CCL Carnival Plc

 
TIDMCCL 
 
CARNIVAL CORPORATION & PLC REPORTS SUMMARY FIRST QUARTER RESULTS 
                               AND OTHER MATTERS 
 
MIAMI (March 19, 2020) - Carnival Corporation & plc (the "Corporation") (NYSE/ 
LSE: CCL; NYSE: CUK) disclosed summary financial information for the quarter 
ended February 29, 2020, in connection with previously disclosed financing 
activities to improve its liquidity position. 
 
First Quarter 2020 Summary Information 
 
  * U.S. GAAP net loss of $(781) million, or $(1.14) diluted EPS, for the first 
    quarter of 2020, compared to U.S. GAAP net income for the first quarter of 
    2019 of $336 million, or $0.48 diluted EPS. First quarter 2020 net loss 
    includes $932 million of goodwill and ship impairment charges, reduced by 
    net gains on ship sales. 
  * First quarter 2020 adjusted net income of $150 million, or $0.22 adjusted 
    EPS, compared to adjusted net income of $338 million, or $0.49 adjusted 
    EPS, for the first quarter of 2019. First quarter 2020 adjusted net income 
    excludes net charges of $932 million for the first quarter of 2020 and net 
    charges of $2 million for the first quarter of 2019. 
  * The impact of COVID-19 on the first quarter 2020 net loss is approximately 
    $0.23 per share, which includes cancelled voyages and other voyage 
    disruptions, and excludes the impairment charges described above. Other 
    previously disclosed voyage disruptions, noted during the Corporation's 
    December earnings conference call, also impacted first quarter 2020 results 
    by approximately $0.12 per share. 
  * Total revenues for the first quarter of 2020 were $4.8 billion, higher than 
    $4.7 billion in the prior year. 
 
Outlook 
 
For the first half of 2021, booking volumes since the Corporation's last 
conference call in mid-December through March 1, 2020, have been running 
slightly higher than the prior year. Also for the first half of 2021 and during 
the two weeks ended March 15, 2020, the Corporation booked 546,000 Occupied 
Lower Berth Days ("OLBD"), albeit considerably behind the prior year pace.  As 
of March 15, 2020, cumulative advanced bookings for the first half of 2021, are 
slightly lower than the prior year. 
 
Wave season started strong with booking volumes for the three weeks ending 
January 26, 2020, running higher than the prior year for the remaining three 
quarters of the year on a comparable basis. For the seven week period beginning 
January 26, 2020 and ending March 15, 2020, booking volumes for the remainder 
of the year were meaningfully behind the prior year on a comparable basis as a 
result of the effects of COVID-19. As of March 15, 2020, cumulative advanced 
bookings for the remainder of 2020, are meaningfully lower than the prior year 
at prices that are considerably lower than the prior year on a comparable 
basis, reflecting the impact of COVID-19. 
 
The Corporation previously announced a voluntary, temporary pause of its global 
fleet operations across all brands. The Corporation believes the ongoing 
effects of COVID-19 on its operations and global bookings will have a material 
negative impact on its financial results and liquidity. The Corporation also 
believes the effects of COVID-19 on the shipyards where its ships are under 
construction, will result in a delay in ship deliveries. The Corporation is 
taking additional actions to improve its liquidity, including capital 
expenditure and expense reductions, and pursuing additional financing. Given 
the uncertainty of the situation, the Corporation is currently unable to 
provide an earnings forecast, however it expects a net loss on both a U.S. GAAP 
and adjusted basis for the fiscal year ending November 30, 2020. 
 
Capital Resources 
 
As of February 29, 2020, the Corporation had a total of $11.7 billion of 
liquidity. This included $3.0 billion of immediate liquidity plus $2.8 billion 
from four committed export credit facilities that are available to fund the 
originally planned ship deliveries for the remainder of this year and $5.9 
billion from committed export credit facilities that are available to fund ship 
deliveries originally planned  in 2021 and beyond. On March 13, 2020, the 
Corporation fully drew down its $3.0 billion multi-currency revolving credit 
agreement ("Facility Agreement"). The Corporation borrowed under the Facility 
Agreement in order to increase its cash position and preserve financial 
flexibility in light of current uncertainty in the global markets resulting 
from the COVID-19 outbreak. 
 
Substantially all of the Corporation's assets, with the exception of certain 
ships with a net book value of approximately $6 billion as of February 29, 
2020, are currently available to be pledged as collateral. 
 
Explanations of Non-GAAP Financial Measures 
 
We believe that gains and losses on ship sales, impairment charges, 
restructuring costs and other gains and expenses are not part of our core 
operating business and are not an indication of our future earnings 
performance. Therefore, we believe it is more meaningful for these items to be 
excluded from our net income (loss) and earnings per share and, accordingly, we 
present adjusted net income and adjusted earnings per share excluding these 
items. 
 
Definitions 
 
OLBDs represent the quantity of available lower berth days ("ALBD") that are 
booked for sailing. 
 
ALBD is a standard measure of passenger capacity for the period that is used to 
approximate rate and capacity variances, based on consistently applied formulas 
used to perform analyses to determine the main non-capacity driven factors that 
cause cruise revenues and expenses to vary. ALBDs assume that each cabin 
offered for sale accommodates two passengers and is computed by multiplying 
passenger capacity by revenue-producing ship operating days in the period. 
 
Cautionary Note Concerning Factors That May Affect Future Results 
 
Carnival Corporation and Carnival plc and their respective subsidiaries are 
referred to collectively in this document as "Carnival Corporation & plc," 
"our," "us" and "we." Some of the statements, estimates or projections 
contained in this document are "forward-looking statements" that involve risks, 
uncertainties and assumptions with respect to us, including some statements 
concerning future results, 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," "outlook," and similar expressions of future intent or 
the negative of such terms. 
 
Forward-looking statements include those statements that relate to our outlook 
and financial position including, but not limited to, statements regarding: 
 
* Net revenue yields               * Net cruise costs, excluding fuel per available 
                                     lower berth day 
 
* Booking levels                   * Estimates of ship depreciable lives and residual 
                                     values 
 
* Pricing and occupancy            * Goodwill, ship and trademark fair values 
 
* Interest, tax and fuel expenses  * Liquidity 
 
* Currency exchange rates          * Adjusted earnings per share 
 
Because forward-looking statements involve risks and uncertainties, there are 
many factors that could cause our actual results, performance or achievements 
to differ materially from those expressed or implied by our forward-looking 
statements. This note contains important cautionary statements of the known 
factors that we consider could materially affect the accuracy of our forward 
looking statements and adversely affect our business, results of operations and 
financial position. 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: 
 
  * COVID-19 has negatively impacted and may continue to impact the ability or 
    desire of people to travel, including on cruises, and may impact our 
    ability to obtain acceptable financing to fund any resulting shortfalls in 
    cash from operations. 
 
  * World events impacting the ability or desire of people to travel may lead 
    to a decline in demand for cruises 
 
  * Incidents concerning our ships, guests or the cruise vacation industry as 
    well as adverse weather conditions and other natural disasters may impact 
    the satisfaction of our guests and crew and lead to reputational damage 
  * Changes in and non-compliance with laws and regulations under which we 
    operate, such as those relating to health, environment, safety and 
    security, data privacy and protection, anti-corruption, economic sanctions, 
    trade protection and tax may lead to litigation, enforcement actions, 
    fines, penalties, and reputational damage 
 
  * Breaches in data security and lapses in data privacy as well as disruptions 
    and other damages to our principal offices, information technology 
    operations and system networks and failure to keep pace with developments 
    in technology may adversely impact our business operations, the 
    satisfaction of our guests and crew and lead to reputational damage 
 
  * Ability to recruit, develop and retain qualified shipboard personnel who 
    live away from home for extended periods of time may adversely impact our 
    business operations, guest services and satisfaction 
 

  * Increases in fuel prices, changes in the types of fuel consumed and 
    availability of fuel supply may adversely impact our scheduled itineraries 
    and costs 
 
  * Fluctuations in foreign currency exchange rates may adversely impact our 
    financial results 
 
  * Overcapacity and competition in the cruise and land-based vacation industry 
    may lead to a decline in our cruise sales, pricing and destination options 
 
  * Geographic regions in which we try to expand our business may be slow to 
    develop or ultimately not develop how we expect 
  * Inability to implement our shipbuilding programs and ship repairs, 
    maintenance and refurbishments may adversely impact our business operations 
    and the satisfaction of our guests 
 
The ordering of the risk factors set forth above is not intended to reflect our 
indication of priority or likelihood. 
 
Forward-looking statements should not be relied upon as a prediction of actual 
results. Subject to any continuing obligations under applicable law or any 
relevant stock exchange rules, we expressly disclaim any obligation to 
disseminate, after the date of this document, any updates or revisions to any 
such forward-looking statements to reflect any change in expectations or 
events, conditions or circumstances on which any such statements are based. 
 
 
 
END 
 

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