CARNIVAL PLC: Carnival Corp & plc First Quarter Results

CARNIVAL CORPORATION & PLC REPORTS 
                                FIRST QUARTER RESULTS 
Carnival Corporation & plc today reported its results of operations for the 
first
quarter ended February 28, 2013. The results of Carnival Corporation and 
Carnival plc have
been consolidated, and this statement includes consolidated results on a U.S. 
GAAP basis. 


    1Q Highlights
    
    - 1Q revenues were $3.6b in line with the prior year


- 1Q net revenue yields in constant dollars decreased 2.3% (down 1.9% in 
current 
  dollars) which was in line with the company's December guidance 
- Excluding fuel, constant dollar net cruise costs per available lower 
berth day 
  ("ALBD") decreased 3.1% which was better than the company's December 
guidance, down 
  1.5 to 2.5% due to the timing of certain expenses 
- Fuel prices decreased 4% to $677 per metric ton for 1Q 2013 versus $707 
per 
  metric ton in 1Q 2012 
- Fuel consumption per ALBD decreased 5% in 1Q 2013 compared to the prior 
year 
- 1Q Non-GAAP (diluted) earnings per share of $0.08, compared to $0.02 for 
the 
  prior year 
- 1Q U.S. GAAP (diluted) earnings per share of $0.05 included net 
unrealized 


      losses on fuel derivatives of $28m
    2013 Outlook
    
    - At this time, cumulative advance bookings for 2013 are behind the prior
      year at prices in line with the prior year levels


- Net revenue yields for FY 2013 are expected to be in line with the prior 
year 
  compared to up 1 to 2% in the December guidance 
- Net cruise costs excluding fuel per ALBD for FY 2013 are expected to be 
up 2.5 
  to 3.5% on a constant dollar basis compared to up 1 to 2% in the December 
guidance 
- FY 2013 non-GAAP earnings per share (diluted) expected to be in the range 
of 
  $1.80 to $2.10, compared to $1.88 for 2012 
- 2Q 2013 non-GAAP earnings per share (diluted) expected to be in the range 
of 
  $0.04 to $0.08, compared to $0.20 in 2Q 2012 
Chairman and Chief Executive Officer Micky Arison commenting on these 
results: 
"Booking volumes during our seasonally strong wave period have remained 
solid with
pricing comparisons improving in recent weeks. However, economic uncertainty in 
Europe
continues to hinder yield growth." 
"Despite considerable attention surrounding the Carnival Triumph, we had 
been
encouraged to see booking volumes for Carnival Cruise Lines recover 
significantly in
recent weeks. Attractive pricing promotions, combined with strong support from 
the travel
agent community and consumers who recognize the company's well-established 
reputation and
quality product offering, were driving the strong booking volumes." 
"Our long term business fundamentals remain strong as we broaden our 
customer base of
new and repeat cruisers through attractive product offerings, high satisfaction 
levels and
compelling value propositions. We expect to drive return on invested capital 
higher
through a measured pace of capacity growth and a continued focus on fuel 
consumption
savings. We continue to expect over $3 billion of cash from operations this 
year and
remain committed to returning free cash flow to shareholders in 2013 and 
beyond." 


    MEDIA CONTACT                     INVESTOR RELATIONS CONTACT
    Jennifer de la Cruz               Beth Roberts
    001 305 599 2600, ext. 16000      001 305 406 4832
    Analyst conference call


The company has scheduled a conference call with analysts at 10:00 a.m. EDT 
(2:00 p.m.
GMT) today to discuss its 2013 first quarter results. This call can be listened 
to live,
and additional information can be obtained, via Carnival Corporation & plc's 
Web site at
http://www.carnivalcorp.com and http://www.carnivalplc.com. 
Carnival Corporation & plc 
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 101 ships totaling 205,000 lower berths with 
eight new
ships scheduled to be delivered between May 2013 and April 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. 
               Carnival Corporation & plc Reports First Quarter Results 
MIAMI, March 15, 2013 -- Carnival Corporation & plc (NYSE/LSE:
CCL; NYSE: CUK) announced non-GAAP net income of $65 million, or $0.08 diluted 
EPS for the
first quarter of 2013. Reported U.S. GAAP net income, which included net 
unrealized losses
on fuel derivatives of $28 million, was $37 million, or $0.05 diluted EPS. Non-GAAP net
income for the first quarter of 2012 was $13 million, or $0.02 diluted EPS. 
Reported U.S.
GAAP net loss was $139 million, or $0.18 diluted loss per share, for the first 
quarter of
2012, which included the non-cash write-down for Ibero Cruises goodwill and 
trademark
assets of $173 million and net unrealized gains on fuel derivatives of $21 
million.
Revenues for the first quarter of 2013 were $3.6 billion in line with the prior 
year. 
Carnival Corporation & plc Chairman and CEO Micky Arison noted that first 
quarter
earnings were better than December guidance due to the timing of certain 
expenses
partially offset by $0.02 per share resulting from voyage disruptions and 
related repair
costs. 
Key metrics for the first quarter 2013 compared to the prior year were as 
follows: 


    
    - On a constant dollar basis, net revenue yields (net revenue per available


  lower berth day or "ALBD") decreased 2.3 percent for 1Q 2013, which was 
in line with 
  the company's December guidance, down 2 to 3 percent. Gross revenue 
yields decreased 
  3.4 percent in current dollars. 
- Net cruise costs excluding fuel per ALBD decreased 3.1 percent in 
constant 
  dollars, which was better than December guidance, down 1.5 to 2.5 percent 
primarily 
  due to the timing of certain expenses. Gross cruise costs including fuel 
per ALBD in 
  current dollars decreased 5.5 percent. 
- Fuel prices decreased 4 percent to $677 per metric ton for 1Q 2013 from 
$707 
  per metric ton in 1Q 2012 and were in line with the December guidance of 
$674 per 
  metric ton. 
- Fuel consumption per ALBD decreased 5 percent in 1Q 2013 compared to the 
prior 
  year. 
- The company repurchased 2.3 million shares valued at $87 million during 
fiscal 
  2013. 
Earlier this week the company took delivery of AIDA Cruises' 2,192-passenger
AIDAstella. In addition, the company recently reached an agreement for the sale 
of the
three original 212-berth ships for its luxury Seabourn brand, which are 
expected to leave
the fleet in 2014 and 2015. 
2013 Outlook 
At this time, cumulative advance bookings for 2013 are behind the prior 
year at prices
in line with the prior year levels. Since January, booking volumes for the 
remainder of
the year, including Costa, are running significantly higher than last year at 
slightly
higher prices. 
Arison noted, "Booking volumes during our seasonally strong wave period 
have remained
solid with pricing comparisons improving in recent weeks. However, economic 
uncertainty in
Europe continues to hinder yield growth." 
Arison added, "Despite considerable attention surrounding the Carnival 
Triumph, we had
been encouraged to see booking volumes for Carnival Cruise Lines recover 
significantly in
recent weeks. Attractive pricing promotions, combined with strong support from 
the travel
agent community and consumers who recognize the company's well-established 
reputation and
quality product offering, were driving the strong booking volumes." 
The company now expects full year net revenue yields, on a constant dollar 
basis to be
in line with the prior year compared to up 1 to 2 percent in the December 
guidance. The
change in net yields is due to the economic uncertainty in Europe and pricing 
promotions
for the Carnival brand combined with less than expected growth in onboard 
revenue across
the group. The company also expects net revenue yields on a current dollar 
basis to be
flat for the full year. 
The company expects net cruise costs excluding fuel per ALBD for 2013 to be 
up 2.5 to
3.5 percent on a constant dollar basis compared to up 1 to 2 percent in the 
December
guidance. The change in cost guidance is due to the impact of repair costs, as 
previously
announced, as well as, expenses related to the enhancement of vessels in the 
remainder of
the fleet as a result of the ship incident. 
Taking the above factors into consideration, the company forecasts full 
year 2013
non-GAAP diluted earnings per share to be in the range of $1.80 to $2.10, 
compared to 2012
non-GAAP diluted earnings of $1.88 per share. 
Looking forward, Arison stated, "Our long term business fundamentals remain 
strong as
we broaden our customer base of new and repeat cruisers through attractive 
product
offerings, high satisfaction levels and compelling value propositions. We 
expect to drive
return on invested capital higher through a measured pace of capacity growth 
and a
continued focus on fuel consumption savings. We continue to expect over $3 
billion of cash
from operations this year and remain committed to returning free cash flow to 
shareholders
in 2013 and beyond." 
Second Quarter 2013 Outlook 
Second quarter constant dollar net revenue yields are expected to be down 
slightly
compared to the prior year. Net cruise costs excluding fuel per ALBD for the 
second
quarter are expected to be up 9.5 to 10.5 percent on a constant dollar basis 
compared to
the prior year due primarily to the timing of certain expenses and repair costs 
related to
the ship incident. 
Based on the above factors, the company expects non-GAAP diluted earnings 
for the
second quarter 2013 to be in the range of $0.04 to $0.08 per share versus 2012 
non-GAAP
earnings of $0.20 per share. 
At the end of the second quarter, the company will take delivery of 
Princess Cruises
3,560-passenger Royal Princess. 

Selected Key Forecast Metrics 
                                                      
                                       Full Year 2013                    
Second Quarter 2013   
                                Current             Constant          
Current              Constant
Year over year change:              Dollars              Dollars          
Dollars               Dollars
Net revenue yields                  (0.5) to 0.5 %     (0.5) to 0.5 %     (1) 
to (2) %     (0.5) to (1.5) %
Net cruise costs excl. fuel / ALBD    2.5 to 3.5 %       2.5 to 3.5 %        9 
to 10 %        9.5 to 10.5 % 
                                           Full Year 2013                 
Second Quarter 2013
Fuel price per metric ton                            $691                        
$68
Fuel consumption (metric tons in thousands)         3,285                        
825
Currency: Euro                                  $1.31 to EUR1                   
$1.31 to EUR1 
      Sterling                              $1.52 to GBP1                   
$1.50 to GBP1  


            
    Conference Call


The company has scheduled a conference call with analysts at 10:00 a.m. EDT 
(2:00 p.m.
GMT) today to discuss its 2013 first quarter results. This call can be listened 
to live,
and additional information can be obtained, via Carnival Corporation & plc's 
Web site at
http://www.carnivalcorp.com and http://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 101 ships totaling 205,000 lower berths with 
eight new
ships scheduled to be delivered between May 2013 and April 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;
    - 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 that 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 foreign legal systems as Carnival Corporation and 
Carnival 
  plc are not U.S. corporations. 
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 
OPERATIONS 
                                                      (UNAUDITED) 
                                         (in millions, except per share 
data) 


                                                        
                                                                                
            Three Months Ended
                                                                                
              February 28/29,
                                                                                
               
                                                                                


      2013                2012
Revenues
 Cruise
  Passenger tickets                                                              
   $ 2,740             $ 2,764
  Onboard and other                                                              
       844                 809
Tour and other                                                                   


             9                   9
                                                                                
         3,593               3,582
    Operating Costs and Expenses
      Cruise
       Commissions, transportation and
       other                                                                    
           617                 661
       Onboard and other                                                        
           127                 126
       Fuel                                                                     
           559                 592
       Payroll and related                                                      
           460                 442
       Food                                                                     
           243                 240
       Other ship operating                                                     
           579                 619 (a)
    Tour and other                                                              
            14                  14
                                                                                
         2,599               2,694
    Selling and administrative                                                  
           460                 421
    Depreciation and amortization                                               
           389                 376
    Ibero goodwill and trademark
    impairment charges                                                          
             -                 173
                                                                                
         3,448               3,664
    Operating Income (Loss)                                                     
           145                (82)
    Nonoperating (Expense) Income
      Interest income                                                           
            2                   3
      Interest expense, net of
      capitalized interest                                                      
          (83)                (88)
      Unrealized (losses) gains on fuel
      derivatives, net                                                          
         (28)                  21
      Other income, net                                                         
            3                   5
                                                                                
         (106)                (59)
    Income (Loss) Before Income Taxes                                           
            39               (141)
    Income Tax (Expense) Benefit, Net                                           
           (2)                  2
    Net Income (Loss)                                                           
         $ 37              $ (139)
    Earnings (Loss) Per Share
      Basic                                                                     
        $ 0.05            $ (0.18)
      Diluted                                                                   
        $ 0.05            $ (0.18)
    Non-GAAP Earnings Per Share-Diluted                                         
        $ 0.08 (b)          $ 0.02 (b)
    Dividends Declared Per Share                                                
        $ 0.25              $ 0.25
    Weighted-Average Shares Outstanding - Basic                                 
           776                 778
    Weighted-Average Shares Outstanding - Diluted                               
           778                 778 (c)
    (a) Includes a $34 million impairment charge related to Costa Allegra.


(b) Excludes $(28) million and $21 million of net unrealized (losses) gains 
on fuel derivatives in 2013 and 
2012, respectively, and $173 million of Ibero impairment charges in 2012. 
(c) Non-GAAP diluted weighted-average shares outstanding were 779 million, 
which includes the dilutive effect of 


    equity plans.
                                                     CARNIVAL CORPORATION & PLC


                                                 CONSOLIDATED BALANCE 
SHEETS 
                                                       (UNAUDITED) 
                                               (in millions, except par 
values) 


                                                                                
                             
                                                                                
     February 28,      November 30,  
                                                                                
         2013              2012
    ASSETS
    Current Assets
      Cash and cash equivalents                                                 
        $ 476             $ 465
      Trade and other receivables, net                                          
          400               270
      Insurance recoverables                                                    
          337               460
      Inventories                                                               
          383               390
      Prepaid expenses and other                                                
          196               236
       Total current assets                                                     
        1,792             1,821
    Property and Equipment, Net                                                 
       31,726            32,137
    Goodwill                                                                    
        3,143             3,174
    Other Intangibles                                                           
        1,303             1,314
    Other Assets                                                                
          711               715
                                                                                
     $ 38,675          $ 39,161
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities
      Short-term borrowings                                                     
        $ 122              $ 56
      Current portion of long-term debt                                         
        1,643             1,678
      Accounts payable                                                          
          570               549
      Dividends payable                                                         
          194               583
      Claims reserve                                                            
          440               553
      Accrued liabilities and other                                             
          798               845
      Customer deposits                                                         
        3,015             3,076
       Total current liabilities                                                
        6,782             7,340
    Long-Term Debt                                                              
        7,622             7,168
    Other Long-Term Liabilities                                                 
          748               724
    Shareholders' Equity
      Common stock of Carnival Corporation, $0.01 par value; 1,960 shares
      authorized; 650 shares at 2013 and 649 shares at 2012 issued              
            7                 6
      Ordinary shares of Carnival plc, $1.66 par value; 215 shares at 2013
      and 2012 issued                                                           
          357               357
      Additional paid-in capital                                                
        8,277             8,252
      Retained earnings                                                         
       18,322           18,479
      Accumulated other comprehensive loss                                      
         (399)            (207)


  Treasury stock, 58 shares at 2013 and 55 shares at 2012 of Carnival 
Corporation 


      and 32 shares at 2013 and 33 shares at 2012 of Carnival plc, at cost      
       (3,041)           (2,958)
      Total shareholders' equity                                                
       23,523            23,929
                                                                                
     $ 38,675          $ 39,161
    
                         CARNIVAL CORPORATION & PLC
                             OTHER INFORMATION
                             
                                                     Three Months Ended
                                                       February 28/29,
                                                      
                                                        2013        2012
    STATISTICAL INFORMATION
      Passengers carried (in thousands)                2,305       2,262
      Occupancy percentage (a)                        104.0%      105.3%
      Fuel consumption (metric tons in thousands)        827         837
      Fuel cost per metric ton consumed                $ 677       $ 707
      Currencies
       U.S. dollar to EUR1                            $ 1.33      $ 1.31
       U.S. dollar to GBP1                            $ 1.58      $ 1.56
       U.S. dollar to Australian dollar               $ 1.04      $ 1.04
    CASH FLOW INFORMATION
      Cash from operations                             $ 399       $ 322
      Capital expenditures                             $ 241       $ 267
      Dividends paid                                   $ 582       $ 194
    (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 February 28, 2013, our outstanding fuel derivatives consisted of zero 
cost collars
on Brent crude oil to cover a portion of our estimated fuel consumption as 
follows: 


                                                                                
                


                     Transaction         Barrels       Weighted-Average  
Weighted-Average  Percent of Estimated 
                       Dates         (in thousands)      Floor Prices      
Ceiling Prices     Fuel Consumption 


    Maturities (a) (b)                                                          
                     Covered
    Fiscal 2013 (Q2-Q4)
                        November 2011           1,584                $ 74       
      $ 132
                        February 2012           1,584                $ 98       
      $ 127
                        March 2012              3,168               $ 100       
      $ 130
                                                6,336                           
                        40%
    Fiscal 2014
                        November 2011           2,112                $ 71       
      $ 128
                        February 2012           2,112                $ 88       
      $ 125
                        June 2012               2,376                $ 71       
      $ 116
                                                6,600                           
                         32%
    Fiscal 2015
                        November 2011           2,160                $ 71       
      $ 125
                        February 2012           2,160                $ 80       
      $ 125
                        June 2012               1,236                $ 74       
      $ 110
                                                5,556                           
                         27%
    Fiscal 2016         June 2012               3,564                $ 75       
      $ 108
                        February 2013           2,160                $ 80       
      $ 120
                                                5,724                           
                         27%
    Fiscal 2017         February 2013           3,276                $ 80       
      $ 115              16%


(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 February 28/29, 
                                                                            
  2013 
                                                                          
Constant 
                                                            2013            
Dollar                          2012 
Passenger ticket revenues                                $ 2,740           
$ 2,725                       $ 2,764 
Onboard and other revenues                                   844             
841                           809 
Gross cruise revenues                                      3,584            
 3,566                         3,573 
Less cruise costs 
Commissions, transportation and other                      (617)            
 (613)                         (661) 
Onboard and other                                          (127)            
 (126)                         (126) 
                                                           (744)            
 (739)                         (787) 
Net passenger ticket revenues                              2,123            
 2,112                         2,103 
Net onboard and other revenues                               717             
715                           683 
Net cruise revenues                                      $ 2,840           
$ 2,827                       $ 2,786 
ALBDs (c)                                             17,979,235        
17,979,235                    17,308,535 
Gross revenue yields                                    $ 199.34          $ 
198.38                      $ 206.40 
% decrease vs. 2012                                       (3.4)%            
(3.9)% 
Net revenue yields                                      $ 157.95          $ 
157.24                      $ 160.93 
% decrease vs. 2012                                       (1.9)%            
(2.3)% 
Net passenger ticket revenue yields                     $ 118.07          $ 
117.50                      $ 121.47 
% decrease vs. 2012                                       (2.8)%            
(3.3)% 
Net onboard and other revenue yields                     $ 39.88           
$ 39.75                       $ 39.46 
% increase vs. 2012                                         1.1%            
  0.7% 
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 February 28/29, 


                                                                                
        2013
                                                                                
      Constant
                                                                         2013   
       Dollar        2012


Cruise operating expenses                                              $ 
2,585        $ 2,575     $ 2,680 
Cruise selling and administrative expenses (d)                             
458            455         419 
Gross cruise costs                                                       
3,043          3,030       3,099 
Less cruise costs included in net cruise revenues 
  Commissions, transportation and other                                  
(617)          (613)       (661) 
  Onboard and other                                                      
(127)          (126)       (126) 
Net cruise costs                                                         
2,299          2,291       2,312 
Less fuel                                                                
(559)          (559)       (592) 
Net cruise costs excluding fuel                                        $ 
1,740        $ 1,732     $ 1,720 
ALBDs (c)                                                           
17,979,235     17,979,235  17,308,535 
Gross cruise costs per ALBD                                           $ 
169.24       $ 168.55    $ 179.04 
% decrease vs. 2012                                                    
(5.5) %        (5.9) % 
Net cruise costs per ALBD                                             $ 
127.85       $ 127.41    $ 133.57 
% decrease vs. 2012                                                     
(4.3)%         (4.6)% 
Net cruise costs excluding fuel per ALBD                               $ 
96.73        $ 96.30     $ 99.38 
% decrease vs. 2012                                                     
(2.7)%        (3.1) % 


                                        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 
                                                                            
February 28/29, 
                                                                            
2013            2012 
Net income (loss) - diluted 
U.S. GAAP net income (loss)                                                  
$ 37         $  (139) 


    Ibero goodwill and trademark impairment charges (e)                         
      -             173
    Unrealized losses (gains) on fuel derivatives, net (f)                      
     28             (21)


Non-GAAP net income                                                          
$ 65            $ 13 


    Weighted-average shares outstanding - diluted                               
    778             778 (f)
    Earnings (loss) per share - diluted


U.S. GAAP earnings (loss) per share                                         
 $ 0.05        $  (0.18) 


    Ibero goodwill and trademark impairment charges (e)                         
      -             0.22


Unrealized losses (gains) on fuel derivatives, net (f)                       
0.03           (0.02) 
Non-GAAP earnings per share                                                 
 $ 0.08           $ 0.02 
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 and food expenses, 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 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 2013 period currency exchange rates 
have remained
constant with the 2012 period 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 ended February 28/29, 2013 and 2012, selling and
administrative expenses were $460 million and $421 million, respectively. For 
the three
months ended February 28/29, 2013 and 2012, selling and administrative expenses 
were
comprised of cruise selling and administrative expenses of $458 million and 
$419 million,
respectively, and Tour and Other selling and administrative expenses of $2 
million and $2
million, respectively. 
(e) We believe that the impairment charges recognized in 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 loss and loss 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 recognized currently in earnings. We believe 
that
unrealized gains and losses on fuel derivatives are not an indication of our 
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 EPS and, 
accordingly, we
present non-GAAP net income and non-GAAP EPS excluding these unrealized gains 
and losses.
For the three months ended February 29, 2012, non-GAAP diluted weighted-average 
shares
outstanding were 779 million, which includes the dilutive effect of equity 
plans. 
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 Plc 
CONTACT: MEDIA CONTACT, Jennifer De La Cruz, +1-305-599-2600, ext. 16000; 
INVESTOR
RELATIONS CONTACT, Beth Roberts, +1-305-406-4832 
END 
-0- Mar/15/2013 13:15 GMT
 
 
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