Carnival Corporation & plc Reports Second Quarter Results

          Carnival Corporation & plc Reports Second Quarter Results

PR Newswire

MIAMI, June 25, 2013

MIAMI, June 25, 2013 /PRNewswire/ -- 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:

  oOn 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.
  oNet 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.
  oFuel prices decreased 9.7 percent to $683 per metric ton for 2Q 2013 from
    $756 per metric ton in 2Q 2012.
  oFuel 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
                                                    Current
                    Current Dollars  Constant                      Constant
Year over year                       Dollars         Dollars       Dollars
change:
Net revenue yields  (2.0) to (3.0)  (2.0) to       (2.0) to      (3.5) to
                    %                (3.0) %         (3.0) %       (4.5) %
Net cruise costs    3.5 to 4.5 %  3.5 to 4.5 %  9.5 to 10.5  8.5 to
excl. fuel / ALBD                                  %             9.5 %



                                            Full Year     Third Quarter
                                           2013              2013
Fuel price per metric ton                  $671              $671
Fuel consumption (metric tons in           3,270             810
thousands)
Currency: Euro                           $1.32 to €1       $1.33 to €1
 Sterling                $1.56 to £1       $1.56 to £1

Conference Call

The company has scheduled a conference call with analysts at 10:00 a.m. EDT
(3:00 p.m. BST) today to discuss its 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 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 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:

  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              Six Months Ended
                            May 31,                        May 31,
                            2013            2012            2013      2012
Revenues
 Cruise
 Passenger         $              $              $       $ 5,439
tickets                     2,613           2,675           5,353
 Onboard and       839             844             1,683     1,653
other
 Tour and other         27              19              36        28
                            3,479           3,538           7,072     7,120
Operating Costs and
Expenses
 Cruise
 Commissions,
transportation and          506             519             1,123     1,180
other
 Onboard and      115             128             242       254
other
 Fuel             555             645             1,115     1,237
 Payroll and      454             435             914       877
related
 Food             238             236             481       476
 Other ship       603             494      (a)    1,182     1,113
operating
 Tour and other         16       (b)    21              30        35
                            2,487           2,478           5,087     5,172
 Selling and            449             431             908       852
administrative
 Depreciation and       391             376             780       752
amortization
 Ibero goodwill and
trademark impairment        -               -               -         173
charges
                            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          (78)            (87)            (161)     (175)
interest
 Unrealized losses
on fuel derivatives,        (31)            (145)           (59)      (124)
net
 Other expense, net     (5)             (10)            (2)       (5)
                            (111)           (239)           (217)     (298)
Income  (Loss) Before       41              14              80        (127)
Income Taxes
Income Tax (Expense)        -               -               (2)       2
Benefit, Net
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     775             779             775       778
Outstanding – Basic
Weighted-Average Shares     777             779             777       778
Outstanding – Diluted
(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,   408                    270
net
 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   2,000                  1,678
debt
 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      7,635                  7,340
liabilities
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  7                      6
2013 and 649 shares at 2012 issued
 Ordinary shares of Carnival
plc, $1.66 par value; 216 shares
at 2013
 and 215 shares at 2012     358                    357
issued
 Additional paid-in capital     8,284                  8,252
 Retained earnings              18,170                 18,479
 Accumulated other              (473)                  (207)
comprehensive loss
 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     (3,066)                (2,958)
plc, at cost
  Total shareholders'   23,280                 23,929
equity
                                   $       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        17,993         17,784        35,972          35,092
thousands) (a)
 Passengers
carried (in         2,364          2,334         4,669           4,596
thousands)
 Occupancy        103.3%         102.6%        103.7%          103.9%
percentage (b)
 Fuel consumption
in metric tons (in  814            852           1,640           1,689
thousands)
 Fuel consumption
in metric tons per  0.045          0.048         0.046           0.048
ALBD
 Fuel cost per    $          $         $    680     $    732
metric ton consumed 683            756
 Currencies
 U.S.     $           $         $   1.31     $   1.31
dollar to €1        1.30          1.31
 U.S.     $           $         $   1.55     $   1.58
dollar to £1        1.52          1.59
 U.S.     $           $    
dollar to           1.02          1.03          $   1.03     $   1.04
Australian dollar
CASH FLOW
INFORMATION
Cash from           $   1,157    $          $  1,556       $  1,458
operations                         1,136
Capital             $   1,206    $          $  1,447       $  1,997
expenditures                       1,730
Dividends paid      $           $         $   777      $    388
                    195           194
(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:

                                                                      PercentofEstimated
                       Barrels        Weighted-Average Weighted-Average
Maturities Transaction                                                  FuelConsumption
(a) (b)                (inthousands) FloorPrices     CeilingPrices
           Dates                                                        Covered
Fiscal
2013
(Q3-Q4)
           November    1,056          $  74          $ 132
           2011
           February    1,056          $  98          $ 127
           2012
           March 2012  2,112          $ 100           $ 130
                       4,224                                            40%
Fiscal
2014
           November    2,112          $  85          $ 114
           2011
           February    2,112          $  88          $ 125
           2012
           June 2012   2,376          $  71          $ 116
           May 2013    1,728          $  85          $ 108
                       8,328                                            39%
Fiscal
2015
           November    2,160          $  80          $ 114
           2011
           February    2,160          $  80          $ 125
           2012
           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    2,160          $  80          $ 120
           2013
           April 2013  3,000          $  75          $ 115
                       8,724                                            40%
Fiscal
2017
           February    3,276          $  80          $ 115
           2013
           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         2,613      2,633      2,675      5,353       5,358      5,439
revenues
Onboard and    839         843         844         1,683       1,684       1,653
other revenues
Gross cruise   3,452       3,476       3,519       7,036       7,042       7,092
revenues
Less cruise
costs

Commissions,   (506)       (510)       (519)       (1,123)     (1,123)     (1,180)
transportation
and other
 Onboard and (115)       (116)       (128)       (242)       (242)       (254)
other
               ( 621)      (626)       (647)       (1,365)     (1,365)     (1,434)
Net passenger
ticket         2,107       2,123       2,156       4,230       4,235       4,259
revenues
Net onboard
and other      724         727         716         1,441       1,442       1,399
revenues
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. (3.1)%      (2.4)%                  (3.2)%      ( 3.1)%
2012
Net revenue    $         $         $         $         $         $  
yields         157.33      158.41      161.50     157.64      157.83      161.22
% decrease vs. (2.6)%      (1.9)%                  ( 2.2)%     (2.1)%
2012
Net passenger  $         $         $         $         $         $  
ticket revenue 117.09     117.98      121.29     117.58      117.74     121.38
yields
% decrease vs. (3.5)%      (2.7)%                  (3.1)%      (3.0)%
2012
Net onboard    $        $        $        $        $        $   
and other      40.24      40.43       40.21       40.06       40.09      39.84
revenue yields
% increase vs. 0.1%        0.5%                    0.5%        0.6%
2012



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      2,471      2,485      2,457       5,057       5,060      5,137
expenses
Cruise selling
and
administrative 447         450         429         904         905         848

 expenses
(c)
Gross cruise   2,918       2,935       2,886       5,961       5,965       5,985
costs
Less cruise
costs included
in net

 cruise
revenues

Commissions,   (506)       (510)       (519)       (1,123)     (1,123)     (1,180)
transportation
and other
 Onboard  (115)       (116)       (128)       (242)       (242)       (254)
and other
Net cruise     2,297       2,309       2,239       4,596       4,600       4,551
costs
Less fuel      (555)       (555)       (645)       (1,115)     (1,115)     (1,237)
Net cruise     $        $        $        $        $        $   
costs          1,742      1,754       1,594       3,481      3,485      3,314
excluding fuel
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.   (0.1)%      0.5%                    (2.8)%      (2.8)%
2012
Net cruise     $         $         $         $         $         $  
costs per ALBD 127.68     128.35      125.88      127.76      127.88     129.67
% increase
(decrease)     1.4%        2.0%                    (1.5)%      (1.4)%
vs. 2012
Net cruise
costs          $       $        $        $        $        $   
excluding fuel 96.81       97.48       89.63       96.77       96.89      94.44
per ALBD
% increase vs. 8.0%        8.8%                    2.5%        2.6%
2012
(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   -           -          -          173
impairment charges (d)
 Unrealized losses on fuel      31          145        59         124
derivatives, net (e)
 Non-GAAP net income            $    72  $  159   $  137   $  172
Weighted-average shares            777         779        777        778
outstanding – diluted
Earnings (loss) per share –
diluted
 U.S. GAAP earnings (loss) per  $   0.05  $  0.02   $  0.10  $ (0.16)
share
 Ibero goodwill and trademark   -           -          -          0.22
impairment charges (d)
 Unrealized losses on fuel      0.04        0.18       0.08       0.16
derivatives, net (e)
 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 Corporation

Website: http://www.carnivalcorp.com
Contact: MEDIA, Jennifer De La Cruz, 1 305 599 2600, ext. 16000 or INVESTOR
RELATIONS, Beth Roberts1 305 406 4832