CARNIVAL PLC: Carnival Corp & plc Second Quarter Results

CARNIVAL CORPORATION & PLC REPORTS 
                              SECOND QUARTER RESULTS 
Carnival Corporation & plc today reported its results of operations for the 
second
quarter ended May 31, 2013. The results of Carnival Corporation and Carnival 
plc have been
consolidated, and this statement includes consolidated results on a U.S. GAAP 
basis. 


    2Q Highlights
    
    - 2Q revenues were $3.5b, in line with the prior year
    - 2Q net revenue yields in constant dollars decreased 1.9%


- Excluding fuel, constant dollar net cruise costs per available lower 
berth day 
  ("ALBD") increased 8.8% primarily due to timing of dry-dock expenses, 
vessel repair 


      costs and non-recurring items which benefitted the prior year
    - 2Q fuel consumption per ALBD decreased 5.7% compared to the prior year


- 2Q Non-GAAP (diluted) earnings per share of $0.09, compared to $0.20 for 
the 
  prior year 
- 2Q U.S. GAAP (diluted) earnings per share of $0.05 included net 
unrealized 


      losses on fuel derivatives of $31m
    2013 Outlook
    
    - At this time, cumulative advance bookings for the remainder of 2013 are
      behind the prior year at prices below the prior year levels
    - Net revenue yields on a constant and current dollar basis for FY 2013 are


  expected to be down 2 to 3% compared to the prior year, in line with May 
guidance 


    - Excluding fuel, net cruise costs per ALBD for FY 2013 are expected to be
      higher by 3.5 to 4.5% on a constant and current dollar basis


- FY 2013 non-GAAP earnings per share (diluted) expected to be in the range 
of 
  $1.45 to $1.65, compared to $1.88 for 2012 
- 3Q 2013 non-GAAP earnings per share (diluted) expected to be in the range 
of 
  $1.25 to $1.33, compared to $1.53 in 3Q 2012 
Chairman and Chief Executive Officer Micky Arison commenting on these 
results: 
"Our 90,000 global team members are dedicated to delivering an outstanding 
vacation
experience to 10 million guests each year. The level of quality, variety and 
innovation
available throughout our fleet has never been greater and our guests are 
reaping the
benefits of truly exceptional vacation values. We are working to more broadly 
communicate
that message through stepped up consumer and trade marketing efforts, as well 
as
strengthened engagement of our travel agent partners. We believe these 
initiatives,
combined with slower supply growth, will lead to increased yields." 
"In addition, we remain focused on reducing our fuel dependence. By year 
end, we will
achieve a 23 percent cumulative reduction in fuel consumption since 2005 and 
expect our
research and development efforts in fuel saving technologies to continue to 
bear fruit. We
have strengthened our management teams in maritime and technical ship 
operations and
product delivery, as well as marketing and communications. We expect the 
combination of
these efforts will drive improved return on invested capital over time." 


    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 
(3:00 p.m.
BST) today to discuss its 2013 second 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 102 ships totaling 209,000 lower berths with 
seven new
ships scheduled to be delivered between May 2014 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 Second Quarter Results 
MIAMI, June 25, 2013 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: 
CUK)
announced non-GAAP net income of $72 million, or $0.09 diluted EPS for the 
second quarter
of 2013 compared to non-GAAP net income for the second quarter of 2012 of $159 
million, or
$0.20 diluted EPS. For the second quarter of 2013, reported U.S. GAAP net 
income, which
included net unrealized losses on fuel derivatives of $31 million, was $41 
million, or
$0.05 diluted EPS. For the second quarter of 2012, reported U.S. GAAP net 
income, which
included unrealized losses on fuel derivatives of $145 million, was $14 
million, or $0.02
diluted EPS. Revenues for the second quarter of 2013 were $3.5 billion, in line 
with the
prior year. 
Carnival Corporation & plc Chairman and CEO Micky Arison noted that second 
quarter
earnings were slightly better than May guidance due primarily to the timing of 
selling and
administrative expenses. 
Key metrics for the second 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 1.9 percent for 2Q 2013. Gross 
revenue yields 
  decreased 3.1 percent in current dollars. 
- Net cruise costs excluding fuel per ALBD increased 8.8 percent in 
constant 
  dollars, primarily due to the timing of dry-dock expenses, vessel repair 
costs and 
  non-recurring items which benefitted the prior year. Gross cruise costs 
including fuel 
  per ALBD in current dollars decreased 0.1 percent. 
- Fuel prices decreased 9.7 percent to $683 per metric ton for 2Q 2013 from 
$756 
  per metric ton in 2Q 2012. 
- Fuel consumption per ALBD decreased 5.7 percent in 2Q 2013 compared to 
the 
  prior year. 
During the second quarter, the company took delivery of Princess Cruises'
3,560-passenger Royal Princess, the first of a new class of ships for Princess. 
Royal
Princess debuted with a spectacular naming ceremony in Southampton, England on 
June 13
that captured world-wide attention. The ceremony was presided over by the 
ship's
godmother, Her Royal Highness The Duchess of Cambridge. Royal Princess launched 
with many
exciting new features including an over-water SeaWalk, and nightly performances 
of dancing
fountains and music shows in the ship's central pool area, as well as plush 
private
poolside cabanas. 
Additionally, Carnival Sunshine entered service in May following an 
unprecedented $155
million modernization that added all the features and facilities of Carnival 
Cruise Lines'
Fun Ship 2.0 product enhancement program. Fun Ship 2.0 is transforming the 
Carnival
brand's on-board experience through celebrity partnerships including comedian 
George
Lopez, who serves as the brand's creative director for comedy, and Food Network
personality and chef Guy Fieri, who developed a complimentary burger venue 
called Guy's
Burger Joint, as well as brand partnerships with EA Sports and Hasbro. Also, 
earlier this
month Carnival Cruise Lines completed $115 million in upgrades and repairs to 
Carnival
Triumph. The ship successfully reentered service in Galveston, Texas last week, 
featuring
various Fun Ship 2.0 dining and bar innovations, including BlueIguana Cantina, 
RedFrog Rum
Bar and Alchemy Bar, among others. 
2013 Outlook 
At this time, cumulative advance bookings for the remainder of 2013 are 
behind the
prior year at prices below the prior year levels. Since the end of March, 
fleetwide
booking volumes for the next three quarters, excluding Carnival Cruise Lines, 
are running
higher than the prior year at higher prices. Booking volumes for Carnival 
Cruise Lines
during the same period are running behind the prior year at lower prices. 
Arison noted, "Our 90,000 global team members are dedicated to delivering 
an
outstanding vacation experience to 10 million guests each year. The level of 
quality,
variety and innovation available throughout our fleet has never been greater 
and our
guests are reaping the benefits of truly exceptional vacation values. We are 
working to
more broadly communicate that message through stepped up consumer and trade 
marketing
efforts, as well as strengthened engagement of our travel agent partners. We 
believe these
initiatives, combined with slower supply growth, will lead to increased 
yields." 
Arison also stated, "In addition, we remain focused on reducing our fuel 
dependence.
By year end, we will achieve a 23 percent cumulative reduction in fuel 
consumption since
2005 and expect our research and development efforts in fuel saving 
technologies to
continue to bear fruit. We have strengthened our management teams in maritime 
and
technical ship operations and product delivery, as well as marketing and 
communications.
We expect the combination of these efforts will drive improved return on 
invested capital
over time." 
The company expects full year net revenue yields, on a constant and current 
dollar
basis to be down 2 to 3 percent compared to the prior year, in line with the 
May guidance.
The company also expects full year net cruise costs excluding fuel per ALBD to 
be higher
by 3.5 to 4.5 percent compared to the prior year on a constant and current 
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 $1.45 to $1.65, 
compared to 2012
non-GAAP diluted earnings of $1.88 per share. 
Third Quarter 2013 Outlook 
Third quarter constant dollar net revenue yields are expected to be down 
3.5 to 4.5
percent compared to the prior year. Net cruise costs excluding fuel per ALBD 
for the third
quarter are expected to be higher by 8.5 to 9.5 percent on a constant dollar 
basis
compared to the prior year, the majority of which is due to costs associated 
with the
previously announced vessel enhancement initiatives and increased marketing 
expenses, as
well as higher pension plan contributions. 
Based on the above factors, the company expects non-GAAP diluted earnings 
for the
third quarter 2013 to be in the range of $1.25 to $1.33 per share versus 2012 
non-GAAP
earnings of $1.53 per share. 


    Selected Key Forecast Metrics
    
                                                  Full Year 2013                
      Third Quarter 2013

Year over year change:            Current Dollars      Constant Dollars   
Current Dollars     Constant Dollars
Net revenue yields                  (2.0) to (3.0) %    (2.0) to (3.0) %  (2.0) 
to (3.0) %     (3.5) to (4.5) %
Net cruise costs excl. fuel / ALBD   3.5 to 4.5 %        3.5 to 4.5 %      9.5 
to 10.5 %        8.5 to 9.5 %
    


                                           Full Year 2013      Third 
Quarter 2013
Fuel price per metric ton                           $671                $671
Fuel consumption (metric tons in thousands)         3,270                810
Currency: Euro                                 $1.32 to EUR1        $1.33 to 
EUR1 
      Sterling                             $1.56 to GBP1        $1.56 to 
GBP1 
  Conference Call 
The company has scheduled a conference call with analysts at 10:00 a.m. EDT 
(3:00 p.m.
BST) today to discuss its 2013 second 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 102 ships totaling 209,000 lower berths with 
seven new
ships scheduled to be delivered between May 2014 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  
         Six Months Ended
                                                                   May 31,      
                May 31,


                                                         2013           
2012          2013        2012 


    Revenues
     Cruise


   Passenger tickets                                  $ 2,613        $ 
2,675        $ 5,353     $ 5,439 
   Onboard and other                                      839            
844          1,683       1,653 
Tour and other                                             27             
19             36          28 
                                                        3,479          
3,538          7,072       7,120 


    Operating Costs and Expenses
      Cruise


   Commissions, transportation and other                  506            
519          1,123       1,180 
   Onboard and other                                      115            
128            242         254 
   Fuel                                                   555            
645          1,115       1,237 
   Payroll and related                                    454            
435            914         877 
   Food                                                   238            
236            481         476 
   Other ship operating                                   603            
494 (a)      1,182       1,113 
 Tour and other                                            16 (b)         
21             30          35 
                                                        2,487          
2,478          5,087       5,172 
 Selling and administrative                               449            
431            908         852 
 Depreciation and amortization                            391            
376            780         752 


     Ibero goodwill and trademark impairment charges            -              -
              -         173


                                                        3,327          
3,285          6,775       6,949 
Operating Income                                          152            
253            297         171 
Nonoperating (Expense) Income  
  Interest income                                           3              
3              5           6 
  Interest expense, net of capitalized interest           (78)           
(87)          (161)       (175) 
  Unrealized losses on fuel derivatives, net              (31)          
(145)           (59)       (124) 
  Other expense, net                                       (5)           
(10)            (2)         (5) 
                                                         (111)          
(239)         (217)        (298) 
Income (Loss) Before Income Taxes                          41             
14             80        (127) 


    Income Tax (Expense) Benefit, Net                           -              -
             (2)          2


Net Income (Loss)                                        $ 41           $ 
14           $ 78      $ (125) 
Earnings (Loss) Per Share 
  Basic                                                $ 0.05         $ 
0.02         $ 0.10     $ (0.16) 
  Diluted                                              $ 0.05         $ 
0.02         $ 0.10     $ (0.16) 
Non-GAAP Earnings Per Share-Diluted (c)                $ 0.09         $ 
0.20         $ 0.18      $ 0.22 
Dividends Declared Per Share                           $ 0.25         $ 
0.25         $ 0.50      $ 0.50 
Weighted-Average Shares Outstanding - Basic               775            
779            775         778 
Weighted-Average Shares Outstanding - Diluted             777            
779            777         778 
(a) Includes $17 million of hull and machinery insurance proceeds for the 
total 
    loss of a ship in excess of its net book value and $17 million received 
from a 
    litigation settlement. 
(b) Includes a $15 million gain from the sale of Holland America Line's 
former 
    Noordam, which was on charter to an unaffiliated entity. 
(c) Excludes unrealized losses on fuel derivatives and $173 million of 
Ibero 


        impairment charges.
    
                                         CARNIVAL CORPORATION & PLC
                                         CONSOLIDATED BALANCE SHEETS
                                                 (UNAUDITED)
                                      (in millions, except par values)
                                                                                
          
                                                                                
       May 31,   November 30,
                                                                                
        2013         2012
    ASSETS
    Current Assets
      Cash and cash equivalents                                                 
       $ 711        $ 465
      Trade and other receivables, net                                          
         408          270
      Insurance recoverables                                                    
         217          460
      Inventories                                                               
         381          390
      Prepaid expenses and other                                                
         187          236
        Total current assets                                                    
       1,904        1,821
    Property and Equipment, Net                                                 
      32,481       32,137
    Goodwill                                                                    
       3,134        3,174
    Other Intangibles                                                           
       1,298        1,314
    Other Assets                                                                
         742          715
                                                                                
    $ 39,559     $ 39,161
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities
      Short-term borrowings                                                     
        $ 14         $ 56
      Current portion of long-term debt                                         
       2,000        1,678
      Accounts payable                                                          
         627          549
      Dividends payable                                                         
         194          583
      Claims reserve                                                            
         317          553
      Accrued liabilities and other                                             
         857          845
      Customer deposits                                                         
       3,626        3,076
        Total current liabilities                                               
       7,635        7,340
    Long-Term Debt                                                              
       7,848        7,168
    Other Long-Term Liabilities                                                 
         796          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; 216 shares at 2013
       and 215 shares at 2012 issued                                            
         358          357
      Additional paid-in capital                                                
       8,284        8,252
      Retained earnings                                                         
      18,170       18,479
      Accumulated other comprehensive loss                                      
        (473)        (207)
      Treasury stock, 59 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                                                 
      (3,066)      (2,958)
        Total shareholders' equity                                              
      23,280       23,929
                                                                                
    $ 39,559     $ 39,161
    
                                  CARNIVAL CORPORATION & PLC
                                       OTHER INFORMATION


                                                  Three Months Ended     
Six Months Ended 
                                                       May 31,              
 May 31, 
                                                   2013       2012       
2013        2012 
STATISTICAL INFORMATION 
  ALBDs (in thousands) (a)                       17,993     17,784     
35,972      35,092 
  Passengers carried (in thousands)               2,364      2,334      
4,669       4,596 
  Occupancy percentage (b)                       103.3%     102.6%     
103.7%      103.9% 
  Fuel consumption in metric tons (in thousands)    814        852      
1,640       1,689 
  Fuel consumption in metric tons per ALBD        0.045      0.048      
0.046       0.048 
  Fuel cost per metric ton consumed               $ 683      $ 756      $ 
680       $ 732 
  Currencies 
    U.S. dollar to EUR1                          $ 1.30     $ 1.31     $ 
1.31      $ 1.31 
    U.S. dollar to GBP1                          $ 1.52     $ 1.59     $ 
1.55      $ 1.58 
    U.S. dollar to Australian dollar             $ 1.02     $ 1.03     $ 
1.03      $ 1.04 
CASH FLOW INFORMATION 
  Cash from operations                          $ 1,157     $ 1,136   $ 
1,556     $ 1,458 
  Capital expenditures                          $ 1,206     $ 1,730   $ 
1,447     $ 1,997 
  Dividends paid                                  $ 195      $ 194      $ 
777       $ 388 
(a) 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. 
(b) 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 May 31, 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 Estimated


                    Transaction       Barrels      Weighted-Average  
Weighted-Average   Fuel Consumption 
Maturities (a) (b)         Dates      (in thousands)    Floor Prices      
Ceiling Prices        Covered
Fiscal 2013 (Q3-Q4) 
                    November 2011     1,056             $ 74             $ 
132 
                    February 2012     1,056             $ 98             $ 
127 
                    March 2012        2,112            $ 100             $ 
130 
                                      4,224                                  
              40%
Fiscal 2014 
                    November 2011     2,112             $ 85            $ 
114 
                    February 2012     2,112             $ 88            $ 
125 
                    June 2012         2,376             $ 71            $ 
116 
                    May 2013          1,728             $ 85            $ 
108 
                                      8,328                                  
              39%
Fiscal 2015 
                    November 2011     2,160             $ 80            $ 
114 
                    February 2012     2,160             $ 80            $ 
125 
                    June 2012         1,236             $ 74            $ 
110 
                    April 2013        1,044             $ 80            $ 
111 
                    May 2013          1,884             $ 80            $ 
110 
                                      8,484                                  
              39%
Fiscal 2016 
                    June 2012         3,564             $ 75            $ 
108 
                    February 2013     2,160             $ 80            $ 
120 
                    April 2013        3,000             $ 75            $ 
115 
                                      8,724                                  
              40%
Fiscal 2017 
                    February 2013     3,276             $ 80            $ 
115 
                    April 2013        2,028             $ 75            $ 
110 


                                          5,304                                 
                  25%
    


(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 May 31,         
        Six Months Ended May 31,
                                                        2013                    
                 2013
                                                    Constant                    
             Constant


                                       2013       Dollar          2012       
2013        Dollar            2012
Passenger ticket revenues                $ 2,613     $ 2,633       $ 2,675      
$ 5,353       $ 5,358         $ 5,439
Onboard and other revenues                   839         843           844      
  1,683         1,684           1,653
Gross cruise revenues                      3,452       3,476         3,519      
  7,036         7,042           7,092
Less cruise costs
  Commissions, transportation and other     (506)       (510)         (519)     
 (1,123)       (1,123)         (1,180)
  Onboard and other                         (115)       (116)         (128)      
(242)         (242)           (254) 
                                        (621)       (626)         (647)     
 (1,365)       (1,365)         (1,434)
Net passenger ticket revenues              2,107       2,123         2,156      
  4,230         4,235           4,259
Net onboard and other revenues               724         727           716      
  1,441         1,442           1,399
Net cruise revenues                      $ 2,831     $ 2,850       $ 2,872      
$ 5,671       $ 5,677         $ 5,658
ALBDs                                 17,993,002  17,993,002    17,783,938   
35,972,237    35,972,237      35,092,473
Gross revenue yields                    $ 191.84    $ 193.17      $ 197.89     
$ 195.59      $ 195.78        $ 202.09
% decrease vs. 2012                         (3.1)%       (2.4)%                  
(3.2)%       ( 3.1)%
Net revenue yields                      $ 157.33     $ 158.41      $ 161.50    
$ 157.64      $ 157.83        $ 161.22
% decrease vs. 2012                         (2.6)%       (1.9)%                 
  ( 2.2)%        (2.1)%
Net passenger ticket revenue yields     $ 117.09     $ 117.98     $ 121.29     
$ 117.58      $ 117.74        $ 121.38
% decrease vs. 2012                         (3.5)%       (2.7)%                  
(3.1)%        (3.0)%
Net onboard and other revenue yields     $ 40.24      $ 40.43      $ 40.21      
$ 40.06       $ 40.09         $ 39.84
% increase vs. 2012                          0.1%         0.5%                   


    0.5%          0.6%
      


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 May 31,       
         Six Months Ended May 31,
                                                        2013                    
                  2013
                                                      Constant                  
                Constant       
                                            2013       Dollar          2012     


2013         Dollar         2012
Cruise operating expenses                 $ 2,471     $ 2,485       $ 2,457     
 $ 5,057       $ 5,060       $ 5,137
Cruise selling and administrative
 expenses (c)                                 447         450           429      
 904           905           848
Gross cruise costs                          2,918       2,935         2,886      
5,961         5,965         5,985
Less cruise costs included in net
 cruise revenues
  Commissions, transportation and other      (506)       (510)         (519)    
  (1,123)       (1,123)       (1,180)
  Onboard and other                          (115)       (116)         (128)     
(242)         (242)         (254)
Net cruise costs                            2,297       2,309         2,239      
4,596         4,600         4,551
Less fuel                                    (555)       (555)         (645)    
  (1,115)       (1,115)       (1,237)
Net cruise costs excluding fuel           $ 1,742       $ 1,754     $ 1,594     
 $ 3,481       $ 3,485       $ 3,314
ALBDs                                  17,993,002    17,993,002  17,783,938   
35,972,237    35,972,237    35,092,473
Gross cruise costs per ALBD              $ 162.19      $ 163.11    $ 162.28     
$ 165.71      $ 165.83      $ 170.54
% (decrease) increase vs. 2012               (0.1)%         0.5%                 
(2.8)%        (2.8)%
Net cruise costs per ALBD                $ 127.68      $ 128.35    $ 125.88     
$ 127.76      $ 127.88      $ 129.67
% increase (decrease) vs. 2012                1.4%          2.0%                 
(1.5)%        (1.4)%
Net cruise costs excluding fuel per ALBD  $ 96.81       $ 97.48     $ 89.63     
 $ 96.77       $ 96.89       $ 94.44
% increase vs. 2012                           8.0%          8.8%                 


     2.5%          2.6%

(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     
Six Months Ended 


                                                              May 31,           
     May 31,


                                                      2013      2012       
2013          2012
  Net income (loss) - diluted 
U.S. GAAP net income (loss)                           $ 41      $ 14       
$ 78        $ (125) 
Ibero goodwill and trademark impairment charges (d)      -         -        
  -           173 
Unrealized losses on fuel derivatives, net (e)          31       145        
 59           124 
                                                                  
Non-GAAP net income                                   $ 72     $ 159      $ 
137         $ 172
  Weighted-average shares outstanding - diluted            777       779        
777           778 
Earnings (loss) per share - diluted 
U.S. GAAP earnings (loss) per share                 $ 0.05    $ 0.02     $ 
0.10       $ (0.16) 
Ibero goodwill and trademark impairment charges (d)      -         -        
  -          0.22 
Unrealized losses on fuel derivatives, net (e)        0.04      0.18       
0.08          0.16 
                                                                  
Non-GAAP earnings per share                         $ 0.09    $ 0.20     $ 
0.18        $ 0.22 
     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. 
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 2013 periods currency exchange 
rates have
remained constant with the 2012 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 changes in 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) For the three and six months ended May 31, 2013 and 2012, selling and
administrative expenses were $449 million ($431 million in 2012) and $908 
million ($852
million in 2012), respectively. For the three and six months ended May 31, 2013 
and 2012,
selling and administrative expenses were comprised of cruise selling and 
administrative
expenses of $447 million ($429 million in 2012) and $904 million ($848 million 
in 2012)
and Tour and Other selling and administrative expenses of $2 million ($2 
million in 2012)
and $4 million ($4 million in 2012), respectively. 
(d) We believe that the impairment charges recognized in the six months 
ended May 31,
2012 related to Ibero's goodwill and trademarks are special charges 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. 
(e) 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 six months ended May 31, 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, Jennifer De La Cruz, 1 305 599 2600, ext. 16000 or INVESTOR 
RELATIONS,
Beth Roberts 1 305 406 4832 
END 
-0- Jun/25/2013 12:00 GMT
 
 
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