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