prices;
- Fluctuations in foreign currency exchange rates;
- Misallocation of capital among our ship, joint venture and
other strategic investments;
- Future operating cash flow may not be sufficient to fund future
obligations and we may be unable to obtain financing;
- Deterioration of our cruise brands' strengths and our inability
to implement our strategies;
- 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;
- Inability to implement our shipbuilding programs and ship
repairs, maintenance and refurbishments on terms that are favorable
or consistent with our expectations and increases to our repairs
and maintenance expenses and refurbishment costs as our fleet
ages;
- Failure to keep pace with developments in technology;
- Geographic regions in which we try to expand our business may
be slow to develop and ultimately not develop how we expect and our
international operations are subject to additional risks not
generally applicable to our U.S. operations;
- Competition from and overcapacity in the cruise ship and
land-based vacation industry;
- Economic, market and political factors that are beyond our
control, which could increase our operating, financing and other
costs;
- Changes in global consumer confidence and impacts to various
foreign currency exchange rates as a result of the June 24, 2016 UK electorate vote to withdraw from
the European Union ("EU");
- Friction in travel, changes to international tax treaties and
changes to laws and regulations that could result from the exit of
the UK from the EU;
- Litigation, enforcement actions, fines or penalties;
- Lack of continuing availability of attractive, convenient and
safe port destinations on terms that are favorable or consistent
with our expectations;
- Union disputes and other employee relationship issues;
- Decisions to self-insure against various risks or the inability
to obtain insurance for certain risks at reasonable rates;
- Reliance on third-party providers of various services integral
to the operations of our business;
- Business activities that involve our co-investment with third
parties;
- 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;
- Our shareholders may be subject to the uncertainties of a
foreign legal system since Carnival Corporation and Carnival plc
are not U.S. corporations;
- Small group of shareholders may be able to effectively control
the outcome of shareholder voting;
- Provisions in Carnival Corporation's and Carnival plc's
constitutional documents may prevent or discourage takeovers and
business combinations that our shareholders might consider to be in
their best interests and
- The DLC arrangement involves risks not associated with the more
common ways of combining the operations of two companies.
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 INCOME
(UNAUDITED)
(in millions, except per share data) |
|
|
|
|
Three Months
Ended
August 31, |
Nine Months
Ended
August 31, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenues |
|
|
|
|
|
|
|
Cruise |
|
|
|
|
|
|
|
Passenger tickets |
$ |
3,803 |
|
|
$ |
3,631 |
|
|
$ |
9,217 |
|
|
$ |
8,891 |
|
Onboard and other |
1,146 |
|
|
1,102 |
|
|
3,047 |
|
|
2,918 |
|
Tour and other |
148 |
|
|
150 |
|
|
190 |
|
|
194 |
|
|
5,097 |
|
|
4,883 |
|
|
12,454 |
|
|
12,003 |
|
Operating Costs and Expenses |
|
|
|
|
|
|
|
Cruise |
|
|
|
|
|
|
|
Commissions, transportation and other |
646 |
|
|
603 |
|
|
1,723 |
|
|
1,671 |
|
Onboard and other |
171 |
|
|
170 |
|
|
411 |
|
|
395 |
|
Payroll and related |
494 |
|
|
453 |
|
|
1,488 |
|
|
1,388 |
|
Fuel |
265 |
|
|
345 |
|
|
648 |
|
|
996 |
|
Food |
260 |
|
|
255 |
|
|
755 |
|
|
737 |
|
Other ship operating |
643 |
|
|
582 |
|
|
1,914 |
|
|
1,913 |
|
Tour and other |
84 |
|
|
82 |
|
|
125 |
|
|
129 |
|
|
2,563 |
|
|
2,490 |
|
|
7,064 |
|
|
7,229 |
|
Selling and administrative |
529 |
|
|
484 |
|
|
1,613 |
|
|
1,504 |
|
Depreciation and amortization |
443 |
|
|
399 |
|
|
1,303 |
|
|
1,206 |
|
|
3,535 |
|
|
3,373 |
|
|
9,980 |
|
|
9,939 |
|
Operating Income |
1,562 |
|
|
1,510 |
|
|
2,474 |
|
|
2,064 |
|
Nonoperating (Expense) Income |
|
|
|
|
|
|
|
Interest income |
2 |
|
|
2 |
|
|
5 |
|
|
6 |
|
Interest expense, net of capitalized interest |
(61) |
|
|
(53) |
|
|
(168) |
|
|
(167) |
|
Losses on fuel derivatives, net (a) |
(36) |
|
|
(197) |
|
|
(102) |
|
|
(378) |
|
Other (expense) income, net |
(2) |
|
|
(12) |
|
|
6 |
|
|
3 |
|
|
(97) |
|
|
(260) |
|
|
(259) |
|
|
(536) |
|
Income Before Income Taxes |
1,465 |
|
|
1,250 |
|
|
2,215 |
|
|
1,528 |
|
Income Tax Expense, Net |
(41) |
|
|
(34) |
|
|
(44) |
|
|
(41) |
|
Net Income |
$ |
1,424 |
|
|
$ |
1,216 |
|
|
$ |
2,171 |
|
|
$ |
1,487 |
|
Earnings Per Share |
|
|
|
|
|
|
|
Basic |
$ |
1.93 |
|
|
$ |
1.56 |
|
|
$ |
2.89 |
|
|
$ |
1.91 |
|
Diluted |
$ |
1.93 |
|
|
$ |
1.56 |
|
|
$ |
2.88 |
|
|
$ |
1.91 |
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per Share-Diluted
(b) |
$ |
1.92 |
|
|
$ |
1.75 |
|
|
$ |
2.77 |
|
|
$ |
2.20 |
|
Dividends Declared Per Share |
$ |
0.35 |
|
|
$ |
0.30 |
|
|
$ |
1.00 |
|
|
$ |
0.80 |
|
Weighted-Average Shares Outstanding -
Basic |
737 |
|
|
778 |
|
|
751 |
|
|
778 |
|
Weighted-Average Shares Outstanding -
Diluted |
739 |
|
|
781 |
|
|
754 |
|
|
781 |
|
(a) |
During the three months ended August 31, 2016 and
2015, our (losses) on fuel derivatives, net include net unrealized
gains (losses) of $25 million and $(137) million and realized
(losses) of $(61) million and $(60) million, respectively. During
the nine months ended August 31, 2016 and 2015, our (losses) on
fuel derivatives, net include net unrealized gains (losses) of $121
million and $(215) million and realized (losses) of $(223) million
and $(163) million, respectively. |
(b) |
See the U.S. GAAP net income to adjusted net
income reconciliations in the Non-GAAP Financial Measures included
herein. |
CARNIVAL CORPORATION
& PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except par values) |
|
|
|
|
|
|
August 31,
2016 |
|
November 30,
2015 |
|
ASSETS |
|
|
|
|
Current Assets |
|
|
|
|
Cash and cash equivalents |
$ |
462 |
|
|
$ |
1,395 |
|
|
Trade and other receivables, net |
321 |
|
|
303 |
|
|
Insurance recoverables |
102 |
|
|
109 |
|
|
Inventories |
314 |
|
|
330 |
|
|
Prepaid expenses and other |
355 |
|
|
314 |
|
|
Total current assets |
1,554 |
|
|
2,451 |
|
|
Property and Equipment, Net |
32,864 |
|
|
31,818 |
|
(a) |
Goodwill |
2,964 |
|
|
3,010 |
|
|
Other Intangibles |
1,290 |
|
|
1,308 |
|
(a) |
Other Assets |
660 |
|
|
650 |
|
|
|
$ |
39,332 |
|
|
$ |
39,237 |
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
Current Liabilities |
|
|
|
|
Short-term borrowings |
$ |
334 |
|
|
$ |
30 |
|
|
Current portion of long-term debt |
739 |
|
|
1,344 |
|
|
Accounts payable |
704 |
|
|
627 |
|
|
Accrued liabilities and other |
1,738 |
|
|
1,683 |
|
|
Customer deposits |
3,585 |
|
|
3,272 |
|
|
Total current liabilities |
7,100 |
|
|
6,956 |
|
|
Long-Term Debt |
8,320 |
|
|
7,413 |
|
|
Other Long-Term Liabilities |
1,012 |
|
|
1,097 |
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Common stock of Carnival Corporation,
$0.01 par value; 1,960 shares authorized;
654 shares at 2016 and 653 shares at 2015
issued |
7 |
|
|
7 |
|
|
Ordinary shares of Carnival plc,
$1.66 par value; 216 shares at 2016 and 2015
issued |
358 |
|
|
358 |
|
|
Additional paid-in capital |
8,618 |
|
|
8,562 |
|
|
Retained earnings |
21,488 |
|
|
20,060 |
|
|
Accumulated other comprehensive loss |
(2,012) |
|
|
(1,741) |
|
|
Treasury stock, 114
shares at 2016 and 70 shares at 2015 of Carnival Corporation
and 26 shares at 2016 and 27 shares at
2015 of Carnival plc, at cost |
(5,559) |
|
|
(3,475) |
|
|
Total shareholders' equity |
22,900 |
|
|
23,771 |
|
|
|
$ |
39,332 |
|
|
$ |
39,237 |
|
|
(a) |
On December 1, 2015, we adopted the Financial
Accounting Standards Board's Service Concession Arrangements
amended guidance and, accordingly, reclassified $70 million from
Property and Equipment, Net to Other Intangibles on
our November 30, 2015 Consolidated Balance Sheet. |
CARNIVAL
CORPORATION & PLC
OTHER INFORMATION |
|
|
|
|
|
Three Months
Ended
August 31, |
|
Nine Months
Ended
August 31, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
STATISTICAL INFORMATION |
|
|
|
|
|
|
|
ALBDs (in thousands) (a) |
20,572 |
|
|
19,795 |
|
|
59,555 |
|
|
57,686 |
|
Occupancy percentage (b) |
111.4 |
% |
|
110.9 |
% |
|
106.6 |
% |
|
105.6 |
% |
Passengers carried (in
thousands) |
3,265 |
|
|
3,068 |
|
|
8,606 |
|
|
8,138 |
|
Fuel consumption in metric tons (in
thousands) |
793 |
|
|
786 |
|
|
2,417 |
|
|
2,379 |
|
Fuel consumption in metric tons per
thousand ALBDs |
38.6 |
|
|
39.7 |
|
|
40.6 |
|
|
41.2 |
|
Fuel cost per metric ton
consumed |
$ |
335 |
|
|
$ |
439 |
|
|
$ |
268 |
|
|
$ |
418 |
|
Currencies |
|
|
|
|
|
|
|
U.S. dollar to
euro |
$ |
1.12 |
|
|
$ |
1.11 |
|
|
$ |
1.11 |
|
|
$ |
1.13 |
|
U.S. dollar to
sterling |
$ |
1.34 |
|
|
$ |
1.56 |
|
|
$ |
1.41 |
|
|
$ |
1.54 |
|
U.S. dollar to
Australian dollar |
$ |
0.75 |
|
|
$ |
0.75 |
|
|
$ |
0.74 |
|
|
$ |
0.78 |
|
U.S. dollar to
Canadian dollar |
$ |
0.77 |
|
|
$ |
0.78 |
|
|
$ |
0.76 |
|
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
CASH FLOW INFORMATION (in millions) |
|
|
|
|
|
|
|
Cash from operations |
$ |
1,429 |
|
|
$ |
1,281 |
|
|
$ |
4,110 |
|
|
$ |
3,567 |
|
Capital expenditures |
$ |
450 |
|
|
$ |
324 |
|
|
$ |
2,416 |
|
|
$ |
1,704 |
|
Dividends paid |
$ |
262 |
|
|
$ |
195 |
|
|
$ |
721 |
|
|
$ |
584 |
|
Notes to Statistical
Information |
|
|
(a) |
ALBD is a standard measure of passenger capacity
for the period that 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
August 31, |
|
Nine Months Ended
August 31, |
|
2016 |
|
2016
Constant
Dollar |
|
2015 |
|
2016 |
|
2016
Constant
Dollar |
|
2015 |
Passenger ticket revenues |
$ |
3,803 |
|
|
$ |
3,866 |
|
|
$ |
3,631 |
|
|
$ |
9,217 |
|
|
$ |
9,362 |
|
|
$ |
8,891 |
|
Onboard and other revenues |
1,146 |
|
|
1,158 |
|
|
1,102 |
|
|
3,047 |
|
|
3,080 |
|
|
2,918 |
|
Gross cruise revenues |
4,949 |
|
|
5,024 |
|
|
4,733 |
|
|
12,264 |
|
|
12,442 |
|
|
11,809 |
|
Less cruise costs |
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation
and
other |
(646) |
|
|
(654) |
|
|
(603) |
|
|
(1,723) |
|
|
(1,751) |
|
|
(1,671) |
|
Onboard and other |
(171) |
|
|
(173) |
|
|
(170) |
|
|
(411) |
|
|
(416) |
|
|
(395) |
|
|
(817) |
|
|
(827) |
|
|
(773) |
|
|
(2,134) |
|
|
(2,167) |
|
|
(2,066) |
|
Net passenger ticket revenues |
3,157 |
|
|
3,212 |
|
|
3,028 |
|
|
7,494 |
|
|
7,611 |
|
|
7,220 |
|
Net onboard and other revenues |
975 |
|
|
985 |
|
|
932 |
|
|
2,636 |
|
|
2,664 |
|
|
2,523 |
|
Net cruise revenues |
$ |
4,132 |
|
|
$ |
4,197 |
|
|
$ |
3,960 |
|
|
$ |
10,130 |
|
|
$ |
10,275 |
|
|
$ |
9,743 |
|
ALBDs |
20,572,112 |
|
|
20,572,112 |
|
|
19,794,882 |
|
|
59,555,384 |
|
|
59,555,384 |
|
|
57,685,594 |
|
Gross revenue yields |
$ |
240.60 |
|
|
$ |
244.22 |
|
|
$ |
239.10 |
|
|
$ |
205.94 |
|
|
$ |
208.91 |
|
|
$ |
204.72 |
|
% increase vs. 2015 |
0.6 |
% |
|
2.1 |
% |
|
|
|
0.6 |
% |
|
2.0 |
% |
|
|
Net revenue yields |
$ |
200.87 |
|
|
$ |
204.03 |
|
|
$ |
200.04 |
|
|
$ |
170.10 |
|
|
$ |
172.52 |
|
|
$ |
168.91 |
|
% increase vs. 2015 |
0.4 |
% |
|
2.0 |
% |
|
|
|
0.7 |
% |
|
2.1 |
% |
|
|
Net passenger ticket
revenue
yields |
$ |
153.47 |
|
|
$ |
156.14 |
|
|
$ |
152.96 |
|
|
$ |
125.84 |
|
|
$ |
127.80 |
|
|
$ |
125.17 |
|
% increase vs. 2015 |
0.3 |
% |
|
2.1 |
% |
|
|
|
0.5 |
% |
|
2.1 |
% |
|
|
Net onboard and other revenue
yields |
$ |
47.39 |
|
|
$ |
47.89 |
|
|
$ |
47.09 |
|
|
$ |
44.26 |
|
|
$ |
44.72 |
|
|
$ |
43.74 |
|
% increase vs. 2015 |
0.7 |
% |
|
1.7 |
% |
|
|
|
1.2 |
% |
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
August 31, |
|
Nine Months Ended
August 31, |
|
2016 |
|
2016
Constant
Currency |
|
2015 |
|
2016 |
|
2016
Constant
Currency |
|
2015 |
Net passenger ticket revenues |
$ |
3,157 |
|
|
$ |
3,246 |
|
|
$ |
3,028 |
|
|
$ |
7,494 |
|
|
$ |
7,778 |
|
|
$ |
7,220 |
|
Net onboard and other revenues |
975 |
|
|
981 |
|
|
932 |
|
|
2,636 |
|
|
2,672 |
|
|
2,523 |
|
Net cruise revenues |
$ |
4,132 |
|
|
$ |
4,227 |
|
|
$ |
3,960 |
|
|
$ |
10,130 |
|
|
$ |
10,450 |
|
|
$ |
9,743 |
|
ALBDs |
20,572,112 |
|
|
20,572,112 |
|
|
19,794,882 |
|
|
59,555,384 |
|
|
59,555,384 |
|
|
57,685,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue yields |
$ |
200.87 |
|
|
$ |
205.46 |
|
|
$ |
200.04 |
|
|
$ |
170.10 |
|
|
$ |
175.46 |
|
|
$ |
168.91 |
|
% increase vs. 2015 |
0.4 |
% |
|
2.7 |
% |
|
|
|
0.7 |
% |
|
3.9 |
% |
|
|
Net passenger ticket
revenue
yields |
$ |
153.47 |
|
|
$ |
157.76 |
|
|
$ |
152.96 |
|
|
$ |
125.84 |
|
|
$ |
130.60 |
|
|
$ |
125.17 |
|
% increase vs. 2015 |
0.3 |
% |
|
3.1 |
% |
|
|
|
0.5 |
% |
|
4.3 |
% |
|
|
Net onboard and other
revenue
yields |
$ |
47.39 |
|
|
$ |
47.69 |
|
|
$ |
47.09 |
|
|
$ |
44.26 |
|
|
$ |
44.86 |
|
|
$ |
43.74 |
|
% increase vs. 2015 |
0.7 |
% |
|
1.3 |
% |
|
|
|
1.2 |
% |
|
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(See Notes to Non-GAAP Financial
Measures.) |
CARNIVAL
CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
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
August 31, |
|
Nine Months Ended
August 31, |
|
2016 |
|
2016
Constant
Dollar |
|
2015 |
|
2016 |
|
2016
Constant
Dollar |
|
2015 |
Cruise operating expenses |
$ |
2,479 |
|
|
$ |
2,513 |
|
|
$ |
2,408 |
|
|
$ |
6,939 |
|
|
$ |
7,034 |
|
|
$ |
7,100 |
|
Cruise selling and administrative
expenses |
527 |
|
|
534 |
|
|
482 |
|
|
1,606 |
|
|
1,626 |
|
|
1,497 |
|
Gross cruise costs |
3,006 |
|
|
3,047 |
|
|
2,890 |
|
|
8,545 |
|
|
8,660 |
|
|
8,597 |
|
Less cruise costs included above |
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation
and
other |
(646) |
|
|
(654) |
|
|
(603) |
|
|
(1,723) |
|
|
(1,751) |
|
|
(1,671) |
|
Onboard and other |
(171) |
|
|
(173) |
|
|
(170) |
|
|
(411) |
|
|
(416) |
|
|
(395) |
|
Gain on ship sale |
— |
|
|
— |
|
|
2 |
|
|
2 |
|
|
2 |
|
|
6 |
|
Restructuring
expenses |
— |
|
|
— |
|
|
(14) |
|
|
(2) |
|
|
(2) |
|
|
(21) |
|
Other (c) |
(18) |
|
|
(18) |
|
|
— |
|
|
(39) |
|
|
(39) |
|
|
— |
|
Net cruise costs |
2,171 |
|
|
2,202 |
|
|
2,105 |
|
|
6,372 |
|
|
6,454 |
|
|
6,516 |
|
Less fuel |
(265) |
|
|
(265) |
|
|
(345) |
|
|
(648) |
|
|
(648) |
|
|
(996) |
|
Net cruise costs excluding fuel |
$ |
1,906 |
|
|
$ |
1,937 |
|
|
$ |
1,760 |
|
|
$ |
5,724 |
|
|
$ |
5,806 |
|
|
$ |
5,520 |
|
ALBDs |
20,572,112 |
|
|
20,572,112 |
|
|
19,794,882 |
|
|
59,555,384 |
|
|
59,555,384 |
|
|
57,685,594 |
|
Gross cruise costs per ALBD |
$ |
146.18 |
|
|
$ |
148.11 |
|
|
$ |
145.95 |
|
|
$ |
143.50 |
|
|
$ |
145.42 |
|
|
$ |
149.03 |
|
% increase vs. 2015 |
0.2 |
% |
|
1.5 |
% |
|
|
|
(3.7)% |
|
|
(2.4)% |
|
|
|
Net cruise costs per ALBD |
$ |
105.54 |
|
|
$ |
107.00 |
|
|
$ |
106.28 |
|
|
$ |
106.99 |
|
|
$ |
108.37 |
|
|
$ |
112.96 |
|
% (decrease) increase vs. 2015 |
(0.7)% |
|
|
0.7 |
% |
|
|
|
(5.3)% |
|
|
(4.1)% |
|
|
|
Net cruise costs
excluding fuel
per ALBD |
$ |
92.63 |
|
|
$ |
94.10 |
|
|
$ |
88.84 |
|
|
$ |
96.10 |
|
|
$ |
97.48 |
|
|
$ |
95.70 |
|
% increase vs. 2015 |
4.3 |
% |
|
5.9 |
% |
|
|
|
0.4 |
% |
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
August 31, |
|
Nine Months Ended
August 31, |
|
2016 |
|
2016
Constant
Currency |
|
2015 |
|
2016 |
|
2016
Constant
Currency |
|
2015 |
Net cruise costs excluding fuel |
$ |
1,906 |
|
|
$ |
1,929 |
|
|
$ |
1,760 |
|
|
$ |
5,724 |
|
|
$ |
5,793 |
|
|
$ |
5,520 |
|
ALBDs |
20,572,112 |
|
|
20,572,112 |
|
|
19,794,882 |
|
|
59,555,384 |
|
|
59,555,384 |
|
|
57,685,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cruise costs excluding fuel
per
ALBD |
$ |
92.63 |
|
|
$ |
93.77 |
|
|
$ |
88.84 |
|
|
$ |
96.10 |
|
|
$ |
97.27 |
|
|
$ |
95.70 |
|
% increase vs. 2015 |
4.3 |
% |
|
5.5 |
% |
|
|
|
0.4 |
% |
|
1.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(See Notes to Non-GAAP Financial
Measures.) |
CARNIVAL
CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Adjusted fully diluted earnings per share was computed as
follows (in millions, except per share data) (b):
|
Three Months
Ended
August 31, |
|
Nine Months
Ended
August 31, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net income |
|
|
|
|
|
|
|
U.S. GAAP net
income |
$ |
1,424 |
|
|
$ |
1,216 |
|
|
$ |
2,171 |
|
|
$ |
1,487 |
|
Unrealized (gains) losses
on fuel derivatives, net (d) |
(25) |
|
|
137 |
|
|
(121) |
|
|
215 |
|
Gain on ship sale
(e) |
— |
|
|
(2) |
|
|
(2) |
|
|
(6) |
|
Restructuring expenses
(e) |
— |
|
|
14 |
|
|
2 |
|
|
21 |
|
Other (c) (e) |
18 |
|
|
— |
|
|
39 |
|
|
— |
|
Adjusted net
income |
$ |
1,417 |
|
|
$ |
1,365 |
|
|
$ |
2,089 |
|
|
$ |
1,717 |
|
Weighted-average shares outstanding |
739 |
|
|
781 |
|
|
754 |
|
|
781 |
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
U.S. GAAP earnings per
share |
$ |
1.93 |
|
|
$ |
1.56 |
|
|
$ |
2.88 |
|
|
$ |
1.91 |
|
Unrealized (gains) losses
on fuel derivatives, net (d) |
(0.03) |
|
|
0.17 |
|
|
(0.16) |
|
|
0.27 |
|
Gain on ship sale
(e) |
— |
|
|
— |
|
|
— |
|
|
(0.01) |
|
Restructuring expenses
(e) |
— |
|
|
0.02 |
|
|
— |
|
|
0.03 |
|
Other (c) (e) |
0.02 |
|
|
— |
|
|
0.05 |
|
|
— |
|
Adjusted earnings per
share |
$ |
1.92 |
|
|
$ |
1.75 |
|
|
$ |
2.77 |
|
|
$ |
2.20 |
|
|
|
|
|
|
|
|
|
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
and other 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. 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. |
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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. We believe that gains and losses on ship sales and ship
impairments, net and restructuring expenses and other expenses are
not part of our core operating business and, therefore, are not an
indication of our future earnings performance. As such, we exclude
these items from our calculation of net cruise costs with and
without fuel. |
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We have not provided a reconciliation of
forecasted gross cruise revenues to forecasted net cruise revenues
or forecasted gross cruise costs to forecasted net cruise costs
because it would be too difficult to prepare reliable U.S. GAAP
forecasts of gross cruise revenues and gross cruise costs without
unreasonable effort. |
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In addition, our Europe, Australia & Asia
("EAA") segment and Cruise Support segment operations utilize the
euro, sterling and Australian dollar as their functional currencies
to measure their results and financial condition. This subjects us
to foreign currency translational risk. Our North America, EAA and
Cruise Support segment operations also have revenues and expenses
that are in a currency other than their functional currency. This
subjects us to foreign currency transactional risk. |
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We report non-GAAP financial measures on a
"constant dollar" and "constant currency" basis assuming the 2016
periods' currency exchange rates have remained constant with the
2015 periods' rates. These metrics facilitate a comparative view
for the changes in our business in an environment with fluctuating
exchange rates. |
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Constant dollar reporting is a non-GAAP
financial measure that removes only the impact of changes in
exchange rates on the translation of our EAA segment and Cruise
Support segment operations. |
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Constant currency reporting is a non-GAAP
financial measure that removes the impact of changes in exchange
rates on the translation of our EAA segment and Cruise Support
segment operations (as in constant dollar) plus the transactional
impact of changes in exchange rates from revenues and expenses that
are denominated in a currency other than the functional currency
for our North America, EAA and Cruise Support segments. |
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Examples: |
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- The translation of our EAA segment 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.
- Our North America segment operations have a U.S. dollar
functional currency but also have revenue and expense transactions
in currencies other than the U.S. dollar. If the U.S. dollar
strengthens against these other currencies, it reduces the U.S.
dollar revenues and expenses. If the U.S. dollar weakens against
these other currencies, it increases the U.S. dollar revenues and
expenses.
- Our EAA segment operations have euro, sterling and Australian
dollar functional currencies but also have revenue and expense
transactions in currencies other than their functional currency. If
their functional currency strengthens against these other
currencies, it reduces the functional currency revenues and
expenses. If the functional currency weakens against these other
currencies, it increases the functional currency revenues and
expenses.
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(b) |
Our consolidated financial statements are prepared
in accordance with U.S. GAAP. We have not provided a
reconciliation between forecasted adjusted earnings per share
guidance and forecasted U.S. GAAP earnings per share guidance
because it would be too difficult to prepare reliable U.S. GAAP
guidance without unreasonable effort. We are unable to predict,
without unreasonable effort, the future movement of foreign
exchange rates or the future impact of gains or losses on ship
sales, restructuring expenses or other non-core gains and charges.
The presentation of our non-GAAP financial information is not
intended to be considered in isolation from, as substitute for, or
superior to the financial information prepared in accordance with
U.S. GAAP. It is possible that our non-GAAP financial measures
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. |
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(c) |
Insignificant costs were included in the income
statement in previous periods. |
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(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 adjusted net income and
adjusted earnings per share excluding these unrealized gains and
losses. |
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(e) |
We believe that gains and losses on ship sales and
ship impairments, net and restructuring expenses and other expenses
are not part of our core operating business and, therefore, are not
an indication of our future earnings performance. We also believe
it is more meaningful for gains and losses on ship sales and ship
impairments, net and restructuring and other expenses to be
excluded from our net income and earnings per share and,
accordingly, we present adjusted net income and adjusted earnings
per share excluding these items. |
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While we forecast realized gains and
losses on fuel derivatives by applying current Brent prices to the
derivatives that settle in the forecast period, we do not forecast
the impact of unrealized gains and losses on fuel derivatives
because we do not believe they are an indication of our future
earnings performance. Accordingly, our earnings guidance is
presented on an adjusted basis only. |