Exhibit 99.1
CARNIVAL
CORPORATION & PLC
PROVIDES FOURTH
QUARTER 2022 BUSINESS UPDATE
MIAMI (December 21, 2022)
- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK)
provides fourth quarter 2022 business update.
- U.S. GAAP net loss of $1.6
billion, or $(1.27) diluted
EPS and adjusted net loss of $1.1 billion, or $(0.85) adjusted EPS, for the fourth quarter of
2022 (see “Non-GAAP Financial Measures” below).
- Adjusted EBITDA for the fourth quarter of 2022 was
$(96) million, within the previous
guidance range of breakeven to slightly negative, despite an
approximate $40 million unfavorable
impact from fuel price and currency rates since forecasted
information was provided in the Third Quarter Business
Update.
- Adjusted EBITDA for the second half of 2022 was $207 million, inclusive of an increased
investment in advertising to drive revenue in 2023.
- For the cruise segment, revenue per passenger cruise day
(“PCD”) for the fourth quarter of 2022 increased 0.5% (3.8% in
constant dollar) compared to a strong 2019, overcoming the dilutive
impact of future cruise credits (“FCCs”), and better than the third
quarter of 2022 which decreased 4.1% (2.1% in constant dollar)
compared to 2019.
- Occupancy in the fourth quarter of 2022 was 19 percentage
points below 2019 levels, on capacity in guest cruise operations
approaching 2019 levels. This was better than the third quarter
which was 29 percentage points below 2019 levels on 8% lower
capacity than 2019.
- The company’s full year 2023 cumulative advanced booked
position is higher than its historical average at higher prices in
constant currency, normalized for FCCs, as compared to a strong
2019.
- Total customer deposits hit a fourth quarter record of
$5.1 billion as of November 30, 2022, surpassing the previous record
of $4.9 billion as of November 30, 2019.
- Fourth quarter 2022 ended with $8.6
billion of liquidity.
Carnival Corporation & plc’s Chief Executive Officer
Josh Weinstein commented,
“Throughout 2022, we have successfully returned our fleet to
service, aggressively building occupancy on growing capacity, while
driving revenue per passenger cruise day higher than 2019 record
levels, both in the fourth quarter and full year overall. We have
also actively managed down our costs while investing to build
future demand.”
Weinstein continued, “Booking volumes strengthened following the
relaxation in protocols, cancellation trends are improving
globally, and we have seen a measurable lengthening in the booking
curve, across all brands. The momentum has continued into December,
which bodes well for 2023 overall as more markets open for cruise
travel, protocols continue to relax, our closer to home itineraries
play out, our stepped-up advertising efforts pay dividends and our
brands continue to hone all aspects of their revenue generating
activities.”
Weinstein added, “We believe we are accelerating our return to
strong profitability through our fleet and brand portfolio
management which is delivering prudent capacity growth weighted
toward our highest returning brands and amplified by nearly a
quarter of our fleet consisting of newly delivered vessels. We
believe this leaves us well positioned to drive revenue growth
across our global brand portfolio as we continue to leverage our
scale on our industry leading cost base, to deliver free cash flow
which over time will propel us on the path to deleveraging,
investment grade credit ratings and higher ROIC.”
Fourth Quarter 2022 Results and
Statistical Information
- Continuing to close the gap to a strong 2019:
- For the cruise segment, revenue per PCD for the fourth quarter
of 2022 increased 0.5% (3.8% in constant dollar) compared to a
strong 2019, overcoming the dilutive impact of FCCs, and better
than the third quarter of 2022 which decreased 4.1% (2.1% in
constant dollar) compared to 2019.
- Occupancy in the fourth quarter of 2022 was 19 percentage
points below 2019 levels, on capacity in guest cruise operations
approaching 2019 levels. This was better than the third quarter
which was 29 percentage points below 2019 levels on 8% lower
capacity than 2019.
- Revenue in the fourth quarter of 2022 was $3.8 billion, which was 80% of 2019 levels. This
was better than the third quarter which was 66% of 2019 levels, an
improvement of 14 percentage points.
- Adjusted cruise costs excluding fuel per ALBD (see “Non-GAAP
Financial Measures” below) continued its sequential quarterly
improvement in the fourth quarter of 2022 with a 7.2% increase (11%
in constant currency) as compared to the fourth quarter of 2019,
down from a 25% increase (same in constant currency) in the first
quarter of 2022 as compared to the first quarter of 2019. Costs
remain higher as a result of higher advertising investments to
drive 2023 revenue as well as partially mitigating the impacts of a
high inflation environment. This was in line with the previous
guidance of a low double-digit increase in constant currency.
- Changes in fuel price, fuel mix and currency rates unfavorably
impacted the fourth quarter of 2022 by $267
million compared to the fourth quarter of 2019.
- Adjusted EBITDA (see “Non-GAAP Financial Measures” below) for
the fourth quarter of 2022 was $(96)
million, within the previous guidance range of breakeven to
slightly negative, despite an approximate $40 million unfavorable impact from fuel price
and currency rates since forecasted information was provided in the
Third Quarter Business Update.
- Adjusted EBITDA for the second half of 2022 was $207 million, inclusive of an increased
investment in advertising to drive revenue in 2023.
- Total customer deposits hit a fourth quarter record of
$5.1 billion as of November 30, 2022, surpassing the previous record
of $4.9 billion as of November 30, 2019.
Fleet Optimization
The company expects to remove three additional smaller-less
efficient ships from its fleet. Two of these three ships are from
Costa Cruises’ (“Costa”) fleet as part of the company’s strategy to
right-size the brand in light of the continued closure of cruise
operations in China, and Costa’s
significant presence there prior to the pause in the company’s
guest cruise operations. Once completed in spring 2024, the
company’s fleet optimization strategy will have reduced Costa’s
capacity so that it approximates the 2019 capacity Costa dedicated
outside of Asia to its core
markets in Continental Europe.
The company now expects total capacity growth of 3% for 2023
compared to 2019, at the lower end of the previous guidance range
of 3% to 5%. The prudent capacity growth rate includes the benefit
that newly delivered ships will represent nearly a quarter of the
company’s capacity.
Bookings
Booking volumes during the fourth quarter of 2022 for 2023
sailings are nearing 2019 comparable booking levels, with November
booking volumes exceeding 2019 levels. The company’s North America and Australia (“NAA”) segment’s fourth quarter
2022 booking volumes for 2023 exceeded the comparable period in
2019. The company’s Europe and
Asia (“EA”) segment’s fourth
quarter 2022 bookings for 2023 were lower than the comparable
period in 2019. However, reflecting the closer-in booking pattern
of its Continental European brands, its fourth quarter 2022
bookings for fourth quarter sailings significantly exceeded the
comparable period in 2019. Further, the company continues to see an
extension of its EA segment’s booking curve, facilitating more
optimal revenue yields over time.
Marking an early start to wave season (peak booking period), the
company ended the year with multiple brands breaking records on
very strong Black Friday and Cyber Monday booking volumes. The
company’s full year 2023 cumulative advanced booked position is at
higher prices in constant currency, normalized for FCCs, as
compared to strong 2019 pricing with a booked position that is
higher than the historical average. During the second half of 2022,
the company significantly increased its advertising activities to
support booking volumes. (The company’s current booking trends are
compared to booking trends for 2019 as it is the most recent full
year of guest cruise operations.)
Financing and Capital Activity
During the fourth quarter of 2022, the company continued its
efforts to address future debt maturities while paying down its
multi-currency revolving credit facility. The company:
- Completed a $2.0 billion private
offering of Senior Priority Notes due 2028.
- Issued $1.1 billion aggregate
principal amount of Convertible Senior Notes due 2027.
- Exchanged an additional $87
million in aggregate principal amount of its outstanding
Convertible Senior Notes due 2023 (the “Existing Notes”) for the
same amount of Convertible Senior Notes due 2024, extending
maturities at the existing rate of 5.75% and the same initial
conversion price as the Existing Notes.
In addition, during the fourth quarter the company invested
$1.2 billion in capital expenditures,
repaid $2.5 billion of borrowings
outstanding under its $2.9 billion multi-currency revolving credit
facility, repaid $1.0 billion of debt
principal and incurred $0.4 billion
of interest expense, net during the quarter. The company ended the
fourth quarter of 2022 with $8.6
billion of liquidity, including cash, restricted cash from
the 2028 Senior Priority Notes which is now unrestricted, and
borrowings available under the revolving credit facility.
Environmental, Social and Governance
(“ESG”)
Expanding Air Lubrication Systems
(“ALS”) to generate savings in fuel consumption and reductions in
carbon emissions
Building on the success of five ALS currently operating in its
fleet, the company is currently installing ALS on six ships and is
planning at least eight more installations. ALS cushion the flat
bottom of a ship’s hull with air bubbles which reduces the ship’s
frictional resistance and the propulsive power required to drive
the ship through the water, which is expected to generate
approximately 5% savings in fuel consumption and reductions in
carbon emissions on ALS equipped ships. Together, this investment
along with various other company initiatives, has enabled the
company to increase its expectation for the reduction of both fuel
consumption per ALBD and carbon emissions per ALBD to 15%, on an
annualized basis, both as compared to 2019.
Carnival Chief Maritime Officer William
Burke noted, “The installation of air lubrication technology
is another example of our ongoing efforts to drive energy
efficiency and reduce fuel consumption and emissions throughout our
fleet. We look forward to expanding the ALS program and furthering
our long-term sustainability strategy to continually invest in a
broad range of energy reduction initiatives, which has included
over $350 million invested in energy
efficiency improvements since 2016.”
Carnival Corporation & plc Boards
of Directors focus on mix of skills, experiences and diversity
The Boards of Directors regularly evaluate the composition of
the Boards to ensure the appropriate mix of skills, experiences,
and diversity of perspectives to effectively oversee the strategic
direction of Carnival Corporation & plc. During the quarter,
Sara Mathew, retired Chair,
President, and Chief Executive Officer of Dun & Bradstreet
Corp., was appointed to the company’s Boards of Directors and Audit
Committees. Mathew is an experienced leader and strategic operator
with expertise in technology and innovation, finance, and global
consumer-facing brands. Additionally, during the quarter, long-time
Board member Sir John Parker made
the decision not to seek re-election to the Boards of Directors at
the 2023 Annual Meetings of Shareholders and will retire from the
Boards with effect from the conclusion of the 2023 Annual Meetings
of Shareholders. With these changes, as well as the recently
announced retirement of long-time Board member and former President
and CEO Arnold Donald, the company’s
Boards will be comprised of twelve members as of April 2023, ten of whom are independent
directors, four of whom are female and one of whom is ethnically
diverse.
Other Recent Highlights
- Carnival Corporation & plc and its brands received the
following recognitions:
- Carnival Corporation was named one of the World’s Top
Female-Friendly Companies and one of the World’s Best Employers of
2022 by Forbes, both for the second consecutive year, along with
one of America’s Greatest Workplaces for Diversity by
Newsweek.
- Carnival Cruise Line was a big winner in Travel Weekly’s
Readers’ Choice Awards, taking home top honors in four categories –
Best Family Cruise Line, Best Group Program, Best Short Itinerary
Program, as well as Best Domestic Cruise Line for the seventh year
in a row.
- Other Best in Cruise Line Travel Weekly’s Readers’ Choice
Awards received by our brands include amongst others:
- Alaska: Princess
- Under 1,000 Berths: Seabourn
- World Cruise Itinerary: Holland America Line
- Best Shipboard Tech: Princess
- Princess Cruises was awarded Best Premium Cruise Line by
Australian Cruise Passenger Magazine.
- Seabourn celebrates another banner year after receiving 29 top
travel industry awards and accolades including Condé Nast Travel –
Gold List: The Best Cruise Ships in the World: Seabourn
Encore.
- P&O Cruises (UK) was awarded Best Cruise Line for Family
Holidays by the British Travel Awards.
- Carnival Cruise Line took delivery of Carnival
Celebration, sister to Mardi
Gras.
- P&O Cruises (UK) took delivery of Arvia, sister to
Iona.
- Carnival Corporation & plc brands achieved record bookings:
- Carnival Cruise Line achieved a record Cyber Monday booking day
that was 50% above volume for the same day in 2019.
- Holland America Line’s Black Friday booking volumes hit a
record high in the United States,
with volume for the day close to 20% higher than in 2019.
- Seabourn reported its best performance for the month of
November, booking a record number of guests.
Weinstein added “We’ve completed a monumental 18-month journey –
returning 90 ships to service, re-boarding over 100,000 team
members, and restarting our unmatched portfolio of eight private
island and port destinations plus our unrivaled land-based
footprint in Alaska and the
Yukon, all while welcoming back
nearly 9 million guests. For that, I sincerely thank our global
teams around the world for the ingenuity and sheer determination it
took to see that through to completion.”
Selected Forecast Information
Available Lower Berth Days (“ALBDs”)
and Capacity Growth vs. 2019
The company’s ALBDs consist of contracted new ships and
announced ship removals.
|
2023 |
(in
millions) |
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Full
Year |
ALBDs |
22.1 |
|
22.2 |
|
23.3 |
|
22.7 |
|
90.3 |
The company’s capacity growth is expected to be 3.7% for the
first quarter of 2023 compared to the first quarter of 2019 and
3.3% for the full year 2023 compared to the full year 2019.
Occupancy
The company’s occupancy for the first quarter of 2023 is
expected to be 90% or slightly higher, a 14 percentage point gap,
or better, from 2019 levels, which is an improvement from a 19
percentage point gap for the fourth quarter of 2022 compared to the
fourth quarter of 2019. The company continues to expect to close
the gap to 2019 levels, with occupancy returning to historical
levels in the summer of 2023, which has historically been well over
100%.
Currencies
USD to 1 |
1Q
2023 |
AUD |
$
0.67 |
CAD |
$
0.73 |
EUR |
$
1.05 |
GBP |
$
1.23 |
Adjusted Cruise Costs, Excluding Fuel
per ALBD
|
|
1Q 2023 |
|
Full Year 2023 |
Change compared to
2019 |
|
Current Dollars |
|
Constant Currency |
|
Current Dollars |
|
Constant Currency |
Adjusted cruise costs
excl. fuel per ALBD |
|
4.0% to
5.0% |
|
6.5% to
7.5% |
|
5.0% to
6.0% |
|
7.5% to
8.5% |
Fuel
|
1Q
2023 |
|
Full
Year 2023 |
Fuel consumption in
metric tons (in millions) |
0.7 |
|
2.9 |
Blended spot
price |
$
670 |
|
$
673 |
Fuel expense (in
billions) |
$
0.5 |
|
$
2.0 |
Impact to fuel expense
of 10% change in fuel price (in millions) |
$
47 |
|
$
185 |
The company expects a 15% reduction in both fuel consumption per
ALBD and carbon emissions per ALBD on an annualized basis for the
full year 2023, both as compared to 2019.
Depreciation and Amortization
The company’s depreciation and amortization forecast for the
first quarter of 2023 is $0.6
billion. The 2023 full year forecast is $2.4 billion.
Interest Expense, Net of Capitalized
Interest and Interest Income
The company’s interest expense, net of capitalized interest and
interest income forecast for the first quarter of 2023 is
$0.5 billion. The 2023 full year
forecast is $2.0 billion.
Adjusted EBITDA and Adjusted Net
Income (Loss)
The company expects $250 to
$350 million of adjusted EBITDA for
the first quarter of 2023. The company expects a sequential
improvement compared to 2019 in each quarter of 2023 as it
continues to close the gap. In addition, the company expects to
generate significant positive adjusted EBITDA in 2023. The company
expects an adjusted net loss of $750
to $850 million for the first quarter
of 2023.
Capital Expenditures
The company’s annual capital expenditure forecast for 2023, is
as follows:
(in
billions) |
2023 |
|
2024 |
|
2025 |
|
2026 |
Contracted
newbuild |
$
1.8 |
|
$
2.4 |
|
$
0.9 |
|
$
— |
Non-newbuild |
1.6 |
|
1.7 |
|
1.7 |
|
1.7 |
Total (a) |
$
3.4 |
|
$
4.1 |
|
$
2.6 |
|
$
1.7 |
- Forecasted capital expenditures will fluctuate with foreign
currency movements relative to the U.S. Dollar.
Outstanding Debt Maturities
As of November 30, 2022, the
company’s outstanding debt maturities are as follows:
(in
billions) |
|
2023 |
|
2024 |
|
2025 |
|
2026 |
First Lien |
|
$
0.0 |
|
$
0.0 |
|
$
2.6 |
|
$
0.0 |
Second Lien |
|
— |
|
— |
|
— |
|
1.2 |
All other |
|
2.3 |
|
2.4 |
|
1.8 |
|
3.3 |
Total Principal
payments on outstanding debt (a) |
|
$
2.4 |
|
$
2.4 |
|
$
4.4 |
|
$
4.5 |
- Excludes the $2.9 billion
multi-currency revolving credit facility at November 30, 2022. As of November 30, 2022, borrowings under the
multi-currency revolving credit facility were $0.2 billion, which mature in August 2024.
Refer to Financial Information within the Investor Relations
section of the corporate website for further details on its Debt
Maturities, which will be available after the conference call:
https://www.carnivalcorp.com/financial-information/supplemental-schedules
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 business
update. 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.
MEDIA
CONTACT |
|
INVESTOR RELATIONS
CONTACT |
Jody Venturoni |
|
Beth Roberts |
?+1 469 797 6380 |
|
+1 305 406 4832 |
Cautionary Note Concerning Factors
That May Affect Future Results
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, as amended. 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,”
“aspiration,” “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:
|
- Liquidity and credit ratings
|
|
- Adjusted earnings per share
|
|
|
- Interest, tax and fuel expenses
|
- Adjusted Net Income (Loss)
|
|
- Estimates of ship depreciable lives and residual values
|
- Goodwill, ship and trademark fair values
|
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, and in the future may
continue to be, amplified by our substantial debt balance as a
result of the pause of our guest cruise operations. There may be
additional risks that we consider immaterial or which are unknown.
These factors include, but are not limited to, the following:
- Events and conditions around the world, including war and
other military actions, such as the current invasion of
Ukraine, inflation, higher fuel
prices, higher interest rates and other general concerns impacting
the ability or desire of people to travel have led, and may in the
future lead, to a decline in demand for cruises, impacting our
operating costs and profitability.
- Pandemics have in the past and may in the future have a
significant negative impact on our financial condition and
operations.
- Incidents concerning our ships, guests or the cruise
industry have in the past and may, in the future, negatively 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, labor and
employment, and tax have in the past and may, in the future, lead
to litigation, enforcement actions, fines, penalties and
reputational damage.
- Factors associated with climate change, including evolving
and increasing regulations, increasing global concern about climate
change and the shift in climate conscious consumerism and
stakeholder scrutiny, and increasing frequency and/or severity of
adverse weather conditions could adversely affect our
business.
- Inability to meet or achieve our sustainability related
goals, aspirations, initiatives, and our public statements and
disclosures regarding them, may expose us to risks that may
adversely impact our business.
- 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 may lead to reputational damage.
- The loss of key employees, our inability to recruit or
retain qualified shoreside and shipboard employees and increased
labor costs could have an adverse effect on our business and
results of operations.
- Increases in fuel prices, changes in the types of fuel
consumed and availability of fuel supply may adversely impact our
scheduled itineraries and costs.
- We rely on supply chain vendors who are integral to the
operations of our businesses. These vendors and service providers
are also affected by COVID-19 and may be unable to deliver on their
commitments which could negatively impact our business.
- Fluctuations in foreign currency exchange rates may
adversely impact our financial results.
- Overcapacity and competition in the cruise and land-based
vacation industry may negatively impact our cruise sales, pricing
and destination options.
- Inability to implement our shipbuilding programs and ship
repairs, maintenance and refurbishments may adversely impact our
business operations and the satisfaction of our guests.
- Failure to successfully implement our business strategy
following our resumption of guest cruise operations would
negatively impact the occupancy levels and pricing of our cruises
and could have a material adverse effect on our business. We
require a significant amount of cash to service our debt and
sustain our operations. Our ability to generate cash depends on
many factors, including those beyond our control, and we may not be
able to generate cash required to service our debt and sustain our
operations.
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.
Forward-looking and other statements in this document may also
address our sustainability progress, plans, and goals (including
climate change- and environmental-related matters). In addition,
historical, current, and forward-looking sustainability- and
climate-related statements may be based on standards and tools for
measuring progress that are still developing, internal controls and
processes that continue to evolve, and assumptions and predictions
that are subject to change in the future and may not be generally
shared.
CARNIVAL
CORPORATION & PLC
CONSOLIDATED
STATEMENTS OF INCOME (LOSS)
(UNAUDITED)
(in millions, except per share
data)
|
Three Months Ended November 30, |
|
Twelve Months Ended November 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenues |
|
|
|
|
|
|
|
Passenger ticket |
$ 2,269 |
|
$
674 |
|
$ 7,022 |
|
$ 1,000 |
Onboard and other |
1,570 |
|
613 |
|
5,147 |
|
908 |
|
3,839 |
|
1,287 |
|
12,168 |
|
1,908 |
Operating Costs and
Expenses |
|
|
|
|
|
|
|
Commissions,
transportation and other |
489 |
|
153 |
|
1,630 |
|
269 |
Onboard and other |
468 |
|
178 |
|
1,528 |
|
272 |
Payroll and
related |
580 |
|
475 |
|
2,181 |
|
1,309 |
Fuel |
580 |
|
282 |
|
2,157 |
|
680 |
Food |
277 |
|
107 |
|
863 |
|
187 |
Ship and other
impairments |
433 |
|
67 |
|
440 |
|
591 |
Other operating |
840 |
|
560 |
|
2,958 |
|
1,346 |
|
3,665 |
|
1,823 |
|
11,757 |
|
4,655 |
Selling and
administrative |
741 |
|
580 |
|
2,515 |
|
1,885 |
Depreciation and
amortization |
568 |
|
552 |
|
2,275 |
|
2,233 |
Goodwill
impairments |
— |
|
226 |
|
— |
|
226 |
|
4,974 |
|
3,180 |
|
16,547 |
|
8,997 |
Operating Income
(Loss) |
(1,135) |
|
(1,893) |
|
(4,379) |
|
(7,089) |
Nonoperating Income
(Expense) |
|
|
|
|
|
|
|
Interest income |
40 |
|
2 |
|
74 |
|
12 |
Interest expense, net
of capitalized interest |
(448) |
|
(348) |
|
(1,609) |
|
(1,601) |
Gains (losses) on debt
extinguishment, net |
(1) |
|
(298) |
|
(1) |
|
(670) |
Other income
(expense), net |
(57) |
|
(87) |
|
(165) |
|
(173) |
|
(466) |
|
(731) |
|
(1,701) |
|
(2,433) |
Income (Loss)
Before Income Taxes |
(1,601) |
|
(2,624) |
|
(6,080) |
|
(9,522) |
Income Tax Benefit
(Expense), Net |
3 |
|
4 |
|
(14) |
|
21 |
Net Income
(Loss) |
$ (1,598) |
|
$ (2,620) |
|
$ (6,093) |
|
$ (9,501) |
|
|
|
|
|
|
|
|
Earnings Per
Share |
|
|
|
|
|
|
|
Basic |
$ (1.27) |
|
$ (2.31) |
|
$ (5.16) |
|
$ (8.46) |
Diluted |
$ (1.27) |
|
$ (2.31) |
|
$ (5.16) |
|
$ (8.46) |
Weighted-Average
Shares Outstanding - Basic |
1,259 |
|
1,135 |
|
1,180 |
|
1,123 |
Weighted-Average
Shares Outstanding - Diluted |
1,259 |
|
1,135 |
|
1,180 |
|
1,123 |
CARNIVAL
CORPORATION & PLC
CONSOLIDATED
BALANCE SHEETS
(UNAUDITED)
(in millions)
|
November 30, |
|
2022 |
|
2021 |
ASSETS |
|
|
|
Current
Assets |
|
|
|
Cash and cash
equivalents |
$ 4,029 |
|
$ 8,939 |
Restricted cash |
1,988 |
|
14 |
Short-term
investments |
— |
|
200 |
Trade and other
receivables, net |
395 |
|
246 |
Inventories |
428 |
|
356 |
Prepaid expenses and
other |
652 |
|
379 |
Total current
assets |
7,492 |
|
10,133 |
Property and
Equipment, Net |
38,687 |
|
38,107 |
Operating Lease
Right-of-Use Assets |
1,274 |
|
1,333 |
Goodwill |
579 |
|
579 |
Other
Intangibles |
1,156 |
|
1,181 |
Other
Assets |
2,515 |
|
2,011 |
|
$ 51,703 |
|
$ 53,344 |
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
Current
Liabilities |
|
|
|
Short-term
borrowings |
$
200 |
|
$ 2,790 |
Current portion of
long-term debt |
2,393 |
|
1,927 |
Current portion of
operating lease liabilities |
146 |
|
142 |
Accounts payable |
1,050 |
|
797 |
Accrued liabilities
and other |
1,942 |
|
1,641 |
Customer deposits |
4,874 |
|
3,112 |
Total current
liabilities |
10,605 |
|
10,408 |
Long-Term
Debt |
31,953 |
|
28,509 |
Long-Term Operating
Lease Liabilities |
1,189 |
|
1,239 |
Other Long-Term
Liabilities |
891 |
|
1,043 |
Commitments and
Contingencies |
|
|
|
Shareholders’
Equity |
|
|
|
Carnival Corporation
common stock, $0.01 par value; 1,960 shares authorized; 1,244
shares at 2022 and 1,116 shares at 2021 issued |
12 |
|
11 |
Carnival plc ordinary
shares, $1.66 par value; 217 shares at 2022 and 2021 issued |
361 |
|
361 |
Additional paid-in
capital |
16,872 |
|
15,292 |
Retained earnings |
269 |
|
6,448 |
Accumulated other
comprehensive income (loss) (“AOCI”) |
(1,982) |
|
(1,501) |
Treasury stock, 130
shares at 2022 and 2021 of Carnival Corporation and 72 shares at
2022 and 67 shares at 2021 of Carnival plc, at cost |
(8,468) |
|
(8,466) |
Total
shareholders’ equity |
7,065 |
|
12,144 |
|
$ 51,703 |
|
$ 53,344 |
CARNIVAL
CORPORATION & PLC
OTHER
INFORMATION
|
November 30, |
OTHER BALANCE SHEET
INFORMATION (in millions) |
2022 |
|
2021 |
Liquidity (a) |
$
8,635 |
|
$
9,378 |
Debt (current and
long-term) |
$ 34,546 |
|
$ 33,226 |
Customer deposits
(current and long-term) |
$
5,089 |
|
$
3,508 |
- Includes cash, restricted cash from the 2028 Senior Priority
Notes which is now unrestricted, and borrowings available under the
revolving credit facility
|
Three Months Ended November 30, |
|
Twelve Months Ended November 30, |
CASH FLOW
INFORMATION (in millions) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Cash from (used in)
operations |
$ (117) |
|
$ (368) |
|
$
(1,670) |
|
$
(4,109) |
Capital
expenditures |
$ 1,181 |
|
$ 487 |
|
$ 4,940 |
|
$ 3,607 |
|
|
|
|
|
|
|
|
STATISTICAL
INFORMATION |
|
|
|
|
|
|
|
PCDs (in
millions) (a) |
18.3 |
|
6.0 |
|
54.6 |
|
8.2 |
ALBDs (in
millions) (b) |
21.5 |
|
10.2 |
|
72.5 |
|
14.6 |
Occupancy percentage
(c) |
85 % |
|
58 % |
|
75 % |
|
56 % |
Passengers carried
(in millions) |
2.5 |
|
0.9 |
|
7.7 |
|
1.2 |
Fuel consumption in
metric tons (in millions) |
0.7 |
|
0.5 |
|
2.6 |
|
1.3 |
Fuel consumption in
metric tons per thousand ALBDs |
33.4 |
|
(d) |
|
36.1 |
|
(d) |
Fuel cost per metric
ton consumed |
$ 812 |
|
$ 590 |
|
$ 830 |
|
$ 515 |
Tour and other revenue
(in millions) |
$ 30.9 |
|
$
4.1 |
|
$ 185.4 |
|
$ 46.4 |
|
|
|
|
|
|
|
|
Currencies (USD to
1) |
|
|
|
|
|
|
|
AUD |
$ 0.66 |
|
$ 0.73 |
|
$ 0.70 |
|
$ 0.75 |
CAD |
$ 0.74 |
|
$ 0.80 |
|
$ 0.77 |
|
$ 0.80 |
EUR |
$ 1.00 |
|
$ 1.16 |
|
$ 1.06 |
|
$ 1.19 |
GBP |
$ 1.15 |
|
$ 1.36 |
|
$ 1.25 |
|
$ 1.38 |
Notes to
Statistical Information
- PCD represents the number of cruise passengers on a voyage
multiplied by the number of revenue-producing ship operating days
for that voyage.
- 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.
- Occupancy, in accordance with cruise industry practice, is
calculated using a numerator of PCDs and 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 consumption in metric tons per thousand ALBDs for 2021 is
not meaningful.
CARNIVAL
CORPORATION & PLC
NON-GAAP FINANCIAL
MEASURES
Data in the below table is compared against 2019 as it is the
most recent year of full operations since 2021 and 2020 were
impacted by the pause and resumption of guest cruise
operations.
Consolidated cruise costs per ALBD, adjusted cruise costs per
ALBD and adjusted cruise costs excluding fuel per ALBD were
computed by dividing cruise costs, adjusted cruise costs and
adjusted cruise costs excluding fuel by ALBD as follows:
|
Three Months Ended November 30, |
|
Twelve Months Ended November 30, |
|
(dollars in
millions, except costs per ALBD) |
2022 |
|
2022
Constant Currency |
|
2019 |
|
2022 |
|
2022
Constant Currency |
|
2019 |
|
Operating costs and
expenses |
$ 3,665 |
|
|
|
$ 3,077 |
|
$ 11,757 |
|
|
|
$ 12,909 |
|
Selling and
administrative expenses |
741 |
|
|
|
667 |
|
2,515 |
|
|
|
2,480 |
|
Tour and other
expenses |
(45) |
|
|
|
(76) |
|
(214) |
|
|
|
(296) |
|
Cruise
costs |
4,362 |
|
|
|
3,667 |
|
14,058 |
|
|
|
15,093 |
|
Less |
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation and other |
(489) |
|
|
|
(595) |
|
(1,630) |
|
|
|
(2,720) |
|
Onboard and other |
(468) |
|
|
|
(481) |
|
(1,528) |
|
|
|
(2,101) |
|
Gains (losses) on ship
sales and impairments |
(431) |
|
|
|
5 |
|
(433) |
|
|
|
16 |
|
Restructuring
expenses |
(20) |
|
|
|
(10) |
|
(22) |
|
|
|
(10) |
|
Other |
(10) |
|
|
|
— |
|
(10) |
|
|
|
(43) |
|
Adjusted cruise
costs |
2,944 |
|
|
|
2,586 |
|
10,436 |
|
|
|
10,234 |
|
Less fuel |
(580) |
|
|
|
(358) |
|
(2,157) |
|
|
|
(1,562) |
|
Adjusted cruise
costs excluding fuel |
$ 2,364 |
|
$ 2,449 |
|
$ 2,228 |
|
$ 8,278 |
|
$ 8,435 |
|
$ 8,672 |
|
ALBDs (in
thousands) |
21,532 |
|
21,532 |
|
21,753 |
|
72,536 |
|
72,536 |
|
87,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cruise costs per
ALBD |
$ 202.56 |
|
|
|
$ 168.58 |
|
$ 193.81 |
|
|
|
$ 172.64 |
|
% increase (decrease)
vs 2019 |
20 % |
|
|
|
|
|
12 % |
|
|
|
|
|
Adjusted cruise
costs per ALBD |
$ 136.71 |
|
|
|
$ 118.89 |
|
$ 143.87 |
|
|
|
$ 117.07 |
|
% increase (decrease)
vs 2019 |
15 % |
|
|
|
|
|
23 % |
|
|
|
|
|
Adjusted cruise
costs excluding fuel per ALBD |
$ 109.78 |
|
$ 113.74 |
|
$ 102.44 |
|
$ 114.13 |
|
$ 116.29 |
|
$ 99.20 |
|
% increase (decrease)
vs 2019 |
7.2
% |
|
11
% |
|
|
|
15 % |
|
17 % |
|
|
|
(See Non-GAAP Financial Measures) |
|
|
CARNIVAL
CORPORATION & PLC
NON-GAAP FINANCIAL
MEASURES (CONTINUED)
|
Three Months Ended November 30, |
|
Twelve Months Ended November 30, |
(in
millions) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Net income
(loss) |
|
|
|
|
|
|
|
U.S. GAAP net
income (loss) |
$ (1,598) |
|
$ (2,620) |
|
$ (6,093) |
|
$ (9,501) |
(Gains) losses on ship
sales and impairments |
431 |
|
292 |
|
433 |
|
802 |
(Gains) losses on debt
extinguishment, net |
1 |
|
298 |
|
1 |
|
670 |
Restructuring
expenses |
20 |
|
7 |
|
22 |
|
13 |
Other |
77 |
|
69 |
|
130 |
|
86 |
Adjusted net income
(loss) |
$ (1,068) |
|
$ (1,955) |
|
$ (5,508) |
|
$ (7,931) |
Interest expense, net
of capitalized interest |
448 |
|
348 |
|
1,609 |
|
1,601 |
Interest income |
(40) |
|
(2) |
|
(74) |
|
(12) |
Income tax (expense),
benefit |
(3) |
|
(4) |
|
14 |
|
(21) |
Depreciation and
amortization |
568 |
|
552 |
|
2,275 |
|
2,233 |
Adjusted
EBITDA |
$ (96) |
|
$ (1,060) |
|
$ (1,684) |
|
$ (4,129) |
|
Three Months Ended November 30, |
|
Twelve Months Ended November 30, |
(in millions,
except per share data) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Adjusted net income
(loss) |
$ (1,068) |
|
$ (1,955) |
|
$ (5,508) |
|
$ (7,931) |
Weighted-average
shares outstanding - diluted |
1,259 |
|
1,135 |
|
1,180 |
|
1,123 |
Adjusted earnings
per share |
$ (0.85) |
|
$ (1.72) |
|
$ (4.67) |
|
$ (7.06) |
Non-GAAP Financial Measures
We use adjusted net income (loss), adjusted EBITDA and adjusted
earnings per share as non-GAAP financial measures of the company’s
financial performance. We use adjusted cruise costs per ALBD and
adjusted cruise costs excluding fuel per ALBD as non-GAAP financial
measures of our cruise segments’ financial performance. These
non-GAAP financial measures are provided along with U.S. GAAP
cruise costs per ALBD and U.S. GAAP net income (loss).
We believe that gains and losses on ship sales, impairment
charges, gains and losses on debt extinguishments, restructuring
costs and certain 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 (loss) and
adjusted earnings per share excluding these items as additional
information to investors.
We believe that the presentation of adjusted EBITDA provides
additional information to investors about our operating
profitability by excluding certain gains and expenses that we
believe are not part of our core operating business and are not an
indication of our future earnings performance as well as excluding
interest, taxes and depreciation and amortization. In addition, we
believe that the presentation of adjusted EBITDA provides
additional information to investors about our ability to operate
our business in compliance with the covenants set forth in our debt
agreements. We define adjusted EBITDA as adjusted net income (loss)
adjusted for (i) interest, (ii) taxes and (iii) depreciation and
amortization. There are material limitations to using adjusted
EBITDA. Adjusted EBITDA does not take into account certain
significant items that directly affect our net income (loss). These
limitations are best addressed by considering the economic effects
of the excluded items independently, and by considering adjusted
EBITDA in conjunction with net income (loss) as calculated in
accordance with U.S. GAAP.
Adjusted cruise costs per ALBD and adjusted cruise costs
excluding fuel per ALBD enable us to separate the impact of
predictable capacity or ALBD changes from price and other changes
that affect our business. We believe these non-GAAP measures
provide useful information to investors and expanded insight to
measure our cost performance as a supplement to our U.S. GAAP
consolidated financial statements. Adjusted cruise costs per ALBD
and adjusted cruise costs excluding fuel per ALBD are the measures
we use to monitor our ability to control our cruise segments’ costs
rather than cruise costs per ALBD. We exclude 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, as well as fuel expense to calculate adjusted cruise
costs without fuel. Substantially all of our adjusted cruise costs
excluding fuel are largely fixed, except for the impact of changing
prices once the number of ALBDs has been determined.
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.
Reconciliation of Forecasted Data
We have not provided a reconciliation of forecasted U.S. GAAP
gross cruise costs to forecasted adjusted cruise costs, excluding
fuel or forecasted U.S. GAAP net income (loss) to forecasted
adjusted EBITDA or forecasted adjusted net income (loss) because
preparation of meaningful U.S. GAAP forecasts of gross cruise costs
and net income (loss) would require unreasonable effort. We are
unable to predict, without unreasonable effort, the future movement
of foreign exchange rates and fuel prices. We are unable to
determine the future impact of gains and losses on ship sales,
impairment charges, gains and losses on debt extinguishments,
restructuring costs and certain other non-core gains and
losses.
Constant Dollar and Constant
Currency
Our operations primarily utilize the U.S. dollar, Australian
dollar, euro and sterling as functional currencies to measure
results
and financial condition. Functional currencies other than the
U.S. dollar subject us to foreign currency translational risk. Our
operations also have revenues and expenses that are in currencies
other than their functional currency, which subject us to foreign
currency transactional risk.
We report adjusted cruise costs excluding fuel per ALBD on a
“constant currency” basis assuming the 2022 periods’ currency
exchange rates have remained constant with the 2019 periods’ rates.
These metrics facilitate a comparative view for the changes in our
business in an environment with fluctuating exchange rates.
Constant dollar reporting removes only the impact of changes in
exchange rates on the translation of our operations.
Constant currency reporting removes the impact of changes in
exchange rates on the translation of our operations (as in constant
dollar) plus the transactional impact of changes in exchange rates
from revenues and expenses that are denominated in a currency other
than the functional currency.
Examples:
- The translation of our operations with functional currencies
other than U.S. dollar to our U.S. dollar reporting currency
results in decreases in reported U.S. dollar revenues and expenses
if the U.S. dollar strengthens against these foreign currencies and
increases in reported U.S. dollar revenues and expenses if the U.S.
dollar weakens against these foreign currencies.
- Our operations have revenue and expense transactions in
currencies other than their functional currency. If their
functional currency strengthens against these other currencies, it
reduces the functional currency revenues and expenses. If the
functional currency weakens against these other currencies, it
increases the functional currency revenues and expenses.