Carnival
Corporation & plc Provides A Business Update And Additional
Financial Information For The Second Quarter
MIAMI, July 10, 2020 -- Carnival Corporation &
plc (NYSE/LSE: CCL; NYSE: CUK) provides a business update and
additional financial information for the second quarter ended
May 31, 2020.
Business Update
In the face of the global impact of COVID-19, the company paused
its guest cruise operations in mid-March. The company expects to
resume guest operations, with ongoing collaboration from both
government and health authorities, in a phased manner. Specific
brands and ships are expected to return to service over time to
provide guests with unmatched joyful vacations in a manner
consistent with the company's highest priorities, which are
compliance, environmental protection and the health, safety and
well-being of its guests, crew and the communities its ships
visit.
AIDA to resume
cruise operations
AIDA previously announced it will resume guest cruise operations
from ports in Germany beginning
August 2020 with three of its ships,
making it the first of the company's nine cruise brands to resume
guest cruise operations. AIDA will introduce additional safety and
protective measures which will include pre-boarding health
questionnaires and temperature checks for both guests and crew,
physical distancing guidelines, routing systems on arrival,
departure and onboard, increased mitigation and sanitation efforts
in all cabins and public areas, as well as closely managing
capacities at onboard experiences. These enhanced measures have
been developed with advice from medical experts and align with the
current guidance from the World Health Organization ("WHO") and the
German Robert Koch Institute ("RKI"), as well as other governmental
and health authorities.
Capacity reduced
by ship delivery deferrals and 13 expected ship dispositions
The company expects future capacity to be moderated by the
phased re-entry of its ships, the removal of capacity from its
fleet and delays in new ship deliveries. As previously announced,
the company intends to accelerate the removal of ships in fiscal
2020 which were previously expected to be sold over the ensuing
years. The company sold one ship during June
2020 and has agreements for the disposal of five ships and
preliminary agreements for an additional three ships, all of which
are expected to leave the fleet in the next 90 days. These
agreements are in addition to the sale of four ships, which were
announced prior to fiscal 2020. In total, the 13 ships expected to
leave the fleet represent a nearly nine percent reduction in
current capacity. The company currently expects only five of the
nine ships originally scheduled for delivery in fiscal 2020 and
fiscal 2021 will be delivered prior to the end of fiscal year 2021.
In addition, the company expects later deliveries of ships
originally scheduled for fiscal 2022 and 2023.
Carnival Corporation & plc President and Chief Executive
Officer Arnold Donald noted, "We
have been transitioning the fleet into a prolonged pause and right
sizing our shoreside operations. We have already reduced operating
costs by over $7 billion on an
annualized basis and reduced capital expenditures also by more than
$5 billion over the next 18 months.
We have secured over $10 billion of
additional liquidity to sustain another full year with additional
flexibility remaining. We have aggressively shed assets while
actively deferring new ship deliveries. We are working hard to
resume operations while serving the best interests of public health
with our way forward informed through consultation with medical
experts and scientists from around the world."
Donald added, "We will emerge a leaner, more efficient company
to optimize cash generation, pay down debt and position us to
return to investment grade credit over time providing strong
returns to our shareholders."
Maximizing Liquidity
Successfully
raised over $10 billion through a
series of financing transactions
Since the pause in guest operations, the company has taken
significant actions to preserve cash and secure additional
financing to maximize its liquidity. While maintaining compliance,
environmental protection and safety, the company significantly
reduced ship operating expenses by transitioning ships into paused
status. The company also reduced its administrative expenses,
non-newbuild capital expenditures by $1.3
billion for 2020 and expects to reduce its newbuild capital
expenditures by over $600 million for
2020, (net of export credit facilities). Additionally, since March,
the company has raised over $10
billion through a series of financing transactions,
including transactions that have occurred in the last three weeks,
as follows:
- Borrowed an aggregate principal amount of $2.8 billion in two tranches under a first
priority senior secured term loan facility on June 30, 2020
- Negotiated Debt Holiday amendments, deferring certain principal
repayments otherwise due through March
2021. (Certain export credit agencies have offered a
12-month debt amortization and financial covenant holiday ("Debt
Holiday"))
In addition, the company has $8.8
billion of committed export credit facilities that are
available to fund ship deliveries originally planned through
2023.
Carnival Corporation & plc Chief Financial Officer and Chief
Accounting Officer David Bernstein
noted, "Quickly recognizing the financial situation, we took swift
action to improve our liquidity by reducing expenses and leveraging
our strong balance sheet to complete several capital
transactions".
During the pause in guest operations, the monthly average cash
burn rate for the second half of 2020 is estimated to be
approximately $650 million. This rate
includes approximately $250 million
of ongoing ship operating and administrative expenses, working
capital changes (excluding changes in customer deposits and
reserves for credit card processors), interest expense and
committed capital expenditures (net of committed export credit
facilities) and also excludes scheduled debt maturities. The
company continues to explore opportunities to further reduce its
monthly cash burn rate.
The pause in guest operations is continuing to have material
negative impacts on all aspects of the company's business. The
longer the full or partial pause in guest operations continues, the
greater the impact on the company's liquidity and financial
position. The company continues to expect a net loss on both a U.S.
GAAP and adjusted basis for the second half of 2020.
Update on Bookings
Demand continues
for 2021 sailings
The company's brands have announced various incentives and
flexibility for certain booking payments on select sailings to
support guest confidence in making new bookings. These incentives
vary by brand and sailing and include onboard credits and reduced
or refundable deposits. In addition, the company is providing
flexibility to guests with bookings on sailings cancelled due to
the pause by offering guests the flexibility of enhanced future
cruise credits ("FCC") or an election for a refund in cash.
Enhanced FCCs increase the value of the guest's original booking or
provide incremental onboard credits. As of June 21, 2020, approximately half of guests
affected have requested cash refunds. Despite substantially reduced
marketing and selling spend, the company continues to see demand
from new bookings for 2021. For the most recent booking period, the
first three weeks in June 2020,
almost 60 percent of 2021 bookings were new bookings. The remaining
2021 booking volumes resulted from guests applying their FCCs to
specific future cruises.
As of June 21, 2020, cumulative
advanced bookings for the full year of 2021 capacity currently
available for sale remain within historical ranges at prices that
are down in the low to mid-single digits range, on a comparable
basis, including the negative yield impact of FCCs and onboard
credits applied.
As of May 31, 2020, the current
portion of customer deposits was $2.6
billion, the majority of which are FCCs. $121 million of the company's customer deposit
balance relates to third quarter sailings and $353 million relates to fourth quarter sailings.
The company continues to expect any decline in the customer
deposits balance in the second half of 2020, all of which is
expected to occur in the third quarter, to be significantly less
than the decline in the second quarter of 2020.
Protecting the Health and Safety of
Guests and Team Members
Throughout the pause in its guest cruise operations, the company
has acted to protect the health and safety of guests and shipboard
team members. The company returned over 260,000 guests to their
homes, coordinating with a large number of countries around the
globe. In addition, the company worked around the clock with
various local governmental authorities, utilized its ships and
chartered hundreds of planes to repatriate shipboard team members
as quickly as possible. The company is extremely pleased with its
ability to successfully repatriate approximately 77,000 of its
shipboard team members to more than 130 countries around the globe,
which is substantially all of its onboard workforce other than the
safe manning team members who will remain on the ships, and thanks
the numerous governments who worked closely with the company during
the repatriation process.
Donald commented, "I could not be more proud of how collectively
our team has handled this. We looked after our guests, each other
and the over 700 places we go each year. Thanks to our crew for
continuing to exceed guest expectations through challenging
circumstances and our shoreside operations for working 24/7 to
enhance our liquidity and to repatriate our guests and our crew.
Also, thanks to our loyal guests, travel partners, shareholders and
other stakeholders for their support during this challenging
time."
Active
consultation with science and medical experts
Throughout the pause in guest cruise operations, the company has
been consulting and assembling the best minds in medical science,
public health and infectious disease. These individuals include a
robust line-up of world renowned medical, epidemiology and public
health experts to provide the company with the latest science and
medical evidence to inform practical, adaptable and science-based
solutions for detection, prevention and mitigation of COVID-19.
In coordination with the World Travel and Tourism Council, the
company is hosting an online Global Scientific Summit on COVID-19
on July 28, a forum which is open to
the public and free of charge. Speakers and panelists include the
company's expert advisors, representing a diverse range of science,
research and business backgrounds, including amongst others,
members of Scientists to Stop COVID-19, who have volunteered to
participate. The company is grateful to bring together a select
group of science and medical experts who will bring such relevant
insight into COVID-19. To register for the Summit, please go to
CovidScienceSummit.com.
Conference Call
The company has scheduled a conference call with analysts at
10:00 a.m. EDT (3:00 p.m. BST) today to provide a business update
and discuss its 2020 second quarter results. This call can be
listened to live, and additional information can be obtained, via
Carnival Corporation & plc's website at
www.carnivalcorp.com and www.carnivalplc.com.
Carnival Corporation & plc is one of the world's
largest leisure travel companies with a portfolio of nine of the
world's leading cruise lines. With operations in North
America, Australia, Europe and Asia, its portfolio features – Carnival Cruise
Line, Princess Cruises, Holland America Line, P&O
Cruises (Australia),
Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK)
and Cunard.
Additional information can be found on www.carnivalcorp.com,
www.carnivalsustainability.com, www.carnival.com, www.princess.com,
www.hollandamerica.com, www.pocruises.com.au, www.seabourn.com,
www.costacruise.com, www.aida.de, www.pocruises.com and
www.cunard.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 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, operations, outlooks, plans, goals,
reputation, cash flows, liquidity 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 |
• Estimates of ship depreciable lives and residual
values |
• Booking levels |
• Goodwill, ship and trademark fair values |
• Pricing and occupancy |
• Liquidity |
• Interest, tax and fuel expenses |
• Adjusted earnings per share |
• Currency exchange rates |
• Impact of the COVID-19 coronavirus
global pandemic on our financial condition and results of
operations |
• Net cruise costs, excluding fuel per available
lower berth day |
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. Additionally, many of
these risks and uncertainties are currently amplified by and will
continue to be amplified by, or in the future may be amplified by,
the COVID-19 outbreak. 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 had, and is expected to continue to have, a
significant impact on our financial condition and operations, which
impacts our ability to obtain acceptable financing to fund
resulting reductions in cash from operations. The current, and
uncertain future, impact of the COVID-19 outbreak, including its
effect on the ability or desire of people to travel (including on
cruises), is expected to continue to impact our results,
operations, outlooks, plans, goals, growth, reputation, litigation,
cash flows, liquidity, and stock price
- As a result of the COVID-19 outbreak, we have paused our guest
cruise operations, and if we are unable to re-commence normal
operations in the near-term, we may be out of compliance with a
maintenance covenant in certain of our debt facilities as of
May 31, 2021
- 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.
CARNIVAL
CORPORATION & PLC |
CONSOLIDATED
STATEMENTS OF INCOME (LOSS) |
(UNAUDITED) |
(in millions, except
per share data) |
|
|
Three Months
Ended
May 31, |
|
Six Months Ended
May 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenues |
|
|
|
|
|
|
|
Passenger ticket |
$ |
446 |
|
|
$ |
3,257 |
|
|
$ |
3,680 |
|
|
$ |
6,456 |
|
Onboard and other (a) |
294 |
|
|
1,580 |
|
|
1,849 |
|
|
3,054 |
|
|
740 |
|
|
4,838 |
|
|
5,529 |
|
|
9,511 |
|
Operating Costs and Expenses |
|
|
|
|
|
|
|
Commissions, transportation and other |
297 |
|
|
613 |
|
|
1,064 |
|
|
1,322 |
|
Onboard and other |
114 |
|
|
485 |
|
|
585 |
|
|
952 |
|
Payroll and related |
705 |
|
|
566 |
|
|
1,315 |
|
|
1,123 |
|
Fuel |
201 |
|
|
423 |
|
|
598 |
|
|
804 |
|
Food |
108 |
|
|
269 |
|
|
385 |
|
|
538 |
|
Ship and other impairments |
589 |
|
|
— |
|
|
919 |
|
|
— |
|
Other operating (b) |
471 |
|
|
803 |
|
|
1,142 |
|
|
1,562 |
|
|
2,484 |
|
|
3,159 |
|
|
6,007 |
|
|
6,301 |
|
Selling and administrative |
492 |
|
|
621 |
|
|
1,170 |
|
|
1,250 |
|
Depreciation and amortization |
577 |
|
|
542 |
|
|
1,147 |
|
|
1,059 |
|
Goodwill impairment (c) |
1,364 |
|
|
— |
|
|
2,096 |
|
|
— |
|
|
4,918 |
|
|
4,323 |
|
|
10,420 |
|
|
8,609 |
|
Operating Income (Loss) |
(4,177) |
|
|
515 |
|
|
(4,891) |
|
|
902 |
|
Nonoperating Income (Expense) |
|
|
|
|
|
|
|
Interest income |
6 |
|
|
5 |
|
|
11 |
|
|
9 |
|
Interest expense, net of capitalized interest |
(182) |
|
|
(54) |
|
|
(237) |
|
|
(105) |
|
Other income (expense), net |
(32) |
|
|
(7) |
|
|
(39) |
|
|
(9) |
|
|
(208) |
|
|
(56) |
|
|
(265) |
|
|
(105) |
|
Income (Loss) Before Income Taxes |
(4,385) |
|
|
459 |
|
|
(5,155) |
|
|
797 |
|
Income Tax Benefit (Expense), Net |
11 |
|
|
(8) |
|
|
— |
|
|
(10) |
|
Net Income (Loss) |
$ |
(4,374) |
|
|
$ |
451 |
|
|
$ |
(5,155) |
|
|
$ |
787 |
|
Earnings Per Share |
|
|
|
|
|
|
|
Basic |
$ |
(6.07) |
|
|
$ |
0.65 |
|
|
$ |
(7.34) |
|
|
$ |
1.14 |
|
Diluted |
$ |
(6.07) |
|
|
$ |
0.65 |
|
|
$ |
(7.34) |
|
|
$ |
1.13 |
|
|
|
|
|
|
|
|
|
Dividends Declared Per Share |
$ |
— |
|
|
$ |
0.50 |
|
|
$ |
0.50 |
|
|
$ |
1.00 |
|
Weighted-Average Shares Outstanding -
Basic |
721 |
|
|
691 |
|
|
702 |
|
|
692 |
|
Weighted-Average Shares Outstanding -
Diluted |
721 |
|
|
693 |
|
|
702 |
|
|
694 |
|
|
|
(a) |
Includes $24 million and $71 million
of tour and other revenues during the three months ended May 31,
2020 and 2019, respectively. Includes $76 million and $99 million
of tour and other revenues during the six months ended May 31, 2020
and 2019, respectively. |
(b) |
Includes $28 million and $61 million
of tour and other costs and expenses during the three months ended
May 31, 2020 and 2019, respectively. Includes $47 million and $90
million of tour and other costs and expenses during the six months
ended May 31, 2020 and 2019, respectively. |
(c) |
Includes noncash impairment charges
for goodwill of $1.0 billion in our North America and Australia
("NAA") segment and $345 million in our Europe and Asia ("EA")
segment during the three months ended May 31, 2020. Includes
noncash impairment charges for goodwill of $1.3 billion in our NAA
segment and $777 million in our EA segment during the six months
ended May 31, 2020. |
CARNIVAL CORPORATION
& PLC |
CONSOLIDATED BALANCE
SHEETS |
(UNAUDITED) |
(in millions, except
par values) |
|
|
May 31,
2020 |
|
November 30,
2019 |
ASSETS |
|
|
|
Current Assets |
|
|
|
Cash and cash equivalents |
$ |
6,881 |
|
|
$ |
518 |
|
Trade and other receivables, net |
604 |
|
|
444 |
|
Inventories |
362 |
|
|
427 |
|
Prepaid expenses and other |
374 |
|
|
671 |
|
Total current assets |
8,222 |
|
|
2,059 |
|
Property and Equipment,
Net |
37,139 |
|
|
38,131 |
|
Operating Lease Right-of-Use Assets
(a) |
1,413 |
|
|
— |
|
Goodwill |
790 |
|
|
2,912 |
|
Other Intangibles |
1,168 |
|
|
1,174 |
|
Other Assets |
1,086 |
|
|
783 |
|
|
$ |
49,817 |
|
|
$ |
45,058 |
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
Current Liabilities |
|
|
|
Short-term borrowings |
$ |
3,562 |
|
|
$ |
231 |
|
Current portion of long-term debt |
2,373 |
|
|
1,596 |
|
Current portion of operating lease
liabilities (a) |
153 |
|
|
— |
|
Accounts payable |
1,809 |
|
|
756 |
|
Accrued liabilities and other |
1,343 |
|
|
1,809 |
|
Customer deposits |
2,618 |
|
|
4,735 |
|
Total current liabilities |
11,858 |
|
|
9,127 |
|
Long-Term Debt |
14,870 |
|
|
9,675 |
|
Long-Term Operating Lease
Liabilities (a) |
1,292 |
|
|
— |
|
Other Long-Term
Liabilities |
956 |
|
|
890 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
Common stock of Carnival Corporation,
$0.01 par value; 1,960 shares authorized; 731 shares at 2020 and
657 shares at 2019 issued |
7 |
|
|
7 |
|
Ordinary shares of Carnival plc, $1.66
par value; 217 shares at 2020 and 2019 issued |
360 |
|
|
358 |
|
Additional paid-in capital |
9,683 |
|
|
8,807 |
|
Retained earnings |
21,155 |
|
|
26,653 |
|
Accumulated other comprehensive income
(loss) |
(1,962) |
|
|
(2,066) |
|
Treasury stock, 130 shares at 2020 and
2019 of Carnival Corporation and 60 shares at 2020 and 2019 of
Carnival plc, at cost |
(8,404) |
|
|
(8,394) |
|
Total shareholders' equity |
20,840 |
|
|
25,365 |
|
|
$ |
49,817 |
|
|
$ |
45,058 |
|
|
|
(a) |
We adopted the provisions of Leases on
December 1, 2019. |
CARNIVAL
CORPORATION & PLC |
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(UNAUDITED) |
(in millions) |
|
|
Six Months Ended
May 31, |
|
2020 |
|
2019 |
OPERATING ACTIVITIES |
|
|
|
Net income (loss) |
$ |
(5,155) |
|
|
$ |
787 |
|
Adjustments to reconcile net income (loss) to net
cash provided by operating activities |
|
|
|
Depreciation and amortization |
1,147 |
|
|
1,059 |
|
Impairments |
3,015 |
|
|
2 |
|
Share-based compensation |
38 |
|
|
27 |
|
Gain on ship sales and other, net |
56 |
|
|
7 |
|
|
(900) |
|
|
1,883 |
|
Changes in operating assets and liabilities |
|
|
|
Receivables |
(202) |
|
|
(50) |
|
Inventories |
58 |
|
|
5 |
|
Prepaid expenses and other |
171 |
|
|
(302) |
|
Accounts payable |
1,052 |
|
|
68 |
|
Accrued liabilities and other |
3 |
|
|
48 |
|
Customer deposits |
(1,987) |
|
|
1,516 |
|
Net cash provided by (used in) operating
activities |
(1,804) |
|
|
3,169 |
|
INVESTING ACTIVITIES |
|
|
|
Purchases of property and equipment |
(1,668) |
|
|
(3,021) |
|
Proceeds from sales of ships |
236 |
|
|
6 |
|
Payments of fuel derivative settlements |
— |
|
|
(6) |
|
Purchase of minority interest |
(81) |
|
|
— |
|
Derivative settlements and other, net |
257 |
|
|
103 |
|
Net cash provided by (used in) investing
activities |
(1,256) |
|
|
(2,918) |
|
FINANCING ACTIVITIES |
|
|
|
Proceeds from (repayments of) short-term
borrowings, net |
3,333 |
|
|
(357) |
|
Principal repayments of long-term debt |
(383) |
|
|
(338) |
|
Proceeds from issuance of long-term debt |
6,674 |
|
|
1,722 |
|
Dividends paid |
(689) |
|
|
(694) |
|
Purchases of treasury stock |
(12) |
|
|
(316) |
|
Issuance of common stock, net |
558 |
|
|
2 |
|
Other, net |
(56) |
|
|
(45) |
|
Net cash provided by (used in) financing
activities |
9,425 |
|
|
(26) |
|
Effect of exchange rate changes on cash, cash
equivalents and restricted cash |
1 |
|
|
(5) |
|
Net increase (decrease) in cash, cash equivalents
and restricted cash |
6,366 |
|
|
220 |
|
Cash, cash equivalents and restricted cash at
beginning of period |
530 |
|
|
996 |
|
Cash, cash equivalents and restricted cash at end
of period |
$ |
6,896 |
|
|
$ |
1,215 |
|
CARNIVAL
CORPORATION & PLC |
NON-GAAP FINANCIAL
MEASURES |
|
|
Three Months
Ended
May 31, |
|
Six Months Ended
May 31, |
(in millions, except per share data) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income (loss) |
|
|
|
|
|
|
|
U.S. GAAP net income
(loss) |
$ |
(4,374) |
|
|
$ |
451 |
|
|
$ |
(5,155) |
|
|
$ |
787 |
|
(Gains) losses on ship
sales and impairments |
1,953 |
|
|
(16) |
|
|
2,882 |
|
|
(14) |
|
Restructuring
expenses |
39 |
|
|
— |
|
|
39 |
|
|
— |
|
Other |
— |
|
|
22 |
|
|
3 |
|
|
22 |
|
Adjusted net income
(loss) |
$ |
(2,382) |
|
|
$ |
457 |
|
|
$ |
(2,231) |
|
|
$ |
795 |
|
Weighted-average shares outstanding |
721 |
|
|
693 |
|
|
702 |
|
|
694 |
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
U.S. GAAP diluted
earnings per share |
$ |
(6.07) |
|
|
$ |
0.65 |
|
|
$ |
(7.34) |
|
|
$ |
1.13 |
|
(Gains) losses on ship
sales and impairments |
2.71 |
|
|
(0.02) |
|
|
4.10 |
|
|
(0.02) |
|
Restructuring
expenses |
0.05 |
|
|
— |
|
|
0.06 |
|
|
— |
|
Other |
— |
|
|
0.03 |
|
|
— |
|
|
0.03 |
|
Adjusted earnings per
share |
$ |
(3.30) |
|
|
$ |
0.66 |
|
|
$ |
(3.18) |
|
|
$ |
1.15 |
|
|
|
|
|
|
|
|
|
Explanations of
Non-GAAP Financial Measures
Non-GAAP Financial Measures
We use adjusted net income and adjusted earnings per share as
non-GAAP financial measures of our cruise segments' and the
company's financial performance. These non-GAAP financial measures
are provided along with U.S. GAAP net income (loss) and U.S. GAAP
diluted earnings per share.
We believe that gains and losses on ship sales, impairment
charges, restructuring costs and other gains and losses 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.
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.
CARNIVAL
CORPORATION & PLC |
STATISTICAL
INFORMATION |
|
|
Three Months
Ended
May 31, |
|
Six Months Ended
May 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
ALBDs (in thousands) (a) |
3,621 |
|
|
21,645 |
|
|
25,598 |
|
|
42,944 |
|
Occupancy percentage (b) |
96.1 |
% |
|
105.3 |
% |
|
103.1 |
% |
|
105.0 |
% |
Passengers carried (in thousands) |
426 |
|
|
3,101 |
|
|
3,489 |
|
|
6,038 |
|
|
|
|
|
|
|
|
|
Fuel consumption in metric tons (in
thousands) |
482 |
|
|
835 |
|
|
1,314 |
|
|
1,664 |
|
Fuel cost per metric ton consumed |
$ |
418 |
|
|
$ |
507 |
|
|
$ |
455 |
|
|
$ |
483 |
|
|
|
|
|
|
|
|
|
Currencies (USD to 1) |
|
|
|
|
|
|
|
AUD |
$ |
0.63 |
|
|
$ |
0.70 |
|
|
$ |
0.66 |
|
|
$ |
0.71 |
|
CAD |
$ |
0.72 |
|
|
$ |
0.75 |
|
|
$ |
0.74 |
|
|
$ |
0.75 |
|
EUR |
$ |
1.09 |
|
|
$ |
1.12 |
|
|
$ |
1.10 |
|
|
$ |
1.13 |
|
GBP |
$ |
1.24 |
|
|
$ |
1.30 |
|
|
$ |
1.27 |
|
|
$ |
1.29 |
|
RMB |
$ |
0.14 |
|
|
$ |
0.15 |
|
|
$ |
0.14 |
|
|
$ |
0.15 |
|
We paused our guest operations in mid-March 2020 and have been in a pause for a
majority of the second quarter. The pause in guest operations is
continuing to have material negative impacts on all aspects of our
business, including the above statistical information.
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. |
SOURCE Carnival Corporation & plc
MEDIA CONTACT: Roger Frizzell, +1
305 406 7862, or INVESTOR RELATIONS CONTACT: Beth Roberts, +1 305 406 4832