Carnival Corporation & plc Reports First Quarter Results

           Carnival Corporation & plc Reports First Quarter Results

PR Newswire

MIAMI, March 15, 2013

MIAMI, March 15, 2013 /PRNewswire-FirstCall/ --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:

  oOn 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.
  oNet 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.
  oFuel 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.
  oFuel consumption per ALBD decreased 5 percent in 1Q 2013 compared to the
    prior year.
  oThe 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               Second Quarter
                             Year 2013                    2013

                       Current      Constant       Current          Constant
Year over year         Dollars      Dollars        Dollars          Dollars
change:
Net revenue yields      (0.5) to   (0.5) to 0.5   (1) to (2)   (0.5) to
                       0.5 %        %              %                (1.5) %
Net cruise costs        2.5 to   2.5 to 3.5   9 to       9.5 to
excl. fuel / ALBD    3.5 %        %              10 %            10.5 %



                                            Full Year     Second Quarter
                                           2013              2013
Fuel price per metric ton                  $691              $688
Fuel consumption (metric tons in           3,285             825
thousands)
Currency: Euro                            $1.31 to    $1.31 to €1
                                           €1
 Sterling                 $1.52 to    $1.50 to £1
                                           £1

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 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 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:

  ogeneral economic and business conditions;
  oincreases in fuel prices;
  oincidents, 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;
  othe 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;
  onegative publicity concerning the cruise business in general or us in
    particular, including any adverse environmental impacts of cruising;
  olitigation, enforcement actions, fines or penalties;
  oeconomic, market and political factors that are beyond our control, which
    could increase our operating, financing and other costs;
  ochanges 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;
  oour ability to implement our shipbuilding programs and ship repairs,
    maintenance and refurbishments on terms that are favorable or consistent
    with our expectations;
  oincreases to our repairs and maintenance expenses and refurbishment costs
    as our fleet ages;
  olack of continuing availability of attractive, convenient and safe port
    destinations;
  ocontinuing 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;
  odisruptions and other damages to our information technology and other
    networks and operations, and breaches in data security;
  ofailure to keep pace with developments in technology;
  ocompetition from and overcapacity in the cruise ship or land-based
    vacation industry;
  oloss of key personnel or our ability to recruit or retain qualified
    personnel;
  ounion disputes and other employee relation issues;
  odisruptions 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;
  othe continued strength of our cruise brands and our ability to implement
    our brand strategies;
  oour international operations are subject to additional risks not generally
    applicable to our U.S. operations;
  ogeographic regions in which we try to expand our business may be slow to
    develop and ultimately not develop how we expect;
  oour decisions to self-insure against various risks or our inability to
    obtain insurance for certain risks at reasonable rates;
  ofluctuations in foreign currency exchange rates;
  owhether 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;
  orisks associated with the dual listed company arrangement; and
  ouncertainties 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          617             661
other
 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      -               173
charges
                                                  3,448           3,664
Operating Income (Loss)                           145             (82)
 

Nonoperating (Expense) Income
 Interest  income           2               3
 Interest expense, net of capitalized         (83)            (88)
interest
 Unrealized (losses) gains on fuel            (28)            21
derivatives, net
 Other income, net                            3               5
                                                  (106)           (59)
Income (Loss) Before Income                       39              (141)
Taxes 

                                                  (2)             2
Income Tax (Expense) Benefit, Net
 
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               $     (b)    $     (b)
                                                  0.08            0.02
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             400                   270
receivables, net
 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          1,643                 1,678
long-term debt
 Accounts payable            570                   549
 Dividends payable           194                   583
 Claims reserve              440                   553
 Accrued liabilities and     798                   845
other
 Customer deposits           3,015                 3,076
 Total current           6,782                 7,340
liabilities
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  7                     6
issued
 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           (399)                 (207)
comprehensive loss
 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        (3,041)               (2,958)
Carnival plc, at cost
 Total             23,523                23,929
shareholders' equity
                                $     38,675     $     39,161







CARNIVAL CORPORATION & PLC

OTHER INFORMATION
                                    

                                    Three Months Ended

                                    February 28/29,
                                    2013                         2012
STATISTICAL INFORMATION
 Passengers carried (in           2,305                        2,262
thousands)
 Occupancy percentage (a)         104.0%                       105.3%
 Fuel consumption (metric         827                          837
tons in thousands)
 Fuel cost per metric ton         $  677                     $  707
consumed
 Currencies
 U.S. dollar to €1        $  1.33                     $  1.31
 U.S. dollar to £1        $  1.58                     $  1.56
 U.S. dollar to           $  1.04                     $  1.04
Australian dollar
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:

                                                                   Percent of
                      Barrels    Weighted-Average Weighted-Average Estimated
           Transaction
Maturities             (in        Floor Prices     Ceiling Prices   Fuel
(a) (b)    Dates       thousands)                                   Consumption
                                                                    Covered
Fiscal
2013
(Q2-Q4)
           November    1,584      $  74           $ 132
           2011
           February    1,584      $  98           $ 127
           2012
           March 2012  3,168      $ 100            $ 130
                       6,336                                        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                                        27%
Fiscal     June 2012   3,564      $  75           $ 108
2016
           February    2,160      $  80           $ 120
           2013
                       5,724                                        27%
Fiscal     February    3,276      $  80           $ 115            16%
2017       2013
(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
                                  2013           Constant       2012
                                                 Dollar
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    (617)          (613)          (661)
and other
 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      $   118.07   $  117.50    $   121.47
yields
% decrease vs. 2012               (2.8)%         (3.3)%
Net onboard and other revenue     $    39.88  $    39.75  $    39.46
yields
% 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

                                    $    2,585 $    2,575 $    2,680
 Cruise operating expenses
 Cruise selling and             458           455           419
administrative expenses (d)
 Gross cruise costs             3,043         3,030         3,099
 Less cruise costs included
in net cruise revenues
 Commissions,                (617)         (613)         (661)
transportation and other
 Onboard and other           (127)         (126)         (126)
 Net cruise costs                 2,299         2,291         2,312
 Less fuel                       (559)         (559)         (592)
 Net cruise costs excluding      $    1,740 $    1,732 $    1,720
fuel
 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     $ 96.73       $ 96.30       $ 99.38
per ALBD
% 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                     -             173
impairment charges (e)
Unrealized losses (gains) on fuel                28            (21)
derivatives, net (f)
Non-GAAP net income                              $ 65          $ 13
Weighted-average shares outstanding –            778           778         (f)
diluted
Earnings (loss) per share - diluted
U.S. GAAP earnings (loss) per share              $ 0.05        $ (0.18)
Ibero goodwill and trademark                     -             0.22
impairment charges (e)
Unrealized losses (gains) on fuel                0.03          (0.02)
derivatives, net (f)
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 Corporation

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