MIAMI, Sept. 26, 2016 /PRNewswire/ -- Carnival
Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced U.S.
GAAP net income of $1.4 billion, or
$1.93 diluted EPS, for the third
quarter of 2016 compared to U.S. GAAP net income for the third
quarter of 2015 of $1.2 billion, or
$1.56 diluted EPS. Third quarter 2016
adjusted net income of $1.4 billion,
or $1.92 adjusted EPS, was higher
than adjusted net income of $1.4
billion, or $1.75 adjusted
EPS, for the third quarter of 2015. Adjusted net income excludes
unrealized gains and losses on fuel derivatives and other net
charges, totaling $7 million in gains
for the third quarter 2016 and $149
million of losses for the third quarter 2015. Revenues for
the third quarter of 2016 were $5.1
billion, $0.2 billion higher
than the $4.9 billion in the prior
year.
Carnival Corporation & plc President and Chief Executive
Officer Arnold Donald noted, "We
delivered the strongest quarterly earnings in our company's history
affirming our ongoing efforts to expand consumer demand in excess
of measured capacity increases and leverage our industry leading
scale. Revenues during the peak summer season were bolstered by
strong performances from both our North American and European
brands and across all major deployments including the Caribbean, Alaska and Europe," Donald added.
Key metrics for the third quarter 2016 compared to the prior
year were as follows:
- Gross revenue yields (revenue per available lower berth day or
"ALBD") increased 0.6 percent. Net revenue yields on a
constant currency basis increased 2.7 percent for 3Q 2016, toward
the top end of the June guidance range of up 2 to 3 percent.
- Gross cruise costs including fuel per ALBD decreased 0.2
percent. Net cruise costs excluding fuel per ALBD on a constant
currency basis increased 5.5 percent, better than June guidance of
up 6 to 7 percent, due to the timing of certain expenses.
- Changes in fuel prices (including realized fuel derivatives)
and changes in currency exchange rates increased earnings by
$0.02 per share.
Highlights during the third quarter included the grand opening
of the Arison Maritime Center in Almere, Netherlands, named for Carnival Corporation
& plc Chairman Micky Arison and
his father, the late Ted Arison, who
founded the company. The 110,000-square-foot purpose built
facility is a major expansion from the existing training center
that opened in 2009. The center will provide comprehensive safety
and skills training for bridge and engineering officers. The
facility includes four bridge and engine room simulators and is
expected to train over 6,500 officers annually across the company's
10 brands.
The company also signed a memorandum of agreement with
shipbuilders Meyer Werft and
Meyer Turku for the construction of
three new 180,000-ton cruise ships. Two of the ships, to be
built in Finland, will be added to
the Carnival Cruise Line fleet in 2020 and 2022. The third ship, to
be constructed in Germany, will
join the P&O Cruises UK fleet in 2020. All three vessels
will be fully powered by Liquefied Natural Gas, the world's
cleanest burning fossil fuel. In conjunction with these new
ship orders, the delivery dates for two previously contracted
ships, one for AIDA Cruises and one for Costa Cruises, will shift
from 2020 to 2021 to ensure a measured pace of capacity growth over
the coming years.
Outlook
At this time, cumulative advance bookings for the first half of
next year are ahead of the prior year at considerably higher
prices. Since June, booking volumes for the first half of next year
are lower than the prior year, as there is less inventory remaining
for sale, at significantly higher prices.
The company continues to expect full year 2016 net revenue
yields to be up approximately 3.5 percent compared to the prior
year, on a constant currency basis. The company continues to expect
full year net cruise costs excluding fuel per ALBD to be up
approximately 1.5 percent compared to the prior year, on a constant
currency basis.
Taking the above factors into consideration, the company has
increased its full year 2016 adjusted earnings per share guidance
to be in the range of $3.33 to $3.37,
compared to the June guidance range of $3.25
to $3.35 and 2015 adjusted earnings per share of
$2.70.
Donald commented, "We are well on track to deliver nearly 25
percent earnings growth in 2016. With cash from operations expected
to reach a record $5 billion this
year, we continue to fund our growth and return cash to
shareholders. During the third quarter we repurchased $700 million of Carnival Corporation shares
bringing the cumulative total to $2.5
billion in share repurchases over the past year."
Donald added, "Looking forward, we are well positioned for
continued earnings growth given the current strength of our booking
and pricing trends in 2017."
Fourth Quarter 2016 Outlook
Fourth quarter constant currency net revenue yields are expected
to be up approximately 3 percent compared to the prior year. Fourth
quarter constant currency net cruise costs excluding fuel per ALBD
are expected to be higher by approximately 1 percent compared to
the prior year. Based on the above factors, the company expects
adjusted earnings per share for the fourth quarter 2016 to be in
the range of $0.55 to $0.59 versus
2015 adjusted earnings per share of $0.50.
Selected Key
Forecast Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
2016
|
|
Fourth Quarter
2016
|
Year over year
change:
|
|
Current
Dollars
|
|
Constant
Currency
|
|
Current
Dollars
|
|
Constant
Currency
|
Net revenue
yields
|
|
Approx
1.0%
|
|
Approx
3.5%
|
|
Approx
1.5%
|
|
Approx
3.0%
|
Net cruise costs
excl. fuel / ALBD
|
|
Approx
0.5%
|
|
Approx
1.5%
|
|
Approx
0.5%
|
|
Approx
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
2016
|
|
Fourth Quarter
2016
|
Fuel price per metric
ton
|
|
$285
|
|
$332
|
Fuel consumption
(metric tons in thousands)
|
|
3,250
|
|
830
|
Currency: Euro
|
|
$1.11 to
€1
|
|
$1.11 to
€1
|
Sterling
|
|
$1.38 to
£1
|
|
$1.30 to
£1
|
Australian dollar
|
|
$0.74 to
A$1
|
|
$0.76 to
A$1
|
Canadian dollar
|
|
$0.76 to
C$1
|
|
$0.76 to
C$1
|
Conference Call
The company has scheduled a conference call with analysts at
10:00 a.m. EDT (3:00 p.m. BST) today to discuss its 2016 third
quarter results. This call can be listened to live, and
additional information can be obtained, via Carnival Corporation
& plc's Web site at 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 18 new
ships scheduled to be delivered between 2016 and
2022. Carnival Corporation & plc also operates
Holland America Princess Alaska Tours, the leading tour companies
in Alaska and the Canadian Yukon. Traded on both the New
York and London Stock Exchanges, Carnival Corporation
& plc is the only group in the world to be included in
both the S&P 500 and the FTSE 100 indices.
Additional information can be found on www.carnival.com,
www.hollandamerica.com, www.princess.com, www.seabourn.com,
www.aida.de, www.costacruise.com, www.cunard.com,
www.pocruises.com.au, www.pocruises.com and
www.fathom.org.
Cautionary Note Concerning Factors That May Affect Future
Results
Carnival Corporation and Carnival plc and their respective
subsidiaries are referred to collectively in this release as
"Carnival Corporation & plc," "our," "us" and "we." Some of the
statements, estimates or projections contained in this release are
"forward-looking statements" that involve risks, uncertainties and
assumptions with respect to us, including some statements
concerning future results, outlooks, plans, goals and other events
which have not yet occurred. These statements are intended to
qualify for the safe harbors from liability provided by Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements other than statements of
historical facts are statements that could be deemed
forward-looking. These statements are based on current
expectations, estimates, forecasts and projections about our
business and the industry in which we operate and the beliefs and
assumptions of our management. We have tried, whenever possible, to
identify these statements by using words like "will," "may,"
"could," "should," "would," "believe," "depends," "expect," "goal,"
"anticipate," "forecast," "project," "future," "intend," "plan,"
"estimate," "target," "indicate" and similar expressions of future
intent or the negative of such terms.
Forward-looking statements include those statements that may
impact our outlook including, among other things, the forecasting
of our net revenue yields; booking levels; pricing; occupancy;
operating, financing and tax costs, including fuel expenses;
currency exchange rates; net cruise costs excluding fuel per
available lower berth day; estimates of ship depreciable lives and
residual values; liquidity; goodwill, ship and trademark fair
values and adjusted earnings per share. Because
forward-looking statements involve risks and uncertainties, there
are many factors that could cause our actual results, performance
or achievements to differ materially from those expressed or
implied in this release. This note contains important
cautionary statements of the known factors that we consider could
materially affect the accuracy of our forward-looking statements
and adversely affect our business, results of operations and
financial position. It is not possible to predict or identify all
such risks. There may be additional risks that we consider
immaterial or which are unknown. These factors include, but are not
limited to, the following:
- Incidents, such as ship incidents, security incidents, the
spread of contagious diseases and threats thereof, adverse weather
conditions or other natural disasters and the related adverse
publicity affecting our reputation and the health, safety, security
and satisfaction of guests and crew;
- Economic conditions and adverse world events affecting the
safety and security of travel, such as civil unrest, armed
conflicts and terrorist attacks;
- Changes in and compliance with laws and regulations relating to
environment, health, safety, security, tax and anti-corruption
under which we operate;
- Disruptions and other damages to our information technology and
other networks and operations, and breaches in data security;
- Ability to recruit, develop and retain qualified
personnel;
- Increases in fuel prices;
- Fluctuations in foreign currency exchange rates;
- Misallocation of capital among our ship, joint venture and
other strategic investments;
- Future operating cash flow may not be sufficient to fund future
obligations and we may be unable to obtain financing;
- Deterioration of our cruise brands' strengths and our inability
to implement our strategies;
- Continuing financial viability of our travel agent distribution
system, air service providers and other key vendors in our supply
chain and reductions in the availability of, and increases in the
prices for, the services and products provided by these
vendors;
- Inability to implement our shipbuilding programs and ship
repairs, maintenance and refurbishments on terms that are favorable
or consistent with our expectations and increases to our repairs
and maintenance expenses and refurbishment costs as our fleet
ages;
- Failure to keep pace with developments in technology;
- Geographic regions in which we try to expand our business may
be slow to develop and ultimately not develop how we expect and our
international operations are subject to additional risks not
generally applicable to our U.S. operations;
- Competition from and overcapacity in the cruise ship and
land-based vacation industry;
- Economic, market and political factors that are beyond our
control, which could increase our operating, financing and other
costs;
- Changes in global consumer confidence and impacts to various
foreign currency exchange rates as a result of the June 24, 2016 UK electorate vote to withdraw from
the European Union ("EU");
- Friction in travel, changes to international tax treaties and
changes to laws and regulations that could result from the exit of
the UK from the EU;
- Litigation, enforcement actions, fines or penalties;
- Lack of continuing availability of attractive, convenient and
safe port destinations on terms that are favorable or consistent
with our expectations;
- Union disputes and other employee relationship issues;
- Decisions to self-insure against various risks or the inability
to obtain insurance for certain risks at reasonable rates;
- Reliance on third-party providers of various services integral
to the operations of our business;
- Business activities that involve our co-investment with third
parties;
- Disruptions in the global financial markets or other events
that may negatively affect the ability of our counterparties and
others to perform their obligations to us;
- Our shareholders may be subject to the uncertainties of a
foreign legal system since Carnival Corporation and Carnival plc
are not U.S. corporations;
- Small group of shareholders may be able to effectively control
the outcome of shareholder voting;
- Provisions in Carnival Corporation's and Carnival plc's
constitutional documents may prevent or discourage takeovers and
business combinations that our shareholders might consider to be in
their best interests and
- The DLC arrangement involves risks not associated with the more
common ways of combining the operations of two companies.
Forward-looking statements should not be relied upon as a
prediction of actual results. Subject to any continuing obligations
under applicable law or any relevant stock exchange rules, we
expressly disclaim any obligation to disseminate, after the date of
this release, any updates or revisions to any such forward-looking
statements to reflect any change in expectations or events,
conditions or circumstances on which any such statements are
based.
CARNIVAL
CORPORATION & PLC
CONSOLIDATED
STATEMENTS OF INCOME
(UNAUDITED)
(in millions, except
per share data)
|
|
|
|
|
Three Months
Ended
August 31,
|
Nine Months
Ended
August 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues
|
|
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
|
|
Passenger
tickets
|
$
|
3,803
|
|
|
$
|
3,631
|
|
|
$
|
9,217
|
|
|
$
|
8,891
|
|
Onboard and
other
|
1,146
|
|
|
1,102
|
|
|
3,047
|
|
|
2,918
|
|
Tour and
other
|
148
|
|
|
150
|
|
|
190
|
|
|
194
|
|
|
5,097
|
|
|
4,883
|
|
|
12,454
|
|
|
12,003
|
|
Operating Costs
and Expenses
|
|
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
646
|
|
|
603
|
|
|
1,723
|
|
|
1,671
|
|
Onboard and
other
|
171
|
|
|
170
|
|
|
411
|
|
|
395
|
|
Payroll and
related
|
494
|
|
|
453
|
|
|
1,488
|
|
|
1,388
|
|
Fuel
|
265
|
|
|
345
|
|
|
648
|
|
|
996
|
|
Food
|
260
|
|
|
255
|
|
|
755
|
|
|
737
|
|
Other ship
operating
|
643
|
|
|
582
|
|
|
1,914
|
|
|
1,913
|
|
Tour and
other
|
84
|
|
|
82
|
|
|
125
|
|
|
129
|
|
|
2,563
|
|
|
2,490
|
|
|
7,064
|
|
|
7,229
|
|
Selling and
administrative
|
529
|
|
|
484
|
|
|
1,613
|
|
|
1,504
|
|
Depreciation and
amortization
|
443
|
|
|
399
|
|
|
1,303
|
|
|
1,206
|
|
|
3,535
|
|
|
3,373
|
|
|
9,980
|
|
|
9,939
|
|
Operating
Income
|
1,562
|
|
|
1,510
|
|
|
2,474
|
|
|
2,064
|
|
Nonoperating
(Expense) Income
|
|
|
|
|
|
|
|
Interest
income
|
2
|
|
|
2
|
|
|
5
|
|
|
6
|
|
Interest expense, net
of capitalized interest
|
(61)
|
|
|
(53)
|
|
|
(168)
|
|
|
(167)
|
|
Losses on fuel
derivatives, net (a)
|
(36)
|
|
|
(197)
|
|
|
(102)
|
|
|
(378)
|
|
Other (expense)
income, net
|
(2)
|
|
|
(12)
|
|
|
6
|
|
|
3
|
|
|
(97)
|
|
|
(260)
|
|
|
(259)
|
|
|
(536)
|
|
Income Before
Income Taxes
|
1,465
|
|
|
1,250
|
|
|
2,215
|
|
|
1,528
|
|
Income Tax Expense,
Net
|
(41)
|
|
|
(34)
|
|
|
(44)
|
|
|
(41)
|
|
Net
Income
|
$
|
1,424
|
|
|
$
|
1,216
|
|
|
$
|
2,171
|
|
|
$
|
1,487
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
Basic
|
$
|
1.93
|
|
|
$
|
1.56
|
|
|
$
|
2.89
|
|
|
$
|
1.91
|
|
Diluted
|
$
|
1.93
|
|
|
$
|
1.56
|
|
|
$
|
2.88
|
|
|
$
|
1.91
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
Per Share-Diluted (b)
|
$
|
1.92
|
|
|
$
|
1.75
|
|
|
$
|
2.77
|
|
|
$
|
2.20
|
|
Dividends Declared
Per Share
|
$
|
0.35
|
|
|
$
|
0.30
|
|
|
$
|
1.00
|
|
|
$
|
0.80
|
|
Weighted-Average
Shares Outstanding - Basic
|
737
|
|
|
778
|
|
|
751
|
|
|
778
|
|
Weighted-Average
Shares Outstanding - Diluted
|
739
|
|
|
781
|
|
|
754
|
|
|
781
|
|
(a)
|
During the three
months ended August 31, 2016 and 2015, our (losses) on fuel
derivatives, net include net unrealized gains (losses) of $25
million and $(137) million and realized (losses) of $(61) million
and $(60) million, respectively. During the nine months ended
August 31, 2016 and 2015, our (losses) on fuel derivatives, net
include net unrealized gains (losses) of $121 million and $(215)
million and realized (losses) of $(223) million and $(163) million,
respectively.
|
(b)
|
See the U.S. GAAP net
income to adjusted net income reconciliations in the Non-GAAP
Financial Measures included herein.
|
CARNIVAL
CORPORATION & PLC
CONSOLIDATED
BALANCE SHEETS
(UNAUDITED)
(in millions, except
par values)
|
|
|
|
|
|
|
August 31,
2016
|
|
November 30,
2015
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
462
|
|
|
$
|
1,395
|
|
|
Trade and other
receivables, net
|
321
|
|
|
303
|
|
|
Insurance
recoverables
|
102
|
|
|
109
|
|
|
Inventories
|
314
|
|
|
330
|
|
|
Prepaid expenses and
other
|
355
|
|
|
314
|
|
|
Total current
assets
|
1,554
|
|
|
2,451
|
|
|
Property and
Equipment, Net
|
32,864
|
|
|
31,818
|
|
(a)
|
Goodwill
|
2,964
|
|
|
3,010
|
|
|
Other
Intangibles
|
1,290
|
|
|
1,308
|
|
(a)
|
Other
Assets
|
660
|
|
|
650
|
|
|
|
$
|
39,332
|
|
|
$
|
39,237
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Short-term
borrowings
|
$
|
334
|
|
|
$
|
30
|
|
|
Current portion of
long-term debt
|
739
|
|
|
1,344
|
|
|
Accounts
payable
|
704
|
|
|
627
|
|
|
Accrued liabilities
and other
|
1,738
|
|
|
1,683
|
|
|
Customer
deposits
|
3,585
|
|
|
3,272
|
|
|
Total current
liabilities
|
7,100
|
|
|
6,956
|
|
|
Long-Term
Debt
|
8,320
|
|
|
7,413
|
|
|
Other Long-Term
Liabilities
|
1,012
|
|
|
1,097
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Common stock of
Carnival Corporation, $0.01 par value; 1,960 shares
authorized;
654 shares at 2016 and 653
shares at 2015 issued
|
7
|
|
|
7
|
|
|
Ordinary shares of
Carnival plc, $1.66 par value; 216 shares at 2016 and
2015
issued
|
358
|
|
|
358
|
|
|
Additional paid-in
capital
|
8,618
|
|
|
8,562
|
|
|
Retained
earnings
|
21,488
|
|
|
20,060
|
|
|
Accumulated other
comprehensive loss
|
(2,012)
|
|
|
(1,741)
|
|
|
Treasury stock, 114
shares at 2016 and 70 shares at 2015 of Carnival
Corporation
and 26 shares at 2016 and 27
shares at 2015 of Carnival plc, at cost
|
(5,559)
|
|
|
(3,475)
|
|
|
Total shareholders'
equity
|
22,900
|
|
|
23,771
|
|
|
|
$
|
39,332
|
|
|
$
|
39,237
|
|
|
(a)
|
On December 1, 2015,
we adopted the Financial Accounting Standards Board's Service
Concession Arrangements amended guidance and, accordingly,
reclassified $70 million from Property and Equipment, Net to
Other Intangibles on our November 30, 2015 Consolidated
Balance Sheet.
|
CARNIVAL
CORPORATION & PLC
OTHER
INFORMATION
|
|
|
|
|
|
Three Months
Ended
August 31,
|
|
Nine Months
Ended
August 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
STATISTICAL
INFORMATION
|
|
|
|
|
|
|
|
ALBDs
(in thousands) (a)
|
20,572
|
|
|
19,795
|
|
|
59,555
|
|
|
57,686
|
|
Occupancy percentage (b)
|
111.4
|
%
|
|
110.9
|
%
|
|
106.6
|
%
|
|
105.6
|
%
|
Passengers carried (in thousands)
|
3,265
|
|
|
3,068
|
|
|
8,606
|
|
|
8,138
|
|
Fuel
consumption in metric tons (in thousands)
|
793
|
|
|
786
|
|
|
2,417
|
|
|
2,379
|
|
Fuel
consumption in metric tons per thousand ALBDs
|
38.6
|
|
|
39.7
|
|
|
40.6
|
|
|
41.2
|
|
Fuel
cost per metric ton consumed
|
$
|
335
|
|
|
$
|
439
|
|
|
$
|
268
|
|
|
$
|
418
|
|
Currencies
|
|
|
|
|
|
|
|
U.S. dollar to
euro
|
$
|
1.12
|
|
|
$
|
1.11
|
|
|
$
|
1.11
|
|
|
$
|
1.13
|
|
U.S. dollar to
sterling
|
$
|
1.34
|
|
|
$
|
1.56
|
|
|
$
|
1.41
|
|
|
$
|
1.54
|
|
U.S. dollar to
Australian dollar
|
$
|
0.75
|
|
|
$
|
0.75
|
|
|
$
|
0.74
|
|
|
$
|
0.78
|
|
U.S. dollar to
Canadian dollar
|
$
|
0.77
|
|
|
$
|
0.78
|
|
|
$
|
0.76
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
CASH FLOW
INFORMATION (in millions)
|
|
|
|
|
|
|
|
Cash from
operations
|
$
|
1,429
|
|
|
$
|
1,281
|
|
|
$
|
4,110
|
|
|
$
|
3,567
|
|
Capital
expenditures
|
$
|
450
|
|
|
$
|
324
|
|
|
$
|
2,416
|
|
|
$
|
1,704
|
|
Dividends
paid
|
$
|
262
|
|
|
$
|
195
|
|
|
$
|
721
|
|
|
$
|
584
|
|
Notes to
Statistical Information
|
|
|
(a)
|
ALBD is a standard
measure of passenger capacity for the period that we use to
approximate rate and capacity variances, based on consistently
applied formulas that we use to perform analyses to determine the
main non-capacity driven factors that cause our cruise revenues and
expenses to vary. ALBDs assume that each cabin we offer for sale
accommodates two passengers and is computed by multiplying
passenger capacity by revenue-producing ship operating days in the
period.
|
(b)
|
In accordance with
cruise industry practice, occupancy is calculated using a
denominator of ALBDs, which assumes two passengers per cabin even
though some cabins can accommodate three or more passengers.
Percentages in excess of 100% indicate that on average more than
two passengers occupied some cabins.
|
CARNIVAL CORPORATION &
PLC
NON-GAAP FINANCIAL MEASURES
Consolidated gross and net revenue yields were computed by
dividing the gross and net cruise revenues by ALBDs as follows
(dollars in millions, except yields) (a) (b):
|
Three Months Ended
August 31,
|
|
Nine Months Ended
August 31,
|
|
2016
|
|
2016
Constant
Dollar
|
|
2015
|
|
2016
|
|
2016
Constant
Dollar
|
|
2015
|
Passenger ticket
revenues
|
$
|
3,803
|
|
|
$
|
3,866
|
|
|
$
|
3,631
|
|
|
$
|
9,217
|
|
|
$
|
9,362
|
|
|
$
|
8,891
|
|
Onboard and other
revenues
|
1,146
|
|
|
1,158
|
|
|
1,102
|
|
|
3,047
|
|
|
3,080
|
|
|
2,918
|
|
Gross cruise
revenues
|
4,949
|
|
|
5,024
|
|
|
4,733
|
|
|
12,264
|
|
|
12,442
|
|
|
11,809
|
|
Less cruise
costs
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation
and other
|
(646)
|
|
|
(654)
|
|
|
(603)
|
|
|
(1,723)
|
|
|
(1,751)
|
|
|
(1,671)
|
|
Onboard and other
|
(171)
|
|
|
(173)
|
|
|
(170)
|
|
|
(411)
|
|
|
(416)
|
|
|
(395)
|
|
|
(817)
|
|
|
(827)
|
|
|
(773)
|
|
|
(2,134)
|
|
|
(2,167)
|
|
|
(2,066)
|
|
Net passenger ticket
revenues
|
3,157
|
|
|
3,212
|
|
|
3,028
|
|
|
7,494
|
|
|
7,611
|
|
|
7,220
|
|
Net onboard and other
revenues
|
975
|
|
|
985
|
|
|
932
|
|
|
2,636
|
|
|
2,664
|
|
|
2,523
|
|
Net cruise
revenues
|
$
|
4,132
|
|
|
$
|
4,197
|
|
|
$
|
3,960
|
|
|
$
|
10,130
|
|
|
$
|
10,275
|
|
|
$
|
9,743
|
|
ALBDs
|
20,572,112
|
|
|
20,572,112
|
|
|
19,794,882
|
|
|
59,555,384
|
|
|
59,555,384
|
|
|
57,685,594
|
|
Gross revenue
yields
|
$
|
240.60
|
|
|
$
|
244.22
|
|
|
$
|
239.10
|
|
|
$
|
205.94
|
|
|
$
|
208.91
|
|
|
$
|
204.72
|
|
% increase vs.
2015
|
0.6
|
%
|
|
2.1
|
%
|
|
|
|
0.6
|
%
|
|
2.0
|
%
|
|
|
Net
revenue yields
|
$
|
200.87
|
|
|
$
|
204.03
|
|
|
$
|
200.04
|
|
|
$
|
170.10
|
|
|
$
|
172.52
|
|
|
$
|
168.91
|
|
%
increase vs. 2015
|
0.4
|
%
|
|
2.0
|
%
|
|
|
|
0.7
|
%
|
|
2.1
|
%
|
|
|
Net
passenger ticket revenue
yields
|
$
|
153.47
|
|
|
$
|
156.14
|
|
|
$
|
152.96
|
|
|
$
|
125.84
|
|
|
$
|
127.80
|
|
|
$
|
125.17
|
|
%
increase vs. 2015
|
0.3
|
%
|
|
2.1
|
%
|
|
|
|
0.5
|
%
|
|
2.1
|
%
|
|
|
Net onboard and
other revenue
yields
|
$
|
47.39
|
|
|
$
|
47.89
|
|
|
$
|
47.09
|
|
|
$
|
44.26
|
|
|
$
|
44.72
|
|
|
$
|
43.74
|
|
%
increase vs. 2015
|
0.7
|
%
|
|
1.7
|
%
|
|
|
|
1.2
|
%
|
|
2.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
August 31,
|
|
Nine Months Ended
August 31,
|
|
2016
|
|
2016
Constant
Currency
|
|
2015
|
|
2016
|
|
2016
Constant
Currency
|
|
2015
|
Net passenger ticket
revenues
|
$
|
3,157
|
|
|
$
|
3,246
|
|
|
$
|
3,028
|
|
|
$
|
7,494
|
|
|
$
|
7,778
|
|
|
$
|
7,220
|
|
Net onboard and other
revenues
|
975
|
|
|
981
|
|
|
932
|
|
|
2,636
|
|
|
2,672
|
|
|
2,523
|
|
Net cruise
revenues
|
$
|
4,132
|
|
|
$
|
4,227
|
|
|
$
|
3,960
|
|
|
$
|
10,130
|
|
|
$
|
10,450
|
|
|
$
|
9,743
|
|
ALBDs
|
20,572,112
|
|
|
20,572,112
|
|
|
19,794,882
|
|
|
59,555,384
|
|
|
59,555,384
|
|
|
57,685,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue yields
|
$
|
200.87
|
|
|
$
|
205.46
|
|
|
$
|
200.04
|
|
|
$
|
170.10
|
|
|
$
|
175.46
|
|
|
$
|
168.91
|
|
%
increase vs. 2015
|
0.4
|
%
|
|
2.7
|
%
|
|
|
|
0.7
|
%
|
|
3.9
|
%
|
|
|
Net
passenger ticket revenue
yields
|
$
|
153.47
|
|
|
$
|
157.76
|
|
|
$
|
152.96
|
|
|
$
|
125.84
|
|
|
$
|
130.60
|
|
|
$
|
125.17
|
|
%
increase vs. 2015
|
0.3
|
%
|
|
3.1
|
%
|
|
|
|
0.5
|
%
|
|
4.3
|
%
|
|
|
Net
onboard and other revenue
yields
|
$
|
47.39
|
|
|
$
|
47.69
|
|
|
$
|
47.09
|
|
|
$
|
44.26
|
|
|
$
|
44.86
|
|
|
$
|
43.74
|
|
%
increase vs. 2015
|
0.7
|
%
|
|
1.3
|
%
|
|
|
|
1.2
|
%
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(See Notes to
Non-GAAP Financial Measures.)
|
CARNIVAL CORPORATION &
PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Consolidated gross and net cruise costs and net cruise costs
excluding fuel per ALBD were computed by dividing the gross and net
cruise costs and net cruise costs excluding fuel by ALBDs as
follows (dollars in millions, except costs per ALBD) (a) (b):
|
Three Months Ended
August 31,
|
|
Nine Months Ended
August 31,
|
|
2016
|
|
2016
Constant
Dollar
|
|
2015
|
|
2016
|
|
2016
Constant
Dollar
|
|
2015
|
Cruise operating
expenses
|
$
|
2,479
|
|
|
$
|
2,513
|
|
|
$
|
2,408
|
|
|
$
|
6,939
|
|
|
$
|
7,034
|
|
|
$
|
7,100
|
|
Cruise selling and
administrative
expenses
|
527
|
|
|
534
|
|
|
482
|
|
|
1,606
|
|
|
1,626
|
|
|
1,497
|
|
Gross cruise
costs
|
3,006
|
|
|
3,047
|
|
|
2,890
|
|
|
8,545
|
|
|
8,660
|
|
|
8,597
|
|
Less cruise costs
included above
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation
and other
|
(646)
|
|
|
(654)
|
|
|
(603)
|
|
|
(1,723)
|
|
|
(1,751)
|
|
|
(1,671)
|
|
Onboard and other
|
(171)
|
|
|
(173)
|
|
|
(170)
|
|
|
(411)
|
|
|
(416)
|
|
|
(395)
|
|
Gain on ship sale
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
6
|
|
Restructuring
expenses
|
—
|
|
|
—
|
|
|
(14)
|
|
|
(2)
|
|
|
(2)
|
|
|
(21)
|
|
Other (c)
|
(18)
|
|
|
(18)
|
|
|
—
|
|
|
(39)
|
|
|
(39)
|
|
|
—
|
|
Net cruise
costs
|
2,171
|
|
|
2,202
|
|
|
2,105
|
|
|
6,372
|
|
|
6,454
|
|
|
6,516
|
|
Less fuel
|
(265)
|
|
|
(265)
|
|
|
(345)
|
|
|
(648)
|
|
|
(648)
|
|
|
(996)
|
|
Net cruise costs
excluding fuel
|
$
|
1,906
|
|
|
$
|
1,937
|
|
|
$
|
1,760
|
|
|
$
|
5,724
|
|
|
$
|
5,806
|
|
|
$
|
5,520
|
|
ALBDs
|
20,572,112
|
|
|
20,572,112
|
|
|
19,794,882
|
|
|
59,555,384
|
|
|
59,555,384
|
|
|
57,685,594
|
|
Gross cruise costs
per ALBD
|
$
|
146.18
|
|
|
$
|
148.11
|
|
|
$
|
145.95
|
|
|
$
|
143.50
|
|
|
$
|
145.42
|
|
|
$
|
149.03
|
|
% increase vs.
2015
|
0.2
|
%
|
|
1.5
|
%
|
|
|
|
(3.7)%
|
|
|
(2.4)%
|
|
|
|
Net
cruise costs per ALBD
|
$
|
105.54
|
|
|
$
|
107.00
|
|
|
$
|
106.28
|
|
|
$
|
106.99
|
|
|
$
|
108.37
|
|
|
$
|
112.96
|
|
%
(decrease) increase vs. 2015
|
(0.7)%
|
|
|
0.7
|
%
|
|
|
|
(5.3)%
|
|
|
(4.1)%
|
|
|
|
Net
cruise costs excluding fuel
per
ALBD
|
$
|
92.63
|
|
|
$
|
94.10
|
|
|
$
|
88.84
|
|
|
$
|
96.10
|
|
|
$
|
97.48
|
|
|
$
|
95.70
|
|
%
increase vs. 2015
|
4.3
|
%
|
|
5.9
|
%
|
|
|
|
0.4
|
%
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
August 31,
|
|
Nine Months Ended
August 31,
|
|
2016
|
|
2016
Constant
Currency
|
|
2015
|
|
2016
|
|
2016
Constant
Currency
|
|
2015
|
Net cruise costs
excluding fuel
|
$
|
1,906
|
|
|
$
|
1,929
|
|
|
$
|
1,760
|
|
|
$
|
5,724
|
|
|
$
|
5,793
|
|
|
$
|
5,520
|
|
ALBDs
|
20,572,112
|
|
|
20,572,112
|
|
|
19,794,882
|
|
|
59,555,384
|
|
|
59,555,384
|
|
|
57,685,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cruise costs
excluding fuel per
ALBD
|
$
|
92.63
|
|
|
$
|
93.77
|
|
|
$
|
88.84
|
|
|
$
|
96.10
|
|
|
$
|
97.27
|
|
|
$
|
95.70
|
|
% increase vs.
2015
|
4.3
|
%
|
|
5.5
|
%
|
|
|
|
0.4
|
%
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(See Notes to
Non-GAAP Financial Measures.)
|
CARNIVAL CORPORATION &
PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Adjusted fully diluted earnings per share was computed as
follows (in millions, except per share data) (b):
|
Three Months
Ended
August 31,
|
|
Nine Months
Ended
August 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net
income
|
|
|
|
|
|
|
|
U.S. GAAP net
income
|
$
|
1,424
|
|
|
$
|
1,216
|
|
|
$
|
2,171
|
|
|
$
|
1,487
|
|
Unrealized (gains) losses on
fuel derivatives, net (d)
|
(25)
|
|
|
137
|
|
|
(121)
|
|
|
215
|
|
Gain on ship sale
(e)
|
—
|
|
|
(2)
|
|
|
(2)
|
|
|
(6)
|
|
Restructuring expenses
(e)
|
—
|
|
|
14
|
|
|
2
|
|
|
21
|
|
Other (c) (e)
|
18
|
|
|
—
|
|
|
39
|
|
|
—
|
|
Adjusted net
income
|
$
|
1,417
|
|
|
$
|
1,365
|
|
|
$
|
2,089
|
|
|
$
|
1,717
|
|
Weighted-average
shares outstanding
|
739
|
|
|
781
|
|
|
754
|
|
|
781
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
U.S. GAAP earnings per
share
|
$
|
1.93
|
|
|
$
|
1.56
|
|
|
$
|
2.88
|
|
|
$
|
1.91
|
|
Unrealized (gains) losses on
fuel derivatives, net (d)
|
(0.03)
|
|
|
0.17
|
|
|
(0.16)
|
|
|
0.27
|
|
Gain on ship sale
(e)
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Restructuring expenses
(e)
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.03
|
|
Other (c) (e)
|
0.02
|
|
|
—
|
|
|
0.05
|
|
|
—
|
|
Adjusted earnings per
share
|
$
|
1.92
|
|
|
$
|
1.75
|
|
|
$
|
2.77
|
|
|
$
|
2.20
|
|
|
|
|
|
|
|
|
|
Notes to
Non-GAAP Financial Measures
|
|
|
(a)
|
We use net cruise
revenues per ALBD ("net revenue yields"), net cruise costs per ALBD
and net cruise costs excluding fuel per ALBD as significant
non-GAAP financial measures of our cruise segments' financial
performance. These measures enable us to separate the impact
of predictable capacity changes from the more unpredictable rate
changes that affect our business; gains and losses on ship sales
and ship impairments, net; and restructuring and other expenses
that are not part of our core operating business. We believe these
non-GAAP measures provide useful information to investors and
expanded insight to measure our revenue and cost performance as a
supplement to our U.S. GAAP consolidated financial
statements.
|
|
|
|
Net revenue yields
are commonly used in the cruise industry to measure a company's
cruise segment revenue performance and for revenue management
purposes. We use "net cruise revenues" rather than "gross cruise
revenues" to calculate net revenue yields. We believe that net
cruise revenues is a more meaningful measure in determining revenue
yield than gross cruise revenues because it reflects the cruise
revenues earned net of our most significant variable costs, which
are travel agent commissions, cost of air and other transportation,
certain other costs that are directly associated with onboard and
other revenues and credit and debit card fees. Substantially all of
our remaining cruise costs are largely fixed, except for the impact
of changing prices and food expenses, once our ship capacity levels
have been determined.
|
|
|
|
Net passenger ticket
revenues reflect gross passenger ticket revenues, net of
commissions, transportation and other costs. Net onboard and other
revenues reflect gross onboard and other revenues, net of onboard
and other cruise costs. Net passenger ticket revenue yields and net
onboard and other revenue yields are computed by dividing net
passenger ticket revenues and net onboard and other revenues by
ALBDs.
|
|
|
|
Net cruise costs per
ALBD and net cruise costs excluding fuel per ALBD are the most
significant measures we use to monitor our ability to control our
cruise segments' costs rather than gross cruise costs per
ALBD. We exclude the same variable costs that are included in
the calculation of net cruise revenues to calculate net cruise
costs with and without fuel to avoid duplicating these variable
costs in our non-GAAP financial measures. We believe that gains and
losses on ship sales and ship impairments, net and restructuring
expenses and other expenses are not part of our core operating
business and, therefore, are not an indication of our future
earnings performance. As such, we exclude these items from our
calculation of net cruise costs with and without fuel.
|
|
|
|
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. 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 non-GAAP
financial measures on a "constant dollar" and "constant currency"
basis assuming the 2016 periods' currency exchange rates have
remained constant with the 2015 periods' rates. These metrics
facilitate a comparative view for the changes in our business in an
environment with fluctuating exchange rates.
|
|
|
|
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)
|
Our consolidated
financial statements are prepared in accordance with U.S.
GAAP. We have not provided a reconciliation between forecasted
adjusted earnings per share guidance and forecasted U.S. GAAP
earnings per share guidance because it would be too difficult to
prepare reliable U.S. GAAP guidance without unreasonable effort. We
are unable to predict, without unreasonable effort, the future
movement of foreign exchange rates or the future impact of gains or
losses on ship sales, restructuring expenses or other non-core
gains and charges. The presentation of our non-GAAP financial
information is not intended to be considered in isolation from, as
substitute for, or superior to the financial information prepared
in accordance with U.S. GAAP. It is possible that our non-GAAP
financial measures may not be exactly comparable to the like-kind
information presented by other companies, which is a potential risk
associated with using these measures to compare us to other
companies.
|
|
|
(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 gains
and losses on ship sales and ship impairments, net and
restructuring expenses and other expenses are not part of our core
operating business and, therefore, are not an indication of our
future earnings performance. We also believe it is more meaningful
for gains and losses on ship sales and ship impairments, net and
restructuring and other expenses to be excluded from our net income
and earnings per share and, accordingly, we present adjusted net
income and adjusted earnings per share excluding these
items.
|
|
|
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-third-quarter-earnings-300333711.html
SOURCE Carnival Corporation & plc