MIAMI, June 23, 2015 /PRNewswire/ -- Carnival
Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced non-GAAP
net income of $193 million, or
$0.25 diluted EPS for the second
quarter of 2015 compared to non-GAAP net income for the second
quarter of 2014 of $73 million, or
$0.09 diluted EPS. For the second
quarter of 2015, U.S. GAAP net income, which included unrealized
gains on fuel derivatives of $34
million and $7 million of
restructuring expenses, was $222
million, or $0.29 diluted EPS.
For the second quarter of 2014, U.S. GAAP net income was
$98 million, or $0.13 diluted EPS. Revenues for the second
quarter of 2015 were $3.6 billion, in
line with the prior year.
Carnival Corporation & plc President and CEO Arnold Donald noted, "We more than doubled our
second quarter earnings versus the comparable period a year ago and
significantly exceeded our quarterly earnings guidance. Our
initiatives to create demand and leverage our scale benefited both
cruise ticket prices and onboard revenues contributing to 5%
revenue yield improvement (constant currency) this quarter. While
all of our North American brands enjoyed strong revenue yield
improvement, our Carnival Cruise Line brand performed particularly
well again this quarter. We thank our teams around the globe for
their consistent delivery of exceptional guest experiences as well
as our travel agent partners for their strong support, both of
which are critical to our success."
Significant milestones during the second quarter included the
launch of "fathom", the tenth brand in the Carnival Corporation
family. Beginning in April 2016,
"fathom" will introduce a new cruise category offering travelers
authentic and meaningful experiences to targeted destinations,
beginning with the Dominican
Republic, to work alongside locals for transformational
community impact.
Additionally, Costa began year-round service from Shanghai on Costa Serena in April and
announced the deployment of Costa Fortuna to China in 2016 bringing the total to four Costa
ships dedicated to Chinese guests. Princess Cruises also announced
that it will expand its presence in Asia with a new ship scheduled to enter
service in mid-2017 to be based in China year-round and custom-designed
specifically for Chinese guests. Already the industry leader in
passenger cruise days home ported in China, these developments will further the
company's leading presence in this rapidly expanding market and
attract new cruisers to the company's brands.
Also, earlier this month Carnival Corporation finalized a
contract with Meyer Werft shipyard
to build four next-generation ships that will feature the largest
guest capacity in the world as well as the first cruise ships to be
powered at sea by Liquefied Natural Gas, which is the world's
cleanest-burning fossil fuel.
"These milestones further demonstrate our ongoing focus on
effective strategic actions, technological development and
innovation, laying the foundation for future growth and continued
global expansion," said Donald.
Key metrics for the second quarter 2015 compared to the prior
year were as follows:
- On a constant dollar basis, net revenue yields (net revenue per
available lower berth day or "ALBD") increased 4.1 percent for 2Q
2015, which was better than the company's guidance of up 2 to 3
percent. Gross revenue yields decreased 3.5 percent in current
dollars due to changes in currency exchange rates.
- Net cruise costs excluding fuel per ALBD increased 6.1 percent
in constant dollars, primarily due to an increase in dry-dock days.
Costs were better than March guidance, up 6.5 to 7.5 percent due to
the timing of expenses between quarters. Gross cruise costs
including fuel per ALBD in current dollars decreased 8.0 percent
due to changes in fuel prices and currency exchange rates.
- Fuel prices declined 37 percent to $411 per metric ton for 2Q 2015 from $657 per metric ton in 2Q 2014 but were higher
than March guidance of $402 per
metric ton.
- Changes in currency exchange rates reduced earnings by
$0.10 per share (constant
currency).
2015 Outlook
During the last thirteen weeks, fleetwide booking volumes for
the next three quarters were running well ahead of last year at
slightly lower prices due to transactional currency impacts. At
this time, cumulative advance bookings for the next three quarters
are well ahead of the prior year at slightly lower prices again due
to transactional currency impacts.
Donald noted, "Current strength in booking volumes clearly
demonstrates strong consumer demand for our brands, leaving less
inventory remaining for sale and building confidence in achieving
significant revenue yield improvement this year. We are stepping up
our marketing investment for the remainder of the year to further
solidify our base of business for 2016 and drive continued yield
improvement as we progress on our path toward double digit return
on invested capital."
The company continues to expect full year 2015 net revenue
yields on a constant currency basis to be up 3 to 4 percent, which
excludes translational and transactional currency impacts, compared
to the prior year (up 2 to 3 percent on a constant dollar basis
compared to the prior year). The company now expects full year 2015
net cruise costs excluding fuel per ALBD to be up approximately 3
percent compared to the prior year on a constant dollar basis,
which is slightly higher than had been anticipated in the March
guidance mainly due to increased investment in advertising.
Taking the above factors into consideration, the company has
increased its full year 2015 non-GAAP diluted earnings per share
guidance to be in the range of $2.35 to
$2.50, compared to 2014 non-GAAP diluted earnings of
$1.93 per share.
Third Quarter 2015 Outlook
Third quarter constant currency net revenue yields are expected
to be up 3 to 4 percent compared to the prior year (up 2 to 3
percent in constant dollars). Net cruise costs excluding fuel per
ALBD for the third quarter are expected to be 2 to 3 percent higher
on a constant dollar basis compared to the prior year. Changes in
fuel prices net of derivatives, and currency is expected to reduce
third quarter earnings by $0.06 per
share.
Based on the above factors, the company expects non-GAAP diluted
earnings for the third quarter 2015 to be in the range of
$1.56 to $1.60 per share versus 2014
non-GAAP earnings of $1.58 per
share.
Selected Key Forecast Metrics
|
|
|
|
Full Year
2015
|
|
|
|
Third Quarter
2015
|
|
Year over year
change:
|
|
|
Current Dollars
|
|
Constant
Dollars
|
|
Current Dollars
|
|
Constant
Dollars
|
Net revenue
yields
|
|
|
(2.0) to
(3.0)%
|
|
2.0 to
3.0%
|
|
(3.0) to
(4.0)%
|
|
2.0 to
3.0%
|
Net cruise costs
excl. fuel / ALBD
|
|
|
(1.5) to
(2.5)%
|
|
2.5 to
3.5%
|
|
(2.5) to
(3.5)%
|
|
2.0 to
3.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
2015
|
|
Third Quarter
2015
|
Fuel price per metric
ton
|
|
444
|
|
492
|
Fuel consumption
(metric tons in thousands)
|
|
3,190
|
|
790
|
Currency:
Euro
|
|
$1.13 to €1
|
|
$1.13 to
€1
|
Sterling
|
|
$1.53 to £1
|
|
$1.54 to
£1
|
Australian dollar
|
|
$0.78 to
A$1
|
|
$0.77 to
A$1
|
Canadian dollar
|
|
$0.81 to
C$1
|
|
$0.80 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 2015 second
quarter results. This call can be listened to live, and
additional information can be obtained, via Carnival Corporation
& plc's Web site at www.carnivalcorp.com and
www.carnivalplc.com.
Carnival Corporation & plc is the largest cruise company in
the world, with a portfolio of 10 cruise brands in North America, Europe, Australia and Asia, comprised of Carnival Cruise Line,
Holland America Line, Princess Cruises, Seabourn, AIDA Cruises,
Costa Cruises, Cunard, P&O Cruises ( Australia), P&O Cruises (UK) and
fathom.
Together, these brands will operate 100 ships in 2015 totaling
219,000 lower berths with eight new ships scheduled to be delivered
between 2016 and 2018, along with four additional new ships on
order between 2019 through 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, 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 relationship 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 DLC 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 INCOME
|
|
(UNAUDITED)
|
|
(in millions, except
per share data)
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months Ended
|
|
|
|
|
May
31,
|
|
May
31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
|
|
|
|
|
Passenger tickets
|
|
|
$ 2,628
|
|
$ 2,698
|
|
$ 5,260
|
|
$ 5,425
|
|
|
Onboard and other
|
|
|
927
|
|
905
|
|
1,816
|
|
1,755
|
|
|
Tour and other
|
|
|
35
|
|
30
|
|
44
|
|
38
|
|
|
|
|
|
3,590
|
|
3,633
|
|
7,120
|
|
7,218
|
|
|
Operating Costs
and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
|
|
|
|
|
|
Commissions, transportation and other
|
|
|
481
|
|
520
|
|
1,067
|
|
1,141
|
|
|
Onboard and other
|
|
|
114
|
|
115
|
|
225
|
|
228
|
|
|
Payroll and related
|
|
|
469
|
|
485
|
|
936
|
|
965
|
|
|
Fuel
|
|
|
333
|
|
527
|
|
650
|
|
1,050
|
|
|
Food
|
|
|
242
|
|
251
|
|
482
|
|
496
|
|
|
Other ship operating
|
|
|
734
|
|
642
|
(a)
|
1,332
|
|
1,238
|
(a)
|
|
Tour and other
|
|
|
31
|
|
32
|
|
47
|
|
46
|
|
|
|
|
|
2,404
|
|
2,572
|
|
4,739
|
|
5,164
|
|
|
Selling and
administrative
|
|
|
491
|
|
504
|
|
1,020
|
|
1,025
|
|
|
Depreciation and
amortization
|
|
|
406
|
|
410
|
(a)
|
807
|
|
815
|
(a)
|
|
|
|
|
3,301
|
|
3,486
|
|
6,566
|
|
7,004
|
|
|
Operating
Income
|
|
|
289
|
|
147
|
|
554
|
|
214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating
(Expense) Income
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
2
|
|
2
|
|
4
|
|
4
|
|
|
Interest expense, net of
capitalized interest
|
|
|
(57)
|
|
(72)
|
|
(114)
|
|
(143)
|
|
|
(Losses) gains on fuel
derivatives, net (b)
|
|
|
(13)
|
|
11
|
|
(181)
|
|
(6)
|
|
|
Other income, net
|
|
|
5
|
|
11
|
|
15
|
|
11
|
|
|
|
|
|
(63)
|
|
(48)
|
|
(276)
|
|
(134)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before
Income Taxes
|
|
|
226
|
|
99
|
|
278
|
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax Expense, Net
|
|
|
(4)
|
|
(1)
|
|
(7)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
$
222
|
|
$
98
|
|
$
271
|
|
$
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
0.29
|
|
$
0.13
|
|
$
0.35
|
|
$
0.10
|
|
|
Diluted
|
|
|
$
0.29
|
|
$
0.13
|
|
$
0.35
|
|
$
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Earnings
Per Share-Diluted (c)
|
|
|
$
0.25
|
|
$
0.09
|
|
$
0.45
|
|
$
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared
Per Share
|
|
|
$
0.25
|
|
$
0.25
|
|
$
0.50
|
|
$
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding – Basic
|
|
|
778
|
|
776
|
|
777
|
|
776
|
|
|
Weighted-Average
Shares Outstanding – Diluted
|
|
|
780
|
|
778
|
|
780
|
|
778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
In the first quarter
of 2015, we revised and corrected the accounting for one of our
brands' marine and technical spare parts in order to consistently
expense them fleetwide. Had we not revised, this accounting may
have resulted in material inconsistencies to our financial
statements in the future. Accordingly, we will revise other
previously reported results in future filings. This revision
increased our three and six months ended May 31, 2014 other ship
operating and depreciation expenses by $7 million and $1 million
and $12 million and $1 million, respectively.
|
(b)
|
During the three
months ended May 31, 2015 and 2014, our losses on fuel derivatives,
net include net unrealized gains of $34 million and $10 million and
realized (losses) gains of $(47) million and $1 million,
respectively. During the six months ended May 31, 2015 and 2014,
our losses on fuel derivatives, net include net unrealized losses
of $(78) million and $(7) million and realized (losses) gains of
$(103) million and $1 million, respectively.
|
(c)
|
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)
|
|
|
|
|
May
31,
|
|
November
30,
|
|
|
2015
|
|
2014
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash equivalents
|
$
298
|
|
$
331
|
|
Trade and other receivables, net
|
380
|
|
332
|
|
Insurance recoverables
|
176
|
|
154
|
|
Inventories
|
327
|
|
349
|
|
Prepaid expenses and other
|
298
|
|
322
|
|
Total
current assets
|
1,479
|
|
1,488
|
|
|
|
|
|
|
Property and
Equipment, Net
|
32,179
|
|
32,819
|
|
|
|
|
|
|
Goodwill
|
3,041
|
|
3,127
|
|
|
|
|
|
|
Other
Intangibles
|
1,247
|
|
1,270
|
|
|
|
|
|
|
Other
Assets
|
665
|
|
744
|
|
|
$
38,611
|
|
$
39,448
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Short-term borrowings
|
$
305
|
|
$
666
|
|
Current portion of long-term debt
|
1,316
|
|
1,059
|
|
Accounts payable
|
637
|
|
626
|
|
Claims reserve
|
295
|
|
262
|
|
Accrued liabilities and other
|
1,223
|
|
1,276
|
|
Customer deposits
|
3,907
|
|
3,032
|
|
Total current liabilities
|
7,683
|
|
6,921
|
|
|
|
|
|
|
Long-Term
Debt
|
6,648
|
|
7,363
|
|
|
|
|
|
|
Other Long-Term
Liabilities
|
1,028
|
|
960
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Common stock of Carnival Corporation, $0.01 par value; 1,960
shares
|
|
|
|
|
authorized; 653 shares at 2015 and 652 shares at 2014
issued
|
7
|
|
7
|
|
Ordinary shares of Carnival plc, $1.66 par value; 216 shares at
2015
|
|
|
|
|
and 2014
issued
|
358
|
|
358
|
|
Additional paid-in capital
|
8,412
|
|
8,384
|
|
Retained earnings
|
19,041
|
|
19,158
|
|
Accumulated other comprehensive loss
|
(1,479)
|
|
(616)
|
|
Treasury stock, 59 shares at 2015 and 2014 of Carnival
Corporation
|
|
|
|
|
and 32
shares at 2015 and 2014 of Carnival plc, at cost
|
(3,087)
|
|
(3,087)
|
|
Total shareholders' equity
|
23,252
|
|
24,204
|
|
|
$
38,611
|
|
$
39,448
|
|
|
|
|
|
|
|
|
|
|
|
|
CARNIVAL
CORPORATION & PLC
|
OTHER
INFORMATION
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
|
May 31,
|
May 31,
|
|
|
|
2015
|
|
2014
|
2015
|
2014
|
STATISTICAL
INFORMATION
|
|
|
|
|
|
|
|
ALBDs
(in thousands) (a)
|
|
|
19,307
|
|
18,872
|
37,891
|
37,158
|
Occupancy percentage (b)
|
|
|
102.8%
|
|
102.2%
|
102.9%
|
102.6%
|
Passengers carried (in thousands)
|
|
|
2,608
|
|
2,551
|
5,071
|
4,960
|
Fuel
consumption in metric tons (in thousands)
|
|
|
810
|
|
802
|
1,593
|
1,603
|
Fuel
consumption in metric tons per ALBD
|
|
|
0.042
|
|
0.043
|
0.042
|
0.043
|
Fuel
cost per metric ton consumed
|
|
|
$ 411
|
|
$ 657
|
$ 408
|
$ 655
|
Currencies
|
|
|
|
|
|
|
|
U.S. dollar to €1
|
|
|
$ 1.10
|
|
$ 1.38
|
$ 1.13
|
$ 1.37
|
U.S. dollar to £1
|
|
|
$ 1.52
|
|
$ 1.67
|
$ 1.53
|
$ 1.66
|
U.S. dollar to Australian dollar
|
|
|
$ 0.78
|
|
$ 0.92
|
$ 0.79
|
$ 0.91
|
U.S. dollar to Canadian dollar
|
|
|
$ 0.81
|
|
$ 0.91
|
$ 0.81
|
$ 0.91
|
|
|
|
|
|
|
|
|
CASH FLOW
INFORMATION
|
|
|
|
|
|
|
|
Cash from
operations
|
|
|
$ 1,515
|
|
$ 1,196
|
$ 2,286
|
$ 1,673
|
Capital
expenditures
|
|
|
$ 439
|
|
$ 976
|
$ 1,381
|
$ 1,329
|
Dividends
paid
|
|
|
$ 194
|
|
$ 194
|
$ 388
|
$ 388
|
|
|
|
|
|
|
|
|
|
|
(a)
|
ALBD is a standard
measure of passenger capacity for the period, which we use to
approximate rate and capacity variances, based on consistently
applied formulas, that we use to perform analyses to determine the
main non-capacity driven factors that cause our cruise revenues and
expenses to vary. ALBDs assume that each cabin we offer for sale
accommodates two passengers and is computed by multiplying
passenger capacity by revenue-producing ship operating days in the
period.
|
(b)
|
In accordance with
cruise industry practice, occupancy is calculated using a
denominator of ALBDs, which assumes two passengers per cabin even
though some cabins can accommodate three or more passengers.
Percentages in excess of 100% indicate that on average more than
two passengers occupied some cabins.
|
CARNIVAL
CORPORATION & PLC
|
NON-GAAP FINANCIAL
MEASURES
|
|
Consolidated gross
and net revenue yields were computed by dividing the gross and net
cruise revenues by ALBDs as follows (dollars in millions, except
yields) (a) (b):
|
|
|
Three Months Ended May
31,
|
Six Months Ended May
31,
|
|
|
2015
|
|
|
2015
|
|
|
|
Constant
|
|
|
Constant
|
|
|
2015
|
Dollar
|
2014
|
2015
|
Dollar
|
2014
|
Passenger ticket
revenues
|
$ 2,628
|
$ 2,835
|
$ 2,698
|
$ 5,260
|
$ 5,609
|
$ 5,425
|
Onboard and other
revenues
|
927
|
976
|
905
|
1,816
|
1,897
|
1,755
|
Gross cruise
revenues
|
3,555
|
3,811
|
3,603
|
7,076
|
7,506
|
7,180
|
Less cruise
costs
|
|
|
|
|
|
|
Commissions, transportation and other
|
(481)
|
(530)
|
(520)
|
(1,067)
|
(1,162)
|
(1,141)
|
Onboard
and other
|
(114)
|
(121)
|
(115)
|
(225)
|
(236)
|
(228)
|
|
(595)
|
(651)
|
(635)
|
(1,292)
|
(1,398)
|
(1,369)
|
|
|
|
|
|
|
|
Net passenger ticket
revenues
|
2,147
|
2,305
|
2,178
|
4,193
|
4,447
|
4,284
|
Net onboard and other
revenues
|
813
|
855
|
790
|
1,591
|
1,661
|
1,527
|
Net cruise
revenues
|
$
2,960
|
$
3,160
|
$
2,968
|
$
5,784
|
$
6,108
|
$
5,811
|
|
|
|
|
|
|
|
ALBDs
|
19,306,832
|
19,306,832
|
18,872,035
|
37,890,712
|
37,890,712
|
37,158,340
|
|
|
|
|
|
|
|
Gross revenue
yields
|
$ 184.15
|
$ 197.38
|
$ 190.92
|
$ 186.76
|
$ 198.11
|
$ 193.23
|
% (decrease) increase
vs. 2014
|
(3.5)%
|
3.4%
|
|
(3.3)%
|
2.5%
|
|
|
|
|
|
|
|
|
Net revenue
yields
|
$ 153.29
|
$ 163.66
|
$ 157.27
|
$ 152.65
|
$ 161.20
|
$ 156.39
|
% (decrease) increase
vs. 2014
|
(2.5)%
|
4.1%
|
|
(2.4)%
|
3.1%
|
|
|
|
|
|
|
|
|
Net passenger ticket
revenue yields
|
$ 111.20
|
$ 119.41
|
$ 115.40
|
$ 110.66
|
$ 117.36
|
$ 115.29
|
% (decrease) increase
vs. 2014
|
(3.6)%
|
3.5%
|
|
(4.0)%
|
1.8%
|
|
|
|
|
|
|
|
|
Net onboard and
other revenue yields
|
$ 42.09
|
$ 44.25
|
$ 41.87
|
$ 41.99
|
$ 43.83
|
$ 41.10
|
% increase vs.
2014
|
0.5%
|
5.7%
|
|
2.2%
|
6.7%
|
|
Consolidated gross
and net cruise costs and net cruise costs excluding fuel per ALBD
were computed by dividing the gross and net cruise costs and net
cruise costs excluding fuel by ALBDs as follows (dollars in
millions, except costs per ALBD) (a) (b):
|
|
|
Three
Months Ended May
31,
|
Six Months Ended May
31,
|
|
|
2015
|
|
|
2015
|
|
|
|
Constant
|
|
|
Constant
|
|
|
2015
|
Dollar
|
2014
|
2015
|
Dollar
|
2014
|
Cruise operating
expenses
|
$ 2,373
|
$ 2,523
|
$ 2,540
|
$ 4,692
|
$ 4,951
|
$ 5,118
|
Cruise selling and
administrative expenses
|
489
|
524
|
502
|
1,016
|
1,074
|
1,021
|
Gross cruise
costs
|
2,862
|
3,047
|
3,042
|
5,708
|
6,025
|
6,139
|
Less cruise costs
included above
|
|
|
|
|
|
|
Commissions,
transportation and other
|
(481)
|
(530)
|
(520)
|
(1,067)
|
(1,162)
|
(1,141)
|
Onboard and
other
|
(114)
|
(121)
|
(115)
|
(225)
|
(236)
|
(228)
|
Gains on ship sales
and ship
impairment,
net
|
2
|
2
|
15
|
4
|
4
|
15
|
Restructuring
expenses
|
(7)
|
(8)
|
-
|
(7)
|
(9)
|
-
|
Net cruise
costs
|
2,262
|
2,390
|
2,422
|
4,413
|
4,622
|
4,785
|
Less fuel
|
(333)
|
(333)
|
(527)
|
(650)
|
(650)
|
(1,050)
|
Net cruise costs
excluding fuel
|
$
1,929
|
$
2,057
|
$
1,895
|
$
3,763
|
$
3,972
|
$
3,735
|
|
|
|
|
|
|
|
ALBDs
|
19,306,832
|
19,306,832
|
18,872,035
|
37,890,712
|
37,890,712
|
37,158,340
|
|
|
|
|
|
|
|
Gross cruise costs
per ALBD
|
$ 148.22
|
$ 157.78
|
$ 161.18
|
$ 150.64
|
$ 159.01
|
$ 165.20
|
% decrease vs.
2014
|
(8.0)%
|
(2.1)%
|
|
(8.8)%
|
(3.7)%
|
|
|
|
|
|
|
|
|
Net cruise costs per
ALBD
|
$ 117.11
|
$ 123.73
|
$ 128.33
|
$ 116.45
|
$ 121.98
|
$ 128.77
|
% decrease vs.
2014
|
(8.7)%
|
(3.6)%
|
|
(9.6)%
|
(5.3)%
|
|
|
|
|
|
|
|
|
Net cruise costs
excluding fuel per ALBD
|
$ 99.88
|
$ 106.50
|
$ 100.38
|
$ 99.28
|
$ 104.81
|
$ 100.50
|
% (decrease) increase
vs. 2014
|
(0.5)%
|
6.1%
|
|
(1.2)%
|
4.3%
|
|
|
(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
|
|
Six Months Ended
|
|
May 31,
|
|
May
31,
|
|
2015
|
2014
|
|
2015
|
2014
|
Net income –
diluted
|
|
|
|
|
|
U.S. GAAP net income
|
$ 222
|
$ 98
|
|
$ 271
|
$ 78
|
(Gains) on ship sales and ship impairment, net (c)
|
(2)
|
(15)
|
|
(4)
|
(15)
|
Restructuring expenses
(c)
|
7
|
-
|
|
7
|
-
|
Unrealized (gains) losses
on fuel derivatives, net (d)
|
(34)
|
(10)
|
|
78
|
7
|
Non-GAAP net income
|
$
193
|
$
73
|
|
$
352
|
$
70
|
|
|
|
|
|
|
Weighted-average
shares outstanding – diluted
|
780
|
778
|
|
780
|
778
|
|
|
|
|
|
|
Earnings per share
– diluted
|
|
|
|
|
|
U.S. GAAP earnings per share
|
$ 0.29
|
$ 0.13
|
|
$ 0.35
|
$ 0.10
|
(Gains) on ship sales and ship impairment, net (c)
|
-
|
(0.02)
|
|
(0.01)
|
(0.02)
|
Restructuring expenses
(c)
|
0.01
|
-
|
|
0.01
|
-
|
Unrealized (gains) losses
on fuel derivatives, net (d)
|
(0.05)
|
(0.02)
|
|
0.10
|
0.01
|
Non-GAAP earnings per share
|
$
0.25
|
$
0.09
|
|
$
0.45
|
$
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. 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.
|
|
|
|
As a result of our
revision of 2014 cruise ship operating expenses, our previously
reported results changed as follows (in millions, except per ALBD
data):
|
|
|
|
|
|
Three Months
Ended
May 31, 2014
|
Six Months
Ended
May 31, 2014
|
|
As Previously
Reported
|
As
Revised
|
As Previously
Reported
|
As
Revised
|
Gross cruise costs
per ALBD
|
$160.80
|
$161.18
|
$164.89
|
$165.20
|
Net cruise costs per
ALBD
|
$127.95
|
$128.33
|
$128.45
|
$128.77
|
Net cruise costs
excluding fuel per ALBD
|
$100.00
|
$100.38
|
$100.18
|
$100.50
|
U.S. GAAP net
income
|
$106
|
$98
|
$91
|
$78
|
Non-GAAP net
income
|
$80
|
$73
|
$83
|
$70
|
CARNIVAL
CORPORATION & PLC
|
NON-GAAP FINANCIAL
MEASURES (CONTINUED)
|
|
|
|
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.
|
|
|
|
In addition, because
our Europe, Australia & Asia ("EAA") cruise brands utilize the
euro, sterling and Australian dollar as their functional currency
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 2015 periods currency exchange rates have remained
constant with the 2014 periods 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.
|
|
|
|
Although our constant
dollar basis measure removes the foreign currency translational
impact as discussed above, it does not remove the foreign currency
transactional impact from changes in exchange rates on our brands'
revenues and expenses that are denominated in a currency other than
their functional currency. Historically the foreign currency
transactional impact had not been significant when measuring the
periodic changes in our results of operations. However, given the
continuing expansion of our global business and the heightened
volatility in foreign currency exchange rates, we believe the
foreign currency transactional impact is more significant in
measuring our 2015 results compared to 2014, than in previous
years. Together, the foreign currency translational and
transactional impacts discussed above are referred to as on the
"constant currency basis."
|
|
|
(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 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
gains on ship sales and ship impairment, net and restructuring
expenses recognized in the three and six months ended May 31, 2015
and 2014 are not part of our core operating business and,
therefore, is not an indication of our future earnings
performance. As such, we believe it is more meaningful for
the gains on ship sales and ship impairment, net and restructuring
expenses 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)
|
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.
|
|
|
|
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 realized gains and losses on fuel derivatives by
applying current 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-second-quarter-earnings-300103088.html
SOURCE Carnival Corporation & plc