MIAMI, June 25,
2024 /PRNewswire/ -- Carnival Corporation & plc
(NYSE/LSE: CCL; NYSE: CUK) announced financial results for the
second quarter 2024 and provided an updated outlook for the full
year and an outlook for third quarter 2024.
- Second quarter net income improved by nearly $500 million compared to 2023 and adjusted net
income outperformed March guidance by nearly $170 million (see "Non-GAAP Financial Measures"
below).
- Record second quarter operating income of $560 million, nearly five times 2023
levels, on record second quarter revenues of $5.8 billion.
- Raised full year 2024 net yield guidance (in constant
currency) to approximately 10.25 percent on continued strong demand
and raised full year adjusted net income guidance by approximately
$275 million.
- Cumulative booked position for the remainder of 2024
continues to be the best on record in both price (in constant
currency) and occupancy.
- While early, cumulative booked position for full year 2025
is even higher than 2024 in both price (in constant currency) and
occupancy.
- Total customer deposits reached an all-time high of
$8.3 billion, surpassing the previous
record by $1.1 billion.
"We have made incredible strides in improving our commercial
operations, strategically reallocating our portfolio composition
and formulating growth plans, while strengthening even further our
global team, the best in the business. Off the back of that effort,
we closed yet another quarter delivering records, this time across
revenues, operating income, customer deposits and booking levels,
exceeding our guidance on every measure," commented Carnival
Corporation & plc's Chief Executive Officer Josh Weinstein.
"Based on continued strong demand trends, we are taking up our
expectations for the year with net yields now forecasted to top ten
percent and propelling us towards double-digit returns on invested
capital. On our upwardly revised guidance, we will be on average
around two-thirds of the way to achieving our three 2026 SEA Change
targets after just one year. With two years remaining, it certainly
gives us even more conviction in achieving these deliverables,"
Weinstein added.
Second Quarter 2024 Results
- Net income was $92 million, or
$0.07 diluted EPS, an increase of
nearly $500 million compared to 2023.
Adjusted net income of $134 million,
or $0.11 adjusted EPS, outperformed
March guidance by nearly $170
million, driven by higher ticket prices, higher onboard
spending and the timing of expenses between quarters (see "Non-GAAP
Financial Measures" below).
- Record second quarter operating income of $560 million, nearly five times 2023 levels.
- Record second quarter adjusted EBITDA of $1.2 billion, increasing over 75 percent compared
to 2023 and outperforming March guidance by approximately
$150 million (see "Non-GAAP Financial
Measures" below).
- Record second quarter revenues of $5.8
billion, with record net yields (in constant currency) and
record net per diems (in constant currency) both significantly
exceeding 2023 levels (see "Non-GAAP Financial Measures"
below).
- Gross margin yields increased by nearly 50 percent compared to
2023 and net yields (in constant currency) exceeded 2023 levels by
over 12 percent.
- Net per diems (in constant currency) were up over 6 percent
compared to 2023, driven by both higher ticket prices and higher
onboard spending.
- Cruise costs per available lower berth day ("ALBD") increased
4.0 percent compared to 2023. Adjusted cruise costs excluding fuel
per ALBD (in constant currency) were in line with prior year and
better than March guidance in part due to identified cost savings
with most of the favorability driven by the timing of expenses
between the quarters (see "Non-GAAP Financial Measures"
below).
- Total customer deposits reached an all-time high of
$8.3 billion, surpassing the previous
record by $1.1 billion ($7.2 billion as of May 31,
2023).
Bookings
"We are very pleased with the continued acceleration of demand
for 2025 and beyond, which builds upon the fantastic achievements
in 2024 thus far. This positive trajectory is a testament to the
successful execution of our demand generation efforts and the
delivery of exceptional vacation experiences once onboard,"
Weinstein noted.
The company continues to experience strong bookings momentum
driven by record booking volumes for 2025 sailings. While still
early, the cumulative advanced booked position for full year 2025
is even higher than 2024 in both price (in constant currency) and
occupancy.
With less inventory remaining for sale for the remainder of
2024, the company achieved considerably higher prices (in constant
currency) on bookings taken during the second quarter compared to
the prior year, which is aligned with the company's yield
management strategy. In fact, pricing for both its North America and Australia ("NAA") and Europe segments is running ahead of the prior
year for each of the third and fourth quarters of 2024.
Driven by the company's efforts to elongate the booking curve
and favorable pricing trends, the company's cumulative booked
position for the remainder of 2024 continues to be the best on
record, with occupancy still nicely above 2023 levels at
considerably higher prices (in constant currency).
2024 Outlook
For the full year 2024, the company expects:
- Net yields (in constant currency) up approximately 10.25
percent compared to 2023, approximately 75 basis points better than
March guidance, based on continued strength in demand and with
occupancy at historical levels.
- Adjusted cruise costs excluding fuel per ALBD (in constant
currency) approximately 0.5 percentage points better than March
guidance.
- Adjusted EBITDA of approximately $5.83
billion, up nearly 40 percent compared to 2023, and better
than March guidance by approximately $200
million.
- Adjusted net income of approximately $1.55 billion, better than March guidance by
approximately $275 million.
- Adjusted return on invested capital ("ROIC") of approximately
10 percent.
For the third quarter of 2024, the company expects:
- Net yields (in constant currency) up approximately 8.0 percent
compared to 2023 levels.
- Adjusted cruise costs excluding fuel per ALBD (in constant
currency) up approximately 4.5 percent compared to the third
quarter of 2023.
- Adjusted EBITDA of approximately $2.66
billion, up 20 percent compared to the third quarter of
2023.
- Adjusted net income of approximately $1.58 billion, up 35 percent compared to the
third quarter of 2023.
See "Guidance" and "Reconciliation of Forecasted Data" for
additional information on the company's 2024 outlook.
Strategic Portfolio Optimization
As previously announced, the company will sunset the P&O
Cruises (Australia) brand and fold
the Australia operations into
Carnival Cruise Line in March 2025.
This realignment will further optimize the composition of the
company's global brand portfolio and will strengthen its
performance in the South Pacific through numerous operational
efficiencies.
This change is the latest in a series of strategic moves
designed to increase guest capacity for Carnival Cruise Line,
America's cruise line and the highest-returning brand in the
company's global portfolio. This will result in the addition of
nine ships to Carnival Cruise Line's fleet since 2019, including
the successful shift of three vessels from sister brand Costa
Cruises. Through these strategic asset reallocations and the
company's commitment to restarting its moderate newbuild growth for
its highest returning brands beginning with Carnival Cruise Line,
the company will increase Carnival Cruise Line as a percentage of
its portfolio from 29 percent as of 2019 to 37 percent in 2028.
Financing and Capital Activity
"Our second quarter refinancing, repricing and debt prepayment
activities are all aligned with our path to investment grade as we
continue to manage down debt and interest expense, while reducing
the complexity of our capital structure. During the last fifteen
months, we prepaid $6.6 billion of
debt, which saves a significant amount of interest expense over
time while reducing our secured debt by nearly 40 percent,"
commented Carnival Corporation & plc's Chief Financial Officer
David Bernstein.
"Looking forward, we expect substantial free cash flow driven by
our ongoing operational execution and the lowest newbuild order
book in decades to deliver continued improvements in our leverage
metrics and balance sheet," Bernstein added.
The company continues its efforts to proactively manage its debt
profile. Since February 29, 2024, the
company has:
- Prepaid $1.6 billion of its
first-priority senior secured term loans
- Repriced approximately $1.75
billion of its first-priority senior secured term loan
facility maturing in 2028 and approximately $1.0 billion of its senior secured term loan
facility maturing in 2027
- Completed a $535 million private
offering of senior unsecured notes due 2030 from which the
proceeds, together with cash on hand, were used to redeem its
senior unsecured notes due 2026
These transactions simplified the company's capital structure
and will reduce net interest expense by $55
million in 2024 and $85
million on an annualized basis.
The company ended the quarter with $4.6
billion of liquidity. As of May 31,
2024, the company's outstanding debt maturities for the
remainder of the year, 2025, and 2026 were $1.2 billion, $1.7
billion, and $2.8 billion.
The second quarter generated cash from operations of
$2.0 billion and adjusted free cash
flow of $1.3 billion. The
company drew down on an export credit facility, continuing
its strategy to finance its newbuild program at preferential
interest rates.
Other Recent Highlights
- Completed the installation of SpaceX's Starlink across its
fleet, transforming the onboard connectivity experience and
rivaling on-land connectivity.
- Completed the fleetwide rollout of OneOcean, an environmental
compliance and passage planning software, setting a new standard
for journey and environmental planning.
- Released its 14th annual sustainability report, "Sustainable
from Ship to Shore," detailing meaningful progress in its six
sustainability focus areas and surpassing several sustainability
goals well in advance.
- Recognized by Forbes as one of America's Best Employers for
Diversity for 2024.
- Carnival Corporation & plc and its AIDA Cruises brand were
honored with three prestigious Environmental, Social and Governance
Shipping Awards for 2024.
- Cunard welcomed Queen Anne, the
line's first new ship in 14 years, and celebrated its phenomenal
naming ceremony with legendary tenor Andrea
Bocelli. In an industry first, a city, Liverpool – Cunard's
birthplace and spiritual home – was named godparent of the
ship.
- Cunard achieved record-breaking bookings following the
successful launch of Queen
Anne, reporting more guests booked in May than any
equivalent period on record.
- P&O Cruises (UK) generated significant wide-spread media
attention as the headline sponsor of BAFTA (British Academy of Film
and Television Arts) Television Awards for a second year in a row
as part of its multi-year partnership.
- Celebrated spectacular naming ceremonies for Carnival Cruise
Line's newest ship, Carnival Firenze, named by Jonathan Bennett fresh off his starring on
Broadway in the hit show Spamalot, and Princess Cruises' most
luxurious ship, Sun Princess, named by the great
Hannah Waddington of Ted Lasso fame.
- Holland America Line debuted
"Glacier Day" on its Alaska
cruises, reinforcing its commitment to providing guests with
awe-inspiring glacier experiences with breathtaking sights, scenic
commentary, informational viewing stations and authentic Alaskan
cuisine onboard.
Guidance
(See "Reconciliation of Forecasted Data")
|
3Q
2024
|
|
Full Year
2024
|
Year over year
change
|
Current
Dollars
|
|
Constant
Currency
|
|
Current
Dollars
|
|
Constant
Currency
|
Net yields
|
Approx. 8.0%
|
|
Approx. 8.0%
|
|
Approx.
10.5%
|
|
Approx.
10.25%
|
Adjusted cruise costs
excluding fuel per ALBD
|
Approx. 4.5%
|
|
Approx. 4.5%
|
|
Approx.
4.75%
|
|
Approx. 4.5%
|
|
3Q
2024
|
|
Full Year
2024
|
ALBDs (in
millions) (a)
|
25.2
|
|
95.7
|
Capacity growth
compared to prior year
|
6.2 %
|
|
4.8 %
|
|
|
|
|
Fuel
consumption in metric tons (in millions)
|
0.7
|
|
3.0
|
Fuel cost per metric
ton consumed (excluding European Union Allowance
("EUA"))
|
$
675
|
|
$
675
|
Fuel expense (including
EUA expense) (in billions)
|
$
0.52
|
|
$
2.04
|
|
|
|
|
Depreciation and
amortization (in billions)
|
$
0.66
|
|
$
2.58
|
Interest expense, net
of capitalized interest and interest income (in
billions)
|
$
0.42
|
|
$
1.69
|
|
|
|
|
Adjusted EBITDA (in
billions)
|
Approx.
$2.66
|
|
Approx.
$5.83
|
Adjusted net income
(loss) (in billions)
|
Approx.
$1.58
|
|
Approx.
$1.55
|
Adjusted earnings per
share - diluted (b)
|
Approx.
$1.15
|
|
Approx.
$1.18
|
Weighted-average shares
outstanding - basic
|
1,267
|
|
1,273
|
Weighted-average shares
outstanding - diluted
|
1,399
|
|
1,398
|
|
|
(a)
|
See "Notes to
Statistical Information"
|
|
|
(b)
|
Diluted adjusted
earnings per share includes the add-back of dilutive interest
expense related to the company's convertible notes of $25 million
and $94 million for the third quarter of 2024 and full year
2024.
|
|
|
Currencies (USD to
1)
|
3Q
2024
|
Full Year
2024
|
AUD
|
$
0.66
|
$
0.66
|
CAD
|
$
0.73
|
$
0.73
|
EUR
|
$
1.07
|
$
1.08
|
GBP
|
$
1.27
|
$
1.27
|
Sensitivities
(impact to adjusted net income (loss) in
millions)
|
3Q
2024
|
Remainder of
2024
|
1% change in net
yields
|
$
54
|
$
97
|
1% change in adjusted
cruise costs excluding fuel per ALBD
|
$
26
|
$
53
|
1% change in currency
exchange rates
|
$
10
|
$
15
|
10% change in fuel
price
|
$
50
|
$
98
|
100 basis point change
in variable rate debt (including derivatives)
|
—
|
$
23
|
Capital Expenditures
For the remainder of 2024, contracted newbuild capital
expenditures are $0.1 billion and
non-newbuild capital expenditures are $1.0
billion. These future capital expenditures will fluctuate
with foreign currency movements relative to the U.S. Dollar. In
addition, these figures do not include potential stage payments for
ship orders that the company may place in the future.
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 earnings
release. This call can be listened to live, and additional
information including the company's earnings presentation and debt
maturities schedule, can be obtained via Carnival Corporation &
plc's website at www.carnivalcorp.com and www.carnivalplc.com.
Carnival Corporation & plc is the largest global cruise
company, and among the largest leisure travel companies, with a
portfolio of world-class cruise lines – AIDA Cruises, Carnival
Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O
Cruises (Australia), P&O
Cruises (UK), Princess Cruises, and Seabourn.
Additional information can be found on www.carnivalcorp.com,
www.aida.de, www.carnival.com, www.costacruise.com, www.cunard.com,
www.hollandamerica.com, www.pocruises.com.au, www.pocruises.com,
www.princess.com and www.seabourn.com. For more information on
Carnival Corporation's industry-leading sustainability initiatives,
visit www.carnivalsustainability.com.
Cautionary Note Concerning Factors That May Affect Future
Results
Some of the statements, estimates or projections contained in
this document are "forward-looking statements" that involve risks,
uncertainties and assumptions with respect to us, including some
statements concerning future results, operations, outlooks, plans,
goals, reputation, cash flows, liquidity 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, as amended. 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,"
"aspiration," "anticipate," "forecast," "project," "future,"
"intend," "plan," "estimate," "target," "indicate," "outlook," and
similar expressions of future intent or the negative of such
terms.
Forward-looking statements include those statements that relate
to our outlook and financial position including, but not limited
to, statements regarding:
•
Pricing
|
•
Adjusted net income (loss)
|
•
Booking levels
|
•
Adjusted EBITDA
|
•
Occupancy
|
•
Adjusted earnings per share
|
•
Interest, tax and fuel
expenses
|
•
Adjusted free cash flow
|
•
Currency exchange rates
|
•
Net per diems
|
•
Goodwill, ship and trademark fair
values
|
•
Net yields
|
•
Liquidity and credit ratings
|
•
Adjusted cruise costs per ALBD
|
•
Investment grade leverage
metrics
|
•
Adjusted cruise costs excluding fuel per
ALBD
|
•
Estimates of ship depreciable lives and
residual values
|
•
Adjusted return on invested
capital
|
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 by our forward-looking statements. 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. These factors
include, but are not limited to, the following:
- Events and conditions around the world, including
geopolitical uncertainty, war and other military actions,
inflation, higher fuel prices, higher interest rates and other
general concerns impacting the ability or desire of people to
travel have led, and may in the future lead, to a decline in demand
for cruises as well as negative impacts to our operating costs and
profitability.
- Pandemics have in the past and may in the future have a
significant negative impact on our financial condition and
operations.
- Incidents concerning our ships, guests or the cruise
industry have in the past and may, in the future, negatively impact
the satisfaction of our guests and crew and lead to reputational
damage.
- Changes in and non-compliance with laws and regulations
under which we operate, such as those relating to health,
environment, safety and security, data privacy and protection,
anti-money laundering, anti-corruption, economic sanctions, trade
protection, labor and employment, and tax may be costly and have in
the past and may, in the future, lead to litigation, enforcement
actions, fines, penalties and reputational damage.
- Factors associated with climate change, including evolving
and increasing regulations, increasing global concern about climate
change and the shift in climate conscious consumerism and
stakeholder scrutiny, and increasing frequency and/or severity of
adverse weather conditions could adversely affect our
business.
- Inability to meet or achieve our targets, goals,
aspirations, initiatives, and our public statements and disclosures
regarding them, including those that are related to sustainability
matters, may expose us to risks that may adversely impact our
business.
- Breaches in data security and lapses in data privacy as well
as disruptions and other damages to our principal offices,
information technology operations and system networks and failure
to keep pace with developments in technology may adversely impact
our business operations, the satisfaction of our guests and crew
and may lead to reputational damage.
- The loss of key team members, our inability to recruit or
retain qualified shoreside and shipboard team members and increased
labor costs could have an adverse effect on our business and
results of operations.
- Increases in fuel prices, changes in the types of fuel
consumed and availability of fuel supply may adversely impact our
scheduled itineraries and costs.
- We rely on supply chain vendors who are integral to the
operations of our businesses. These vendors and service providers
may be unable to deliver on their commitments, which could
negatively impact our business.
- Fluctuations in foreign currency exchange rates may
adversely impact our financial results.
- Overcapacity and competition in the cruise and land-based
vacation industry may negatively impact our cruise sales, pricing
and destination options.
- Inability to implement our shipbuilding programs and ship
repairs, maintenance and refurbishments may adversely impact our
business operations and the satisfaction of our guests.
- We require a significant amount of cash to service our debt
and sustain our operations. Our ability to generate cash depends on
many factors, including those beyond our control, and we may not be
able to generate cash required to service our debt and sustain our
operations.
- Our substantial debt could adversely affect our financial
health and operating flexibility.
The ordering of the risk factors set forth above is not intended
to reflect our indication of priority or likelihood. Additionally,
many of these risks and uncertainties are currently, and in the
future may continue to be, amplified by our substantial debt
balance incurred during the pause of our guest cruise operations.
There may be additional risks that we consider immaterial or which
are unknown.
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 document, 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.
Forward-looking and other statements in this document may also
address our sustainability progress, plans, and goals (including
climate change and environmental-related matters). In addition,
historical, current, and forward-looking sustainability- and
climate-related statements may be based on standards and tools for
measuring progress that are still developing, internal controls and
processes that continue to evolve, and assumptions and predictions
that are subject to change in the future and may not be generally
shared.
CARNIVAL
CORPORATION & PLC
CONSOLIDATED
STATEMENTS OF INCOME (LOSS)
(UNAUDITED)
(in millions, except
per share data)
|
|
|
Three Months
Ended
May 31,
|
|
Six Months
Ended
May
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Revenues
|
|
|
|
|
|
|
|
Passenger
ticket
|
$
3,754
|
|
$
3,141
|
|
$
7,370
|
|
$
6,011
|
Onboard and
other
|
2,027
|
|
1,770
|
|
3,817
|
|
3,332
|
|
5,781
|
|
4,911
|
|
11,187
|
|
9,343
|
Operating
Expenses
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
732
|
|
619
|
|
1,552
|
|
1,274
|
Onboard and
other
|
628
|
|
549
|
|
1,178
|
|
1,033
|
Payroll and
related
|
614
|
|
601
|
|
1,237
|
|
1,183
|
Fuel
|
525
|
|
489
|
|
1,030
|
|
1,024
|
Food
|
360
|
|
325
|
|
706
|
|
636
|
Other
operating
|
938
|
|
875
|
|
1,800
|
|
1,619
|
Cruise and tour
operating expenses
|
3,798
|
|
3,457
|
|
7,502
|
|
6,768
|
Selling and
administrative
|
789
|
|
736
|
|
1,603
|
|
1,448
|
Depreciation and
amortization
|
634
|
|
597
|
|
1,247
|
|
1,179
|
|
5,221
|
|
4,791
|
|
10,352
|
|
9,394
|
Operating Income
(Loss)
|
560
|
|
120
|
|
836
|
|
(52)
|
Nonoperating Income
(Expense)
|
|
|
|
|
|
|
|
Interest
income
|
25
|
|
69
|
|
58
|
|
124
|
Interest
expense, net of capitalized interest
|
(450)
|
|
(542)
|
|
(921)
|
|
(1,082)
|
Debt
extinguishment and modification costs
|
(33)
|
|
(31)
|
|
(66)
|
|
(31)
|
Other income
(expense), net
|
(7)
|
|
(17)
|
|
(25)
|
|
(47)
|
|
(464)
|
|
(522)
|
|
(953)
|
|
(1,036)
|
Income (Loss) Before
Income Taxes
|
96
|
|
(402)
|
|
(118)
|
|
(1,087)
|
Income Tax Benefit
(Expense), Net
|
(5)
|
|
(5)
|
|
(5)
|
|
(13)
|
Net Income
(Loss)
|
$
92
|
|
$
(407)
|
|
$
(123)
|
|
$
(1,100)
|
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
Basic
|
$
0.07
|
|
$
(0.32)
|
|
$
(0.10)
|
|
$
(0.87)
|
Diluted
|
$
0.07
|
|
$
(0.32)
|
|
$
(0.10)
|
|
$
(0.87)
|
Weighted-Average
Shares Outstanding - Basic
|
1,267
|
|
1,263
|
|
1,265
|
|
1,261
|
Weighted-Average
Shares Outstanding - Diluted
|
1,271
|
|
1,263
|
|
1,265
|
|
1,261
|
CARNIVAL
CORPORATION & PLC
CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(in millions, except
par values)
|
|
|
May 31,
2024
|
|
November 30,
2023
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
1,646
|
|
$
2,415
|
Trade and other
receivables, net
|
494
|
|
556
|
Inventories
|
509
|
|
528
|
Prepaid expenses and
other
|
1,118
|
|
1,767
|
Total current
assets
|
3,768
|
|
5,266
|
Property and
Equipment, Net
|
42,105
|
|
40,116
|
Operating Lease
Right-of-Use Assets, Net
|
1,282
|
|
1,265
|
Goodwill
|
579
|
|
579
|
Other
Intangibles
|
1,167
|
|
1,169
|
Other
Assets
|
702
|
|
725
|
|
$
49,603
|
|
$
49,120
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Current portion of
long-term debt
|
$
2,181
|
|
$
2,089
|
Current portion of
operating lease liabilities
|
144
|
|
149
|
Accounts
payable
|
1,063
|
|
1,168
|
Accrued liabilities
and other
|
2,114
|
|
2,003
|
Customer
deposits
|
7,883
|
|
6,072
|
Total current
liabilities
|
13,385
|
|
11,481
|
Long-Term
Debt
|
27,154
|
|
28,483
|
Long-Term Operating
Lease Liabilities
|
1,174
|
|
1,170
|
Other Long-Term
Liabilities
|
1,075
|
|
1,105
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Carnival Corporation
common stock, $0.01 par value; 1,960 shares authorized; 1,253
shares issued at 2024 and 1,250 shares issued at 2023
|
13
|
|
12
|
Carnival plc ordinary
shares, $1.66 par value; 217 shares issued at 2024 and
2023
|
361
|
|
361
|
Additional paid-in
capital
|
16,701
|
|
16,712
|
Retained
earnings
|
62
|
|
185
|
Accumulated other
comprehensive income (loss)
|
(1,919)
|
|
(1,939)
|
Treasury stock, 130
shares at 2024 and 2023 of Carnival Corporation and 73 shares
at 2024 and 2023 of Carnival plc, at cost
|
(8,404)
|
|
(8,449)
|
Total
shareholders' equity
|
6,814
|
|
6,882
|
|
$
49,603
|
|
$
49,120
|
CARNIVAL CORPORATION
& PLC
OTHER
INFORMATION
|
|
OTHER BALANCE SHEET
INFORMATION (in millions)
|
May 31,
2024
|
|
November 30,
2023
|
Liquidity
|
$
4,609
|
|
$
5,392
|
Debt (current and
long-term)
|
$
29,334
|
|
$
30,572
|
Customer deposits
(current and long-term)
|
$
8,279
|
|
$
6,353
|
|
Three Months
Ended
May
31,
|
|
Six Months
Ended
May
31,
|
STATISTICAL
INFORMATION
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Passenger cruise days
("PCDs") (in millions) (a)
|
24.3
|
|
21.8
|
|
47.8
|
|
42.0
|
ALBDs (in
millions) (b)
|
23.5
|
|
22.3
|
|
46.5
|
|
44.3
|
Occupancy percentage
(c)
|
104 %
|
|
98 %
|
|
103 %
|
|
95 %
|
Passengers carried
(in millions)
|
3.3
|
|
3.0
|
|
6.3
|
|
5.7
|
|
|
|
|
|
|
|
|
Fuel consumption in
metric tons (in millions)
|
0.7
|
|
0.7
|
|
1.5
|
|
1.5
|
Fuel consumption in
metric tons per thousand ALBDs
|
31.9
|
|
32.5
|
|
31.8
|
|
33.0
|
Fuel cost per metric
ton consumed (excluding EUA)
|
$
684
|
|
$
677
|
|
$
685
|
|
$
704
|
|
|
|
|
|
|
|
|
Currencies (USD to
1)
|
|
|
|
|
|
|
|
AUD
|
$
0.66
|
|
$
0.67
|
|
$
0.66
|
|
$
0.68
|
CAD
|
$
0.73
|
|
$
0.74
|
|
$
0.74
|
|
$
0.74
|
EUR
|
$
1.08
|
|
$
1.08
|
|
$
1.08
|
|
$
1.08
|
GBP
|
$
1.26
|
|
$
1.23
|
|
$
1.26
|
|
$
1.23
|
|
Notes to
Statistical Information
|
|
|
(a)
|
PCD represents the
number of cruise passengers on a voyage multiplied by the number of
revenue-producing ship operating days for that voyage.
|
|
|
(b)
|
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.
|
|
|
(c)
|
Occupancy, in
accordance with cruise industry practice, is calculated using a
numerator of PCDs and 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
|
|
|
Three Months
Ended
May 31,
|
|
Six Months
Ended
May
31,
|
(in millions, except
per share data)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net income
(loss)
|
$
92
|
|
$
(407)
|
|
$
(123)
|
|
$
(1,100)
|
(Gains) losses on ship
sales and impairments
|
—
|
|
(45)
|
|
—
|
|
(54)
|
Debt
extinguishment and modification costs
|
33
|
|
31
|
|
66
|
|
31
|
Restructuring
expenses
|
10
|
|
15
|
|
11
|
|
15
|
Other
|
—
|
|
11
|
|
—
|
|
23
|
Adjusted net income
(loss)
|
$
134
|
|
$
(395)
|
|
$
(46)
|
|
$
(1,085)
|
Interest
expense, net of capitalized interest
|
450
|
|
542
|
|
921
|
|
1,082
|
Interest
income
|
(25)
|
|
(69)
|
|
(58)
|
|
(124)
|
Income tax
benefit (expense), net
|
5
|
|
5
|
|
5
|
|
13
|
Depreciation and
amortization
|
634
|
|
597
|
|
1,247
|
|
1,179
|
Adjusted
EBITDA
|
$
1,197
|
|
$
681
|
|
$
2,068
|
|
$
1,063
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted (a)
|
$
0.07
|
|
$
(0.32)
|
|
$
(0.10)
|
|
$
(0.87)
|
Adjusted earnings
per share - diluted (a)
|
$
0.11
|
|
$
(0.31)
|
|
$
(0.04)
|
|
$
(0.86)
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - diluted
|
1,271
|
|
1,263
|
|
1,265
|
|
1,261
|
|
|
(a)
|
The company's
convertible notes are antidilutive to the three and six months
ended May 31, 2024 and therefore are not included in the
calculation of diluted earnings per share.
|
|
Three Months
Ended
May 31,
|
|
Six Months
Ended
May
31,
|
(in
millions)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Cash from (used in)
operations
|
$
2,040
|
|
$
1,136
|
|
$
3,807
|
|
$
1,525
|
Capital expenditures
(Purchases of Property and Equipment)
|
(1,318)
|
|
(697)
|
|
(3,457)
|
|
(1,772)
|
Proceeds from export
credits
|
579
|
|
186
|
|
2,314
|
|
1,016
|
Adjusted free cash
flow
|
$
1,300
|
|
$
625
|
|
$
2,664
|
|
$
769
|
|
(See Non-GAAP
Financial Measures)
|
CARNIVAL CORPORATION &
PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Gross margin per diems and net per diems were computed by
dividing the gross margin and adjusted gross margin by PCDs. Gross
margin yields and net yields were computed by dividing the gross
margin and adjusted gross margin by ALBDs as follows:
|
Three Months Ended
May 31,
|
|
Six Months Ended May
31,
|
(in millions, except
per diems and yields data)
|
2024
|
|
2024
Constant
Currency
|
|
2023
|
|
2024
|
|
2024
Constant
Currency
|
|
2023
|
Total
revenues
|
$
5,781
|
|
|
|
$
4,911
|
|
$ 11,187
|
|
|
|
$
9,343
|
Less: Cruise and tour
operating expenses
|
(3,798)
|
|
|
|
(3,457)
|
|
(7,502)
|
|
|
|
(6,768)
|
Depreciation and
amortization
|
(634)
|
|
|
|
(597)
|
|
(1,247)
|
|
|
|
(1,179)
|
Gross
margin
|
1,350
|
|
|
|
856
|
|
2,438
|
|
|
|
1,397
|
Less: Tour and other
revenues
|
(37)
|
|
|
|
(35)
|
|
(41)
|
|
|
|
(44)
|
Add: Payroll and
related
|
614
|
|
|
|
601
|
|
1,237
|
|
|
|
1,183
|
Fuel
|
525
|
|
|
|
489
|
|
1,030
|
|
|
|
1,024
|
Food
|
360
|
|
|
|
325
|
|
706
|
|
|
|
636
|
Ship and other
impairments
|
—
|
|
|
|
—
|
|
—
|
|
|
|
—
|
Other
operating
|
938
|
|
|
|
875
|
|
1,800
|
|
|
|
1,619
|
Depreciation and
amortization
|
634
|
|
|
|
597
|
|
1,247
|
|
|
|
1,179
|
Adjusted gross
margin
|
$
4,384
|
|
$
4,386
|
|
$
3,708
|
|
$
8,416
|
|
$
8,399
|
|
$
6,992
|
|
|
|
|
|
|
|
|
|
|
|
|
PCDs
|
24.3
|
|
24.3
|
|
21.8
|
|
47.8
|
|
47.8
|
|
42.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin per
diems (per PCD)
|
$
55.45
|
|
|
|
$
39.21
|
|
$
50.97
|
|
|
|
$
33.26
|
% increase
(decrease)
|
41 %
|
|
|
|
|
|
53 %
|
|
|
|
|
Net per diems
(per PCD)
|
$ 180.11
|
|
$ 180.21
|
|
$ 169.77
|
|
$ 175.95
|
|
$ 175.57
|
|
$ 166.50
|
% increase
(decrease)
|
6.1 %
|
|
6.1 %
|
|
|
|
5.7 %
|
|
5.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALBDs
|
23.5
|
|
23.5
|
|
22.3
|
|
46.5
|
|
46.5
|
|
44.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
yields (per ALBD)
|
$
57.45
|
|
|
|
$
38.43
|
|
$
52.45
|
|
|
|
$
31.49
|
% increase
(decrease)
|
49 %
|
|
|
|
|
|
67 %
|
|
|
|
|
Net yields (per
ALBD)
|
$ 186.60
|
|
$ 186.70
|
|
$ 166.38
|
|
$ 181.04
|
|
$ 180.65
|
|
$ 157.67
|
% increase
(decrease)
|
12 %
|
|
12 %
|
|
|
|
15 %
|
|
15 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(See Non-GAAP
Financial Measures)
|
CARNIVAL CORPORATION &
PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Cruise costs per ALBD, adjusted cruise costs per ALBD and
adjusted cruise costs excluding fuel per ALBD were computed by
dividing cruise costs, adjusted cruise costs and adjusted cruise
costs excluding fuel by ALBDs as follows:
|
Three Months Ended
May 31,
|
|
Six Months Ended May
31,
|
(in millions, except
costs per ALBD data)
|
2024
|
|
2024
Constant
Currency
|
|
2023
|
|
2024
|
|
2024
Constant
Currency
|
|
2023
|
Cruise and tour
operating expenses
|
$
3,798
|
|
|
|
$
3,457
|
|
$
7,502
|
|
|
|
$
6,768
|
Selling and
administrative expenses
|
789
|
|
|
|
736
|
|
1,603
|
|
|
|
1,448
|
Less: Tour and other
expenses
|
(49)
|
|
|
|
(54)
|
|
(69)
|
|
|
|
(77)
|
Cruise
costs
|
4,538
|
|
|
|
4,140
|
|
9,036
|
|
|
|
8,139
|
Less: Commissions,
transportation and other
|
(732)
|
|
|
|
(619)
|
|
(1,552)
|
|
|
|
(1,274)
|
Onboard and
other costs
|
(628)
|
|
|
|
(549)
|
|
(1,178)
|
|
|
|
(1,033)
|
Gains (losses) on ship
sales and impairments
|
—
|
|
|
|
45
|
|
—
|
|
|
|
54
|
Restructuring
expenses
|
(10)
|
|
|
|
(15)
|
|
(11)
|
|
|
|
(15)
|
Other
|
—
|
|
|
|
—
|
|
—
|
|
|
|
—
|
Adjusted cruise
costs
|
3,167
|
|
3,169
|
|
3,002
|
|
6,296
|
|
6,284
|
|
5,871
|
Less: Fuel
|
(525)
|
|
(525)
|
|
(489)
|
|
(1,030)
|
|
(1,030)
|
|
(1,024)
|
Adjusted cruise
costs excluding fuel
|
$
2,642
|
|
$
2,644
|
|
$
2,513
|
|
$
5,266
|
|
$
5,254
|
|
$
4,847
|
|
|
|
|
|
|
|
|
|
|
|
|
ALBDs
|
23.5
|
|
23.5
|
|
22.3
|
|
46.5
|
|
46.5
|
|
44.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Cruise costs per
ALBD
|
$ 193.16
|
|
|
|
$ 185.74
|
|
$ 194.37
|
|
|
|
$ 183.51
|
% increase
(decrease)
|
4.0 %
|
|
|
|
|
|
5.9 %
|
|
|
|
|
Adjusted cruise
costs per ALBD
|
$ 134.83
|
|
$ 134.91
|
|
$ 134.69
|
|
$ 135.42
|
|
$ 135.16
|
|
$ 132.37
|
% increase
(decrease)
|
0.1 %
|
|
0.2 %
|
|
|
|
2.3 %
|
|
2.1 %
|
|
|
Adjusted cruise
costs excluding fuel per ALBD
|
$ 112.46
|
|
$ 112.54
|
|
$ 112.76
|
|
$ 113.27
|
|
$ 113.00
|
|
$ 109.29
|
% increase
(decrease)
|
(0.3) %
|
|
(0.2) %
|
|
|
|
3.6 %
|
|
3.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(See Non-GAAP
Financial Measures)
|
|
|
|
|
|
|
Non-GAAP Financial Measures
We use non-GAAP financial measures and they are provided along
with their most comparative U.S. GAAP financial measure:
Non-GAAP
Measure
|
|
U.S. GAAP
Measure
|
|
Use Non-GAAP Measure
to Assess
|
•
Adjusted net income (loss) and
adjusted EBITDA
|
|
•
Net income (loss)
|
|
•
Company Performance
|
•
Adjusted earnings per share
|
|
•
Earnings per share
|
|
•
Company Performance
|
•
Adjusted free cash flow
|
|
•
Cash from (used in) operations
|
|
•
Impact on Liquidity Level
|
•
Net per diems
|
|
•
Gross margin per diems
|
|
•
Cruise Segments Performance
|
•
Net yields
|
|
•
Gross margin yields
|
|
•
Cruise Segments Performance
|
•
Adjusted cruise costs per ALBD
and adjusted cruise costs excluding
fuel per ALBD
|
|
•
Gross cruise costs per ALBD
|
|
•
Cruise Segments Performance
|
•
Adjusted ROIC
|
|
—
|
|
•
Company Performance
|
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. 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.
Adjusted net income (loss) and adjusted earnings per share
provide additional information to us and investors about our future
earnings performance by excluding certain gains, losses and
expenses that we believe are not part of our core operating
business and are not an indication of our future earnings
performance. We believe that gains and losses on ship sales,
impairment charges, debt extinguishment and modification costs,
restructuring costs and certain other gains and losses are not part
of our core operating business and are not an indication of our
future earnings performance.
Adjusted EBITDA provides additional information to us and
investors about our core operating profitability by excluding
certain gains, losses and expenses that we believe are not part of
our core operating business and are not an indication of our future
earnings performance as well as excluding interest, taxes and
depreciation and amortization. In addition, we believe that the
presentation of adjusted EBITDA provides additional information to
us and investors about our ability to operate our business in
compliance with the covenants set forth in our debt agreements. We
define adjusted EBITDA as adjusted net income (loss) adjusted for
(i) interest, (ii) taxes and (iii) depreciation and amortization.
There are material limitations to using adjusted EBITDA. Adjusted
EBITDA does not take into account certain significant items that
directly affect our net income (loss). These limitations are best
addressed by considering the economic effects of the excluded items
independently and by considering adjusted EBITDA in conjunction
with net income (loss) as calculated in accordance with U.S.
GAAP.
Adjusted free cash flow provides additional information to us
and investors to assess our ability to repay our debt after making
the capital investments required to support ongoing business
operations and value creation as well as the impact on the
company's liquidity level. Adjusted free cash flow represents net
cash provided by operating activities adjusted for capital
expenditures (purchases of property and equipment) and proceeds
from export credits that are provided for related capital
expenditures. Adjusted free cash flow does not represent the
residual cash flow available for discretionary expenditures as it
excludes certain mandatory expenditures such as repayment of
maturing debt.
Net per diems and net yields enable us and investors to
measure the performance of our cruise segments on a per PCD and per
ALBD basis. We use adjusted gross margin rather than gross margin
to calculate net per diems and net yields. We believe that adjusted
gross margin is a more meaningful measure in determining net per
diems and net yields than gross margin because it reflects the
cruise revenues earned net of only 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.
Adjusted cruise costs per ALBD and adjusted cruise costs
excluding fuel per ALBD enable us and investors to separate the
impact of predictable capacity or ALBD changes from price and other
changes that affect our business. We believe these non-GAAP
measures provide useful information to us and investors and
expanded insight to measure our cost performance. Adjusted cruise
costs per ALBD and adjusted cruise costs excluding fuel per ALBD
are the measures we use to monitor our ability to control our
cruise segments' costs rather than cruise costs per ALBD. We
exclude gains and losses on ship sales, impairment charges,
restructuring costs and certain other gains and losses that we
believe are not part of our core operating business as well as
excluding 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. We exclude fuel expense to
calculate adjusted cruise costs excluding fuel. The price of fuel,
over which we have no control, impacts the comparability of
period-to-period cost performance. The adjustment to exclude fuel
provides us and investors with supplemental information to
understand and assess the company's non-fuel adjusted cruise cost
performance. Substantially all of our adjusted cruise costs
excluding fuel are largely fixed, except for the impact of changing
prices once the number of ALBDs has been determined.
Adjusted ROIC provides additional information to us and
investors about our operating performance relative to the capital
we have invested in the company. We define adjusted ROIC as the
twelve-month adjusted net income (loss) before interest expense and
interest income divided by the monthly average of debt plus equity
minus construction-in-progress, excess cash, goodwill and
intangibles.
Reconciliation of Forecasted Data
We have not provided a reconciliation of forecasted non-GAAP
financial measures to the most comparable U.S. GAAP financial
measures because preparation of meaningful U.S. GAAP forecasts
would require unreasonable effort. We are unable to predict,
without unreasonable effort, the future movement of foreign
exchange rates and fuel prices. We are unable to determine the
future impact of gains and losses on ship sales, impairment
charges, debt extinguishment and modification costs, restructuring
costs and certain other non-core gains and losses.
Constant Currency
Our operations primarily utilize the U.S. dollar, Australian
dollar, euro and sterling as functional currencies to measure
results and financial condition. Functional currencies other
than the U.S. dollar subject us to foreign currency translational
risk. Our operations also have revenues and expenses that are in
currencies other than their functional currency, which subject us
to foreign currency transactional risk.
Constant currency reporting removes the impact of changes in
exchange rates on the translation of our operations plus the
transactional impact of changes in exchange rates from revenues and
expenses that are denominated in a currency other than the
functional currency.
We report adjusted gross margin, net yields, net per diems,
adjusted cruise costs excluding fuel and adjusted cruise costs
excluding fuel per ALBD on a "constant currency" basis assuming the
current periods' currency exchange rates have remained constant
with the prior periods' rates. These metrics facilitate a
comparative view for the changes in our business in an environment
with fluctuating exchange rates.
Examples:
- The translation of our operations with functional currencies
other than U.S. dollar 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 operations 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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SOURCE Carnival Corporation & plc