CARNIVAL CORPORATION & PLC REPORTS RECORD
FIRST QUARTER REVENUES AND ALL-TIME RECORD BOOKING
LEVELS
MIAMI, March 27, 2024 - Carnival
Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced
financial results for the first quarter 2024 and provided an
outlook for the full year and second quarter
2024.
-
Record first quarter revenues of $5.4 billion with record net yields (in constant
currency) and record net per diems (in constant currency) both
significantly exceeding 2023 levels (see "Non-GAAP Financial
Measures"
below).
-
The company improved its first quarter bottom line by
nearly $500 million compared to 2023
and adjusted net loss was better than December guidance, with
continued strength in demand driving ticket prices higher (see
"Non-GAAP Financial Measures"
below).
-
During the first quarter, booking volumes hit an
all-time high with prices considerably higher year over
year.
-
Following a successful wave season (peak booking
period), the company raised its full year 2024 net yield guidance
(in constant currency) by over a point to approximately 9.5 percent
compared to 2023 based on continued strength in demand and also
improved its adjusted cruise costs excluding fuel guidance (in
constant currency) by $35 million as
compared to its December
guidance.
-
Total customer deposits reached a first quarter
record of $7.0 billion, surpassing
the previous first quarter record by $1.3
billion.
-
The company redeemed its remaining second lien debt
(9.875% second-priority secured notes), upsized its forward
starting revolving facility by $400
million and extended its availability by two
years.
-
The company ordered its first newbuilds in five
years, the tenth and eleventh in its highly successful excel-class,
scheduled to be delivered to Carnival Cruise Line in 2027 and
2028.
"This has been a fantastic start to the year. We
delivered another strong quarter that outperformed guidance on
every measure, while concluding a monumental wave season that
achieved all-time high booking volumes at considerably higher
prices," commented Carnival Corporation & plc's Chief Executive
Officer Josh
Weinstein.
"These results are a continuation of the strong
demand we have been generating across our brands and all core
deployments, leading to an upward revision of full year
expectations by more than a point of incremental yield improvement
and setting us up nicely to deliver a nearly double-digit
improvement in net yields," Weinstein
added.
"With much of this year on the books, we have even
greater conviction in delivering record revenues and EBITDA, along
with a step change improvement in operating performance, and have
begun turning more of our attention to delivering an even stronger
2025," Weinstein noted.
First Quarter 2024
Results
-
Cash from operations was $1.8
billion and operating income was $276
million.
-
Adjusted net loss was better than December guidance.
U.S. GAAP net loss of $214 million,
or $(0.17) diluted EPS, and adjusted
net loss of $180 million, or
$(0.14) adjusted EPS (see "Non-GAAP
Financial Measures"
below).
-
Adjusted EBITDA of $871
million exceeded December guidance by over $70 million (see "Non-GAAP Financial Measures"
below).
-
Record first quarter revenues of $5.4 billion, with record net yields (in constant
currency) and record net per diems (in constant currency) both
significantly exceeding 2023
levels.
-
Gross margin yields nearly doubled compared to 2023
and net yields (in constant currency) significantly exceeded 2023
levels by over 17
percent.
-
Gross margin per diems increased 73 percent compared
to 2023 levels and net per diems (in constant currency) were up
nearly five percent, significantly exceeding strong prior year
levels.
-
Onboard revenue per diems were higher than 2023 for
the company's North America and
Australia ("NAA") segment as well
as its Europe segment. On a
consolidated basis, onboard revenue per diems reflected a mix
impact due to the increased weighting of its Europe segment driven by its higher occupancy
growth.
-
Cruise costs per available lower berth day ("ALBD")
increased 7.9 percent compared to 2023. Adjusted cruise costs
excluding fuel per ALBD (in constant currency) were better than
December guidance due to the timing of expenses between the
quarters and up 7.3 percent compared to 2023 (see "Non-GAAP
Financial Measures"
below).
-
Total customer deposits reached a first quarter
record of $7.0 billion, surpassing
the previous first quarter record by $1.3
billion ($5.7 billion as of
February 28,
2023).
Bookings
The company experienced an early start to a robust
wave season with record booking volumes for all future sailings
that exceeded expectations. The company achieved considerably
higher prices (in constant currency) than last year on first
quarter booking volumes, having entered 2024 with less inventory
remaining for sale, in line with the company's strategy to pull the
booking curve forward. In fact, pricing (in constant currency) on
bookings for the remainder of the year for the company's NAA
segment was considerably higher compared to the prior year, with
its Europe segment up double
digits.
"We are enjoying a phenomenal wave season with
strength across all major deployments and brands. Even with less
inventory available for the remainder of the year, booking volumes
hit an all-time high, driven by demand for 2025 sailings and
beyond. Our brands have demonstrated continued success creating
demand that outstrips available capacity translating into higher
prices (in constant currency) and a further elongation in the
booking curve," Weinstein
noted.
The company's booked position for the remainder of
the year continues to be the best on record, with both pricing (in
constant currency) and occupancy considerably higher than
2023.
2024
Outlook
Francis Scott Key
Bridge in Baltimore:
-
Given the timing of yesterday's event in Baltimore and the temporary change
in homeport, our guidance does not include the current
estimated impact of up to $10 million
on both adjusted EBITDA and adjusted net income for the full year
2024.
For the full year 2024, the company
expects:
-
Net yields (in constant currency) up approximately
9.5 percent compared to 2023, over a point better than December
guidance, based on continued strength in demand and with occupancy
at historical
levels.
-
Adjusted cruise costs excluding fuel (in constant
currency) are $35 million better than
December guidance, with adjusted cruise costs excluding fuel per
ALBD (in constant currency) 0.5 percentage points higher than
December guidance as a result of lower ALBD's from the Red Sea
rerouting as certain ships reposition without
guests.
-
Adjusted EBITDA of approximately $5.63 billion, over 30 percent growth compared to
2023, and better than December guidance, despite the impact of the
Red Sea rerouting of approximately $130
million or $0.09 adjusted EPS
through November
2024.
For the second quarter of 2024, the company
expects:
-
Net yields (in constant currency) up approximately
10.5 percent compared to 2023 levels, including the unfavorable
impact from the Red Sea rerouting of 0.5 percentage points, with
occupancy at historical
levels.
-
Adjusted cruise costs excluding fuel per ALBD (in
constant currency) up approximately 3.0 percent compared to the
second quarter of 2023, including the unfavorable impact of 1.3
percentage points as a result of lower ALBD's from the Red Sea
rerouting as certain ships reposition without
guests.
-
Adjusted EBITDA of approximately $1.05 billion, over 50 percent growth compared to
the second quarter of
2023.
See "Guidance" and "Reconciliation of Forecasted
Data" for additional information on the company's 2024
outlook.
Financing and Capital
Activity
"Continued execution coupled with strengthening
demand for our brands is driving increased confidence in our
ongoing performance. We are pleased this has been recognized by
S&P and Moody's with their recent upgrades, as well as the
recent upsizing and two-year extension of our revolving credit
facility," noted Carnival Corporation & plc's Chief Financial
Officer David
Bernstein.
"Looking forward over the next several years, we
expect our robust revenue growth, responsible approach to capital
investment, and ongoing efforts to refinance debt at favorable
rates to deliver substantial free cash flow which will
significantly reduce our leverage and build shareholder value,"
Bernstein added.
The company continues its efforts to proactively
manage its debt profile. During the first quarter, it redeemed and
retired nearly $1 billion of debt
with original maturities in 2027, including all of the remaining
second lien debt
outstanding.
The company successfully extended the maturity of its
forward starting revolving credit facility ("New Revolving
Facility") to August 2027 and upsized
its borrowing capacity by $400
million, bringing its total commitment to $2.5
billion.
The company ended the quarter with $5.2 billion of liquidity. On March 26, 2024, the company prepaid its
$837 million euro term loan, saving
interest expense and continuing to simplify its capital structure
by removing secured debt.
The first quarter generated cash from operations of
$1.8 billion and adjusted free cash
flow of $1.4 billion. The company
took delivery of two spectacular new ships and drew down on two
export credit facilities, continuing its strategy to finance its
newbuild program at preferential interest
rates.
The company ordered its first newbuilds in five
years. These newbuilds, the tenth and eleventh in the highly
successful excel-class across four different brands, are scheduled
to be delivered in 2027 and 2028, which is consistent with the
company's measured capacity growth strategy. These new ships will
join the Carnival Cruise Line fleet, helping to meet the brand's
outsized demand and drive further revenue
growth.
Sustainability
The company continues to focus on reducing its
greenhouse gas ("GHG") emissions footprint and pursuing net zero
emissions from ship operations. In the first quarter of 2024, the
company took delivery of two liquified natural gas ("LNG") powered
ships with Carnival Jubilee, marking the ninth
vessel in its popular and exceptionally efficient series of
excel-class ships and Sun Princess, the first ship in
its sphere class. The company now has 10 LNG powered ships in its
fleet and three more on order for delivery through
2028.
The company continues to implement several fuel and
energy saving innovations while also pioneering lower emission
alternatives and exploring other new technologies to power its
ships. Collectively, these initiatives are expected to drive an 18
percent reduction in GHG emission intensity on a lower berth
capacity basis in 2024 compared to 2019, approaching its initial
2030 goal of a 20 percent reduction and reaffirming its progress to
achieve its goal four years early. For full year 2024, the company
expects to achieve a 42 percent reduction compared to 2008, ahead
of the International Maritime Organization's ("IMO") 2030 carbon
intensity reduction timeline. For more detailed information on the
company's investments to further reduce its environmental
footprint, see the company's press release issued on February 6,
2024.
Other Recent
Highlights
-
Carnival Firenze officially joined the Carnival Cruise Line
fleet, becoming the second ship to feature its highly successful
"Fun Italian Style" concept and will begin homeporting from the
west coast in
April.
-
Carnival Cruise Line announced a new pier extension
for Celebration Key, which will ultimately double the arrivals at
its highly anticipated, new exclusive destination on Grand Bahama
Island opening summer
2025.
-
Princess Cruises debuted its most luxurious ship to
date, Sun Princess, offering an extraordinary
guest experience while showcasing next-level architecture and
amenities.
-
AIDA Cruises announced the largest modernization
program in its fleet's history, AIDA Evolution, focused on
enhancing guest experience while further reducing its environmental
footprint.
-
Carnival Corporation & plc's brands continue to
achieve new peak booking levels with Holland America Line reaching
its highest booking day in its history, P&O Cruises (UK) and
Princess Cruises' Alaska bookings
surpassing their previous January record, and Cunard reporting more
guests booked in January than any equivalent period in the last
decade.
-
Carnival Corporation was named one of America's Best
Large Employers for 2024 by
Forbes.
Guidance
Francis Scott Key
Bridge in Baltimore:
-
Given the timing of yesterday's event in Baltimore and the temporary change
in homeport, our guidance does not include the current
estimated impact of up to $10 million
on both adjusted EBITDA and adjusted net income for the full year
2024.
(See "Reconciliation of Forecasted
Data")
|
|
2Q
2024 |
|
Full Year
2024 |
Year over year
change |
|
Current
Dollars |
|
Constant
Currency |
|
Current
Dollars |
|
Constant
Currency |
Net yields |
|
Approx. 10.5% |
|
Approx. 10.5% |
|
Approx. 9.5% |
|
Approx. 9.5% |
Adjusted cruise costs excluding fuel per
ALBD |
|
Approx. 3.0% |
|
Approx. 3.0% |
|
Approx. 5.5% |
|
Approx. 5.0% |
|
|
2024 |
|
|
2Q |
|
3Q |
|
4Q |
|
Full
Year |
ALBDs (in
millions) (a) |
|
23.5 |
|
25.2 |
|
23.7 |
|
95.4 |
|
(a) See "Notes to Statistical
Information" |
|
|
|
|
|
|
|
|
|
|
|
2Q
2024 |
|
Full
Year 2024 |
Capacity growth compared to prior
year |
5.4 % |
|
4.5 % |
|
|
|
|
Fuel consumption in metric tons (in
millions) |
0.8 |
|
3.0 |
Fuel cost per metric ton consumed (excluding European
Union Allowance ("EUA")) |
$
665 |
|
$
670 |
EUA cost per metric ton of
emissions |
$
70 |
|
$
65 |
EUA expense (in
millions) |
$
13 |
|
$
46 |
Fuel expense (including EUA expense) (in
billions) |
$
0.52 |
|
$
2.0 |
|
|
|
|
Depreciation and amortization (in
billions) |
$
0.65 |
|
$
2.6 |
Interest expense, net of capitalized interest and
interest income (in
billions) |
$
0.45 |
|
$
1.74 |
|
|
|
|
Adjusted EBITDA (in
billions) |
Approx. $1.05 |
|
Approx. $5.63 |
Adjusted net income (loss) (in
millions) |
Approx. $(35) |
|
Approx.
$1,280 |
Adjusted earnings per share - diluted
(a) |
Approx.
$(0.03) |
|
Approx. $0.98 |
Weighted-average shares outstanding -
basic |
1,267 |
|
1,273 |
Weighted-average shares outstanding -
diluted |
1,267 |
|
1,398 |
|
|
(a) |
Diluted adjusted earnings per share for the full year
2024 includes the add-back of dilutive interest expense related to
the company's convertible notes of $94 million. The add-back
expense is antidilutive to the second quarter of 2024 calculation
and accordingly has been
excluded. |
Currencies (USD to
1) |
2Q
2024 |
|
|
Full Year
2024 |
AUD |
$
0.65 |
|
|
$
0.65 |
CAD |
$
0.74 |
|
|
$
0.74 |
EUR |
$
1.09 |
|
|
$
1.09 |
GBP |
$
1.27 |
|
|
$
1.27 |
|
Sensitivities (impact to adjusted net income
(loss) in millions) |
2Q
2024 |
|
|
Remainder of
2024 |
1% change in net
yields |
$
39 |
|
|
$
135 |
1% change in adjusted cruise costs excluding fuel per
ALBD |
$
27 |
|
|
$
79 |
1% change in currency exchange
rates |
$
4 |
|
|
$
18 |
10% change in fuel
price |
$
50 |
|
|
$
147 |
100 basis point change in variable rate debt
(including derivatives) |
— |
|
|
$
45 |
Capital
Expenditures
The company's expected capital expenditures, are as
follows:
(in
billions) |
Remainder
of
2024 |
|
2025 |
|
2026 |
Contracted newbuild
(a) |
$
0.9 |
|
$
1.0 |
|
$
0.4 |
Non-newbuild |
1.5 |
|
2.0 |
|
2.0 |
Total (b) |
$
2.3 |
|
$
3.0 |
|
$
2.4 |
|
|
(a) |
Includes payments for the newbuild ordered subsequent
to February 29, 2024, scheduled to be delivered in
2028. |
|
|
(b) |
Future capital expenditures will fluctuate with
foreign currency movements relative to the U.S. Dollar. These
figures do not include potential ship orders (stage payments and
final delivery payments) that the company may place in the
future. |
Committed Ship
Financings
(in
billions) |
2024 |
|
2025 |
Future export credit facilities at February 29,
2024 |
$
0.6 |
|
$
0.7 |
Outstanding
Debt Maturities
As of February 29,
2024, the company's outstanding debt maturities are as
follows:
(in
billions) |
2024 |
|
2025 |
|
2026 |
First Lien
(a) |
$
0.0 |
|
$
0.9 |
|
$
0.0 |
Export
Credits |
0.9 |
|
1.3 |
|
1.3 |
Convertible
Notes |
0.4 |
|
— |
|
— |
All other |
0.4 |
|
0.2 |
|
2.0 |
Total Principal payments on outstanding
debt |
$
1.7 |
|
$
2.4 |
|
$
3.3 |
|
|
(a) |
Subsequent to February 29, 2024, the company prepaid
$837 million of its euro floating rate loan originally scheduled to
mature in 2025. Contractual principal payments for the company's
2025 debt maturities is $1.5 billion, which does not include any
additional prepayments of
debt. |
Refer to Financial Information within the Investor
Relations section of the corporate website for further details on
the company's Debt Maturities:
https://www.carnivalcorp.com/financial-information/supplemental-schedules
Conference
Call
The company has scheduled a conference call with
analysts at 10:00 a.m. EDT
(2:00 p.m. GMT) today to discuss its
earnings release. This call can be listened to live, and additional
information can be obtained, via Carnival Corporation & plc's
website
at www.carnivalcorp.com and www.carnivalplc.com.
Carnival Corporation & plc is the largest global
cruise company, and among the largest leisure travel companies,
with a portfolio of world-class cruise lines – AIDA Cruises,
Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line,
P&O Cruises (Australia),
P&O Cruises (UK), Princess Cruises, and
Seabourn.
Additional information can be found
on www.carnivalcorp.com, www.aida.de, www.carnival.com, www.costacruise.com, www.cunard.com, www.hollandamerica.com, www.pocruises.com.au, www.pocruises.com, www.princess.com and www.seabourn.com.
For more information on Carnival Corporation's industry-leading
sustainability initiatives,
visit www.carnivalsustainability.com.
Cautionary Note Concerning Factors That May Affect
Future
Results
Some of the statements, estimates or projections
contained in this document are "forward-looking statements" that
involve risks, uncertainties and assumptions with respect to us,
including some statements concerning future results, operations,
outlooks, plans, goals, reputation, cash flows, liquidity 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, as amended. All statements other than
statements of historical facts are statements that could be deemed
forward-looking. These statements are based on current
expectations, estimates, forecasts and projections about our
business and the industry in which we operate and the beliefs and
assumptions of our management. We have tried, whenever possible, to
identify these statements by using words like "will," "may,"
"could," "should," "would," "believe," "depends," "expect," "goal,"
"aspiration," "anticipate," "forecast," "project," "future,"
"intend," "plan," "estimate," "target," "indicate," "outlook," and
similar expressions of future intent or the negative of such
terms.
Forward-looking statements include those statements
that relate to our outlook and financial position including, but
not limited to, statements
regarding:
• Pricing |
• Adjusted net income
(loss) |
• Booking
levels |
• Adjusted
EBITDA |
• Occupancy |
• Adjusted earnings per
share |
• Interest, tax and fuel
expenses |
• Adjusted free cash
flow |
• Currency exchange
rates |
• Net per
diems |
• Goodwill, ship and trademark fair
values |
• Net
yields |
• Liquidity and credit
ratings |
• Adjusted cruise costs per
ALBD |
• Investment grade leverage
metrics |
• Adjusted cruise costs excluding fuel per
ALBD |
• Estimates of ship depreciable lives and
residual values |
• Adjusted return on invested
capital |
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 by our forward-looking statements. This
note contains important cautionary statements of the known factors
that we consider could materially affect the accuracy of our
forward-looking statements and adversely affect our business,
results of operations and financial position. Additionally, many of
these risks and uncertainties are currently, and in the future may
continue to be, amplified by our substantial debt balance incurred
during the pause of our guest cruise operations. There may be
additional risks that we consider immaterial or which are unknown.
These factors include, but are not limited to, the
following:
-
Events and conditions around the world, including
geopolitical uncertainty, war and other military actions,
inflation, higher fuel prices, higher interest rates and other
general concerns impacting the ability or desire of people to
travel have led, and may in the future lead, to a decline in demand
for cruises as well as negative impacts to our operating costs and
profitability.
-
Pandemics have in the past and may in the future have
a significant negative impact on our financial condition and
operations.
-
Incidents concerning our ships, guests or the cruise
industry have in the past and may, in the future, negatively impact
the satisfaction of our guests and crew and lead to reputational
damage.
-
Changes in and non-compliance with laws and
regulations under which we operate, such as those relating to
health, environment, safety and security, data privacy and
protection, anti-money laundering, anti-corruption, economic
sanctions, trade protection, labor and employment, and tax may be
costly and have in the past and may, in the future, lead to
litigation, enforcement actions, fines, penalties and reputational
damage.
-
Factors associated with climate change, including
evolving and increasing regulations, increasing global concern
about climate change and the shift in climate conscious consumerism
and stakeholder scrutiny, and increasing frequency and/or severity
of adverse weather conditions could adversely affect our
business.
-
Inability to meet or achieve our targets, goals,
aspirations, initiatives, and our public statements and disclosures
regarding them, including those that are related to sustainability
matters, may expose us to risks that may adversely impact our
business.
-
Breaches in data security and lapses in data privacy
as well as disruptions and other damages to our principal offices,
information technology operations and system networks and failure
to keep pace with developments in technology may adversely impact
our business operations, the satisfaction of our guests and crew
and may lead to reputational
damage.
-
The loss of key team members, our inability to
recruit or retain qualified shoreside and shipboard team members
and increased labor costs could have an adverse effect on our
business and results of
operations.
-
Increases in fuel prices, changes in the types of
fuel consumed and availability of fuel supply may adversely impact
our scheduled itineraries and
costs.
-
We rely on supply chain vendors who are integral to
the operations of our businesses. These vendors and service
providers may be unable to deliver on their commitments, which
could negatively impact our
business.
-
Fluctuations in foreign currency exchange rates may
adversely impact our financial
results.
-
Overcapacity and competition in the cruise and
land-based vacation industry may negatively impact our cruise
sales, pricing and destination
options.
-
Inability to implement our shipbuilding programs and
ship repairs, maintenance and refurbishments may adversely impact
our business operations and the satisfaction of our
guests.
-
We require a significant amount of cash to service
our debt and sustain our operations. Our ability to generate cash
depends on many factors, including those beyond our control, and we
may not be able to generate cash required to service our debt and
sustain our
operations.
-
Our substantial debt could adversely affect our
financial health and operating
flexibility.
The ordering of the risk factors set forth above is
not intended to reflect our indication of priority or
likelihood.
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 document, 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.
Forward-looking and other statements in this document
may also address our sustainability progress, plans, and goals
(including climate change and environmental-related matters). In
addition, historical, current, and forward-looking sustainability-
and climate-related statements may be based on standards and tools
for measuring progress that are still developing, internal controls
and processes that continue to evolve, and assumptions and
predictions that are subject to change in the future and may not be
generally shared.
CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(UNAUDITED)
(in millions, except per share
data) |
|
|
Three Months Ended
February
29/28, |
|
2024 |
|
2023 |
Revenues |
|
|
|
Passenger
ticket |
$
3,617 |
|
$
2,870 |
Onboard and
other |
1,790 |
|
1,563 |
|
5,406 |
|
4,432 |
Operating
Expenses |
|
|
|
Commissions, transportation and
other |
819 |
|
655 |
Onboard and
other |
550 |
|
484 |
Payroll and
related |
623 |
|
582 |
Fuel |
505 |
|
535 |
Food |
346 |
|
311 |
Other
operating |
862 |
|
743 |
Cruise and tour operating
expenses |
3,705 |
|
3,311 |
Selling and
administrative |
813 |
|
712 |
Depreciation and
amortization |
613 |
|
582 |
|
5,131 |
|
4,604 |
Operating Income
(Loss) |
276 |
|
(172) |
Nonoperating Income
(Expense) |
|
|
|
Interest
income |
33 |
|
56 |
Interest expense, net of capitalized
interest |
(471) |
|
(539) |
Debt extinguishment and modification
costs |
(33) |
|
— |
Other income (expense),
net |
(18) |
|
(30) |
|
(489) |
|
(514) |
Income (Loss) Before Income
Taxes |
(214) |
|
(686) |
Income Tax Benefit (Expense),
Net |
— |
|
(7) |
Net Income
(Loss) |
$
(214) |
|
$
(693) |
|
|
|
|
Earnings Per
Share |
|
|
|
Basic |
$
(0.17) |
|
$
(0.55) |
Diluted |
$
(0.17) |
|
$
(0.55) |
Weighted-Average Shares Outstanding -
Basic |
1,264 |
|
1,260 |
Weighted-Average Shares Outstanding -
Diluted |
1,264 |
|
1,260 |
CARNIVAL CORPORATION & PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except par
values) |
|
|
February 29,
2024 |
|
November 30,
2023 |
ASSETS |
|
|
|
Current
Assets |
|
|
|
Cash and cash
equivalents |
$
2,242 |
|
$
2,415 |
Trade and other receivables,
net |
644 |
|
556 |
Inventories |
531 |
|
528 |
Prepaid expenses and
other |
1,067 |
|
1,767 |
Total current
assets |
4,484 |
|
5,266 |
Property and Equipment,
Net |
41,515 |
|
40,116 |
Operating Lease Right-of-Use Assets,
Net |
1,238 |
|
1,265 |
Goodwill |
579 |
|
579 |
Other
Intangibles |
1,168 |
|
1,169 |
Other
Assets |
777 |
|
725 |
|
$
49,761 |
|
$
49,120 |
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
Current
Liabilities |
|
|
|
Current portion of long-term
debt |
2,195 |
|
2,089 |
Current portion of operating lease
liabilities |
138 |
|
149 |
Accounts
payable |
1,103 |
|
1,168 |
Accrued liabilities and
other |
2,318 |
|
2,003 |
Customer
deposits |
6,642 |
|
6,072 |
Total current
liabilities |
12,396 |
|
11,481 |
Long-Term
Debt |
28,544 |
|
28,483 |
Long-Term Operating Lease
Liabilities |
1,138 |
|
1,170 |
Other Long-Term
Liabilities |
1,001 |
|
1,105 |
|
|
|
|
Shareholders'
Equity |
|
|
|
Common stock of Carnival Corporation, $0.01 par
value; 1,960 shares authorized; 1,253
shares at 2024 and 1,250 shares at 2023
issued |
13 |
|
12 |
Ordinary shares of Carnival plc, $1.66 par value; 217
shares at 2024 and 2023
issued |
361 |
|
361 |
Additional paid-in
capital |
16,679 |
|
16,712 |
Retained earnings (accumulated
deficit) |
(29) |
|
185 |
Accumulated other comprehensive income
(loss) |
(1,938) |
|
(1,939) |
Treasury stock, 130 shares at 2024 and 2023 of
Carnival Corporation and 73 shares at
2024 and 2023 of Carnival plc, at
cost |
(8,404) |
|
(8,449) |
Total shareholders'
equity |
6,682 |
|
6,882 |
|
$
49,761 |
|
$
49,120 |
CARNIVAL CORPORATION & PLC
OTHER
INFORMATION |
|
OTHER BALANCE SHEET
INFORMATION (in
millions) |
February 29,
2024 |
|
November 30,
2023 |
Liquidity |
$
5,209 |
|
$
5,392 |
Debt (current and
long-term) |
$
30,739 |
|
$
30,572 |
Customer deposits (current and
long-term) |
$
6,950 |
|
$
6,353 |
|
Three Months Ended
February
29/28, |
STATISTICAL
INFORMATION |
2024 |
|
2023 |
Passenger cruise days ("PCDs") (in
millions) (a) |
23.5 |
|
20.2 |
ALBDs (in
millions) (b) |
23.0 |
|
22.1 |
Occupancy percentage
(c) |
102 % |
|
91 % |
Passengers carried (in
millions) |
3.0 |
|
2.7 |
|
|
|
|
Fuel consumption in metric tons (in
millions) |
0.7 |
|
0.7 |
Fuel consumption in metric tons per thousand
ALBDs |
31.8 |
|
33.4 |
Fuel cost per metric ton consumed (excluding
EUA) |
$
686 |
|
$
730 |
EUA cost per metric ton of
emissions |
$
81 |
|
$
— |
EUA expense (in
millions) |
$
3 |
|
$
— |
|
|
|
|
Currencies (USD to
1) |
|
|
|
AUD |
$
0.66 |
|
$
0.69 |
CAD |
$
0.74 |
|
$
0.74 |
EUR |
$
1.09 |
|
$
1.07 |
GBP |
$
1.27 |
|
$
1.22 |
|
Notes to Statistical
Information |
|
|
(a) |
PCD represents the number of cruise passengers on a
voyage multiplied by the number of revenue-producing ship operating
days for that voyage. |
|
|
(b) |
ALBD is a standard measure of passenger capacity for
the period that we use to approximate rate and capacity variances,
based on consistently applied formulas that we use to perform
analyses to determine the main non-capacity driven factors that
cause our cruise revenues and expenses to vary. ALBDs assume that
each cabin we offer for sale accommodates two passengers and is
computed by multiplying passenger capacity by revenue-producing
ship operating days in the
period. |
|
|
(c) |
Occupancy, in accordance with cruise industry
practice, is calculated using a numerator of PCDs and a denominator
of ALBDs, which assumes 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. |
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL
MEASURES |
|
|
Three Months Ended
February
29/28, |
(in
millions) |
2024 |
|
2023 |
Net income
(loss) |
$
(214) |
|
$
(693) |
(Gains) losses on ship sales and
impairments |
— |
|
(9) |
Debt extinguishment and modification
costs |
33 |
|
— |
Restructuring
expenses |
1 |
|
— |
Other |
— |
|
12 |
Adjusted net income
(loss) |
$
(180) |
|
$
(690) |
Interest expense, net of capitalized
interest |
471 |
|
539 |
Interest
income |
(33) |
|
(56) |
Income tax benefit (expense),
net |
— |
|
7 |
Depreciation and
amortization |
613 |
|
582 |
Adjusted
EBITDA |
$
871 |
|
$
382 |
|
|
Three Months Ended
February
29/28, |
|
2024 |
|
2023 |
Earnings per share - diluted
(a) |
$
(0.17) |
|
$
(0.55) |
(Gains) losses on ship sales and
impairments |
— |
|
(0.01) |
Debt extinguishment and modification
costs |
0.03 |
|
— |
Restructuring
expenses |
— |
|
— |
Other |
— |
|
0.01 |
Adjusted earnings per share - diluted
(a) |
$
(0.14) |
|
$
(0.55) |
|
|
|
|
Weighted-average shares outstanding -
diluted (in
millions) |
1,264 |
|
1,260 |
|
|
(a) |
For the first quarter 2024, the company's convertible
notes are antidilutive and therefore are not included in diluted
weighted-average shares
outstanding. |
|
Three Months Ended
February
29/28, |
(in
millions) |
2024 |
|
2023 |
Cash from (used in)
operations |
$
1,768 |
|
$
388 |
Capital expenditures (Purchases of Property and
Equipment) |
(2,138) |
|
(1,075) |
Proceeds from export
credits |
1,735 |
|
830 |
Adjusted free cash
flow |
$
1,364 |
|
$
144 |
|
(See Non-GAAP Financial
Measures) |
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES
(CONTINUED)
Gross margin per diems and net per diems were
computed by dividing the gross margin and adjusted gross margin by
PCDs. Gross margin yields and net yields were computed by dividing
the gross margin and adjusted gross margin by ALBDs as
follows:
|
Three Months Ended February
29/28, |
(in millions, except per diems and yields
data) |
2024 |
|
2024
Constant
Currency |
|
2023 |
Total
revenues |
$
5,406 |
|
|
|
$
4,432 |
Less: Cruise and tour operating
expenses |
(3,705) |
|
|
|
(3,311) |
Depreciation and
amortization |
(613) |
|
|
|
(582) |
Gross
margin |
1,089 |
|
|
|
540 |
Less: Tour and other
revenues |
(4) |
|
|
|
(9) |
Add: Payroll and
related |
623 |
|
|
|
582 |
Fuel |
505 |
|
|
|
535 |
Food |
346 |
|
|
|
311 |
Ship and other
impairments |
— |
|
|
|
— |
Other
operating |
862 |
|
|
|
743 |
Depreciation and
amortization |
613 |
|
|
|
582 |
Adjusted gross
margin |
$
4,033 |
|
$
4,013 |
|
$
3,284 |
|
|
|
|
|
|
PCDs |
23.5 |
|
23.5 |
|
20.2 |
|
|
|
|
|
|
Gross margin per
diems (per
PCD) |
$
46.34 |
|
|
|
$
26.81 |
% increase
(decrease) |
73 % |
|
|
|
|
Net per
diems (per
PCD) |
$
171.64 |
|
$
170.78 |
|
$
162.96 |
% increase
(decrease) |
5.3 % |
|
4.8 % |
|
|
|
|
|
|
|
|
ALBDs |
23.0 |
|
23.0 |
|
22.1 |
|
|
|
|
|
|
Gross margin
yields (per
ALBD) |
$
47.34 |
|
|
|
$
24.49 |
% increase
(decrease) |
93 % |
|
|
|
|
Net
yields (per
ALBD) |
$
175.36 |
|
$
174.48 |
|
$
148.87 |
% increase
(decrease) |
18 % |
|
17 % |
|
|
|
|
|
|
|
|
(See Non-GAAP Financial
Measures) |
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES
(CONTINUED)
Cruise costs per ALBD, adjusted cruise costs per ALBD
and adjusted cruise costs excluding fuel per ALBD were computed by
dividing cruise costs, adjusted cruise costs and adjusted cruise
costs excluding fuel by ALBDs as
follows:
|
Three Months Ended February
29/28, |
(in millions, except costs per ALBD
data) |
2024 |
|
2024
Constant
Currency |
|
2023 |
Cruise and tour operating
expenses |
$
3,705 |
|
|
|
$
3,311 |
Selling and administrative
expenses |
813 |
|
|
|
712 |
Less: Tour and other
expenses |
(19) |
|
|
|
(23) |
Cruise
costs |
4,498 |
|
|
|
3,999 |
Less: Commissions, transportation and
other |
(819) |
|
|
|
(655) |
Onboard and other
costs |
(550) |
|
|
|
(484) |
Gains (losses) on ship sales and
impairments |
— |
|
|
|
9 |
Restructuring
expenses |
(1) |
|
|
|
— |
Other |
— |
|
|
|
— |
Adjusted cruise
costs |
3,128 |
|
3,114 |
|
2,869 |
Less: Fuel |
(505) |
|
(505) |
|
(535) |
Adjusted cruise costs excluding
fuel |
$
2,624 |
|
$
2,610 |
|
$
2,334 |
|
|
|
|
|
|
ALBDs |
23.0 |
|
23.0 |
|
22.1 |
|
|
|
|
|
|
Cruise costs per
ALBD |
$
195.60 |
|
|
|
$
181.25 |
% increase
(decrease) |
7.9 % |
|
|
|
|
Adjusted cruise costs per
ALBD |
$
136.03 |
|
$
135.42 |
|
$
130.04 |
% increase
(decrease) |
4.6 % |
|
4.1 % |
|
|
Adjusted cruise costs excluding fuel per
ALBD |
$
114.09 |
|
$
113.48 |
|
$
105.78 |
% increase
(decrease) |
7.9 % |
|
7.3 % |
|
|
|
|
|
|
|
|
(See Non-GAAP Financial
Measures) |
Non-GAAP Financial
Measures
We use non-GAAP financial measures and they are
provided along with their most comparative U.S. GAAP financial
measure:
Non-GAAP
Measure |
|
U.S. GAAP
Measure |
|
Use Non-GAAP Measure to
Assess |
• Adjusted net income (loss) and
adjusted
EBITDA |
|
• Net income
(loss) |
|
• Company
Performance |
• Adjusted earnings per
share |
|
• Earnings per
share |
|
• Company
Performance |
• Adjusted free cash
flow |
|
• Cash from (used in)
operations |
|
• Impact on Liquidity
Level |
• Net per
diems |
|
• Gross margin per
diems |
|
• Cruise Segments
Performance |
• Net
yields |
|
• Gross margin
yields |
|
• Cruise Segments
Performance |
• Adjusted cruise costs per ALBD
and adjusted cruise costs excluding
fuel per ALBD |
|
• Gross cruise costs per
ALBD |
|
• Cruise Segments
Performance |
• Adjusted return on invested capital
("ROIC") |
|
— |
|
• Company
Performance |
The presentation of our non-GAAP financial
information is not intended to be considered in isolation from, as
a substitute for, or superior to the financial information prepared
in accordance with U.S. GAAP. It is possible that our non-GAAP
financial measures 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.
Adjusted net income
(loss) and adjusted
earnings per share provide additional information to us and
investors about our future earnings performance by excluding
certain gains, losses and expenses that we believe are not part of
our core operating business and are not an indication of our future
earnings performance. We believe that gains and losses on ship
sales, impairment charges, debt extinguishment and modification
costs, restructuring costs and certain other gains and losses are
not part of our core operating business and are not an indication
of our future earnings
performance.
Adjusted EBITDA provides additional information to us and
investors about our core operating profitability by excluding
certain gains, losses and expenses that we believe are not part of
our core operating business and are not an indication of our future
earnings performance as well as excluding interest, taxes and
depreciation and amortization. In addition, we believe that the
presentation of adjusted EBITDA provides additional information to
us and investors about our ability to operate our business in
compliance with the covenants set forth in our debt agreements. We
define adjusted EBITDA as adjusted net income (loss) adjusted for
(i) interest, (ii) taxes and (iii) depreciation and amortization.
There are material limitations to using adjusted EBITDA. Adjusted
EBITDA does not take into account certain significant items that
directly affect our net income (loss). These limitations are best
addressed by considering the economic effects of the excluded items
independently and by considering adjusted EBITDA in conjunction
with net income (loss) as calculated in accordance with U.S.
GAAP.
Adjusted free cash
flow provides additional information to us and
investors to assess our ability to repay our debt after making the
capital investments required to support ongoing business operations
and value creation as well as the impact on the company's liquidity
level. Adjusted free cash flow represents net cash provided by
operating activities adjusted for capital expenditures (purchases
of property and equipment) and proceeds from export credits that
are provided for related capital expenditures. Adjusted free cash
flow does not represent the residual cash flow available for
discretionary expenditures as it excludes certain mandatory
expenditures such as repayment of maturing
debt.
Net per diems and net yields enable us and
investors to measure the performance of our cruise segments on a
per PCD and per ALBD basis. We use adjusted gross margin rather
than gross margin to calculate net per diems and net yields. We
believe that adjusted gross margin is a more meaningful measure in
determining net per diems and net yields than gross margin because
it reflects the cruise revenues earned net of only 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 and
debit card
fees.
Adjusted cruise costs per
ALBD and adjusted cruise costs excluding fuel
per ALBD enable us and investors to separate the impact of
predictable capacity or ALBD changes from price and other changes
that affect our business. We believe these non-GAAP measures
provide useful information to us and investors and expanded insight
to measure our cost performance. Adjusted cruise costs per ALBD and
adjusted cruise costs excluding fuel per ALBD are the measures we
use to monitor our ability to control our cruise segments' costs
rather than cruise costs per ALBD. We exclude gains and losses on
ship sales, impairment charges, restructuring costs and certain
other gains and losses that we believe are not part of our core
operating business as well as excluding 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 and debit
card fees. We exclude fuel expense to calculate adjusted cruise
costs excluding fuel. The price of fuel, over which we have no
control, impacts the comparability of period-to-period cost
performance. The adjustment to exclude fuel provides us and
investors with supplemental information to understand and assess
the company's non-fuel adjusted cruise cost performance.
Substantially all of our adjusted cruise costs excluding fuel are
largely fixed, except for the impact of changing prices once the
number of ALBDs has been
determined.
Adjusted ROIC provides additional information to us and
investors about our operating performance relative to the capital
we have invested in the company. We define adjusted ROIC as the
twelve-month adjusted net income (loss) before interest expense and
interest income divided by the monthly average of debt plus equity
minus construction-in-progress, excess cash, goodwill and
intangibles.
Reconciliation of Forecasted
Data
We have not provided a reconciliation of forecasted
non-GAAP financial measures to the most comparable U.S. GAAP
financial measures because preparation of meaningful U.S. GAAP
forecasts would require unreasonable effort. We are unable to
predict, without unreasonable effort, the future movement of
foreign exchange rates and fuel prices. We are unable to determine
the future impact of gains and losses on ship sales, impairment
charges, debt extinguishment and modification costs, restructuring
costs and certain other non-core gains and
losses.
Constant
Currency
Our operations primarily utilize the U.S. dollar,
Australian dollar, euro and sterling as functional currencies to
measure results and financial condition. Functional currencies
other than the U.S. dollar subject us to foreign currency
translational risk. Our operations also have revenues and expenses
that are in currencies other than their functional currency, which
subject us to foreign currency transactional
risk.
Constant currency reporting removes the impact of
changes in exchange rates on the translation of our operations plus
the transactional impact of changes in exchange rates from revenues
and expenses that are denominated in a currency other than the
functional currency.
We report adjusted gross margin, net yields, net per
diems, adjusted cruise costs excluding fuel and adjusted cruise
costs excluding fuel per ALBD on a "constant currency" basis
assuming the current periods' currency exchange rates have remained
constant with the prior periods' rates. These metrics facilitate a
comparative view for the changes in our business in an environment
with fluctuating exchange
rates.
Examples:
-
The translation of our operations with functional
currencies other than U.S. dollar 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.
-
Our operations have revenue and expense transactions
in currencies other than their functional currency. If their
functional currency strengthens against these other currencies, it
reduces the functional currency revenues and expenses. If the
functional currency weakens against these other currencies, it
increases the functional currency revenues and
expenses.
CONTACT: MEDIA CONTACT: Jody
Venturoni, +1 469 797 6380; INVESTOR RELATIONS CONTACT:
Beth Roberts, +1 305 406
4832