Carnival Corporation & plc Reports Third Quarter Results

           Carnival Corporation & plc Reports Third Quarter Results

PR Newswire

MIAMI, Sept. 25, 2012

MIAMI, Sept. 25, 2012 /PRNewswire-FirstCall/ --Carnival Corporation & plc
(NYSE/LSE: CCL; NYSE: CUK) announced non-GAAP net income of $1.2 billion, or
$1.53 diluted earnings per share, for the third quarter of 2012. Reported U.S.
GAAP net income, which includes unrealized gains on fuel derivatives of $136
million, was $1.3 billion, or $1.71 diluted earnings per share. Net income
for the third quarter of 2011 was $1.3 billion, or $1.69 diluted earnings per
share. Revenues for the third quarter of 2012 were $4.7 billion compared to
$5.1 billion for the prior year.

Carnival Corporation & plc Chairman and CEO Micky Arison noted that third
quarter non-GAAP earnings were better than anticipated in the company's June
guidance due primarily to a combination of higher than expected revenue yields
and lower than expected costs, partly due to the timing of certain expenses.

Commenting on the third quarter, Arison said, "The significant efforts of our
brand management teams were successful in partially mitigating the decline in
cruise ticket prices. Onboard revenue yields (constant dollars excluding
Costa) improved three percent during the quarter. Our brand managements'
continued focus on cost containment contributed to a three percent reduction
in cruise costs (constant dollars excluding fuel) as well as a six percent
reduction in fuel consumption on a unit basis."

Arison also noted that the company repurchased two million shares valued at
$67 million during the third quarter, demonstrating a continued commitment to
returning excess free cash flow to shareholders.

Key metrics for the third quarter 2012 compared to the prior year were as
follows:

  oChanges in currency exchange rates for 3Q 2012 compared to the prior year
    have reduced both net revenue yields and net cruise costs excluding fuel
    per available lower berth day, "ALBD" by almost 4 percent each and cost
    the company $0.09 per share.
  oOn a constant dollar basis net revenue yields (net revenue per ALBD)
    decreased 5.3 percent for 3Q 2012, which was better than June guidance of
    down 6 to 7 percent. Excluding Costa, constant dollar net revenue yields
    decreased 2.1 percent for 3Q 2012, which was also better than June
    guidance of down 3 to 4 percent. Gross revenue yields decreased 9.2
    percent in current dollars driven by unfavorable currency exchange rates
    compared to the prior year.
  oNet cruise costs per ALBD excluding fuel decreased 3 percent in constant
    dollars, better than June guidance of down 0.5 to 1.5 percent, partly due
    to the timing of certain expenses. Gross cruise costs per ALBD including
    fuel decreased 8.2 percent in current dollars driven by unfavorable
    currency exchange rates compared to the prior year.
  oFuel prices decreased almost 4 percent to $659 per metric ton for 3Q 2012
    from $686 per metric ton in 3Q 2011. However, fuel prices were higher than
    June guidance costing an additional $18 million, net of realized losses on
    fuel derivatives.

Arison indicated that in keeping with the company's previously stated strategy
of introducing two to three new ships per year, the company has seven new
ships scheduled for delivery between 2013 and 2016, some of which will replace
existing capacity reductions from possible sales of older ships. Arison also
noted that the company expects to direct capacity growth toward the continued
development of emerging cruise markets. The company has almost tripled its
guest sourcing from emerging cruise markets in the past five years.For 2013,
the company will capitalize on the increasing popularity of cruising in Asia
with the deployment of a second Costa ship in China and the launch of a new
Princess Cruises program for the Japanese market.

Arison stated, "Looking forward, we remain committed to a measured pace of
newbuilds and achieving a strategic balance of supply and demand in
established markets." Arison added, "Our lower capital commitments should
result in significant excess free cash flow in the coming years which we
intend to return to shareholders."

Outlook
Since June, fleetwide booking volumes and pricing trends for the remainder of
fiscal 2012 and first half of 2013 have continued to strengthen. For the last
six weeks, booking volumes excluding Costa have increased 9 percent versus the
prior year at prices in line with last year's levels. Over the same period,
booking volumes for Costa have also increased 9 percent albeit at lower
prices. For the remainder of the year and first half of 2013, cumulative
advance bookings excluding Costa are still behind the prior year at slightly
lower prices. For Costa, cumulative advance bookings have shown considerable
improvement but are still five occupancy points behind the prior year at lower
prices over the same period. 

Arison commented, "The pace of booking volumes remains healthy enabling us to
continue to catch up on occupancy levels, while pricing has gradually
improved. Both of these trends leave us well positioned for a recovery in
cruise ticket prices beginning in the second quarter of 2013."

2012 Guidance
Excluding Costa, the company forecasts full year 2012 net revenue yields, on a
constant dollar basis, to be flat to down slightly which is slightly better
than previous guidance. Including Costa, the company expects a decline in net
revenue yields of 3 percent compared to its previous guidance of down 3 to 4
percent (constant dollars) for the full year 2012. Full year 2012 revenue
yields for the North American brands are expected to be slightly higher than
the prior year. Full year 2012 revenue yields for the European brands,
excluding Costa, are expected to be lower than the prior year. The company
continues to expect net cruise costs excluding fuel per ALBD for the full year
2012 to be down slightly compared with the prior year on a constant dollar
basis.

For full year 2012, higher net revenue yield expectations and improvement in
costs compared to June guidance have been offset by $0.13 per share of higher
fuel prices and unfavorable changes in currency exchange rates. Taking all the
above factors into consideration, the company forecasts full year 2012
non-GAAP diluted earnings per share to be in the range of $1.83 to $1.87, in
line with the midpoint of the June guidance range of $1.80 to $1.90 per share.

Fourth quarter constant dollar net revenue yields excluding Costa, are
expected to decrease 3 to 4 percent (including Costa, expected to decrease 5
to 6 percent) compared to the prior year. Net cruise costs excluding fuel per
ALBD for the fourth quarter are expected to be down 2 to 3 percent on a
constant dollar basis compared to the prior year. In addition, changes in
currency exchange rates and fuel prices are expected to reduce fourth quarter
earnings by $0.08 per share compared to the prior year.

Based on the above factors, the company expects non-GAAP diluted earnings for
the fourth quarter 2012 to be in the range of $0.07 to $0.11 per share versus
2011 non-GAAP earnings of $0.28 per share.



Selected Key Forecast Metrics


                                                   

                                 Full Year 2012     Fourth Quarter 2012
                                Current  Constant  Current      Constant
                                          Dollars                Dollars
Year over year change:           Dollars            Dollars
Net revenue yields               (5)%     (3)%      (7) to (8)%  (5) to (6)%
Net cruise costs excl. fuel /    (3)%     (1)%      (4) to (5)%  (2) to (3)%
ALBD
                                 Full Year 2012    Fourth Quarter 2012
Fuel price per metric ton        $716               $739
Fuel consumption (metric tons    3,366              854
in thousands)
Currency: Euro                 $1.28 to €1        $1.30 to €1
 Sterling      $1.58 to £1        $1.62 to £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 2012 third 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 cruise brands in North America, Europe, Australia and Asia,
comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises,
Seabourn, AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, P&O Cruises
(Australia) and P&O Cruises (UK).

Together, these brands operate 100 shipstotaling 203,000 lower berths with
seven new ships scheduled to be delivered between March 2013 and March 2016.
Carnival Corporation& plc also operates Holland America Princess Alaska
Tours, the leading tour company 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.

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. We have tried,
whenever possible, to identify these statements by using words like "will,"
"may," "could," "should," "would," "believe," "depends," "expect,"
"anticipate," "forecast," "future," "intend," "plan," "estimate," "target,"
"indicate" and similar expressions of future intent or the negative of such
terms. 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. Forward-looking statements include those statements that may impact,
among other things, the forecasting of our non-GAAP earnings per share
("EPS"); net revenue yields; booking levels; pricing; occupancy; operating,
financing and tax costs, including fuel expenses; costs per available lower
berth day; estimates of ship depreciable lives and residual values; liquidity;
goodwill and trademark fair values and outlook. These factors include, but are
not limited to, the following: general economic and business conditions;
increases in fuel prices; accidents, the spread of contagious diseases and
threats thereof, adverse weather conditions or 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 business in general or us in particular, including any adverse
environmental impacts of cruising; litigation, enforcement actions, fines or
penalties, including those relating to the Costa Concordia incident; 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 ability 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; 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 pricing 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;
competition from and overcapacity in the cruise ship or land-based vacation
industry; loss of key personnel or our ability to recruit or retain qualified
personnel; union disputes and other employee relation issues; disruptions in
the global financial markets or other events 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 brand
strategies; our international operations are subject to additional risks not
applicable to our U.S. operations; geographic regions in which we try to
expand our business may be slow to develop and ultimately not develop how we
expect; our decisions to self-insure against various risks or our inability to
obtain insurance for certain risks at reasonable rates; 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 the dual listed
company arrangement and uncertainties of a foreign legal system as we are not
incorporated in the U.S. 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     Nine Months
                                                     Ended
                               August 31,                August 31,
                               2012     2011             2012        2011
Revenues
 Cruise
 Passenger            $       $  3,907        $          $ 
tickets                        3,561                     9,000       9,336
 Onboard and          965      936              2,618       2,511
other
 Tour and other            158      215              186         249
                               4,684    5,058            11,804      12,096
Operating Costs and
Expenses
 Cruise
 Commissions,        613      686              1,793       1,911
transportation and other
 Onboard and         150      137              404         379
other
 Fuel                541      581              1,778       1,611
 Payroll and         422      435              1,299       1,282
related
 Food                246      257              722         728
 Other ship          534       575      1,647       1,640
operating                               (a)
 Tour and other            91       143              126         179
                               2,597    2,814            7,769       7,730
 Selling and               409      421              1,261       1,282
administrative
 Depreciation and          383      390              1,135       1,137
amortization
 Ibero goodwill and
trademark impairment           -        -                173         -
charges
                               3,389    3,625            10,338      10,149
Operating Income               1,295    1,433            1,466       1,947
Nonoperating Income
(Expense)
 Interest income           2        3                8           8
 Interest expense, net     (84)     (96)             (259)       (273)
of capitalized interest
 Unrealized gains on       136      -                12          -
fuel derivatives, net
 Realized losses on        (12)     -                (12)        -
fuel derivatives
 Other (expense)           (1)      2                (6)         21
income, net
                               41       (91)             (257)       (244)
Income Before Income Taxes     1,336    1,342            1,209       1,703
Income Tax Expense, Net        (6)      (5)              (4)         (8)
Net Income                     $       $  1,337        $          $ 
                               1,330                     1,205       1,695
Earnings Per Share
 Basic                     $      $   1.69       $         $ 
                               1.71                      1.55        2.14
 Diluted                   $      $   1.69       $         $ 
                               1.71                      1.55        2.14
Non-GAAP Earnings Per          $      $   1.69       $         $ 
Share-Diluted                  1.53                      1.75        2.14
Dividends Declared Per         $      $   0.25       $         $ 
Share                          0.25                      0.75        0.75
Weighted-Average Shares        778      790              778         791
Outstanding – Basic
Weighted-Average Shares        779      792              779         793
Outstanding – Diluted
(a) Includes a $28 million charge related to the sales of Costa Marina and
Pacific Sun, which left the fleet in November 2011 and July 2012,
respectively.



CARNIVAL CORPORATION & PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except par values)
                                   August 31,          November 30,
                                  2012                   2011
ASSETS
Current Assets
 Cash and cash equivalents     $        568   $         
                                                             450
 Trade and other receivables,  306                    263
net
 Insurance recoverables        482                    30
 Inventories                   364                    374
 Prepaid expenses and other    221                    195
 Total current assets      1,941                  1,312
Property and Equipment, Net       31,972                 32,054
Goodwill                          3,146                  3,322
Other Intangibles                 1,307                  1,330
Other Assets                      716                    619
                                  $      39,082     $    38,637
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
 Short-term borrowings         $             $         
                                   9                        281
 Current portion of long-term  754                    1,019
debt
 Accounts payable              561                    576
 Claims reserve                564                    97
 Accrued liabilities and other 970                    1,026
 Customer deposits             3,078                  3,106
 Total current     5,936                  6,105
liabilities
Long-Term Debt                    8,289                  8,053
Other Long-Term Liabilities and   664                    647
Deferred Income
Shareholders' Equity
 Common stock of Carnival
Corporation, $0.01 par value;
1,960 shares
 authorized; 649 shares at
2012 and 647 shares at 2011       6                      6
issued
 Ordinary shares of Carnival
plc, $1.66 par value; 215 shares
at 2012
 and 2011 issued           357                    357
 Additional paid-in capital    8,218                  8,180
 Retained earnings             18,969                 18,349
 Accumulated other             (434)                  (209)
comprehensive loss
 Treasury stock, 54 shares at
2012 and 52 shares at 2011 of
Carnival Corporation
 and 33 shares at 2012 and (2,923)                (2,851)
2011 of Carnival plc, at cost
  Total shareholders'  24,193                 23,832
equity
                                  $      39,082     $    38,637





CARNIVAL CORPORATION & PLC
OTHER INFORMATION
                     Three Months Ended      Nine Months
                                                     Ended
                      August 31,       
                                           August 31,
                    2012                  2011       2012        2011
STATISTICAL
INFORMATION
 Passengers
carried (in             2,804             2,676      7,400       7,192
thousands)
 Occupancy            110.8%            111.9%     106.3%      107.2%
percentage (a)
 Fuel
consumption             823               847        2,512       2,537
(metric tons in
thousands)
 Fuel cost per
metric ton              $  659          $  686   $   708   $    635
consumed
 Currencies
 U.S.         $  1.24          $  1.43   $  1.28   $   1.40
dollar to €1
 U.S.         $  1.56          $  1.63   $  1.57   $   1.61
dollar to £1
 U.S.
dollar to               $  1.02          $  1.06   $  1.03   $   1.03
Australian dollar
CASH FLOW
INFORMATION
Cash from               $ 1,018           $ 1,215    $ 2,476    $  3,016
operations
Capital                 $  167           $  813   $ 2,164  $  2,435
expenditures
Dividends paid                                       $  
                        $  196          $  197   584      $   474



(a) In accordance with cruise business practice, occupancy is calculated using
a denominator of two passengers per cabin even though some cabins can
accommodate three or more passengers. Percentages in excess of 100% indicate
that on average more than two passengers occupied some cabins.



FUEL DERIVATIVES
At August 31, 2012, our outstanding fuel derivatives consisted of zero cost
collars on Brent crude oil to cover a portion of our estimated fuel consumption
as follows:
                                                                   Percent of
                      Barrels    Weighted-Average Weighted-Average Estimated
           Transaction
Maturities             (in        Floor Prices     Ceiling Prices   Fuel
(a) (b)    Dates       thousands)                                   Consumption
                                                                    Covered
Fiscal
2012-Q4
           November    522        $  75           $ 135
           2011
           February    522        $ 109            $ 128
           2012
           March 2012  1,044      $ 112            $ 132
                       2,088                                        36%
Fiscal
2013
           November    2,112      $  74           $ 132
           2011
           February    2,112      $  98           $ 127
           2012
           March 2012  4,224      $ 100            $ 130
                       8,448                                        38%
Fiscal
2014
           November    2,112      $  71           $ 128
           2011
           February    2,112      $  88           $ 125
           2012
           June 2012   2,376      $  71           $ 116
                       6,600                                        29%
Fiscal
2015
           November    2,160      $  71           $ 125
           2011
           February    2,160      $  80           $ 125
           2012
           June 2012   1,236      $  74           $ 110
                       5,556                                        24%
Fiscal     June 2012   3,564      $  75           $ 108            15%
2016
(a) Fuel derivatives mature evenly over each month within the above fiscal
periods.
(b) We will not realize any economic gain or loss upon the monthly
maturities of our zero cost collars unless the average monthly price of
Brent crude oil is above the ceiling price or below the floor price.



CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES
Consolidated gross and net revenue yields were computed by dividing the gross and
net cruise revenues, without rounding, by ALBDs as follows (dollars in millions,
except yields) (a)(b):
                Three Months Ended August 31,    Nine Months Ended August 31,
                2012                              2012
                Constant                          Constant
                2012       Dollar    2011        2012       Dollar     2011
Passenger       $       $        $        $       $       $   
ticket          3,561     3,718     3,907      9,000      9,245     9,336
revenues
Onboard and     965        997        936         2,618      2,667      2,511
other revenues
Gross cruise    4,526      4,715      4,843       11,618     11,912     11,847
revenues
Less cruise
costs

Commissions,    (613)      (644)      (686)       (1,793)    (1,848)    (1,911)
transportation
and other
 Onboard and  (150)      (154)      (137)       (404)      (411)      (379)
other
                (763)      (798)      (823)       (2,197)    (2,259)    (2,290)
Net passenger
ticket          2,948      3,074      3,221       7,207      7,397      7,425
revenues
Net onboard
and other       815        843        799         2,214      2,256      2,132
revenues
Net cruise      $       $       $        $       $       $   
revenues        3,763     3,917      4,020       9,421      9,653     9,557
ALBDs (c)       18,613,416 18,613,416 18,089,807  53,705,889 53,705,889 52,178,866
Gross revenue   $        $        $         $        $        $  
yields          243.18    253.33     267.70     216.33     221.80     227.05
% decrease vs.  (9.2)%     (5.4)%                 (4.7)%     (2.3)%
2011
Net revenue     $        $        $         $        $        $  
yields          202.21     210.47     222.21      175.42     179.74     183.17
% decrease vs.  (9.0)%     (5.3)%                 (4.2)%     (1.9)%
2011
Net passenger   $        $        $         $        $        $  
ticket revenue  158.34     165.14     178.06      134.19     137.72    142.30
yields
% decrease vs.  (11.1)%    (7.3)%                 (5.7)%     (3.2)%
2011
Net onboard     $       $       $        $       $       $   
and other       43.87     45.33      44.15       41.24      42.02     40.86
revenue yields
% (decrease)
increase vs.    (0.6)%     2.7%                   0.9%       2.8%
2011
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, without rounding, by ALBDs as follows (dollars in millions, except
costs per ALBD) (a)(b):

                Three Months Ended August 31,     Nine Months Ended August 31,
                           2012                              2012
                           Constant                          Constant
                2012       Dollar     2011        2012       Dollar     2011
Cruise          $       $        $        $       $       $   
operating       2,506     2,592     2,671       7,643      7,788     7,551
expenses
Cruise selling
and
administrative  407        424        413         1,255      1,285      1,264

 expenses
(d)
Gross cruise    2,913      3,016      3,084       8,898      9,073      8,815
costs
Less cruise
costs included
in net

 cruise
revenues

Commissions,    (613)      (644)      (686)       (1,793)    (1,848)    (1,911)
transportation
and other
 Onboard   (150)      (154)      (137)       (404)      (411)      (379)
and other
Net cruise      2,150      2,218      2,261       6,701      6,814      6,525
costs
Less fuel       (541)      (541)      (581)       (1,778)    (1,778)    (1,611)
Net cruise      $       $       $        $       $       $   
costs           1,609     1,677      1,680       4,923     5,036     4,914
excluding fuel
ALBDs (c)       18,613,416 18,613,416 18,089,807  53,705,889 53,705,889 52,178,866
Gross cruise    $        $        $         $        $        $  
costs per ALBD  156.52    162.05     170.49      165.68    168.95    168.93
% decrease vs.  (8.2)%     (4.9)%                 (1.9)%     0.0%
2011
Net cruise      $        $        $         $        $        $  
costs per ALBD  115.55    119.20     125.00      124.78     126.89    125.05
% (decrease)
increase vs.    (7.6)%     (4.6)%                 (0.2)%     1.5%
2011
Net cruise
costs           $       $       $        $       $       $   
excluding fuel  86.44     90.08      92.88       91.67      93.78     94.18
per ALBD
% decrease vs.  (6.9)%     (3.0)%                 (2.7)%     (0.4)%
2011
(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    Nine Months Ended
                                     August       August
                                    31,            31,___
                                    2012       2011      2012       2011
Net income – diluted
 U.S. GAAP net income            $ 1,330   $ 1,337   $  1,205  $  1,695
 Ibero goodwill and trademark    -          -         173        -
impairment charges (e)
 Unrealized gains on fuel        (136)      -         (12)       -
derivatives, net (f)
 Non-GAAP net income             $ 1,194   $ 1,337   $  1,366  $  1,695
Weighted-average shares outstanding 779        792       779        793
– diluted
Earnings per share – diluted
 U.S. GAAP earnings per share    $   1.71 $  1.69  $   1.55 $   2.14
 Ibero goodwill and trademark    -          -         0.22       -
impairment charges (e)
 Unrealized gains on fuel        (0.18)     -         (0.02)     -
derivatives, net (f)
 Non-GAAP earnings per share     $  1.53  $  1.69  $   1.75 $  2.14



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 segment financial performance.
These measures enable us to separate the impact of predictable capacity
changes from the more unpredictable rate changes that affect our business. We
believe these non-GAAP measures provide useful information to investors and
expanded insight to measure our revenue and cost performance as a supplement
to our U.S. generally accepted accounting principles ("U.S. GAAP")
consolidated financial statements.

Net revenue yields are commonly used in the cruise business 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 card fees. Substantially all of our remaining
cruise costs are largely fixed, except for the impact of changing prices, once
our ship capacity levels have been determined.

Net passenger ticket revenues reflect gross cruise revenues, net of (1)
onboard and other revenues, (2) commissions, transportation and other costs
and (3) onboard and other cruise costs. Net onboard and other revenues
reflect gross cruise revenues, net of (1) passenger ticket revenues, (2)
commissions, transportation and other costs and (3) 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
segment 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.

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 this measure. As
such, management does not believe that this reconciling information would be
meaningful.

CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)

In addition, because our Europe, Australia & Asia cruise brands utilize the
euro, sterling and Australian dollar to measure their results and financial
condition, the translation of those operations to our U.S. dollar reporting
currency results in decreases in reported U.S. dollar revenues and expenses if
the U.S. dollar strengthens against these foreign currencies and increases in
reported U.S. dollar revenues and expenses if the U.S. dollar weakens against
these foreign currencies. Accordingly, we also monitor and report these
non-GAAP financial measures assuming the 2012 periods' currency exchange rates
have remained constant with the 2011 periods' rates, or on a "constant dollar
basis," in order to remove the impact of changes in exchange rates on our
non-U.S. dollar cruise operations. We believe that this is a useful measure
since it facilitates a comparative view of the growth of our business in a
fluctuating currency exchange rate environment.

(b) Our consolidated financial statements are prepared in accordance with
U.S. GAAP. The presentation of our non-GAAP financial information is not
intended to be considered in isolation or 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) ALBDs is a standard measure of passenger capacity for the period,
which we use to perform rate and capacity variance 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.

(d) For the three months and nine months ended August 31, 2012, selling
and administrative expenses were $409 million ($421 million in 2011) and $1.3
billion ($1.3 billion in 2011), respectively. For the three and nine months
ended August 31, 2012, selling and administrative expenses were comprised of
cruise selling and administrative expenses of $407 million ($413 million in
2011) and $1.3 billion ($1.3 billion in 2011) and Tour and Other selling and
administrative expenses of $2 million ($8 million in 2011) and $6 million ($18
million in 2011), respectively.

(e) We believe that the impairment charges recognized in the nine months
ended August 31, 2012 related to Ibero's goodwill and trademarks are
nonrecurring and, therefore, are not an indication of our future earnings
performance. As such, we believe it is more meaningful for the impairment
charges to be excluded from our net income and earnings per share and,
accordingly, we present non-GAAP net income and non-GAAP EPS excluding these
impairment charges.

(f) Under U.S. GAAP, the realized and unrealized gains and losses on fuel
derivatives not qualifying as fuel hedges are immediately recognized in
earnings. We believe that unrealized gains and losses on fuel derivatives are
not an indication of our future 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 EPS
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 EPS guidance and forecasted
U.S. GAAP diluted EPS guidance, since we do not believe that the
reconciliation information would be meaningful.

SOURCE Carnival Corporation

Website: http://www.carnivalcorp.com
Contact: MEDIA, Jennifer De La Cruz, +1-305-599-2600, ext. 16000, INVESTOR
RELATIONS, Beth Roberts, +1-305-406-4832