Carnival Corporation & plc Reports Fourth Quarter and Full Year Earnings

   Carnival Corporation & plc Reports Fourth Quarter and Full Year Earnings

PR Newswire

MIAMI, Dec. 20, 2012

MIAMI, Dec. 20, 2012 /PRNewswire-FirstCall/ --Carnival Corporation & plc
(NYSE/LSE: CCL; NYSE: CUK) announced non-GAAP net income of $98 million, or
$0.13 diluted EPS, for the fourth quarter of 2012. Reported U.S. GAAP net
income, which included net unrealized losses on fuel derivatives of
$5million, was $93 million, or $0.12 diluted EPS. Net income for the fourth
quarter of 2011 was $217 million, or $0.28 diluted EPS. Revenues for the
fourth quarter of 2012 were $3.6 billion compared to $3.7 billion for the
prior year.

Non-GAAP net income for the full year 2012 was $1.5 billion, or $1.88 diluted
EPS, compared to net income of $1.9 billion, or $2.42 diluted EPS, for the
prior year. Full year 2012 U.S. GAAP net income was $1.3 billion, or $1.67
diluted EPS, which included the non-cash write down for Ibero Cruises'
goodwill and trademark assets of $173 million. Revenues for the full year 2012
were $15.4 billion compared to $15.8 billion for the prior year.

Carnival Corporation & plc Chairman and CEO Micky Arison noted that fourth
quarter earnings on a non-GAAP basis were better than anticipated in the
company's September guidance. Stronger than expected revenue yields combined
with lower than expected fuel costs more than offset higher than anticipated
operating costs. 

Commenting on full year 2012, Arison stated, "As a result of the Costa
Concordia tragedy in January, the past year has been the most challenging in
our company's history. However, through the significant efforts of our brand
management teams, we were able to maintain full year 2012 net revenue yields
(excluding Costa) in line with the prior year. In addition, we drove down net
cruise costs, excluding fuel, slightly and fuel consumption by four percent."
Arison added that unfavorable changes in fuel prices and currency exchange
rates reduced earnings by $300 million, or $0.39 per share, compared to the
prior year.

Arison noted, "Cash from operations of $3.0 billion was more than sufficient
to fund $1.8 billion in net capital investments and positioned the company
with excess free cash flow to return to shareholders. Our regular quarterly
dividend of $0.25 per share, combined with our recently announced special
year-end dividend of $0.50 per share, will result in $1.2 billion of dividend
distributions to our shareholders. Additionally, since the start of the
fiscal year we purchased 3.5 million of the company's shares in the open
market at a cost of $120 million."

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

  oOn a constant dollar basis, net revenue yields (net revenue per available
    lower berth day or "ALBD") decreased 4.5 percent for 4Q 2012, which was
    better than the company's September guidance, down 5 to 6 percent. Gross
    revenue yields decreased 5.7 percent in current dollars.
  oNet cruise costs excluding fuel per ALBD decreased 0.9 percent in constant
    dollars, less than the September guidance, down 2 to 3 percent. Gross
    cruise costs including fuel per ALBD in current dollars decreased 2.5
    percent.
  oFuel prices increased 5.4 percent to $716 per metric ton for 4Q 2012 from
    $680 per metric ton in 4Q 2011 and were better than the September guidance
    of $739 per metric ton.

During the fourth quarter, the company also announced it had reached an
agreement for the construction of two new cruise ships – a 2,660-passenger
ship for its Holland America Line brand to be delivered in 2015 and a
4,000-passenger vessel for its Carnival Cruise Lines brand to be delivered in
2016. Both are the largest ships ever built for those brands. 

Full Year 2013 Outlook
Since September, booking volumes for the first three quarters, including
Costa, are running in line with the strong volumes experienced last year at
slightly lower prices. At this time, cumulative advance bookings for 2013
continue to be behind the prior year at slightly lower prices.

Based on current booking trends, the company forecasts full year 2013 net
revenue yields, on a constant dollar basis, to be up 1 to 2 percent. Revenue
yields (constant dollars) are expected to decline 2 to 3 percent in the first
quarter and improve sequentially during the remainder of 2013 based on a
recovery in ticket prices and occupancy for the North American brands and
Costa. However, the company's European brands continue to be negatively
impacted by a deteriorating economic environment.

The company expects net cruise costs excluding fuel per ALBD for the full year
2013 to be up 1 to 2 percent on a constant dollar basis. Taking the above
factors into consideration, the company forecasts full year 2013 non-GAAP
diluted earnings per share to be in the range of $2.20 to $2.40, compared to
2012 non-GAAP diluted earnings of $1.88 per share.

Looking forward, Arison stated, "We remain well positioned for a recovery in
2013 and beyond evidenced by the demonstrated resilience of our global
portfolio of cruise brands as consumers continue to capitalize on cruising's
superior value versus land-based vacation alternatives. We continue to focus
on a measured growth strategy through the introduction of two to three new
ships per year and the development of emerging cruise markets in Asia."

Arison added, "Based on 2013 guidance, we estimate that cash from operations
will reach $3.3 billion for the year while our capital commitments will be
just $2.0 billion. As a result, we anticipate significant free cash flow in
2013, which we intend to continue to return to shareholders."

During 2013, the company expects to carry over 10 million guests on its global
fleet and will introduce two new ships, the 2,192-passenger AIDAstella which
is scheduled for delivery in March and the 3,560-passenger Royal Princess,
which is scheduled for delivery in May.

First Quarter 2013 Outlook
First quarter constant dollar net revenue yields are expected to decrease 2 to
3 percent compared to the prior year. Net cruise costs excluding fuel per ALBD
for the first quarter are expected to be down 1.5 to 2.5 percent on a constant
dollar basis compared to the prior year.

Based on the above factors, the company expects non-GAAP diluted earnings for
the first quarter 2013 to be in the range of $0.03 to $0.07 per share versus
2012 non-GAAP earnings of $0.02 per share.



Selected Key Forecast Metrics
                          
                                                        First Quarter 2013
                          Full Year 2013
                         Current        Constant       Current      Constant

Year over year change:    Dollars        Dollars        Dollars      Dollars
Net revenue yields         1.5 to   1.0 to   (1.5) to  (2.0) to
                          2.5 %          2.0 %          (2.5) %      (3.0) %
Net cruise costs excl.     1.5 to   1.0 to   (1.5) to  (1.5) to
fuel / ALBD             2.5 %          2.0 %          (2.5) %      (2.5) %



                                            Full Year     First Quarter
                                           2013              2013
Fuel price per metric ton                  $ 692            $ 674
Fuel consumption (metric tons in           3,300             835
thousands)
Currency: Euro                            $1.30 to    $1.30 to €1
                                           €1
 Sterling                 $1.61 to    $1.61 to £1
                                           £1



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 2012 fourth quarter and full year
earnings. 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 ships totaling 203,000 lower berths with
nine 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," "goal,"
"anticipate," "forecast," "future," "intend," "plan," "estimate," "target,"
"indicate" and similar expressions of future intent or the negative of such
terms. Forward-looking statements include those statements that may impact,
among other things, the forecasting of our non-GAAP earnings per share
("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. 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. These factors include, but
are not limited to, the following: general economic and business conditions;
increases in fuel prices; incidents, the spread of contagious diseases and
threats thereof, adverse weather conditions or other natural disasters and
other incidents affecting the health, safety, security and satisfaction of
guests and crew; the international political climate, armed conflicts,
terrorist and pirate attacks, vessel seizures, and threats thereof, and other
world events affecting the safety and security of travel; negative publicity
concerning the cruise business in general or us in particular, including any
adverse environmental impacts of cruising; litigation, enforcement actions,
fines or penalties; 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; our failure to keep
pace with developments in technology; 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 generally 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        Twelve Months Ended
                              November 30,              November 30,
                              2012         2011         2012        2011
Revenues
 Cruise
 Passenger tickets   $  2,659    $  2,821    $ 11,658    $ 12,158
 Onboard and other   894          847          3,513       3,357
 Tour and other           26           28           211         278
                              3,579        3,696        15,382      15,793
Operating Costs and
Expenses
 Cruise
 Commissions,       499          549          2,292       2,461
transportation and other
 Onboard and        155          128          558         506
other
 Fuel               603          583          2,381       2,193
 Payroll and        443          442          1,742       1,723
related
 Food               238          236          960         965
 Other ship         586          606          2,233       2,247
operating
 Tour and other           28           25           154         204
                              2,552        2,569        10,320      10,299
 Selling and              459          434          1,720       1,717
administrative
 Depreciation and         392          385          1,527       1,522
amortization
 Ibero goodwill and
trademark impairment          -            -            173         -
charges
                              3,403        3,388        13,740      13,538
Operating Income              176          308          1,642       2,255
Nonoperating (Expense)
Income
 Interest income          2            3            10          11
 Interest expense, net    (77)         (92)         (336)       (365)
of capitalized interest
 Unrealized (losses)
gains on fuel derivatives,    (5)          1            6           1
net
 Realized losses on       (1)          -            (13)        -
fuel derivatives
 Other (expense)          (1)          (11)         (7)         10
income, net
                              (82)         (99)         (340)       (343)
Income Before Income Taxes    94           209          1,302       1,912
Income Tax (Expense)          (1)          8            (4)         -
Benefit, Net
Net Income                    $    93  $   217   $  1,298   $  1,912
Earnings Per Share
 Basic                    $   0.12   $   0.28  $   1.67  $  2.43
 Diluted                  $   0.12   $   0.28  $   1.67  $  2.42
Non-GAAP Earnings Per         $   0.13   $   0.28   $   1.88  $  2.42
Share-Diluted
Dividends Declared Per        $   0.75   $   0.25   $   1.50  $  1.00
Share
Weighted-Average Shares       777          778          778         787
Outstanding – Basic
Weighted-Average Shares       779          780          779         789
Outstanding – Diluted





CARNIVAL CORPORATION & PLC

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in millions, except par values)


                                   November 30,
                                   2012                   2011
ASSETS
Current Assets
 Cash and cash equivalents      $              $        
                                   465                   450
 Trade and other receivables,   270                    263
net
 Insurance recoverables         460                    30
 Inventories                    390                    374
 Prepaid expenses and other     236                    195
 Total current assets       1,821                  1,312
Property and Equipment, Net        32,137                 32,054
Goodwill                           3,174                  3,322
Other Intangibles                  1,314                  1,330
Other Assets                       715                    619
                                   $       39,161   $       38,637
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
 Short-term borrowings          $             $        
                                   56                    281
 Current portion of long-term   1,678                  1,019
debt
 Accounts payable               549                    576
Dividends payable              583                    194
Claims reserve                 553                    97
 Accrued liabilities and other  845                    832
 Customer deposits              3,076                  3,106
 Total current      7,340                  6,105
liabilities
Long-Term Debt                     7,168                  8,053
Other Long-Term Liabilities        724                    647
Shareholders' Equity
 Common stock of Carnival
Corporation, $0.01 par value;
1,960 shares
 authorized; 649 shares at  6                      6
2012 and 647 shares at 2011 issued
 Ordinary shares of Carnival
plc, $1.66 par value; 215 shares
at 2012
 and 2011 issued            357                    357
 Additional paid-in capital     8,252                  8,180
 Retained earnings              18,479                 18,349
 Accumulated other              (207)                  (209)
comprehensive loss
 Treasury stock, 55 shares at
2012 and 52 shares at 2011 of
Carnival Corporation and 33
shares at 2012 and 2011 of         (2,958)                (2,851)

 Carnival plc, at cost
  Total shareholders'   23,929                 23,832
equity
                                   $       39,161   $       38,637







CARNIVAL CORPORATION & PLC

OTHER INFORMATION


                                       Three Months Ended  Twelve Months Ended
                                       November 30,        November 30,
                                       2012        2011    2012      2011
STATISTICAL INFORMATION
Passengers carried (in thousands)   2,430       2,367   9,829     9,559
 Occupancy percentage (a)            103.1%      103.2%  105.5%    106.2%
 Fuel consumption (metric tons in    842         858     3,354     3,395
thousands)
 Fuel cost per metric ton consumed   $   716   $     $       $  646
                                                   680     710
 Currencies
 U.S. dollar to €1           $  1.29   $      $       $  1.40
                                                   1.37   1.28
 U.S. dollar to £1           $  1.60   $      $       $  1.60
                                                   1.58   1.58
 U.S. dollar to Australian   $  1.04   $      $       $  1.03
dollar                                             1.02   1.03
CASH FLOW INFORMATION
 Cash from operations               $ 523       $ 749   $ 2,999   $3,766
 Capital expenditures               $ 168       $ 261   $ 2,332   $2,696
 Dividends paid                     $ 195       $ 197   $ 779     $ 671


(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 November 30, 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                                      Estimated
                                  Weighted-Average Weighted-Average
Maturities Transaction (in                                          Fuel
(a) (b)                thousands) Floor Prices     Ceiling Prices   Consumption
           Dates
                                                                    Covered
Fiscal
2013
           November    2,112      $  74          $ 132
           2011
           February    2,112      $  98          $ 127
           2012
           March 2012  4,224      $ 100           $ 130
                       8,448                                        40%
Fiscal
2014
           November    2,112      $  71          $ 128
           2011
           February    2,112      $  88          $ 125
           2012
           June 2012   2,376      $  71          $ 116
                       6,600                                        32%
Fiscal
2015
           November    2,160      $  71          $ 125
           2011
           February    2,160      $  80          $ 125
           2012
           June 2012   1,236      $  74          $ 110
                       5,556                                        26%
Fiscal     June 2012   3,564      $  75          $ 108           17%
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 November    Twelve Months Ended November
               30,                           30,  
                          2012                             2012
                          Constant                         Constant
               2012       Dollar     2011       2012       Dollar     2011
Passenger      $       $        $       $        $        $  
ticket         2,659     2,696     2,821     11,658     11,941    12,158
revenues
Onboard and    894        903        847        3,513      3,570      3,357
other revenues
Gross cruise   3,553      3,599      3,668      15,171     15,511     15,515
revenues
Less cruise
costs

Commissions,   (499)      (509)      (549)      (2,292)    (2,358)    (2,461)
transportation
and other
 Onboard and (155)      (156)      (128)      (558)      (566)      (506)
other
               (654)      (665)      (677)      (2,850)    (2,924)    (2,967)
Net passenger
ticket         2,160      2,187      2,272      9,366      9,583      9,697
revenues
Net onboard
and other      739        747        719        2,955      3,004      2,851
revenues
Net cruise     $       $       $       $        $        $  
revenues       2,899     2,934      2,991      12,321     12,587    12,548
ALBDs (c)      18,269,763 18,269,763 17,792,044 71,975,652 71,975,652 69,970,910
Gross revenue  $        $        $        $        $        $  
yields         194.47    196.99     206.19    210.78     215.50     221.74
% decrease vs. (5.7)%     (4.5)%                (4.9)%     (2.8)%
2011
Net revenue    $        $        $        $        $        $  
yields         158.69     160.60     168.15     171.18     174.88     179.35
% decrease vs. (5.6)%     (4.5)%                (4.6)%     (2.5)%
2011
Net passenger  $        $        $        $        $        $  
ticket revenue 118.21     119.69     127.72     130.13     133.14    138.60
yields
% decrease vs. (7.5)%     (6.3)%                (6.1)%     (3.9)%
2011
Net onboard    $       $       $       $       $       $   
and other      40.49     40.91      40.43      41.05      41.74     40.75
revenue yields
% increase vs. 0.2%       1.2%                  0.7%       2.4%
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 November    Twelve Months Ended November
               30,                           30, 
                          2012                             2012
                          Constant                         Constant
               2012       Dollar     2011       2012       Dollar     2011
Cruise         $       $        $       $        $        $  
operating      2,524     2,550     2,544      10,166     10,338    10,095
expenses
Cruise selling
and
administrative 458        464        433        1,713      1,749      1,696

 expenses
(d)
Gross cruise   2,982      3,014      2,977      11,879     12,087     11,791
costs
Less cruise
costs included
in net

 cruise
revenues

Commissions,   (499)      (509)      (549)      (2,292)    (2,358)    (2,461)
transportation
and other
 Onboard  (155)      (156)      (128)      (558)      (566)      (506)
and other
Net cruise     2,328      2,349      2,300      9,029      9,163      8,824
costs
Less fuel      (603)      (603)      (583)      (2,381)    (2,381)    (2,193)
Net cruise     $       $       $       $       $       $   
costs          1,725     1,746      1,717      6,648     6,782     6,631
excluding fuel
ALBDs (c)      18,269,763 18,269,763 17,792,044 71,975,652 71,975,652 69,970,910
Gross cruise   $        $        $        $        $        $  
costs per ALBD 163.17    164.96     167.28     165.04    167.94    168.51
% decrease vs. (2.5)%     (1.4)%                (2.1)%     (0.3)%
2011
Net cruise     $        $        $        $        $        $  
costs per ALBD 127.40    128.57     129.24     125.44     127.32    126.11
% (decrease)
increase vs.   (1.4)%     (0.5)%                (0.5)%     1.0%
2011
Net cruise
costs          $       $       $       $       $       $   
excluding fuel 94.39     95.56      96.47      92.36      94.23     94.76
per ALBD
% decrease vs. (2.2)%     (0.9)%                (2.5)%     (0.6)%
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   Twelve Months Ended
                                      November 30,         November 30,
                                      2012       2011      2012       2011
Net income – diluted
 U.S. GAAP net income              $    93 $  217  $ 1,298    $ 1,912
 Ibero goodwill and trademark      -          -         173        -
impairment charges (e)
 Unrealized losses (gains) on fuel 5          (1)       (6)        (1)
derivatives, net (f)
 Non-GAAP net income               $    98 $  216  $ 1,465    $ 1,911
Weighted-average shares outstanding – 779        780       779        789
diluted
Earnings per share – diluted
 U.S. GAAP earnings per share      $   0.12 $  0.28  $  1.67  $  2.42
 Ibero goodwill and trademark      -          -         0.22       -
impairment charges (e)
 Unrealized losses (gains) on fuel 0.01       -         (0.01)     -
derivatives, net (f)
 Non-GAAP earnings per share       $  0.13  $  0.28  $  1.88  $  2.42

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 twelve months ended November 30, 2012,
selling and administrative expenses were $459 million ($434 million in 2011)
and $1.7 billion ($1.7 billion in 2011), respectively. For the three and
twelve months ended November 30, 2012, selling and administrative expenses
were comprised of cruise selling and administrative expenses of $458 million
($433 million in 2011) and $1.7 billion ($1.7 billion in 2011) and Tour and
Other selling and administrative expenses of $1 million ($1 million in 2011)
and $7 million ($21 million in 2011), respectively.

(e) We believe that the impairment charges recognized in the twelve months
ended November 30, 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, or Investor
Relations, Beth Roberts, +1-305-406-4832
 
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