MIAMI, Dec. 20, 2016 /PRNewswire/ -- Carnival
Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced U.S.
GAAP net income for the full year 2016 of $2.8 billion, or $3.72 diluted EPS, compared to $1.8 billion, or $2.26 diluted EPS, for the prior year. Full year
2016 adjusted net income of $2.6
billion, or $3.45 adjusted
EPS, was higher than adjusted net income of $2.1 billion, or $2.70 adjusted EPS, for the full year 2015.
Adjusted net income excludes unrealized gains and losses on fuel
derivatives and other items, totaling $199
million in gains for the full year 2016 and $349 million of losses for the full year 2015.
Revenues for the full year 2016 were $16.4
billion, $0.7 billion higher
than the $15.7 billion in the prior
year.
Carnival Corporation & plc President and Chief Executive
Officer Arnold Donald noted, "We
achieved the most profitable year in our company's history as well
as record fourth quarter earnings. The continued execution of our
core strategy to drive consumer demand in excess of measured
capacity growth, contain costs and leverage our industry-leading
scale resulted in our third consecutive year of significantly
higher earnings and return on invested capital. The delivery of
over $5 billion in cash from
operations for our shareholders enabled increased dividend
distributions reaching $1 billion and
the investment of over $2.3 billion
in the repurchase of Carnival Corporation stock. This continued
strong performance is a credit to the outstanding contributions of
our 120,000 employees worldwide who work every day to exceed our
guests' expectations and our thousands of travel agent partners
around the globe whose support is crucial to our success."
Key information for the fourth quarter 2016 compared to the
prior year:
- U.S. GAAP net income for 4Q 2016 of $609
million, or $0.83 diluted EPS,
compared to $270 million, or
$0.35 diluted EPS, for the prior
year. On an adjusted basis, 4Q 2016 net income of $491 million, or $0.67 EPS, was higher than net income of
$389 million, or $0.50 EPS, for the prior year. Adjusted net
income excludes unrealized gains and losses on fuel derivatives and
other items, totaling $118 million in
gains for the 4Q 2016 and $119
million of losses for 4Q 2015.
- Gross revenue yields (revenue per available lower berth day or
"ALBD") increased 1.6 percent. In constant currency, net revenue
yields increased 4.1 percent for 4Q 2016, better than September
guidance of up approximately 3 percent.
- Gross cruise costs including fuel per ALBD increased 0.2
percent. In constant currency, net cruise costs excluding fuel per
ALBD increased 1.0 percent, in line with September guidance of up
approximately 1 percent.
- Changes in fuel prices (including realized fuel derivative
losses) and currency exchange rates decreased earnings by
$0.04 per share versus the prior
year.
Highlights during the fourth quarter included the U.S. debut of
Carnival Cruise Line's Carnival Vista, featuring a concert
for Operation Homefront military families by country music
superstar Carrie Underwood and the
ship's naming ceremony with godmother Deshauna Barber, the first woman serving in the
U.S. military to hold the Miss USA title. Holland America's
Koningsdam also made its North American debut in November
while Seabourn took delivery of Seabourn Encore, setting new
standards for ultra-luxury cruising.
During the quarter, Carnival Corporation also signed a
memorandum of agreement with Meyer
Werft for three new 180,000-ton cruise ships that will be
powered by liquefied natural gas, the world's cleanest burning
fossil fuel. Two of the ships are for Carnival Cruise Line and are
scheduled for delivery in 2020 and 2022. The third ship is
designated for P&O Cruises (UK) and is scheduled for delivery
in 2020. The company also signed an agreement with Shell to
begin fueling its LNG-powered ships, starting with AIDA and Costa
ships scheduled to launch in 2019.
Three new original TV series created by Carnival Corporation
began airing on Saturday mornings in October on ABC, NBC and the CW
in the U.S. The shows are designed to showcase all 10 of the
company's cruise brands while highlighting ocean travel as a means
to experience global destinations and learn about the world and
other cultures.
2017 Outlook
At this time, cumulative advance bookings for the first three
quarters of 2017 are well ahead of the prior year at considerably
higher prices. Since September, both booking volumes and prices for
the first three quarters of 2017 have been running well ahead of
the prior year.
Donald commented, "We enjoyed strong momentum in booking
patterns throughout 2016 and therefore are in a stronger booked
position entering the new year at higher prices as a result of our
ongoing efforts to increase consideration and demand for our
brands."
Based on current booking trends, the company expects full year
2017 net revenue yields in constant currency to be up approximately
2.5 percent compared to the prior year. The company expects full
year net cruise costs excluding fuel per ALBD in constant currency
to be up approximately 1.0 percent compared to the prior year.
As a result of higher fuel prices, forecasted fuel costs for the
full year 2017 are expected to increase approximately $200 million (fuel price impact only) compared to
the prior year, net of realized fuel derivatives, reducing earnings
by $0.27 per share. In addition,
unfavorable movements in currency exchange rates are forecasted to
reduce earnings by a further $0.16
per share.
Taking the above factors into consideration, the company expects
full year 2017 adjusted earnings per share to be in the range of
$3.30 to $3.60, compared to 2016
adjusted earnings per share of $3.45.
Donald added, "We are anticipating another solid year of
operational improvement in 2017. Despite the unusual and
significant impact of fuel and currency working against us
simultaneously, the underlying strength in our fundamental business
leaves us well positioned to achieve sustained double digit return
on invested capital and to create continued value for our
shareholders."
First Quarter 2017 Outlook
First quarter constant currency net revenue yields are expected
to be up approximately 1.5 to 2.5 percent compared to the prior
year. Net cruise costs excluding fuel per ALBD in constant currency
for the first quarter of 2017 are expected to be higher by
approximately 1.5 to 2.5 percent compared to the prior year.
Changes in fuel prices (including realized fuel derivatives) and
changes in currency exchange rates compared to prior year are
expected to decrease earnings by $0.13 per share. Based on the above factors, the
company expects adjusted earnings per share for the first quarter
2017 to be in the range of $0.31 to
$0.35 versus 2016 adjusted earnings per share of
$0.39.
Selected Key
Forecast Metrics
|
|
|
|
Full Year
2017
|
|
First Quarter
2017
|
Year over year
change:
|
|
Current
Dollars
|
|
Constant
Currency
|
|
Current
Dollars
|
|
Constant
Currency
|
Net revenue
yields
|
|
Approx
flat
|
|
Approx
2.5%
|
|
(1.5) to
(0.5)%
|
|
1.5 to
2.5%
|
Net cruise costs
excl. fuel / ALBD
|
|
Approx
(1.5)%
|
|
Approx
1.0%
|
|
(0.5) to
0.5%
|
|
1.5 to
2.5%
|
|
Full Year 2017
|
|
First Quarter
2017
|
Fuel price per metric
ton
|
$374
|
|
$356
|
Fuel consumption
(metric tons in thousands)
|
3,290
|
|
820
|
Currency: Euro
|
$1.04 to
€1
|
|
$1.04 to
€1
|
Sterling
|
$1.24 to
£1
|
|
$1.24 to
£1
|
Australian dollar
|
$0.73 to
A$1
|
|
$0.73 to
A$1
|
Conference Call
The company has scheduled a conference call with analysts at
10:00 a.m. EST (3:00 p.m. BST) today to discuss its 2016 fourth
quarter and full year 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 among the largest, most
profitable and financially strong leisure travel companies in the
world. With a portfolio of 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 102 ships visiting over 700 ports
around the world and totaling 226,000 lower berths with 17 new
ships scheduled to be delivered between 2017 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 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, but not limited to, the forecasting
of our:
• Net revenue
yields;
|
• Net cruise costs,
excluding fuel per available lower berth day;
|
• Booking
levels;
|
• Estimates of ship
depreciable lives and residual values;
|
• Pricing and
occupancy;
|
• Goodwill, ship and
trademark fair values;
|
• Interest, tax and
fuel expenses;
|
• Liquidity
and
|
• Currency exchange
rates;
|
• 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;
- Overcapacity in the cruise ship and land-based vacation
industry;
- 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 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;
- 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.
The ordering of the risk factors set forth above is not intended
to reflect our indication of priority or likelihood.
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
November 30,
|
|
Twelve Months
Ended
November 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues
|
|
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
|
|
Passenger
tickets
|
$
|
2,873
|
|
|
$
|
2,709
|
|
|
$
|
12,090
|
|
|
$
|
11,601
|
|
Onboard and
other
|
1,021
|
|
|
969
|
|
|
4,068
|
|
|
3,887
|
|
Tour and
other
|
41
|
|
|
33
|
|
|
231
|
|
|
226
|
|
|
3,935
|
|
|
3,711
|
|
|
16,389
|
|
|
15,714
|
|
Operating Costs
and Expenses
|
|
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
517
|
|
|
490
|
|
|
2,240
|
|
|
2,161
|
|
Onboard and
other
|
141
|
|
|
131
|
|
|
553
|
|
|
526
|
|
Payroll and
related
|
505
|
|
|
471
|
|
|
1,993
|
|
|
1,859
|
|
Fuel
|
267
|
|
|
253
|
|
|
915
|
|
|
1,249
|
|
Food
|
250
|
|
|
244
|
|
|
1,005
|
|
|
981
|
|
Other ship
operating
|
611
|
|
|
603
|
|
|
2,525
|
|
|
2,516
|
|
Tour and
other
|
28
|
|
|
26
|
|
|
152
|
|
|
155
|
|
|
2,319
|
|
|
2,218
|
|
|
9,383
|
|
|
9,447
|
|
Selling and
administrative
|
584
|
|
|
564
|
|
|
2,197
|
|
|
2,067
|
|
Depreciation and
amortization
|
435
|
|
|
419
|
|
|
1,738
|
|
|
1,626
|
|
|
3,338
|
|
|
3,201
|
|
|
13,318
|
|
|
13,140
|
|
Operating
Income
|
597
|
|
|
510
|
|
|
3,071
|
|
|
2,574
|
|
Nonoperating
Income (Expense)
|
|
|
|
|
|
|
|
Interest
income
|
2
|
|
|
2
|
|
|
6
|
|
|
8
|
|
Interest expense, net
of capitalized interest
|
(55)
|
|
|
(50)
|
|
|
(223)
|
|
|
(217)
|
|
Gains (losses) on
fuel derivatives, net (a)
|
55
|
|
|
(198)
|
|
|
(47)
|
|
|
(576)
|
|
Other income,
net
|
14
|
|
|
7
|
|
|
21
|
|
|
10
|
|
|
16
|
|
|
(239)
|
|
|
(243)
|
|
|
(775)
|
|
Income Before
Income Taxes
|
613
|
|
|
271
|
|
|
2,828
|
|
|
1,799
|
|
Income Tax
Expense, Net
|
(4)
|
|
|
(1)
|
|
|
(49)
|
|
|
(42)
|
|
Net
Income
|
$
|
609
|
|
|
$
|
270
|
|
|
$
|
2,779
|
|
|
$
|
1,757
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
Basic
|
$
|
0.84
|
|
|
$
|
0.35
|
|
|
$
|
3.73
|
|
|
$
|
2.26
|
|
Diluted
|
$
|
0.83
|
|
|
$
|
0.35
|
|
|
$
|
3.72
|
|
|
$
|
2.26
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
Per Share-Diluted (b)
|
$
|
0.67
|
|
|
$
|
0.50
|
|
|
$
|
3.45
|
|
|
$
|
2.70
|
|
Dividends Declared
Per Share
|
$
|
0.35
|
|
|
$
|
0.30
|
|
|
$
|
1.35
|
|
|
$
|
1.10
|
|
Weighted-Average
Shares Outstanding - Basic
|
727
|
|
|
774
|
|
|
745
|
|
|
777
|
|
Weighted-Average
Shares Outstanding - Diluted
|
729
|
|
|
777
|
|
|
747
|
|
|
779
|
|
|
|
(a) During the three months
ended November 30, 2016 and 2015, our gains (losses) on fuel
derivatives, net include net unrealized gains
(losses) of
$115 million and $(117) million and realized (losses) of $(60)
million and $(81) million, respectively. During the twelve
months ended
November 30, 2016 and 2015, our (losses) on fuel derivatives,
net include net unrealized gains (losses) of $236 million
and $(332)
million and realized (losses) of $(283) million and $(244) 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)
|
|
|
November
30,
|
|
|
2016
|
|
2015
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
603
|
|
|
$
|
1,395
|
|
|
Trade and other
receivables, net
|
298
|
|
|
303
|
|
|
Inventories
|
322
|
|
|
330
|
|
|
Prepaid expenses and
other
|
466
|
|
|
423
|
|
|
Total current
assets
|
1,689
|
|
|
2,451
|
|
|
Property and
Equipment, Net
|
32,429
|
|
|
31,818
|
|
(a)
|
Goodwill
|
2,910
|
|
|
3,010
|
|
|
Other
Intangibles
|
1,275
|
|
|
1,308
|
|
(a)
|
Other
Assets
|
633
|
|
|
650
|
|
|
|
$
|
38,936
|
|
|
$
|
39,237
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Short-term
borrowings
|
$
|
457
|
|
|
$
|
30
|
|
|
Current portion of
long-term debt
|
640
|
|
|
1,344
|
|
|
Accounts
payable
|
713
|
|
|
627
|
|
|
Accrued liabilities
and other
|
1,740
|
|
|
1,683
|
|
|
Customer
deposits
|
3,522
|
|
|
3,272
|
|
|
Total current
liabilities
|
7,072
|
|
|
6,956
|
|
|
Long-Term
Debt
|
8,357
|
|
|
7,413
|
|
|
Other Long-Term
Liabilities
|
910
|
|
|
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; 217 shares at 2016 and 216 share
at
2015 issued
|
358
|
|
|
358
|
|
|
Additional paid-in
capital
|
8,632
|
|
|
8,562
|
|
|
Retained
earnings
|
21,843
|
|
|
20,060
|
|
|
Accumulated other
comprehensive loss
|
(2,454)
|
|
|
(1,741)
|
|
|
Treasury stock, 118
shares at 2016 and 70 shares at 2015 of Carnival Corporation and
27
shares at 2016 and 2015 of Carnival plc, at
cost
|
(5,789)
|
|
|
(3,475)
|
|
|
Total shareholders'
equity
|
22,597
|
|
|
23,771
|
|
|
|
$
|
38,936
|
|
|
$
|
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
November 30,
|
|
Twelve Months
Ended
November 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
STATISTICAL
INFORMATION
|
|
|
|
|
|
|
|
ALBDs (in thousands)
(a)
|
20,447
|
|
|
19,622
|
|
|
80,002
|
|
|
77,307
|
|
Occupancy percentage
(b)
|
103.8
|
%
|
|
102.5
|
%
|
|
105.9
|
%
|
|
104.8
|
%
|
Passengers carried
(in thousands)
|
2,916
|
|
|
2,699
|
|
|
11,522
|
|
|
10,837
|
|
Fuel consumption in
metric tons (in thousands)
|
816
|
|
|
802
|
|
|
3,233
|
|
|
3,181
|
|
Fuel consumption in
metric tons per thousand ALBDs
|
39.9
|
|
|
40.9
|
|
|
40.4
|
|
|
41.2
|
|
Fuel cost per metric
ton consumed
|
$
|
327
|
|
|
$
|
316
|
|
|
$
|
283
|
|
|
$
|
393
|
|
Currencies
|
|
|
|
|
|
|
|
U.S. dollar to
euro
|
$
|
1.10
|
|
|
$
|
1.11
|
|
|
$
|
1.11
|
|
|
$
|
1.12
|
|
U.S. dollar to
sterling
|
$
|
1.26
|
|
|
$
|
1.53
|
|
|
$
|
1.37
|
|
|
$
|
1.54
|
|
U.S. dollar to Australian
dollar
|
$
|
0.76
|
|
|
$
|
0.71
|
|
|
$
|
0.74
|
|
|
$
|
0.76
|
|
|
|
|
|
|
|
|
|
CASH FLOW
INFORMATION (in millions)
|
|
|
|
|
|
|
|
Cash from
operations
|
$
|
1,024
|
|
|
$
|
978
|
|
|
$
|
5,134
|
|
|
$
|
4,545
|
|
Capital
expenditures
|
$
|
646
|
|
|
$
|
590
|
|
|
$
|
3,062
|
|
|
$
|
2,294
|
|
Dividends
paid
|
$
|
256
|
|
|
$
|
232
|
|
|
$
|
977
|
|
|
$
|
816
|
|
|
|
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):
|
|
|
Three Months Ended
November 30,
|
|
Twelve Months
Ended November 30,
|
|
2016
|
|
2016
Constant
Dollar
|
|
2015
|
|
2016
|
|
2016
Constant
Dollar
|
|
2015
|
Passenger ticket
revenues
|
$
|
2,873
|
|
|
$
|
2,943
|
|
|
$
|
2,709
|
|
|
$
|
12,090
|
|
|
$
|
12,305
|
|
|
$
|
11,601
|
|
Onboard and other
revenues
|
1,021
|
|
|
1,035
|
|
|
969
|
|
|
4,068
|
|
|
4,114
|
|
|
3,887
|
|
Gross cruise
revenues
|
3,894
|
|
|
3,978
|
|
|
3,678
|
|
|
16,158
|
|
|
16,419
|
|
|
15,488
|
|
Less cruise
costs
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
(517)
|
|
|
(529)
|
|
|
(490)
|
|
|
(2,240)
|
|
|
(2,280)
|
|
|
(2,161)
|
|
Onboard and other
|
(141)
|
|
|
(144)
|
|
|
(131)
|
|
|
(553)
|
|
|
(560)
|
|
|
(526)
|
|
|
(658)
|
|
|
(673)
|
|
|
(621)
|
|
|
(2,793)
|
|
|
(2,840)
|
|
|
(2,687)
|
|
Net passenger
ticket revenues
|
2,356
|
|
|
2,414
|
|
|
2,219
|
|
|
9,850
|
|
|
10,025
|
|
|
9,440
|
|
Net onboard and
other revenues
|
880
|
|
|
891
|
|
|
838
|
|
|
3,515
|
|
|
3,554
|
|
|
3,361
|
|
Net cruise
revenues
|
$
|
3,236
|
|
|
$
|
3,305
|
|
|
$
|
3,057
|
|
|
$
|
13,365
|
|
|
$
|
13,579
|
|
|
$
|
12,801
|
|
ALBDs
|
20,446,708
|
|
|
20,446,708
|
|
|
19,621,729
|
|
|
80,002,092
|
|
|
80,002,092
|
|
|
77,307,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue
yields
|
$
|
190.42
|
|
|
$
|
194.52
|
|
|
$
|
187.46
|
|
|
$
|
201.97
|
|
|
$
|
205.23
|
|
|
$
|
200.34
|
|
% increase vs.
2015
|
1.6
|
%
|
|
3.8
|
%
|
|
|
|
0.8
|
%
|
|
2.4
|
%
|
|
|
Net revenue
yields
|
$
|
158.21
|
|
|
$
|
161.63
|
|
|
$
|
155.80
|
|
|
$
|
167.06
|
|
|
$
|
169.74
|
|
|
$
|
165.58
|
|
% increase vs.
2015
|
1.6
|
%
|
|
3.7
|
%
|
|
|
|
0.9
|
%
|
|
2.5
|
%
|
|
|
Net passenger
ticket revenue
yields
|
$
|
115.18
|
|
|
$
|
118.05
|
|
|
$
|
113.09
|
|
|
$
|
123.11
|
|
|
$
|
125.31
|
|
|
$
|
122.11
|
|
%
increase vs. 2015
|
1.8
|
%
|
|
4.4
|
%
|
|
|
|
0.8
|
%
|
|
2.6
|
%
|
|
|
Net onboard and
other revenue
yields
|
$
|
43.03
|
|
|
$
|
43.59
|
|
|
$
|
42.70
|
|
|
$
|
43.95
|
|
|
$
|
44.43
|
|
|
$
|
43.48
|
|
%
increase vs. 2015
|
0.8
|
%
|
|
2.1
|
%
|
|
|
|
1.1
|
%
|
|
2.2
|
%
|
|
|
|
Three Months Ended
November 30,
|
|
Twelve Months
Ended November 30,
|
|
2016
|
|
2016
Constant
Currency
|
|
2015
|
|
2016
|
|
2016
Constant
Currency
|
|
2015
|
Net passenger
ticket revenues
|
$
|
2,356
|
|
|
$
|
2,433
|
|
|
$
|
2,219
|
|
|
$
|
9,850
|
|
|
$
|
10,210
|
|
|
$
|
9,440
|
|
Net onboard and
other revenues
|
880
|
|
|
885
|
|
|
838
|
|
|
3,515
|
|
|
3,557
|
|
|
3,361
|
|
Net cruise
revenues
|
$
|
3,236
|
|
|
$
|
3,318
|
|
|
$
|
3,057
|
|
|
$
|
13,365
|
|
|
$
|
13,767
|
|
|
$
|
12,801
|
|
ALBDs
|
20,446,708
|
|
|
20,446,708
|
|
|
19,621,729
|
|
|
80,002,092
|
|
|
80,002,092
|
|
|
77,307,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
yields
|
$
|
158.21
|
|
|
$
|
162.25
|
|
|
$
|
155.80
|
|
|
$
|
167.06
|
|
|
$
|
172.08
|
|
|
$
|
165.58
|
|
% increase vs.
2015
|
1.6
|
%
|
|
4.1
|
%
|
|
|
|
0.9
|
%
|
|
3.9
|
%
|
|
|
Net passenger
ticket revenue
yields
|
$
|
115.18
|
|
|
$
|
118.98
|
|
|
$
|
113.09
|
|
|
$
|
123.11
|
|
|
$
|
127.62
|
|
|
$
|
122.11
|
|
%
increase vs. 2015
|
1.8
|
%
|
|
5.2
|
%
|
|
|
|
0.8
|
%
|
|
4.5
|
%
|
|
|
Net onboard and
other revenue
yields
|
$
|
43.03
|
|
|
$
|
43.28
|
|
|
$
|
42.70
|
|
|
$
|
43.95
|
|
|
$
|
44.46
|
|
|
$
|
43.48
|
|
%
increase vs. 2015
|
0.8
|
%
|
|
1.3
|
%
|
|
|
|
1.1
|
%
|
|
2.3
|
%
|
|
|
|
(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):
|
|
|
Three Months Ended
November 30,
|
|
Twelve Months
Ended November 30,
|
|
2016
|
|
2016
Constant
Dollar
|
|
2015
|
|
2016
|
|
2016
Constant
Dollar
|
|
2015
|
Cruise operating
expenses
|
$
|
2,291
|
|
|
$
|
2,332
|
|
|
$
|
2,192
|
|
|
$
|
9,231
|
|
|
$
|
9,366
|
|
|
$
|
9,292
|
|
Cruise selling and
administrative
expenses
|
582
|
|
|
590
|
|
|
561
|
|
|
2,188
|
|
|
2,216
|
|
|
2,058
|
|
Gross cruise
costs
|
2,873
|
|
|
2,922
|
|
|
2,753
|
|
|
11,419
|
|
|
11,582
|
|
|
11,350
|
|
Less cruise costs
included above
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation and
other
|
(517)
|
|
|
(529)
|
|
|
(490)
|
|
|
(2,240)
|
|
|
(2,280)
|
|
|
(2,161)
|
|
Onboard and
other
|
(141)
|
|
|
(144)
|
|
|
(131)
|
|
|
(553)
|
|
|
(560)
|
|
|
(526)
|
|
Restructuring
expenses
|
—
|
|
|
—
|
|
|
(4)
|
|
|
(2)
|
|
|
(2)
|
|
|
(25)
|
|
Gain on ship
sale
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
8
|
|
Other
|
(1)
|
|
|
(1)
|
|
|
—
|
|
|
(41)
|
|
|
(41)
|
|
|
—
|
|
Net cruise
costs
|
2,214
|
|
|
2,248
|
|
|
2,130
|
|
|
8,585
|
|
|
8,701
|
|
|
8,646
|
|
Less fuel
|
(267)
|
|
|
(267)
|
|
|
(253)
|
|
|
(915)
|
|
|
(915)
|
|
|
(1,249)
|
|
Net cruise costs
excluding fuel
|
$
|
1,947
|
|
|
$
|
1,981
|
|
|
$
|
1,877
|
|
|
$
|
7,670
|
|
|
$
|
7,786
|
|
|
$
|
7,397
|
|
ALBDs
|
20,446,708
|
|
|
20,446,708
|
|
|
19,621,729
|
|
|
80,002,092
|
|
|
80,002,092
|
|
|
77,307,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross cruise costs
per ALBD
|
$
|
140.51
|
|
|
$
|
142.90
|
|
|
$
|
140.30
|
|
|
$
|
142.73
|
|
|
$
|
144.78
|
|
|
$
|
146.81
|
|
% increase (decrease)
vs. 2015
|
0.2
|
%
|
|
1.9
|
%
|
|
|
|
(2.8)
|
%
|
|
(1.4)
|
%
|
|
|
Net cruise costs
excluding fuel per
ALBD
|
$
|
95.22
|
|
|
$
|
96.93
|
|
|
$
|
95.62
|
|
|
$
|
95.87
|
|
|
$
|
97.34
|
|
|
$
|
95.68
|
|
% (decrease) increase
vs. 2015
|
(0.4)
|
%
|
|
1.4
|
%
|
|
|
|
0.2
|
%
|
|
1.7
|
%
|
|
|
|
Three Months Ended
November 30,
|
|
Twelve Months
Ended November 30,
|
|
2016
|
|
2016
Constant
Currency
|
|
2015
|
|
2016
|
|
2016
Constant
Currency
|
|
2015
|
Net cruise costs
excluding fuel
|
$
|
1,947
|
|
|
$
|
1,975
|
|
|
$
|
1,877
|
|
|
$
|
7,670
|
|
|
$
|
7,777
|
|
|
$
|
7,397
|
|
ALBDs
|
20,446,708
|
|
|
20,446,708
|
|
|
19,621,729
|
|
|
80,002,092
|
|
|
80,002,092
|
|
|
77,307,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cruise costs
excluding fuel per
ALBD
|
$
|
95.22
|
|
|
$
|
96.58
|
|
|
$
|
95.62
|
|
|
$
|
95.87
|
|
|
$
|
97.21
|
|
|
$
|
95.68
|
|
% (decrease) increase
vs. 2015
|
(0.4)
|
%
|
|
1.0
|
%
|
|
|
|
0.2
|
%
|
|
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) (a):
|
|
|
Three Months
Ended
November 30,
|
|
Twelve Months
Ended
November 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net
income
|
|
|
|
|
|
|
|
U.S. GAAP net
income
|
$
|
609
|
|
|
$
|
270
|
|
|
$
|
2,779
|
|
|
$
|
1,757
|
|
Unrealized (gains) losses on
fuel derivatives, net (b)
|
(115)
|
|
|
117
|
|
|
(236)
|
|
|
332
|
|
Restructuring expenses
(c)
|
—
|
|
|
4
|
|
|
2
|
|
|
25
|
|
Gain on ship sale
(c)
|
—
|
|
|
(2)
|
|
|
(2)
|
|
|
(8)
|
|
Other (c)
|
(3)
|
|
|
—
|
|
|
37
|
|
|
—
|
|
Adjusted net
income
|
$
|
491
|
|
|
$
|
389
|
|
|
$
2,580
|
|
|
$
|
2,106
|
|
Weighted-average
shares outstanding
|
729
|
|
|
777
|
|
|
747
|
|
|
779
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
U.S. GAAP earnings per
share
|
$
|
0.83
|
|
|
$
|
0.35
|
|
|
$
|
3.72
|
|
|
$
|
2.26
|
|
Unrealized (gains) losses on
fuel derivatives, net (b)
|
(0.16)
|
|
|
0.15
|
|
|
(0.32)
|
|
|
0.42
|
|
Restructuring expenses
(c)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
Gain on ship sale
(c)
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Other (c)
|
—
|
|
|
—
|
|
|
0.05
|
|
|
—
|
|
Adjusted earnings per
share
|
$
|
0.67
|
|
|
$
|
0.50
|
|
|
$
|
3.45
|
|
|
$
|
2.70
|
|
|
|
|
|
|
|
|
|
Notes to
Non-GAAP Financial Measures
|
|
(a)
|
Non-GAAP Financial
Measures
|
|
We use net cruise
revenues per ALBD ("net revenue yields"), net cruise costs
excluding fuel per ALBD, adjusted net income and adjusted earnings
per share as non-GAAP financial measures of our cruise segments'
and the company's financial performance. These non-GAAP
financial measures are provided along with U.S. GAAP gross cruise
revenues per ALBD ("gross revenue yields"), gross cruise costs per
ALBD and U.S. GAAP net income and U.S. GAAP earnings per
share.
|
|
|
|
We believe that gains
and losses on ship sales and ship impairments and restructuring and
certain 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 non-GAAP
measures. Net revenue yields and net cruise costs excluding fuel
per ALBD enable us 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 investors and expanded insight to measure our
revenue and cost performance as a supplement to our U.S. GAAP
consolidated financial statements.
|
|
|
|
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.
|
|
|
|
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.
|
|
|
|
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 cruise costs
excluding fuel per ALBD is the measure 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 as well as
fuel expense to calculate net cruise costs without fuel to avoid
duplicating these variable costs in our non-GAAP financial
measures. Substantially all of our net cruise costs excluding fuel
are largely fixed, except for the impact of changing prices once
the number of ALBDs has been determined.
|
|
|
|
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 without fuel or forecasted U.S. GAAP net income to
forecasted adjusted net income or forecasted U.S. GAAP earnings per
share to forecasted adjusted earnings per share because preparation
of meaningful U.S. GAAP forecasts of gross cruise revenues, gross
cruise costs, net income and earnings per share would require
unreasonable effort. We are unable to predict, without unreasonable
effort, the future movement of foreign exchange rates and fuel
prices. 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. We are unable to determine the future impact of gains
or losses on ships sales, restructuring expenses and other non-core
gains and charges.
|
|
|
|
Constant Dollar and
Constant Currency
|
|
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.
|
|
|
|
We report net revenue
yields, net passenger revenue yields, net onboard and other revenue
yields and net cruise costs excluding fuel per ALBD 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.
|
|
|
|
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 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)
|
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.
|
|
|
(c)
|
We believe that gains
and losses on ship sales and ship impairments and restructuring and
other expenses are not part of our core operating business and are
not an indication of our future earnings performance. Therefore, we
believe it is more meaningful for gains and losses on ship sales
and ship impairments and restructuring and other non-core gains and
charges 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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/carnival-corporation--plc-reports-record-full-year-and-record-fourth-quarter-earnings-300381732.html
SOURCE Carnival Corporation & plc