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CARNIVAL PLC: Carnival Corp & plc Third Quarter Results


CARNIVAL CORPORATION & PLC REPORTS THIRD QUARTER RESULTS

Carnival Corporation & plc today reported its results of operations for the third quarter ended August 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.

3Q Highlights

- 3Q revenues were $4.7b, in line with the prior year

- 3Q net revenue yields in constant dollars decreased 3.8% compared to the prior year

- Excluding fuel and impairments, constant dollar net cruise costs per available lower berth


      day (“ALBD”) increased 4.6% compared to the prior year
    - 3Q fuel consumption per ALBD decreased 5.2% compared to the prior year

- 3Q Non-GAAP (diluted) earnings per share of $1.38, compared to $1.53 for the prior

year

- 3Q U.S. GAAP (diluted) earnings per share of $1.20, included impairment charges of

$203m, partially offset by net unrealized gains on fuel derivatives of $64m

Outlook

- At this time, cumulative advance bookings for the remainder of 2013 and the first half of

2014 are behind the prior year at prices in line with prior year levels

- Net revenue yields on a constant dollar basis for FY 2013 are expected to be down 3%

compared to the prior year

- Excluding fuel and impairments, net cruise costs per ALBD for FY 2013 are expected to

be higher by 4% on a constant dollar basis compared to the prior year

- FY 2013 non-GAAP earnings per share (diluted) expected to be in the range of $1.51 to

$1.57

- 4Q 2013 non-GAAP earnings per share (diluted) expected to be in the range of $(0.03) to

$0.03, compared to $0.14 in 4Q 2012

- For the first half of 2014, we presently estimate revenue yields will be down in a

range similar to the back half of 2013. For the full year 2014, net cruise costs

excluding fuel per ALBD are expected to be up in a range similar to 2013.

President and Chief Executive Officer Arnold Donald commenting on these results:

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted that during the third quarter, the company made significant progress on a number of strategic initiatives to broaden its customer base, spur additional demand and mitigate environmental impacts and higher fuel costs.

“Asia is a key focus of our international expansion. During the third quarter, we opened five additional sales offices in China, following the establishment of a corporate office in Singapore earlier this year.”

“The company has been a partner in the development of the scrubber technology and will take the lead in further refining both the scrubber design and installation process over the next few years. In addition to exceeding stricter air emission standards, this technology will help us mitigate escalating fuel costs.”

“During the past few months, Carnival Cruise Lines has seen a steady improvement in brand perception among U.S. consumers based on national market research data.”

“While some of our current challenges and cost pressures will continue well into next year, we have tremendous opportunities to enhance shareholder value over time. I have spent my initial months gaining a much deeper understanding of our people and our operations. The dedication and enthusiasm of our employees is a great foundation to build upon as we strive to achieve even greater success in consistently exceeding the expectations of our guests. We are investing in gaining an even deeper understanding of what drives consumer vacation decisions and onboard enjoyment. This bodes well for attracting first time cruisers as well as powerfully differentiating our brands relative to others.”

MEDIA CONTACT INVESTOR RELATIONS CONTACT Roger Frizzell Beth Roberts 001 305 406 7862 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 third 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 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 Third Quarter Results


    

MIAMI, Sept. 24, 2013  -- Carnival Corporation & plc
(NYSE/LSE: CCL; NYSE: CUK) announced non-GAAP net income of $1.1 billion, or
$1.38 diluted EPS for the third quarter of 2013 compared to non-GAAP net income
for the third quarter of 2012 of $1.2 billion, or $1.53 diluted EPS. For the
third quarter of 2013, reported U.S. GAAP net income, which included
impairments of $203 million partially offset by unrealized gains on fuel
derivatives of $64 million, was $934 million, or $1.20 diluted EPS. For the
third quarter of 2012, reported U.S. GAAP net income, which included unrealized
gains on fuel derivatives of $136 million, was $1.3 billion, or $1.71 diluted
EPS. Revenues for the third quarter of 2013 were $4.7 billion, in line with the
prior year.

Third quarter non-GAAP earnings were better than anticipated in the company's
June guidance due to lower than expected unit costs, partly due to the timing
of advertising expenses.

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald
noted that during the third quarter, the company made significant progress on a
number of strategic initiatives to broaden its customer base, spur additional
demand and mitigate environmental impacts and higher fuel costs.

"Asia is a key focus of our international expansion. During the third quarter,
we opened five additional sales offices in China, following the establishment
of a corporate office in Singapore earlier this year," said Donald. He added
that Princess Cruises recently announced plans to homeport Sapphire Princess in
China for a four-month season beginning in May 2014, bringing the total to five
vessels in the region next year dedicated to guests sourced from Asia.

Earlier this month, the company announced it had received the support of the
U.S. Environmental Protection Agency, the U.S. Coast Guard and Transport Canada
to implement a leading edge "scrubber" technology designed to reduce air
emissions on 32 ships. "The company has been a partner in the development of
the scrubber technology and will take the lead in further refining both the
scrubber design and installation process over the next few years. In addition
to exceeding stricter air emission standards, this technology will help us
mitigate escalating fuel costs," said Donald.

Key metrics for the third quarter 2013 compared to the prior year were as
follows:

  - Third quarter U.S. GAAP net income included $176 million of impairment
    charges related to two smaller Costa ships which are intended to be laid up
    or sold, and $27 million of impairment charges related to Ibero trademarks

and other items. - On a constant dollar basis, net revenue yields (net revenue per available


    lower berth day or "ALBD") decreased 3.8 percent for 3Q 2013, which was in
    line with June guidance of down 3.5 to 4.5 percent. A continued improvement
    in net revenue yields for Costa  partially offset lower net revenue yields
    for the North American and Northern European brands in the third quarter.

Gross revenue yields decreased 2 percent in current dollars. - Excluding fuel and impairments, net cruise costs per ALBD increased 4.6


    percent in constant dollars, the majority of which is due to higher pension
    plan contributions as well as costs associated with the previously
    announced vessel enhancement initiatives and the timing of dry-dock costs,
    which was better than June guidance of up 8.5 to 9.5 percent. Gross cruise
    costs including fuel and impairments per ALBD in current dollars increased

8.5 percent. - Fuel prices increased 2.3 percent to $674 per metric ton for 3Q 2013 from

$659 per metric ton in 3Q 2012. - Fuel consumption per ALBD decreased 5.2 percent in 3Q 2013 compared to the


    prior year.

Outlook

At this time, cumulative advance bookings for the remainder of 2013 and the
first half of 2014 are behind the prior year at prices in line with prior year
levels. Since June, fleetwide booking volumes for the next three quarters,
excluding Carnival Cruise Lines, are running in line with 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.

Donald noted, "During the past few months, Carnival Cruise Lines has seen a
steady improvement in brand perception among U.S. consumers based on national
market research data." He added that Carnival Cruise Lines continues to
undertake a variety of brand building initiatives including a major travel
agent outreach program which commenced in June, the introduction of a new
vacation guarantee earlier this month and the launch of a new major marketing
campaign that debuted yesterday with national TV spots airing on network
primetime programming.

The company expects full year 2013 net revenue yields, on a constant dollar
basis to be down approximately 3 percent compared to the prior year, toward the
lower end of the June guidance range due in part to ongoing geopolitical events
in portions of the Eastern Mediterranean region. Excluding fuel and
impairments, the company expects full year net cruise costs per ALBD to be
higher by 4 percent compared to the prior year on a constant dollar basis,
which is at the better end of the June guidance range. In addition, higher fuel
prices are expected to reduce full year 2013 earnings by $0.04 per share
compared to June guidance.

Taking the above factors into consideration, the company forecasts full year
2013 non-GAAP diluted earnings per share to be in the range of $1.51 to $1.57,
the mid-point of which is in line with June guidance.

For the first half of 2014, we presently estimate revenue yields will be down
in a range similar to the back half of 2013. For the full year 2014, net cruise
costs excluding fuel per ALBD are expected to be up in a range similar to 2013.

"While some of our current challenges and cost pressures will continue well
into next year, we have tremendous opportunities to enhance shareholder value
over time. I have spent my initial months gaining a much deeper understanding
of our people and our operations," said Donald. "The dedication and enthusiasm
of our employees is a great foundation to build upon as we strive to achieve
even greater success in consistently exceeding the expectations of our guests.
We are investing in gaining an even deeper understanding of what drives
consumer vacation decisions and onboard enjoyment. This bodes well for
attracting first time cruisers as well as powerfully differentiating our brands
relative to others," said Donald.

Fourth Quarter 2013 Outlook

Fourth quarter constant dollar net revenue yields are expected to be down 3 to
4 percent compared to the prior year. Net cruise costs excluding fuel and
impairments per ALBD for the fourth quarter are expected to be higher by 3.5 to
4.5 percent on a constant dollar basis compared to the prior year, which is
primarily due to increased advertising expenses and costs associated with the
previously announced vessel enhancement initiatives.

Based on the above factors, the company expects non-GAAP diluted earnings for
the fourth quarter 2013 to be in the range of $(0.03) to $0.03 per share versus
2012 non-GAAP earnings of $0.14 per share.

Selected Key Forecast Metrics                                                   
      
                                                                                
       

Full Year 2013 Fourth Quarter 2013


                                                                                
    

Current Constant Current

Constant Year over year change: Dollars Dollars Dollars

Dollars

Net revenue yields (2.5) % (3.0) % (3.0) to (4.0) % (3.0) to (4.0) %

Net cruise costs excl. fuel and

impairments/ALBD 4.0 % 4.0 % 3.5 to 4.5 % 3.5 to 4.5 %


                                                                                
    

Full Year 2013 Fourth Quarter 2013

Fuel price per metric ton $680 $687

Fuel consumption (metric tons in 3,275 825

thousands)

Currency: Euro $1.32 to €1 $1.33 to €1

Sterling $1.55 to £1 $1.57 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 third 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:

  - 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 INCOME 
                                            (UNAUDITED) 
                                (in millions, except per share data)      
                                                                                
                    
                                                                                
                    
                                                                                
                    

Three Months Ended Nine Months Ended

August 31,

August 31,

2013 2012 2013 2012

Revenues


                    
                                                                                
                    
     Cruise                                                                     
                    
                                                                                
                    

Passenger tickets $3,598 $3,561 $8,951 $9,000


                                                                                
                    

Onboard and other 987 965 2,670 2,618


                                                                                
                    

Tour and other 141 158

177 186


                                                                                
                    

4,726 4,684 11,798 11,804

Operating Costs and Expenses


                    
                                                                                
                    
     Cruise                                                                     
                    
                                                                                
                    

Commissions, transportation and other 654 613 1,777 1,793


                                                                                
                    

Onboard and other 144 150

385 404


                                                                                
                    

Fuel 544 541 1,659 1,778


                                                                                
                    

Payroll and related 464 422 1,378 1,299


                                                                                
                    

Food 259 246

740 722


                                                                                
                    

Other ship operating 769 (a) 534 1,951 1,647


                                                                                
                    

Tour and other 83 91

113 126


                                                                                
                    

2,917 2,597 8,003 7,769


                                                                                
                    

Selling and administrative 439 409 1,347 1,261


                                                                                
                    

Depreciation and amortization 406 383 1,186 1,135


                                                                                
                    
     Ibero goodwill and trademark impairment charges       13            -      
    13        173      
                                                                                
                    

3,775 3,389 10,549 10,338

Operating Income 951 1,295 1,249 1,466


                                                                                
                    
                                                                                

Nonoperating (Expense) Income


                    
                                                                                
                    
     Interest income                                        2             2     
     7          8        
                                                                                
                    

Interest expense, net of capitalized interest (76) (84) (237) (259)


                                                                                
                    
     Unrealized gains on fuel derivatives, net             64           136     
     5         12       
                                                                                
                    
     Realized losses on fuel derivatives                    -           (12)    
     -        (12)     
                                                                                
                    
     Other expense, net                                    (6)           (1)    
    (9)        (6)      
                                                                                
                    

(16) 41 (234) (257)


                                                                                
                    
                                                                                

Income Before Income Taxes 935 1,336 1,015 1,209


                                                                                
                    
                                                                                

Income Tax Expense, Net (1) (6)


    (3)        (4)      
                                                                                
                    
                                                                                

Net Income $934 $1,330 $1,012 $1,205

Earnings Per Share


                    
                                                                                
                    

Basic $1.20 $1.71 $1.31 $1.55


                                                           
                                                                                
                    

Diluted $1.20 $1.71 $1.30 $1.55


                                                                                
                    
                                                                                

Non-GAAP Earnings Per Share-Diluted (b) $1.38 $1.53 $1.54 $1.80


                                                         
                                                                                
                    
                                                                                

Dividends Declared Per Share $0.25 $0.25 $0.75 $0.75


                                                                                
                     
                                                                                

Weighted-Average Shares Outstanding - Basic 775 778

775 778

Weighted-Average Shares Outstanding - Diluted 777 779

777 779


                                                                                
                    
                                                                                

(a) Includes $176 million of impairment charges related to two smaller Costa ships.

(b) See the U.S. GAAP net income to Non-GAAP net income reconciliations in the Non-GAAP


      Financial Measures included herein.   
                                                CARNIVAL CORPORATION & PLC  
                                               CONSOLIDATED BALANCE SHEETS     
                                                       (UNAUDITED) 
                                             (in millions, except par values)  
             

August 31, 2013 November 30, 2012

ASSETS Current Assets


    Cash and cash equivalents                             $981                  
      $465 
    Trade and other receivables, net                       444                  
       270  
    Insurance recoverables                                 450                  
       460 
    Inventories                                            388                  
       390  
    Prepaid expenses and other                             371                  
       236  
        Total current assets                             2,634                  

1,821

Property and Equipment, Net 32,498

32,137

Goodwill 3,160

3,174

Other Intangibles 1,278

1,314

Other Assets 823

715

$40,393

$39,161

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Short-term borrowings $196


       $56
    Current portion of long-term debt                     2,030                  
     1,678  
    Accounts payable                                        601                  
       549  
    Dividends payable                                      194                  
       583 
    Claims reserve                                         558                  
       553 
    Accrued liabilities and other                          929                  
       845 
    Customer deposits                                    2,980                  
     3,076 
                Total current liabilities                7,488                  

7,340

Long-Term Debt 7,792

7,168

Other Long-Term Liabilities 853


       724 

Shareholders' Equity    
    Common stock of Carnival Corporation, 
     $0.01 par value; 1,960 shares 
     authorized; 651 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                           8,312                  
     8,252  
    Retained earnings                                   18,911                  
    18,479  
    Accumulated other comprehensive loss                  (251)                 
      (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                           (3,077)                 
    (2,958)  
             Total shareholders' equity                 24,260                  
    23,929    

$40,393

$39,161


                                             CARNIVAL CORPORATION & PLC   
                                                  OTHER INFORMATION   

Three Months Ended Nine Months Ended


                                                      August 31,                
     August 31, 

2013 2012 2013 2012

STATISTICAL INFORMATION

ALBDs (in thousands) (a) 19,248 18,613 55,220 53,706

Passengers carried (in thousands) 2,881 2,804

7,550 7,400

Occupancy percentage (b) 110.7% 110.8%

106.1% 106.3%

Fuel consumption in metric tons (in thousands) 807 823

2,447 2,512

Fuel consumption in metric tons per ALBD 0.042 0.044

0.044 0.047


    Fuel cost per metric ton consumed                $674            $659        
    $678       $708    
    Currencies  
           U.S. dollar to €1                       $1.32           $1.24      
     $1.32      $1.28    
           U.S. dollar to £1                       $1.54           $1.56       
    $1.55      $1.57    

U.S. dollar to Australian dollar $0.92 $1.02

$1.00 $1.03

CASH FLOW INFORMATION

Cash from operations $803 $1,018 $2,359 $2,476

Capital expenditures $364 $167 $1,812 $2,164

Dividends paid $193 $196


    $970       $584          
     ALBD is a standard measure of passenger capacity for the period, which we 

use to perform rate and capacity variance analyses to determine the main (a) 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.                      
                                                                               

In accordance with cruise business practice, occupancy is calculated using (b) 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 August 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: 

Maturities (a) (b) Transaction    Barrels         Weighted-Average  Weighted-
Average  Percent of Estimated 

Dates (in thousands) Floor Prices Ceiling Prices Fuel Consumption

Covered Fiscal 2013 (Q4)


                   November 2011      528             $74               $132    
                   February 2012      528             $98               $127    
                   March 2012       1,056            $100               $130    
                                    2,112                                       
          42%  

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                                       
          42%  

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                                       
          42%  

Fiscal 2016   
                   June 2012        3,564             $75               $108  
                   February 2013    2,160             $80               $120  
                   April 2013       3,000             $75               $115  
                                    8,724                                       
          43%  

Fiscal 2017  
                   February 2013    3,276             $80               $115  
                   April 2013       2,028             $75               $110  
                                    5,304                                       
         26%  

(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 August 31,    
      Nine Months Ended August 31,
                                                          2013                  
                2013
                                                        Constant                
              Constant       
                                             2013        Dollar         2012    
     2013      Dollar          2012

Passenger ticket revenues                    $3,598      $3,551        $3,561   
    $8,951      $8,909        $9,000
    Onboard and other revenues                      987         980           965   
     2,670       2,664         2,618 

Gross cruise revenues                         4,585       4,531         4,526   
    11,621      11,573        11,618 

Less cruise costs  

Commissions, transportation and other (654) (643) (613)


    (1,777)     (1,766)      (1,793) 
    Onboard and other                           (144)       (143)         (150)  
      (385)       (385)        (404) 
                                               (798)       (786)         (763)  
    (2,162)     (2,151)      (2,197) 

Net passenger ticket revenues                 2,944       2,908         2,948   
     7,174       7,143        7,207 

Net onboard and other revenues                  843         837           815   
     2,285       2,279        2,214 

Net cruise revenues                          $3,787      $3,745        $3,763   
    $9,459      $9,422       $9,421

ALBDs                                    19,248,129  19,248,129    18,613,416   
55,220,366  55,220,366   53,705,889 

Gross revenue yields                        $238.20     $235.42       $243.18   
   $210.44     $209.60      $216.33 

% decrease vs. 2012                            (2.0)%      (3.2)%               
      (2.7)%      (3.1)%  

Net revenue yields                          $196.79     $194.57       $202.21   
   $171.28     $170.63      $175.42 

% decrease vs. 2012                            (2.7)%      (3.8)%               
      (2.4)%      (2.7)%      

Net passenger ticket revenue yields         $152.96     $151.09       $158.34   
   $129.91     $129.36      $134.19 

% decrease vs. 2012                            (3.4)%      (4.6)%               
      (3.2)%      (3.6)%

Net onboard and other revenue yields         $43.83      $43.48        $43.87   
    $41.37      $41.27       $41.24

% (decrease) increase vs. 2012                 (0.1)%      (0.9)%               
       0.3%        0.1%

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 August 31, 2013  
    Nine Months Ended August 31, 2013
                                                         Constant               
                Constant      
                                              2013       Dollar        2012     
      2013       Dollar       2012

Cruise operating expenses                    $2,834      $2,802        $2,506   
     $7,890     $7,862         $7,643

Cruise selling and administrative

expenses(c) 436 433 407

1,341 1,338 1,255 Gross cruise costs 3,270 3,235 2,913


      9,231       9,200         8,898

Less cruise costs included above                                                
                                              
      Commissions, transportation and other    (654)       (643)         (613)  
     (1,777)     (1,766)       (1,793)
      Onboard and other                        (144)       (143)         (150)  
       (385)       (385)         (404)
      Losses on ship sales including           (176)       (165)          -     
       (178)       (167)          (36)
         impairments, net

Net cruise costs                              2,296       2,284         2,150   
      6,891       6,882         6,665

Less fuel                                      (544)       (544)         (541)  
     (1,659)     (1,659)       (1,778)

Net cruise costs excluding fuel              $1,752      $1,740        $1,609   
     $5,232      $5,223        $4,887

ALBDs                                    19,248,129  19,248,129    18,613,416   
 55,220,366  55,220,366    53,705,889


Gross cruise costs per ALBD                 $169.89     $168.05       $156.52   
    $167.17     $166.61       $165.68 

% increase vs. 2012                             8.5%        7.4%                
        0.9%        0.6%

Net cruise costs per ALBD $119.34 $118.64 $115.55


    $124.79     $124.62       $124.11 

% increase vs. 2012                             3.3%        2.7%                
        0.6%        0.4%

Net cruise costs excluding fuel per ALBD $91.09 $90.39 $86.44

$94.76 $94.59 $91.00

% increase vs. 2012 5.4% 4.6%


        4.1%        3.9%


(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 Nine Months Ended


                                                               August 31,       
    August  31,   
                                                                                
           

2013 2012 2013 2012

Net income - diluted

U.S. GAAP net income $934 $1,330 $1,012 $1,205

Losses on ship sales including impairments, net (d) 176 -


    163       36    
       Goodwill, trademark and other impairment charges (e)     27          -      
     27      173   
    Unrealized gains on fuel derivatives, net (f)           (64)        (136)   
     (5)     (12)  

Non-GAAP net income $1,073 $1,194 $1,197 $1,402

Weighted-average shares outstanding - diluted 777 779


    777      779   
                                                                                

Earnings per share - diluted

U.S. GAAP earnings per share $1.20 $1.71 $1.30 $1.55

Losses on ship sales including impairments, net (d) 0.23 -

0.21 0.05

Goodwill, trademark and other impairment charges (e) 0.03 -

0.03 0.22


    Unrealized gains on fuel derivatives, net (f)         (0.08)       (0.18)   
      -    (0.02)

Non-GAAP earnings per share $1.38 $1.53 $1.54 $1.80

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 and gains and losses on ship sales including impairments, net that are not part of our core operating 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. In addition, we exclude gains and losses on ship sales including impairments, net from our calculation of net cruise costs with and without fuel as they are not considered part of our core operating business and are not included in our non-GAAP net income and non-GAAP earnings per share.

Finally, we changed our previously reported net cruise costs per ALBD and net cruise costs excluding fuel per ALBD for the nine months ended August 31, 2012 from $124.78 to $124.11 and $91.67 to $91.00, respectively, to exclude losses on ship sales including impairments, net to be consistent with our treatment of these types of charges in our 2013 net cruise costs per ALBD.

CARNIVAL CORPORATION & PLC

NON-GAAP FINANCIAL MEASURES (CONTINUED)

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 a 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 nine months ended August 31, 2013 and 2012, selling and administrative expenses were $439 million ($409 million in 2012) and $1.3 billion ($1.3 billion in 2012), respectively. For the three and nine months ended August 31, 2013 and 2012, selling and administrative expenses were comprised of cruise selling and administrative expenses of $436 million ($407 million in 2012) and $1.3 billion ($1.3 billion in 2012) and Tour and Other selling and administrative expenses of $3 million ($2 million in 2012) and $6 million ($6 million in 2012), respectively.

(d) We believe that the losses on ship sales including impairments, net recognized in the three and nine months ended August 31, 2013 and 2012 are not part of our core operating business and, therefore, are not an indication of our future earnings performance. As such, we believe it is more meaningful for gains and losses on ship sales including impairments, net to be excluded from our net income and earnings per share and, accordingly, we present non-GAAP net income and non-GAAP earnings per share excluding these items.

In addition, we changed our previously reported non-GAAP earnings per share for the nine months ended August 31, 2012 and the three months ended November 30, 2012 from $1.75 to $1.80 and $0.13 to $0.14, respectively, to exclude losses on ship sales including impairments, net to be consistent with our treatment of these types of charges in our 2013 non-GAAP earnings per share.

(e) We believe that the goodwill, trademark and other impairment charges recognized in the three and nine months ended August 31, 2013 and 2012 are special charges and, therefore, are also not an indication of our future earnings performance. As such, we also believe it is more meaningful for these impairment charges to be excluded from our net income and earnings per share and, accordingly, we present non-GAAP net income and non-GAAP earnings per share 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 earnings per share and, accordingly, we present non-GAAP net income and non-GAAP earnings per share excluding these unrealized gains and losses.

We have not included in our earnings guidance the impact of unrealized gains and losses on fuel derivatives because these unrealized amounts involve a significant amount of uncertainty, and we do not believe they are an indication of our future earnings performance. Accordingly, our earnings guidance is presented on a non-GAAP basis only. As a result, we did not present a reconciliation between forecasted non-GAAP diluted earnings per share guidance and forecasted U.S. GAAP diluted earnings per share guidance, since we do not believe that the reconciliation information would be meaningful.

SOURCE: Carnival Corporation

CONTACT: MEDIA CONTACT, Roger Frizzell, 1 305 406 7862, INVESTOR RELATIONS CONTACT, Beth Roberts, 1 305 406 4832

END

-0- Sep/24/2013 13:15 GMT

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