MIAMI, June 28, 2016 /PRNewswire/ -- Carnival
Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced adjusted
net income of $370 million, or
$0.49 diluted EPS for the second
quarter of 2016 compared to adjusted net income for the second
quarter of 2015 of $193 million, or
$0.25 diluted EPS. For the second
quarter of 2016, U.S. GAAP net income, which included unrealized
gains on fuel derivatives of $242
million and $7 million of
other expenses, was $605 million, or
$0.80 diluted EPS. For the second
quarter of 2015, U.S. GAAP net income was $222 million, or $0.29 diluted EPS. Revenues for the second
quarter of 2016 were $3.7 billion
compared to $3.6 billion for the
prior year.
Carnival Corporation & plc President and CEO Arnold Donald stated, "Our strong second quarter
demonstrates continued momentum as we again achieved a near
doubling of adjusted earnings per share. Our ongoing effort
to drive demand for our brands in excess of our measured capacity
growth has led to increased revenues and helped maintain the
mid-point of our full year earnings guidance despite the recent
currency movements and rises in fuel prices that combined represent
a negative $0.17 per share."
Donald also noted several major milestones that will contribute
to the future of the company including the re-mastering of Queen
Mary 2, the opening of Holland America's Denali square complex
in Alaska and the introduction of
AIDA Cruises' AIDAprima, Holland America Line's
Koningsdam, and Carnival Cruise Line's Carnival
Vista. In addition, building on a legacy of pioneering
achievements, Carnival Corporation became the first cruise company
to begin operating voyages from the US to Cuba in more than four decades through its
Fathom brand -- a historic moment that captured worldwide media
coverage.
Key metrics for the second quarter 2016 compared to the prior
year were as follows:
- On a constant currency basis, net revenue yields (net revenue
per available lower berth day or "ALBD") increased 3.6 percent for
the 2Q 2016, which was better than the company's guidance of up 1.5
to 2.5 percent. Gross revenue yields increased 1.3 percent.
- Net cruise costs excluding fuel per ALBD decreased 1.9 percent
in constant currency, compared to March guidance, up 0.5 to 1.5
percent due to the timing of expenses between quarters. Gross
cruise costs including fuel per ALBD in current dollars decreased
5.4 percent.
- Changes in fuel prices (including fuel derivatives) and
currency exchange rates contributed $0.04 per share to second quarter earnings.
2016 Outlook
At this time, cumulative advance bookings for the remainder of
the year are well ahead of the prior year at slightly higher
prices. Since March, bookings for the remainder of the year are at
higher prices with volumes running lower than last year because
there is less inventory remaining for sale than at this time in
2015.
The company expects full year 2016 net revenue yields on a
constant currency basis to be up approximately 3.5 percent versus
the prior year, compared to March guidance of approximately 3
percent. The company now expects full year 2016 net cruise costs
excluding fuel per ALBD to be up approximately 1.5 percent compared
to the prior year on a constant currency basis, better than March
guidance of approximately 2.0 percent. Changes in fuel prices
(including fuel derivatives) and currency exchange rates are
expected to reduce full year earnings by $0.17 per share compared to March
guidance.
Taking the above factors into consideration, the company expects
full year 2016 adjusted earnings per share guidance to be in the
range of $3.25 to $3.35, compared to
March guidance of $3.20 to $3.40 and
2015 adjusted earnings of $2.70 per
share.
Donald noted, "This is shaping up to be another strong year for
our company as we expect over 20 percent earnings growth and are
approaching a nine percent return on invested capital. We have
accelerated progress toward our stated goal of achieving the double
digit return threshold and have accelerated distributions to
shareholders. We recently raised our dividend by 17 percent to over
$1 billion per year. Since October,
we have repurchased nearly $1.9
billion in shares under our stock repurchase program.
Yesterday, our Board of Directors approved our third $1 billion share repurchase authorization
demonstrating confidence in our outlook and reinforcing our
commitment to return value to shareholders."
Third Quarter 2016 Outlook
Third quarter constant currency net revenue yields are expected
to be up 2 to 3 percent compared to the prior year. Net cruise
costs excluding fuel per ALBD for the third quarter are expected to
be 6 to 7 percent higher on a constant currency basis compared to
the prior year driven by the timing of advertising expense and the
re-mastering of Queen Mary 2 in dry-dock. Changes in fuel
prices (including fuel derivatives) and currency exchange rates are
expected to increase third quarter earnings by $0.01 per share compared to the prior year.
Based on the above factors, the company expects adjusted
earnings for the third quarter 2016 to be in the range of
$1.83 to $1.87 per share versus 2015
adjusted earnings of $1.75 per
share.
Selected Key Forecast Metrics
|
|
|
Full Year
2016
|
|
Third Quarter
2016
|
Year over year
change:
|
|
|
Current
Dollars
|
|
Constant
Currency
|
|
Current
Dollars
|
|
Constant
Currency
|
Net revenue
yields
|
|
|
Up
slightly
|
|
Approx
3.5%
|
|
(1.0) to
0.0%
|
|
2.0 to
3.0%
|
Net cruise costs
excl. fuel / ALBD
|
|
|
Up
slightly
|
|
Approx
1.5%
|
|
4.0 to
5.0%
|
|
6.0 to
7.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year 2016
|
|
Third Quarter
2016
|
Fuel price per metric
ton
|
|
$280
|
|
$339
|
Fuel consumption
(metric tons in thousands)
|
|
3,270
|
|
810
|
Currency: Euro
|
|
$1.10 to
€1
|
|
$1.10 to
€1
|
Sterling
|
|
$1.38 to
£1
|
|
$1.32 to
£1
|
Australian dollar
|
|
$0.74 to
A$1
|
|
$0.74 to
A$1
|
Canadian dollar
|
|
$0.76 to
C$1
|
|
$0.77 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 second
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 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 15 new
ships scheduled to be delivered between 2016 and
2020. 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&P500 and the FTSE 100 indices.
Additional information can be found on www.carnival.com,
www.fathom.org, 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 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 vote in the UK
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
|
|
Six Months
Ended
|
|
|
|
|
May
31,
|
|
May
31,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
|
|
|
|
|
Passenger tickets
|
|
|
$ 2,696
|
|
$ 2,628
|
|
$ 5,414
|
|
$ 5,260
|
|
Onboard and other
|
|
|
978
|
|
927
|
|
1,901
|
|
1,816
|
|
Tour and other
|
|
|
31
|
|
35
|
|
42
|
|
44
|
|
|
|
|
3,705
|
|
3,590
|
|
7,357
|
|
7,120
|
|
Operating Costs
and Expenses
|
|
|
|
|
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
|
|
|
|
|
Commissions, transportation and other
|
|
|
495
|
|
481
|
|
1,077
|
|
1,067
|
|
Onboard and other
|
|
|
123
|
|
114
|
|
240
|
|
225
|
|
Payroll and related
|
|
|
502
|
|
469
|
|
994
|
|
936
|
|
Fuel
|
|
|
196
|
|
333
|
|
383
|
|
650
|
|
Food
|
|
|
248
|
|
242
|
|
495
|
|
482
|
|
Other ship operating
|
|
|
667
|
|
734
|
|
1,271
|
|
1,332
|
|
Tour and other
|
|
|
27
|
|
31
|
|
41
|
|
47
|
|
|
|
|
2,258
|
|
2,404
|
|
4,501
|
|
4,739
|
|
Selling and
administrative
|
|
|
532
|
|
491
|
|
1,083
|
|
1,020
|
|
Depreciation and
amortization
|
|
|
437
|
|
406
|
|
861
|
|
807
|
|
|
|
|
3,227
|
|
3,301
|
|
6,445
|
|
6,566
|
|
Operating
Income
|
|
|
478
|
|
289
|
|
912
|
|
554
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating
(Expense) Income
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
2
|
|
2
|
|
3
|
|
4
|
|
Interest expense, net of
capitalized interest
|
|
|
(57)
|
|
(57)
|
|
(108)
|
|
(114)
|
|
Gains (losses) on fuel
derivatives, net (a)
|
|
|
171
|
|
(13)
|
|
(65)
|
|
(181)
|
|
Other income, net
|
|
|
13
|
|
5
|
|
8
|
|
15
|
|
|
|
|
129
|
|
(63)
|
|
(162)
|
|
(276)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before
Income Taxes
|
|
|
607
|
|
226
|
|
750
|
|
278
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax Expense, Net
|
|
|
(2)
|
|
(4)
|
|
(3)
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
$ 605
|
|
$ 222
|
|
$ 747
|
|
$ 271
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$ 0.81
|
|
$ 0.29
|
|
$ 0.99
|
|
$ 0.35
|
|
Diluted
|
|
|
$ 0.80
|
|
$ 0.29
|
|
$ 0.98
|
|
$ 0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
Per Share-Diluted (b)
|
|
|
$ 0.49
|
|
$ 0.25
|
|
$ 0.88
|
|
$ 0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared
Per Share
|
|
|
$ 0.35
|
|
$ 0.25
|
|
$ 0.65
|
|
$ 0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding – Basic
|
|
|
751
|
|
778
|
|
758
|
|
777
|
|
Weighted-Average
Shares Outstanding – Diluted
|
|
|
753
|
|
780
|
|
761
|
|
780
|
|
|
|
|
(a) During the three
months ended May 31, 2016 and 2015, our gains (losses) on fuel
derivatives, net include net unrealized gains of $242 million and
$34 million and realized (losses) of $(71) million and $(47)
million, respectively. During the six months ended May 31, 2016 and
2015, our (losses) on fuel derivatives, net include net unrealized
gains (losses) of $96 million and $(78) million and realized
(losses) of $(161) million and $(103) 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)
|
|
|
May
31,
|
|
November
30,
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash equivalents
|
$
519
|
|
$
1,395
|
Trade and other receivables, net
|
334
|
|
303
|
Insurance recoverables
|
108
|
|
109
|
Inventories
|
315
|
|
330
|
Prepaid expenses and other
|
324
|
|
314
|
Total
current assets
|
1,600
|
|
2,451
|
|
|
|
|
Property and
Equipment, Net
|
33,244
|
|
31,818
(a)
|
|
|
|
|
Goodwill
|
3,019
|
|
3,010
|
|
|
|
|
Other
Intangibles
|
1,305
|
|
1,308 (a)
|
|
|
|
|
Other
Assets
|
683
|
|
650
|
|
$
39,851
|
|
$
39,237
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Short-term borrowings
|
$
410
|
|
$
30
|
Current portion of long-term debt
|
836
|
|
1,344
|
Accounts payable
|
667
|
|
627
|
Accrued liabilities and other
|
1,653
|
|
1,683
|
Customer deposits
|
4,275
|
|
3,272
|
Total
current liabilities
|
7,841
|
|
6,956
|
|
|
|
|
Long-Term
Debt
|
8,183
|
|
7,413
|
|
|
|
|
Other Long-Term
Liabilities
|
1,036
|
|
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
|
8,605
|
|
8,562
|
Retained earnings
|
20,320
|
|
20,060
|
Accumulated other comprehensive loss
|
(1,648)
|
|
(1,741)
|
Treasury stock, 99 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
|
(4,851)
|
|
(3,475)
|
Total shareholders' equity
|
22,791
|
|
23,771
|
|
$
39,851
|
|
$
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
|
Six Months
Ended
|
|
|
|
May
31,
|
May
31,
|
|
|
|
2016
|
|
2015
|
2016
|
2015
|
STATISTICAL
INFORMATION
|
|
|
|
|
|
|
|
ALBDs
(in thousands) (a)
|
|
|
19,693
|
|
19,307
|
38,983
|
37,891
|
Occupancy percentage (b)
|
|
|
104.1%
|
|
102.8%
|
104.1%
|
102.9%
|
Passengers carried (in thousands)
|
|
|
2,781
|
|
2,608
|
5,340
|
5,071
|
Fuel
consumption in metric tons (in thousands)
|
|
|
808
|
|
810
|
1,623
|
1,593
|
Fuel
consumption in metric tons per thousand ALBDs
|
|
|
41.0
|
|
41.9
|
41.6
|
42.0
|
Fuel
cost per metric ton consumed
|
|
|
$ 243
|
|
$ 411
|
$ 236
|
$ 408
|
Currencies
|
|
|
|
|
|
|
|
U.S. dollar to euro
|
|
|
$ 1.13
|
|
$ 1.10
|
$ 1.11
|
$ 1.13
|
U.S. dollar to sterling
|
|
|
$ 1.44
|
|
$ 1.52
|
$ 1.44
|
$ 1.53
|
U.S. dollar to Australian dollar
|
|
|
$ 0.75
|
|
$ 0.78
|
$ 0.73
|
$ 0.79
|
U.S. dollar to Canadian dollar
|
|
|
$ 0.78
|
|
$ 0.81
|
$ 0.75
|
$ 0.81
|
|
|
|
|
|
|
|
|
CASH FLOW
INFORMATION (in millions)
|
|
|
|
|
|
|
|
Cash from
operations
|
|
|
$ 1,883
|
|
$ 1,515
|
$ 2,681
|
$ 2,286
|
Capital
expenditures
|
|
|
$ 1,636
|
|
$ 439
|
$ 1,966
|
$ 1,381
|
Dividends
paid
|
|
|
$ 227
|
|
$ 194
|
$ 459
|
$ 388
|
|
|
|
|
|
|
|
|
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
May 31,
|
Six Months Ended
May 31,
|
|
|
2016
|
|
|
2016
|
|
|
|
Constant
|
|
|
Constant
|
|
|
2016
|
Dollar
|
2015
|
2016
|
Dollar
|
2015
|
Passenger ticket
revenues
|
$ 2,696
|
$ 2,699
|
$ 2,628
|
$ 5,414
|
$ 5,496
|
$ 5,260
|
Onboard and other
revenues
|
978
|
979
|
927
|
1,901
|
1,921
|
1,816
|
Gross cruise
revenues
|
3,674
|
3,678
|
3,555
|
7,315
|
7,417
|
7,076
|
Less cruise
costs
|
|
|
|
|
|
|
Commissions, transportation and other
|
(495)
|
(493)
|
(481)
|
(1,077)
|
(1,097)
|
(1,067)
|
Onboard
and other
|
(123)
|
(123)
|
(114)
|
(240)
|
(243)
|
(225)
|
|
(618)
|
(616)
|
(595)
|
(1,317)
|
(1,340)
|
(1,292)
|
|
|
|
|
|
|
|
Net passenger ticket
revenues
|
2,201
|
2,206
|
2,147
|
4,337
|
4,399
|
4,193
|
Net onboard and other
revenues
|
855
|
856
|
813
|
1,661
|
1,678
|
1,591
|
Net cruise
revenues
|
$
3,056
|
$
3,062
|
$
2,960
|
$
5,998
|
$
6,077
|
$
5,784
|
|
|
|
|
|
|
|
ALBDs
|
19,693,362
|
19,693,362
|
19,306,832
|
38,983,272
|
38,983,272
|
37,890,712
|
|
|
|
|
|
|
|
Gross revenue
yields
|
$ 186.55
|
$ 186.78
|
$ 184.15
|
$ 187.65
|
$ 190.27
|
$ 186.76
|
% increase vs.
2015
|
1.3%
|
1.4%
|
|
0.5%
|
1.9%
|
|
|
|
|
|
|
|
|
Net revenue
yields
|
$ 155.21
|
$ 155.50
|
$ 153.29
|
$ 153.87
|
$ 155.90
|
$ 152.65
|
% increase vs.
2015
|
1.2%
|
1.4%
|
|
0.8%
|
2.1%
|
|
|
|
|
|
|
|
|
Net passenger ticket
revenue yields
|
$ 111.78
|
$ 112.03
|
$ 111.20
|
$ 111.25
|
$ 112.85
|
$ 110.66
|
% increase vs.
2015
|
0.5%
|
0.7%
|
|
0.5%
|
2.0%
|
|
|
|
|
|
|
|
|
Net onboard and
other revenue yields
|
$ 43.43
|
$ 43.48
|
$ 42.09
|
$ 42.61
|
$ 43.05
|
$ 41.99
|
% increase vs.
2015
|
3.2%
|
3.3%
|
|
1.5%
|
2.5%
|
|
|
|
|
|
|
|
|
Three Months Ended
May 31,
|
Six Months Ended
May 31,
|
|
|
2016
|
|
|
2016
|
|
|
|
Constant
|
|
|
Constant
|
|
|
2016
|
Currency
|
2015
|
2016
|
Currency
|
2015
|
Net passenger ticket
revenues
|
$ 2,201
|
$ 2,267
|
$ 2,147
|
$ 4,337
|
$ 4,532
|
$ 4,193
|
Net onboard and other
revenues
|
855
|
860
|
813
|
1,661
|
1,691
|
1,591
|
Net cruise
revenues
|
3,056
|
3,127
|
2,960
|
5,998
|
6,223
|
5,784
|
ALBDs
|
19,693,362
|
19,693,362
|
19,306,832
|
38,983,272
|
38,983,272
|
37,890,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
yields
|
$ 155.21
|
$ 158.80
|
$ 153.29
|
$ 153.87
|
$ 159.63
|
$ 152.65
|
% increase vs.
2015
|
1.2%
|
3.6%
|
|
0.8%
|
4.6%
|
|
|
|
|
|
|
|
|
Net passenger ticket
revenue yields
|
$ 111.78
|
$ 115.12
|
$ 111.20
|
$ 111.25
|
$ 116.26
|
$ 110.66
|
% increase vs.
2015
|
0.5%
|
3.5%
|
|
0.5%
|
5.1%
|
|
|
|
|
|
|
|
|
Net onboard and
other revenue yields
|
$ 43.43
|
$ 43.68
|
$ 42.09
|
$ 42.61
|
$ 43.37
|
$ 41.99
|
% increase vs.
2015
|
3.2%
|
3.8%
|
|
1.5%
|
3.3%
|
|
|
(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
May 31,
|
Six Months Ended
May 31,
|
|
|
2016
|
|
|
2016
|
|
|
|
Constant
|
|
|
Constant
|
|
|
2016
|
Dollar
|
2015
|
2016
|
Dollar
|
2015
|
Cruise operating
expenses
|
$ 2,231
|
$ 2,232
|
$ 2,373
|
$ 4,460
|
$ 4,522
|
$
4,692
|
Cruise selling and
administrative expenses
|
530
|
530
|
489
|
1,079
|
1,092
|
1,016
|
Gross cruise
costs
|
2,761
|
2,762
|
2,862
|
5,539
|
5,614
|
5,708
|
Less cruise costs
included above
|
|
|
|
|
|
|
Commissions,
transportation and other
|
(495)
|
(493)
|
(481)
|
(1,077)
|
(1,097)
|
(1,067)
|
Onboard and
other
|
(123)
|
(123)
|
(114)
|
(240)
|
(243)
|
(225)
|
Gain on ship
sale
|
-
|
-
|
2
|
2
|
2
|
4
|
Restructuring
expenses
|
(2)
|
(2)
|
(7)
|
(2)
|
(2)
|
(7)
|
Other
(c)
|
(5)
|
(5)
|
-
|
(21)
|
(21)
|
-
|
Net cruise
costs
|
2,136
|
2,139
|
2,262
|
4,201
|
4,253
|
4,413
|
Less fuel
|
(196)
|
(196)
|
(333)
|
(383)
|
(383)
|
(650)
|
Net cruise costs
excluding fuel
|
$
1,940
|
$
1,943
|
$
1,929
|
$
3,818
|
$
3,870
|
$
3,763
|
|
|
|
|
|
|
|
ALBDs
|
19,693,362
|
19,693,362
|
19,306,832
|
38,983,272
|
38,983,272
|
37,890,712
|
|
|
|
|
|
|
|
Gross cruise costs
per ALBD
|
$ 140.18
|
$ 140.28
|
$ 148.22
|
$ 142.08
|
$ 144.01
|
$ 150.64
|
% decrease vs.
2015
|
(5.4)%
|
(5.4)%
|
|
(5.7)%
|
(4.4)%
|
|
|
|
|
|
|
|
|
Net cruise costs per
ALBD
|
$ 108.46
|
$ 108.63
|
$ 117.11
|
$ 107.75
|
$ 109.10
|
$ 116.45
|
% decrease vs.
2015
|
(7.4)%
|
(7.2)%
|
|
(7.5)%
|
(6.3)%
|
|
|
|
|
|
|
|
|
Net cruise costs
excluding fuel per ALBD
|
$ 98.49
|
$ 98.67
|
$ 99.88
|
$ 97.93
|
$
99.27
|
$ 99.28
|
% decrease vs.
2015
|
(1.4)%
|
(1.2)%
|
|
(1.4)%
|
0.0%
|
|
|
|
|
|
|
|
|
Three Months Ended
May 31,
|
Six Months Ended
May 31,
|
|
|
2016
|
|
|
2016
|
|
|
|
Constant
|
|
|
Constant
|
|
|
2016
|
Currency
|
2015
|
2016
|
Currency
|
2015
|
Net cruise
costs excluding fuel
|
$
1,940
|
$
1,930
|
$
1,929
|
$
3,818
|
$
3,864
|
$
3,763
|
ALBDs
|
19,693,362
|
19,693,362
|
19,306,832
|
38,983,272
|
38,983,272
|
37,890,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cruise
costs excluding fuel per ALBD
|
$ 98.49
|
$ 98.01
|
$ 99.88
|
$ 97.93
|
$ 99.12
|
$ 99.28
|
% decrease vs.
2015
|
(1.4)%
|
(1.9)%
|
|
(1.4)%
|
(0.2)%
|
|
|
|
|
|
|
|
|
|
(See next
page for 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
|
|
Six Months
Ended
|
|
May
31,
|
|
May
31,
|
Net
income
|
2016
|
2015
|
|
2016
|
2015
|
U.S. GAAP net income
|
$ 605
|
$ 222
|
|
$ 747
|
$ 271
|
Unrealized (gains) losses on fuel derivatives, net (d)
|
(242)
|
(34)
|
|
(96)
|
78
|
Gain on ship sale (e)
|
-
|
(2)
|
|
(2)
|
(4)
|
Restructuring expenses
(e)
|
2
|
7
|
|
2
|
7
|
Other (c) (e)
|
5
|
-
|
|
21
|
-
|
Adjusted net
income
|
$
370
|
$
193
|
|
$
672
|
$
352
|
|
|
|
|
|
|
Weighted-average
shares outstanding
|
753
|
780
|
|
761
|
780
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
U.S. GAAP earnings per share
|
$ 0.80
|
$ 0.29
|
|
$ 0.98
|
$ 0.35
|
Unrealized (gains) losses on fuel derivatives, net (d)
|
(0.32)
|
(0.05)
|
|
(0.13)
|
0.10
|
Gain on ship sale (e)
|
-
|
-
|
|
-
|
(0.01)
|
Restructuring expenses
(e)
|
-
|
0.01
|
|
-
|
0.01
|
Other (c) (e)
|
0.01
|
-
|
|
0.03
|
-
|
Adjusted earnings per
share
|
$
0.49
|
$
0.25
|
|
$
0.88
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
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
and other expenses from our calculation of net cruise costs with
and without fuel as they are not considered part of our core
operating business.
|
|
|
|
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.
|
|
|
|
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. All of our North America, EAA and Cruise
Support segments' operations also have revenues and expenses that
are in a currency other than their functional currency. This
subjects us to foreign currency transactional risk.
|
CARNIVAL
CORPORATION & PLC
|
NON-GAAP FINANCIAL
MEASURES (CONTINUED)
|
|
|
We report non-GAAP
financial measures on a "constant dollar" and "constant currency"
basis assuming the 2016 period currency exchange rates have
remained constant with the 2015 period rates. These metrics
facilitate a comparative view for the changes in our business in an
environment with fluctuating exchange rates.
|
|
|
|
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.
|
|
|
|
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.
|
|
|
|
Examples:
|
|
|
|
- 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 a 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.
|
(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.
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.
|
|
|
(c)
|
Insignificant costs
were included in the income statement in previous
periods.
|
|
|
(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.
|
|
|
(e)
|
We believe that the
gain on ship sale and restructuring expenses recognized in the
three and six months ended May 31, 2016 and 2015 and the other
expenses recognized in the three and six months ended May 31, 2016
are not part of our core operating business and, therefore, are not
an indication of our future earnings performance. As such, we
believe it is more meaningful for the gain on ship sale and the
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.
|
|
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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/carnival-corporation--plc-reports-record-second-quarter-earnings-and-additional-1-billion-share-repurchase-authorization-300291024.html
SOURCE Carnival Corporation & plc