MIAMI, Dec. 19, 2014 /PRNewswire/ -- Carnival
Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced non-GAAP
net income for the full year 2014 of $1.5
billion, or $1.96 diluted EPS,
compared to non-GAAP net income of $1.2
billion, or $1.58 diluted EPS,
for the prior year. Full year 2014 U.S. GAAP net income was
$1.2 billion, or $1.59 diluted EPS, which included unrealized
losses (non-cash) on fuel derivatives of $268 million and $20
million of net charges. Full year 2013 U.S. GAAP net income
was $1.1 billion, or $1.39 diluted EPS, which included net unrealized
gains (non-cash) on fuel derivatives of $36
million and impairments and other charges of $190 million.
Revenues for the full year 2014 were $15.9 billion compared to $15.5 billion for the prior year. Cash from
operations for the full year 2014 totaled $3.4 billion compared to $2.8 billion in 2013.
Carnival Corporation & plc President and Chief Executive
Officer Arnold Donald noted, "Full
year earnings were significantly higher than the prior year
primarily due to strong profit improvement at both our Carnival
Cruise Lines and Costa Cruises brands. We enjoyed some early wins
from our collaboration efforts that contributed to our improved
results, particularly for onboard revenues. We worked hard to
contain costs and achieved an almost five percent reduction in fuel
consumption for the year as we continue to implement energy
conservation measures. We also made a number of strategic decisions
in fleet investments that will position us well for the
future."
Commenting on the fourth quarter Donald stated, "Last quarter
operating profit more than doubled due to higher ticket prices and
onboard spending combined with lower costs, also exceeding previous
guidance." During the quarter, the Carnival Cruise Lines brand
achieved a significant increase in revenue yields despite a highly
competitive environment in the Caribbean. Additionally, Costa's Asia operations achieved double-digit revenue
yield improvement on a capacity increase in that region.
New ship introductions during the quarter generated substantial
media coverage and positive buzz including the star-studded North
American debut of Regal Princess which featured a reunion of
the Love Boat cast and numerous guest stars who appeared on the hit
TV show, as well as the delivery of Costa Diadema at a
stunning and festive inaugural in Genoa,
Italy. The company also recently placed orders with
Italian shipbuilder Fincantieri for three innovative new ships for
its Carnival Cruise Lines, Holland America Line and Seabourn brands
to be delivered in 2018. In addition, the company recently sold
three of its smaller vessels – Costa Celebration, Grand
Holiday and Ocean Princess.
Key metrics for the fourth quarter 2014 compared to the prior
year were as follows:
- Revenues of $3.72 billion
compared to $3.66 billion in the
prior year.
- On a constant dollar basis, net revenue yields (net revenue per
available lower berth day or "ALBD") increased 2.8 percent for 4Q
2014, which was better than the company's September guidance, up
1.5 to 2.5 percent. Gross revenue yields decreased 0.2 percent in
current dollars.
- Net cruise costs excluding fuel per ALBD decreased 1.7 percent
in constant dollars, which was in line with September guidance,
down 1 to 2 percent. Gross cruise costs including fuel per ALBD in
current dollars decreased 5.3 percent.
- Fuel prices declined 13 percent to $584 per metric ton for 4Q 2014 from $671 per metric ton in 4Q 2013 and were better
than the September guidance of $635
per metric ton.
- Fuel consumption per ALBD decreased 4.8 percent in 4Q 2014
compared to the prior year.
- Non-GAAP net income was $210
million, or $0.27 diluted EPS,
before U.S. GAAP unrealized losses (non-cash) on fuel derivatives
of $277 million, or $0.36 diluted EPS, and other charges of
$35 million, or $0.04 diluted EPS.
2015 Outlook
At this time, cumulative advance bookings for the first three
quarters of 2015 are ahead of the prior year at slightly higher
prices. Since September, booking volumes for the first three
quarters of 2015 are running ahead of last year's levels at
slightly lower prices driven by transactional currency impacts.
Donald noted, "The current base of business for 2015 builds
confidence in our expectation of continuing yield growth with
acceleration in yield improvement starting in the second
quarter."
Based on current booking trends, the company forecasts full year
2015 net revenue yields, on a constant dollar basis, to be up
approximately 2 percent compared to the prior year. First quarter
revenue yields (constant dollars) are expected to be slightly
higher than the prior year and improve during the remainder of
2015.
The company expects net cruise costs excluding fuel per ALBD, on
a constant dollar basis, for full year 2015 to be up approximately
3 percent primarily due to higher dry-dock costs, advertising
expenses and product enhancements. Based on current spot prices for
fuel, forecasted fuel costs for the full year 2015 are expected to
decrease $475 million compared to
2014, net of fuel derivatives, benefiting the company by
$0.61 per share. This is forecasted
to be partially offset by unfavorable movements in currency
exchange rates worth $0.20 per share
(includes both translational and transactional currency exchange
impacts). Taking the above factors into consideration, the company
forecasts full year 2015 non-GAAP diluted earnings per share to be
in the range of $2.30 to $2.60,
compared to 2014 non-GAAP diluted earnings of $1.96 per share.
Looking forward, Donald stated, "Based on our current 2015
guidance, we expect to achieve a 50 percent improvement in earnings
compared to 2013 and are firmly on a path toward delivering
double-digit returns on invested capital."
First Quarter 2015 Outlook
First quarter constant dollar net revenue yields are expected to
be flat to up 1.0 percent compared to the prior year. Net cruise
costs excluding fuel per ALBD for the first quarter are expected to
be 5.5 to 6.5 percent higher on a constant dollar basis compared to
the prior year and are higher than full year guidance mostly due to
the timing of expenses between quarters. Current currency exchange
rates and fuel prices net of fuel derivatives are expected to
benefit first quarter earnings by $130
million compared to the prior year, or $0.16 per share. Based on the above factors, the
company expects non-GAAP diluted earnings for the first quarter
2015 to be in the range of $0.07 to
$0.11 per share, compared to 2014 non-GAAP earnings of
$0.00 per share.
Selected Key Forecast Metrics
|
|
|
Full Year
2015
|
|
First Quarter
2015
|
|
Year over year
change:
|
|
|
Current
Dollars
|
|
Constant
Dollars
|
|
Current
Dollars
|
|
Constant
Dollars
|
|
Net revenue
yields
|
|
|
approx. (1)
%
|
|
approx. 2
%
|
|
(2.0) to (3.0)
%
|
|
0.0 to 1.0
%
|
|
Net cruise costs
excl. fuel / ALBD
|
|
|
approx. 0
%
|
|
approx. 3
%
|
|
2.0 to 3.0
%
|
|
5.5 to 6.5
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
2015
|
|
First Quarter
2015
|
|
Fuel price per metric
ton
|
|
$ 436
|
|
$ 421
|
|
Fuel consumption
(metric tons in thousands)
|
|
3,170
|
|
780
|
|
Currency:
|
|
|
|
|
|
Euro
|
|
$1.23 to
€1
|
|
$1.23 to
€1
|
|
Sterling
|
|
$1.57 to
£1
|
|
$1.57 to
£1
|
|
Australian dollar
|
|
$0.83 to
A$1
|
|
$0.83 to
A$1
|
Conference Call
The company has scheduled a conference call with analysts at
10:00 a.m. EST (3:00 p.m. GMT) today to discuss its 2014 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 the largest cruise company in
the world, with a portfolio of cruise brands in North America, Europe, Australia and Asia, comprised of Carnival Cruise Lines,
Holland America Line, Princess Cruises, Seabourn, AIDA Cruises,
Costa Cruises, Cunard, P&O Cruises (Australia) and P&O Cruises (UK).
Together, these brands operate 100 ships totaling 212,000 lower
berths with ten new ships scheduled to be delivered between 2015
and 2018. 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,
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, among other things, the forecasting of our non-GAAP
earnings per share; net revenue yields; booking levels; pricing;
occupancy; operating, financing and tax costs, including fuel
expenses; net cruise costs per available lower berth day; estimates
of ship depreciable lives and residual values; liquidity; goodwill,
ship and trademark fair values and outlook. 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:
- general economic and business conditions;
- increases in fuel prices;
- incidents, the spread of contagious diseases and threats
thereof, adverse weather conditions or other natural disasters and
other incidents affecting the health, safety, security and
satisfaction of guests and crew;
- the international political climate, armed conflicts, terrorist
and pirate attacks, vessel seizures, and threats thereof, and other
world events affecting the safety and security of travel;
- negative publicity concerning the cruise industry in general or
us in particular, including any adverse environmental impacts of
cruising;
- geographic regions in which we try to expand our business may
be slow to develop and ultimately not develop how we expect;
- economic, market and political factors that are beyond our
control, which could increase our operating, financing and other
costs;
- changes in and compliance with laws and regulations relating to
the protection of persons with disabilities, employment,
environment, health, safety, security, tax and other regulations
under which we operate;
- our inability to implement our shipbuilding programs and ship
repairs, maintenance and refurbishments on terms that are favorable
or consistent with our expectations;
- increases to our repairs and maintenance expenses and
refurbishment costs as our fleet ages;
- lack of continuing availability of attractive, convenient and
safe port destinations on terms that are favorable or consistent
with our expectations;
- 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;
- disruptions and other damages to our information technology and
other networks and operations, and breaches in data security;
- failure to keep pace with developments in technology;
- competition from and overcapacity in the cruise ship and
land-based vacation industry;
- loss of key personnel or our ability to recruit or retain
qualified personnel;
- union disputes and other employee relation issues;
- 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;
- the continued strength of our cruise brands and our ability to
implement our strategies;
- additional risks to our international operations not generally
applicable to our U.S. operations;
- our decisions to self-insure against various risks or our
inability to obtain insurance for certain risks at reasonable
rates;
- litigation, enforcement actions, fines or penalties;
- fluctuations in foreign currency exchange rates;
- whether our future operating cash flow will be sufficient to
fund future obligations and whether we will be able to obtain
financing, if necessary, in sufficient amounts and on terms that
are favorable or consistent with our expectations;
- risks associated with our dual listed company arrangement;
- uncertainties of a foreign legal system as Carnival Corporation
and Carnival plc are not U.S. corporations and
- the ability of a small group of shareholders to effectively
control the outcome of shareholder voting.
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
OPERATIONS
(UNAUDITED)
(in millions, except per share data)
|
|
|
|
|
Three Months
Ended
|
Twelve Months
Ended
|
|
|
|
November
30,
|
|
November 30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
|
|
|
|
|
Passenger
tickets
|
|
|
$2,745
|
|
$2,697
|
|
$11,889
|
|
$11,648
|
|
Onboard and
other
|
|
|
941
|
|
929
|
|
3,780
|
|
3,598
|
|
Tour and
other
|
|
|
32
|
|
33
|
|
215
|
|
210
|
|
|
|
3,718
|
|
3,659
|
|
15,884
|
|
15,456
|
|
Operating Costs
and Expenses
|
|
|
|
|
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
|
|
520
|
|
526
|
|
2,299
|
|
2,303
|
|
Onboard and
other
|
|
|
127
|
|
153
|
|
519
|
|
539
|
|
Fuel
|
|
|
464
|
|
549
|
|
2,033
|
|
2,208
|
|
Payroll and
related
|
|
|
491
|
|
480
|
|
1,942
|
|
1,859
|
|
Food
|
|
|
245
|
|
244
|
|
1,005
|
|
983
|
|
Other ship
operating
|
|
|
620
|
|
638
|
|
2,445
|
|
2,589
|
|
Tour and
other
|
|
|
30
|
|
30
|
|
160
|
|
143
|
|
|
|
2,497
|
|
2,620
|
|
10,403
|
|
10,624
|
|
Selling and
administrative
|
|
|
547
|
|
532
|
|
2,054
|
|
1,879
|
|
Depreciation and
amortization
|
|
|
407
|
|
403
|
|
1,635
|
|
1,588
|
|
Ibero goodwill and
trademark impairment charges
|
|
|
-
|
|
-
|
|
-
|
|
13
|
|
|
|
3,451
|
|
3,555
|
|
14,092
|
|
14,104
|
|
Operating
Income
|
|
|
267
|
|
104
|
|
1,792
|
|
1,352
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating
(Expense) Income
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
2
|
|
3
|
|
8
|
|
11
|
|
Interest expense, net
of capitalized interest
|
|
|
(76)
|
|
(82)
|
|
(288)
|
|
(319)
|
|
(Losses) gains on
fuel derivatives, net
|
|
|
(280)
|
|
31
|
|
(271)
|
|
36
|
|
Other (expense)
income, net
|
|
|
(8)
|
|
1
|
|
4
|
|
(8)
|
|
|
|
(362)
|
|
(47)
|
|
(547)
|
|
(280)
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income
Before Income Taxes
|
|
|
(95)
|
|
57
|
|
1,245
|
|
1,072
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
(Expense) Benefit, Net
|
|
|
(7)
|
|
9
|
|
(9)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss)
Income
|
|
|
($102)
|
|
$66
|
|
$1,236
|
|
$1,078
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings
Per Share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
($0.13)
|
|
$0.09
|
|
$1.59
|
|
$1.39
|
|
Diluted
|
|
|
($0.13)
|
|
$0.08
|
|
$1.59
|
|
$1.39
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Earnings
Per Share-Diluted (a)
|
|
|
$0.27
|
|
$0.04
|
|
$1.96
|
|
$1.58
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared
Per Share
|
|
|
$0.25
|
|
$0.25
|
|
$1.00
|
|
$1.00
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding – Basic
|
|
|
776
|
|
775
|
|
776
|
|
775
|
|
Weighted-Average
Shares Outstanding – Diluted
|
|
|
776
|
|
777
|
|
778
|
|
777
|
|
|
(a) See the U.S.
GAAP net income to non-GAAP 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,
|
|
2014
|
|
2013
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash equivalents
|
$
331
|
|
$
462
|
|
Trade and other receivables, net
|
332
|
|
405
|
|
Insurance recoverables
|
154
|
|
381
|
|
Inventories
|
364
|
|
374
|
|
Prepaid expenses and other
|
322
|
|
315
|
|
Total
current assets
|
1,503
|
|
1,937
|
|
|
|
|
|
Property and
Equipment, Net
|
32,773
|
|
32,905
|
|
|
|
|
|
Goodwill
|
3,127
|
|
3,210
|
|
|
|
|
|
Other
Intangibles
|
1,270
|
|
1,292
|
|
|
|
|
|
Other
Assets
|
859
|
|
760
|
|
$
39,532
|
|
$
40,104
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Short-term borrowings
|
$
666
|
|
$
60
|
|
Current portion of long-term debt
|
1,059
|
|
1,408
|
|
Accounts payable
|
626
|
|
639
|
|
Claims reserve
|
262
|
|
456
|
|
Accrued liabilities and other
|
1,276
|
|
1,126
|
|
Customer deposits
|
3,032
|
|
3,031
|
|
Total
current liabilities
|
6,921
|
|
6,720
|
|
|
|
|
|
Long-Term
Debt
|
7,363
|
|
8,092
|
|
|
|
|
|
Other Long-Term
Liabilities
|
960
|
|
736
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Common stock of Carnival Corporation, $0.01 par value; 1,960
shares
|
|
|
|
|
authorized; 652 shares at 2014 and 651 shares at 2013
issued
|
7
|
|
7
|
|
Ordinary shares of Carnival plc, $1.66 par value; 216 shares at
2014
|
358
|
|
358
|
|
and 2013
issued
|
|
|
|
|
Additional paid-in capital
|
8,384
|
|
8,325
|
|
Retained earnings
|
19,242
|
|
18,782
|
|
Accumulated other comprehensive (loss) income
|
(616)
|
|
161
|
|
Treasury stock, 59 shares at 2014 and 2013 of Carnival
Corporation
|
|
|
|
|
and 32
shares at 2014 and 2013 of Carnival plc, at cost
|
(3,087)
|
|
(3,077)
|
|
Total shareholders' equity
|
24,288
|
|
24,556
|
|
$
39,532
|
|
$
40,104
|
|
CARNIVAL
CORPORATION & PLC
|
|
OTHER
INFORMATION
|
|
|
|
|
Three Months
Ended
|
Twelve Months
Ended
|
|
|
|
November
30,
|
November
30,
|
|
|
|
2014
|
|
2013
|
2014
|
2013
|
|
STATISTICAL
INFORMATION
|
|
|
|
|
|
|
|
|
ALBDs
(in thousands) (a)
|
|
|
19,170
|
|
18,813
|
76,000
|
74,033
|
|
Occupancy percentage (b)
|
|
|
101.9%
|
|
102.1%
|
104.1%
|
105.1%
|
|
Passengers carried (in thousands)
|
|
|
2,623
|
|
2,511
|
10,566
|
10,061
|
|
Fuel
consumption in metric tons (in thousands)
|
|
|
794
|
|
819
|
3,194
|
3,266
|
|
Fuel
consumption in metric tons per ALBD
|
|
|
0.041
|
|
0.044
|
0.042
|
0.044
|
|
Fuel
cost per metric ton consumed
|
|
|
$ 584
|
|
$
671
|
$ 636
|
$ 676
|
|
Currencies
|
|
|
|
|
|
|
|
|
U.S. dollar to €1
|
|
|
$ 1.27
|
|
$
1.35
|
$ 1.34
|
$ 1.32
|
|
U.S. dollar to £1
|
|
|
$ 1.60
|
|
$
1.60
|
$ 1.66
|
$ 1.56
|
|
U.S. dollar to Australian dollar
|
|
|
$ 0.88
|
|
$
0.94
|
$ 0.91
|
$ 0.98
|
|
|
|
|
|
|
|
|
|
CASH FLOW
INFORMATION
|
|
|
|
|
|
|
|
|
Cash from
operations
|
|
|
$ 637
|
|
$
475
|
$ 3,430
|
$ 2,834
|
|
Capital
expenditures
|
|
|
$ 906
|
|
$
337
|
$ 2,583
|
$ 2,149
|
|
Dividends
paid
|
|
|
$ 194
|
|
$
194
|
$ 776
|
$ 1,164
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
FUEL
DERIVATIVES
|
|
|
At November 30, 2014,
our outstanding fuel derivatives consisted of zero cost collars on
Brent crude oil ("Brent") to cover a portion of our estimated fuel
consumption as follows:
|
|
|
Maturities
(a) (b)
|
Transaction
Dates
|
Barrels
(in
thousands)
|
Weighted-Average
Floor
Prices
|
Weighted-Average
Ceiling
Prices
|
Percent of
Estimated
Fuel
Consumption
Covered
|
|
Fiscal
2015
|
|
|
|
|
|
|
November
2011
|
2,160
|
$ 80
|
$ 114
|
|
|
February
2012
|
2,160
|
$ 80
|
$ 125
|
|
|
June 2012
|
1,236
|
$ 74
|
$ 110
|
|
|
April 2013
|
1,044
|
$ 80
|
$ 111
|
|
|
May 2013
|
1,884
|
$ 80
|
$ 110
|
|
|
October
2014
|
1,920
|
$ 79
|
$ 110
|
|
|
|
10,404
|
|
|
51%
|
|
|
|
|
|
|
|
Fiscal
2016
|
|
|
|
|
|
|
June 2012
|
3,564
|
$ 75
|
$ 108
|
|
|
February
2013
|
2,160
|
$ 80
|
$ 120
|
|
|
April 2013
|
3,000
|
$ 75
|
$ 115
|
|
|
|
8,724
|
|
|
42%
|
|
|
|
|
|
|
|
Fiscal
2017
|
|
|
|
|
|
|
February
2013
|
3,276
|
$ 80
|
$ 115
|
|
|
April 2013
|
2,028
|
$ 75
|
$ 110
|
|
|
January
2014
|
1,800
|
$ 75
|
$ 114
|
|
|
October
2014
|
1,020
|
$ 80
|
$ 113
|
|
|
|
8,124
|
|
|
39%
|
|
|
|
|
|
|
|
Fiscal
2018
|
|
|
|
|
|
|
January
2014
|
2,700
|
$ 75
|
$ 110
|
|
|
October
2014
|
3,000
|
$ 80
|
$ 114
|
|
|
|
5,700
|
|
|
28%
|
|
|
(a) Fuel derivatives
mature evenly over each month within the above fiscal
periods.
|
|
(b) We will not
realize any economic gain or loss upon the monthly maturities of
our zero cost collars unless the average monthly price of Brent is
above the ceiling price or below the floor price.
|
|
FUEL PRICE
SENSITIVITY
|
|
|
Based principally on
the current Brent price and the correlation between marine fuel and
Brent prices, full year 2015 forecasted fuel expenses are expected
to decrease $475 million, net of derivatives, compared to 2014. We
mitigate a portion of our exposure to changes in fuel prices
through the use of Brent zero cost collars. The actual fuel we used
on our ships is marine fuel. Our internal analyses of historical
data calculates that our marine fuel and Brent prices move in
tandem at this time. The following sensitivity table is based on
this calculation. However, the relationship between our marine fuel
and Brent prices and its impact on this calculation can change
daily.
|
|
|
The full year 2015
non-GAAP EPS Guidance impact from possible changes to the $63 per
barrel Brent price used in our December Guidance is as
follows:
|
|
|
Brent Spot
Prices
per
barrel
|
Fuel
Prices
per Metric
Ton
|
Fuel
Expenses
(in
millions)
|
Forecasted
Realized
Losses
on
Fuel
Derivatives
(in
millions)
|
(Unfavorable) Favorable
Impact on 2015
Non-GAAP
EPS
Guidance
|
|
$ 80
|
$ 542
|
$ 1,718
|
$
5
|
$ (0.23)
|
|
$ 70
|
$ 478
|
$ 1,515
|
$ 97
|
$ (0.09)
|
|
$ 63
|
$ 436
|
$ 1,382
|
$ 163
|
-
|
|
$ 60
|
$ 414
|
$ 1,313
|
$ 197
|
$ 0.05
|
|
$ 50
|
$ 350
|
$ 1,110
|
$ 297
|
$ 0.18
|
|
$ 40
|
$ 286
|
$ 907
|
$ 397
|
$ 0.31
|
|
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
November 30,
|
Twelve Months
Ended November 30,
|
|
|
2014
|
|
|
2014
|
|
|
|
Constant
|
|
|
Constant
|
|
|
2014
|
Dollar
|
2013
|
2014
|
Dollar
|
2013
|
|
|
|
|
|
|
|
|
Passenger ticket
revenues
|
$ 2,745
|
$ 2,795
|
$ 2,697
|
$ 11,889
|
$ 11,787
|
$ 11,648
|
|
Onboard and other
revenues
|
941
|
954
|
929
|
3,780
|
3,765
|
3,598
|
|
Gross cruise
revenues
|
3,686
|
3,749
|
3,626
|
15,669
|
15,552
|
15,246
|
|
Less cruise
costs
|
|
|
|
|
|
|
|
Commissions, transportation and other
|
(520)
|
(532)
|
(526)
|
(2,299)
|
(2,277)
|
(2,303)
|
|
Onboard
and other
|
(127)
|
(129)
|
(153)
|
(519)
|
(516)
|
(539)
|
|
(647)
|
(661)
|
(679)
|
(2,818)
|
(2,793)
|
(2,842)
|
|
|
|
|
|
|
|
|
Net passenger ticket
revenues
|
2,225
|
2,263
|
2,171
|
9,590
|
9,510
|
9,345
|
|
Net onboard and other
revenues
|
814
|
825
|
776
|
3,261
|
3,249
|
3,059
|
|
Net cruise
revenues
|
$
3,039
|
$
3,088
|
$
2,947
|
$
12,851
|
$
12,759
|
$
12,404
|
|
|
|
|
|
|
|
|
ALBDs
|
19,170,347
|
19,170,347
|
18,812,573
|
75,999,952
|
75,999,952
|
74,032,939
|
|
|
|
|
|
|
|
|
Gross revenue
yields
|
$ 192.29
|
$ 195.54
|
$ 192.73
|
$ 206.17
|
$ 204.63
|
$ 205.94
|
|
% (decrease) increase
vs. 2013
|
(0.2)%
|
1.5%
|
|
0.1%
|
(0.6)%
|
|
|
|
|
|
|
|
|
|
Net revenue
yields
|
$ 158.53
|
$ 161.09
|
$ 156.63
|
$ 169.09
|
$ 167.88
|
$ 167.56
|
|
% increase vs.
2013
|
1.2%
|
2.8%
|
|
0.9%
|
0.2%
|
|
|
|
|
|
|
|
|
|
Net passenger ticket
revenue yields
|
$ 116.07
|
$ 118.05
|
$ 115.43
|
$ 126.18
|
$ 125.14
|
$ 126.23
|
|
% increase (decrease)
vs. 2013
|
0.5%
|
2.3%
|
|
0.0%
|
(0.9)%
|
|
|
|
|
|
|
|
|
|
Net onboard and
other revenue yields
|
$ 42.46
|
$ 43.04
|
$ 41.20
|
$ 42.90
|
$ 42.75
|
$ 41.33
|
|
% increase vs.
2013
|
3.1%
|
4.5%
|
|
3.8%
|
3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
November 30,
|
Twelve Months
Ended November 30,
|
|
|
2014
|
|
|
2014
|
|
|
|
Constant
|
|
|
Constant
|
|
|
2014
|
Dollar
|
2013
|
2014
|
Dollar
|
2013
|
|
Cruise operating
expenses
|
$ 2,467
|
$ 2,503
|
$ 2,590
|
$ 10,243
|
$ 10,184
|
$ 10,481
|
|
Cruise selling and
administrative
expenses
|
545
|
554
|
530
|
2,046
|
2,035
|
1,871
|
|
Gross cruise
costs
|
3,012
|
3,057
|
3,120
|
12,289
|
12,219
|
12,352
|
|
Less cruise costs
included above
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
(520)
|
(532)
|
(526)
|
(2,299)
|
(2,277)
|
(2,303)
|
|
Onboard and
other
|
(127)
|
(129)
|
(153)
|
(519)
|
(516)
|
(539)
|
|
Losses on ship sales
and ship
impairments,
net
|
(17)
|
(19)
|
-
|
(2)
|
(5)
|
(178)
|
|
Restructuring expenses
|
(18)
|
(18)
|
-
|
(18)
|
(18)
|
-
|
|
Net cruise
costs
|
2,330
|
2,359
|
2,441
|
9,451
|
9,403
|
9,332
|
|
Less fuel
|
(464)
|
(464)
|
(549)
|
(2,033)
|
(2,033)
|
(2,208)
|
|
Net cruise costs
excluding fuel
|
$
1,866
|
$
1,895
|
$
1,892
|
$
7,418
|
$
7,370
|
$
7,124
|
|
|
|
|
|
|
|
|
ALBDs
|
19,170,347
|
19,170,347
|
18,812,573
|
75,999,952
|
75,999,952
|
74,032,939
|
|
|
|
|
|
|
|
|
Gross cruise costs
per ALBD
|
$ 157.12
|
$ 159.46
|
$ 165.85
|
$ 161.69
|
$ 160.77
|
$ 166.83
|
|
% decrease vs.
2013
|
(5.3)%
|
(3.8)%
|
|
(3.1)%
|
(3.6)%
|
|
|
|
|
|
|
|
|
|
Net cruise costs per
ALBD
|
$ 121.55
|
$ 123.04
|
$ 129.74
|
$ 124.35
|
$ 123.70
|
$ 126.05
|
|
% decrease vs.
2013
|
(6.3)%
|
(5.2)%
|
|
(1.3)%
|
(1.9)%
|
|
|
|
|
|
|
|
|
|
Net cruise costs
excluding fuel per ALBD
|
$ 97.35
|
$ 98.83
|
$ 100.54
|
$ 97.60
|
$ 96.95
|
$ 96.23
|
|
% (decrease) increase
vs. 2013
|
(3.2)%
|
(1.7)%
|
|
1.4%
|
0.8%
|
|
|
|
(See next page for
Notes to Non-GAAP Financial Measures.)
|
|
CARNIVAL
CORPORATION & PLC
|
|
NON-GAAP FINANCIAL
MEASURES (CONTINUED)
|
|
|
Non-GAAP fully
diluted earnings per share was computed as follows (in millions,
except per share data) (b):
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
November
30,
|
|
November
30,
|
|
2014
|
2013
|
|
2014
|
2013
|
|
Net income –
diluted
|
|
|
|
|
|
|
U.S. GAAP net (loss) income
|
$ (102)
|
$ 66
|
|
$ 1,236
|
$ 1,078
|
|
Losses on ship sales
and ship impairments, net (c)
|
17
|
-
|
|
2
|
163
|
|
Trademark and other
impairment charges (d)
|
-
|
-
|
|
-
|
27
|
|
Restructuring expenses
(d)
|
18
|
-
|
|
18
|
-
|
|
Unrealized losses (gains)
on fuel derivatives (e)
|
277
|
(31)
|
|
268
|
(36)
|
|
Non-GAAP net income
|
$
210
|
$
35
|
|
$
1,524
|
$
1,232
|
|
Weighted-average
shares outstanding – diluted (f)
|
776
|
777
|
|
778
|
777
|
|
|
|
|
|
|
|
Earnings per share
– diluted
|
|
|
|
|
|
|
U.S. GAAP (loss) earnings per share
|
$ (0.13)
|
$ 0.08
|
|
$ 1.59
|
$ 1.39
|
|
Losses on ship sales
and ship impairments, net (c)
|
0.02
|
-
|
|
-
|
0.21
|
|
Trademark and other
impairment charges (d)
|
-
|
-
|
|
-
|
0.03
|
|
Restructuring expenses
(d)
|
0.02
|
-
|
|
0.02
|
-
|
|
Unrealized losses (gains)
on fuel derivatives (e)
|
0.36
|
(0.04)
|
|
0.35
|
(0.05)
|
|
Non-GAAP earnings per share
|
$
0.27
|
$
0.04
|
|
$
1.96
|
$
1.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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. generally accepted accounting principles ("U.S. GAAP")
consolidated financial statements.
|
|
|
|
Net revenue yields
are commonly used in the cruise industry to measure a company's
cruise segment revenue performance and for revenue management
purposes. We use "net cruise revenues" rather than "gross
cruise revenues" to calculate net revenue yields. We believe
that net cruise revenues is a more meaningful measure in
determining revenue yield than gross cruise revenues because it
reflects the cruise revenues earned net of our most significant
variable costs, which are travel agent commissions, cost of air and
other transportation, certain other costs that are directly
associated with onboard and other revenues and credit and debit
card fees. Substantially all of our remaining cruise costs
are largely fixed, except for the impact of changing prices and
food expenses, once our ship capacity levels have been
determined.
|
|
|
|
Net passenger ticket
revenues reflect gross passenger ticket revenues, net of
commissions, transportation and other costs. Net onboard and
other revenues reflect gross onboard and other revenues, net of
onboard and other cruise costs. Net passenger ticket revenue
yields and net onboard and other revenue yields are computed by
dividing net passenger ticket revenues and net onboard and other
revenues by ALBDs.
|
|
|
|
Net cruise costs per
ALBD and net cruise costs excluding fuel per ALBD are the most
significant measures we use to monitor our ability to control our
cruise segments' costs rather than gross cruise costs per ALBD. We
exclude the same variable costs that are included in the
calculation of net cruise revenues to calculate net cruise costs
with and without fuel to avoid duplicating these variable costs in
our non-GAAP financial measures. In addition, we exclude gains and
losses on ship sales and ship impairments, net and restructuring
expenses from our calculation of net cruise costs with and without
fuel as they are not considered part of our core operating
business.
|
|
|
|
We have not provided
estimates of future gross revenue yields or future gross cruise
costs per ALBD because the quantitative reconciliations of
forecasted gross cruise revenues to forecasted net cruise revenues
or forecasted gross cruise costs to forecasted net cruise costs
would include a significant amount of uncertainty in projecting the
costs deducted to arrive at these measures. As such,
management does not believe that this reconciling information would
be meaningful.
|
|
CARNIVAL
CORPORATION & PLC
|
|
NON-GAAP FINANCIAL
MEASURES (CONTINUED)
|
|
|
In addition, because
our Europe, Australia & Asia ("EAA") cruise brands utilize the
euro, sterling and Australian dollar to measure their results and
financial condition, the translation of those 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. Accordingly, we also monitor and
report these non-GAAP financial measures assuming the 2014 periods
currency exchange rates have remained constant with the 2013 period
rates, or on a "constant dollar basis," in order to remove the
impact of changes in exchange rates on the translation of our EAA
brands. We believe that this is a useful measure since it
facilitates a comparative view of the changes in our business in a
fluctuating currency exchange rate environment.
|
|
|
|
(b)
|
Our consolidated
financial statements are prepared in accordance with U.S.
GAAP. 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. There are no specific rules for
determining our non-GAAP current and constant dollar financial
measures and, accordingly, they are susceptible to varying
calculations, and it is possible that they 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)
|
We believe that the
losses on ship sales and ship impairments, net recognized in the
three and twelve months ended November 30, 2014 and 2013 are not
part of our core operating business and, therefore, are not an
indication of our future earnings performance. As such, we believe
it is more meaningful for gains and losses on ship sales and ship
impairments, net to be excluded from our net income and earnings
per share and, accordingly, we present non-GAAP net income and
non-GAAP earnings per share excluding these items.
|
|
|
|
(d)
|
We believe that the
trademark and other impairment charges and restructuring expenses
recognized in the three and twelve months ended November 30, 2014
and 2013 are special charges and, therefore, are also not an
indication of our future earnings performance. As such, we
also believe it is more meaningful for these impairment charges to
be excluded from our net income and earnings per share and,
accordingly, we present non-GAAP net income and non-GAAP earnings
per share excluding these impairment charges.
|
|
|
|
(e)
|
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 non-GAAP net income and non-GAAP earnings
per share excluding these unrealized gains and losses.
|
|
|
|
(f)
|
For the three months
ended November 30, 2014, non-GAAP diluted weighted-average shares
outstanding were 778 million, which includes the dilutive effect of
equity plans.
|
|
|
|
We have not included
in our earnings guidance the impact of unrealized gains and losses
on fuel derivatives because these unrealized amounts involve a
significant amount of uncertainty, and we do not believe they are
an indication of our future earnings performance.
Accordingly, our earnings guidance is presented on a non-GAAP basis
only. As a result, we did not present a reconciliation
between forecasted non-GAAP diluted earnings per share guidance and
forecasted U.S. GAAP diluted earnings per share guidance, since we
do not believe that the reconciliation information would be
meaningful. However, we do forecast gains and losses on fuel
derivatives by applying Brent prices to the derivatives that settle
in the forecast period.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/carnival-corporation--plc-reports-significantly-higher-full-year-earnings-300012389.html
SOURCE Carnival Corporation & plc