MIAMI, Dec. 20, 2019
/PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE: CCL;
NYSE: CUK) announced financial results for the full year and fourth
quarter ended November 30, 2019 and provided an outlook for
the full year and first quarter 2020.
Key Highlights
Full Year 2019
- U.S. GAAP net income of $3.0
billion, or $4.32 diluted EPS,
for the full year 2019, compared to U.S. GAAP net income for the
full year 2018 of $3.2 billion, or
$4.44 diluted EPS.
- Record full year 2019 adjusted net income of $3.0 billion, or $4.40 adjusted EPS, compared to adjusted net
income of $3.0 billion, or
$4.26 adjusted EPS, for the full year
2018.
- Adjusted net income excludes net charges of $52 million for the full year 2019 and net gains
of $123 million for the full year
2018.
- Record total revenues for the full year 2019 were $20.8 billion, higher than $18.9 billion for the full year 2018.
-
- Gross cruise revenues of $20.4
billion, higher than $18.6
billion for the prior year.
- In constant currency, net cruise revenues of $16.0 billion, higher than $15.4 billion for the prior year, an increase of
4.0 percent.
Fourth Quarter 2019
- U.S. GAAP net income of $423
million, or $0.61 diluted EPS,
for the fourth quarter of 2019, compared to U.S. GAAP net income
for the fourth quarter of 2018 of $494
million, or $0.71 diluted
EPS.
- Fourth quarter 2019 adjusted net income of $427 million, or $0.62 adjusted EPS, compared to adjusted net
income of $492 million, or
$0.70 adjusted EPS, for the fourth
quarter of 2018.
- Adjusted net income excludes net charges of $5 million for the fourth quarter of 2019 and net
gains of $2 million for the fourth
quarter of 2018.
- Record total revenues for the fourth quarter of 2019 were
$4.8 billion, higher than
$4.5 billion for the fourth quarter
of 2018.
-
- Gross cruise revenues of $4.7
billion for the fourth quarter of 2019, higher than
$4.4 billion for the fourth quarter
of 2018.
- In constant currency, net cruise revenues of $3.7 billion compared to $3.7 billion for the fourth quarter of 2018, an
increase of 0.5 percent.
Fourth Quarter 2019 Results
Carnival Corporation & plc President and Chief Executive
Officer Arnold Donald noted,
"Exceeding our fourth quarter guidance enabled us to have strong
full year earnings per share and another year of record adjusted
earnings. We overcame a high number of unusual events compounded by
a significant downturn in leisure travel demand for our large
source markets in Continental Europe. In that environment, to
achieve record revenues and adjusted earnings is an accomplishment
for any consumer company, a credit to our 150,000 team
members and demonstrates the robustness of our business
model."
Key financial information for the fourth quarter of 2019
compared to the fourth quarter of 2018:
- Gross revenue yields (revenue per available lower berth day or
"ALBD") increased 4.0 percent. In constant currency, net revenue
yields decreased 1.8 percent, better than September guidance of
down 2.0 to 3.0 percent.
- Gross cruise costs including fuel per ALBD increased 6.9
percent. In constant currency, net cruise costs excluding fuel per
ALBD increased 2.6 percent, better than September guidance of up
4.0 to 5.0 percent, due to cost improvements realized during the
quarter and timing of expenses between quarters.
- Changes in fuel prices and currency exchange rates increased
earnings by $0.11 per share.
Highlights during the fourth quarter:
- Princess Cruises' Sky Princess and Carnival Cruise
Line's Carnival Panorama were both delivered in October 2019.
- P&O Cruises (Australia)
entered into an agreement to sell Pacific Dawn and
Pacific Aria, which will both leave the fleet in 2021.
- The company was honored with the Skift Design Award for Best
Cruise Experience for its OceanCompass™, within the Princess
MedallionClass Experience.
- Seabourn received 14 top travel awards and distinctions from
highly regarded magazines including: TIME, Cruise International,
American Airlines Celebrated Living and Travel Weekly (U.S.).
- The company began construction of the cruise industry's first
cruise terminal in Japan, located
at the port of Sasebo.
- The company's CSMART Academy was recognized for excellence in
maritime safety training by SAFETY4SEA for a second consecutive
year.
- The company's efforts in corporate governance and in social and
environmental responsibility were recognized by Newsweek Magazine
and included in their list of America's Most Responsible
Companies.
Other highlights include the delivery of Costa Smeralda,
the second of the 11 ordered LNG ships. In addition, the company
continues to lead the industry in the development of
environmentally friendly fuel solutions and carbon emissions
reduction. AIDA announced it will be the world's first cruise
company to test the use of fuel cells, which will be powered by
hydrogen derived from methanol and enable the power supply onboard.
This is in addition to its recently announced innovation, the first
lithium-ion battery storage system ever to be deployed on a cruise
ship, AIDAperla.
The company has also formalized a collaborative partnership with
The Bahamas to fund and support
flood damage repairs and basic restoration efforts at Rand Memorial
Hospital, the primary hospital in Freeport, Grand Bahama Island. This
partnership builds on the company's previously announced financial
aid, supply donations and other relief efforts aiding the recovery
from Hurricane Dorian. The company also remains fully committed to
its new developments on Grand Bahama Island and Half Moon Cay.
Full Year 2020 Outlook
The company is entering fiscal year 2020 with a record booked
occupancy position. At this time, cumulative advanced bookings for
the full year 2020 are slightly ahead of the prior year at prices
that are slightly lower compared to 2019 on a comparable basis,
which does not include the net revenue yields brand mix headwind of
approximately 0.5 percent for the full year 2020.
Booking volumes at the beginning of the fourth quarter were
impacted by Hurricane Dorian. During the last eight weeks, booking
volumes have been running higher with prices that are in line for
the full year 2020 compared to 2019 on a comparable basis.
Based on current booking trends, the company expects full year
2020 constant currency net cruise revenues to be up approximately
5.0 percent, with capacity growth of 6.6 percent, and net revenue
yields in constant currency expected to be down approximately 1.5
percent compared to the prior year. Net revenue yields for the full
year 2020 include a brand mix headwind of approximately 0.5 percent
and an additional headwind of approximately 0.5 percent, primarily
due to ship delivery delays, including today's Mardi Gras announcement. The company expects
full year net cruise costs excluding fuel per ALBD in constant
currency to be in line compared to the prior year, which also
includes an impact of over 0.5 percent caused by ship delivery
delays and an accounting difference.
As previously indicated, in 2020 the company will increase its
usage of Marine Gasoil ("MGO") as a percent of total fuel
consumption as a result of the International Maritime Organization
("IMO") sulfur emission regulations. MGO is currently anticipated
to represent 40 percent to 45 percent of fuel consumption for full
year 2020 compared to 21 percent for full year 2019. The company's
usage of Heavy Fuel Oil ("HFO") is expected to be 55 percent to 50
percent of fuel consumption for full year 2020 and all other fuel
types is expected to be approximately 5.0 percent.
The impact of changes in fuel mix, fuel prices and currency
exchange rates are expected to increase earnings by $0.17 to $0.24 per
share compared to the prior year. Full year 2020 earnings are
expected to include $0.12 to
$0.17 per share incremental impact
from prior year events and previously announced voyage disruptions,
including ship delivery delays. Based on the above factors,
the company expects full year 2020 adjusted earnings per share to
be in the range of $4.30 to
$4.60 compared to 2019 adjusted
earnings per share of $4.40.
Donald added, "Despite the negative impacts from the tail effect
of the high number of unusual events in 2019, as well as a
continuation of the negative headwinds facing our Continental
European source markets, our brands continue to perform and we
are at record booked occupancy levels for 2020 on peak
capacity growth. Given the evolution of conditions in Continental
Europe, and recognizing the timing of significant capacity
increases we have in our European portfolio, we are taking a number
of actions to adapt over time. Globally, we are also taking actions
to further stimulate demand and increase our cost efficiencies in
2020 and beyond. With annual cash from operations of $5.5 billion, our balance sheet is strong as are
our brands and we believe we are well positioned to return to
double-digit earnings growth and elevated ROIC over time."
First Quarter 2020 Outlook
First quarter constant currency net cruise revenues are expected
to be up approximately 4.0 percent, with capacity growth of 6.0
percent, and net revenue yields in constant currency expected to be
down 1.0 to 2.0 percent compared to the prior year. Net cruise
costs excluding fuel per ALBD in constant currency for the first
quarter of 2020 are expected to be down 2.0 to 3.0 percent compared
to the prior year, the majority of which is driven by lower
dry-dock days during the quarter.
MGO is currently anticipated to represent 40 percent to 45
percent of fuel consumption for the first quarter 2020 compared to
approximately 14 percent for the first quarter 2019. The company's
usage of HFO is expected to be 55 percent to 50 percent of fuel
consumption for first quarter 2020 and all other fuel types is
expected to be approximately 5.0 percent.
The impact of changes in fuel mix, fuel prices and currency
exchange rates are expected to increase earnings by approximately
$0.01 per share compared to the prior
year. Based on the above factors, the company expects first
quarter 2020 adjusted earnings per share to be in the range of
$0.47 to $0.51 compared to 2019 adjusted earnings per
share of $0.49.
Sustainability Outlook
The company's reputation and success depends on having
sustainable and transparent operations. After more than a year of
testing food waste digester technology, the company committed to a
multi-year plan to install food waste digesters across its fleet.
The company recently announced it became the first cruise company
to join the Getting to Zero Coalition, an alliance of organizations
across the maritime, energy, infrastructure and finance sectors
committed to accelerating the de-carbonization of the maritime
shipping industry. The coalition's goal aligns with the IMO's
strategy to reduce greenhouse gas emissions from shipping by at
least 50 percent by 2050 as compared to 2008.
Donald added, "We remain committed to being a leader in the
development of environmentally friendly fuel solutions as
demonstrated by the introduction of the first cruise ships with the
ability to be solely powered by LNG. Our significant investments in
pilot programs for both fuel cell technology and electrical energy
storage capabilities using battery systems, help us innovate as we
move toward zero emissions. These efforts were further
reinforced by our commitment to the Getting to Zero Coalition."
Selected Key Forecast Metrics
|
|
Full Year
2020
|
|
First Quarter
2020
|
Year over year
change:
|
|
Current
Dollars
|
|
Constant
Currency
|
|
Current
Dollars
|
|
Constant
Currency
|
Net revenue
yields
|
|
Approx
(1.5)%
|
|
Approx
(1.5)%
|
|
(3.0)% to
(2.0)%
|
|
(2.0)% to
(1.0)%
|
Net cruise costs
excl. fuel / ALBD
|
|
Approx
(0.5)%
|
|
Approx
Flat
|
|
(4.0)% to
(3.0)%
|
|
(3.0)% to
(2.0)%
|
|
Full Year 2020
|
|
First Quarter
2020
|
Fuel cost per metric
ton consumed (a)
|
$417
|
|
$435
|
Fuel consumption
(metric tons in thousands)
|
3,405
|
|
842
|
Currencies (USD to 1)
(a)
|
|
|
|
AUD
|
$0.68
|
|
$0.68
|
CAD
|
$0.75
|
|
$0.75
|
EUR
|
$1.11
|
|
$1.11
|
GBP
|
$1.31
|
|
$1.31
|
RMB
|
$0.14
|
|
$0.14
|
|
|
|
|
(a)
|
As of December 6,
2019.
|
Fuel Price Risks
Based on a 10% change in HFO and MGO type fuel prices versus the
current spot prices that were used to calculate fuel expense in the
company's guidance, the company estimates that its adjusted diluted
earnings per share would change by the following:
HFO impact:
- $0.08 per share on an annualized
basis for 2020
- $0.02 per share for the first
quarter of 2020
MGO impact:
- $0.12 per share on an annualized
basis for 2020
- $0.03 per share for the first
quarter of 2020
Operational Foreign Currency Exchange Rate Risks
Based on a 10% change in all currency exchange rates that were
used in the company's guidance, the company estimates that its
adjusted diluted earnings per share guidance would change by the
following:
- $0.21 per share on an annualized
basis for 2020
- $0.02 per share for the first
quarter of 2020
Summary of Fourth Quarter and Full Year Results
|
Three Months
Ended
November
30,
|
|
Twelve Months
Ended
November
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income (in
millions)
|
$
|
423
|
|
|
$
|
494
|
|
|
$
|
2,990
|
|
|
$
|
3,152
|
|
Adjusted net income
(in millions) (a)
|
$
|
427
|
|
|
$
|
492
|
|
|
$
|
3,041
|
|
|
$
|
3,029
|
|
Earnings per
share-diluted
|
$
|
0.61
|
|
|
$
|
0.71
|
|
|
$
|
4.32
|
|
|
$
|
4.44
|
|
Adjusted earnings per
share-diluted (a)
|
$
|
0.62
|
|
|
$
|
0.70
|
|
|
$
|
4.40
|
|
|
$
|
4.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
See the net income to
adjusted net income and EPS to adjusted EPS reconciliations in the
Non-GAAP Financial Measures included herein.
|
Conference Call
The company has scheduled a conference call with analysts at
10:00 a.m. EST (3:00 p.m. GMT) today to discuss its 2019 fourth
quarter and full year results. 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 world's largest
leisure travel company and among the most profitable and
financially strong in the cruise and vacation industries, with a
portfolio of nine of the world's leading cruise lines. With
operations in North America, Australia, Europe and Asia, its portfolio features
Carnival Cruise Line, Princess Cruises, Holland America
Line, Seabourn, P&O Cruises (Australia), Costa Cruises, AIDA
Cruises, P&O Cruises (UK) and Cunard.
Together, the corporation's cruise lines operate 105 ships with
254,000 lower berths visiting over 700 ports around the world, with
16 new ships scheduled to be delivered through 2025. 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.
With a long history of innovation and providing guests with
extraordinary vacation experiences, Carnival Corporation has
received thousands of industry awards - including recognition by
the Consumer Technology Association™ as a CES® 2019 Innovation
Awards Honoree for Ocean Medallion™. A revolutionary wearable
device that contains a proprietary blend of communication
technologies, Ocean Medallion enables the world's first interactive
guest experience platform transforming vacation travel on a large
scale into a highly personalized level of customized service. The
prestigious CES Innovation Awards honor outstanding design and
engineering in consumer technology products.
Additional information can be found on www.carnival.com,
www.princess.com, www.hollandamerica.com, www.seabourn.com,
www.pocruises.com.au, www.costacruise.com, www.aida.de,
www.pocruises.com, and www.cunard.com.
Cautionary Note Concerning Factors That May Affect Future
Results
Carnival Corporation and Carnival plc and their respective
subsidiaries are referred to collectively in this document as
"Carnival Corporation & plc," "our," "us" and "we." 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, 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. 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,"
"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:
• Net revenue
yields
|
• Net cruise costs,
excluding fuel per available lower berth day
|
• Booking
levels
|
• Estimates of ship
depreciable lives and residual values
|
• Pricing and
occupancy
|
• Goodwill, ship and
trademark fair values
|
• Interest, tax and
fuel expenses
|
• Liquidity
|
• Currency exchange
rates
|
• Adjusted earnings per
share
|
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. It is not
possible to predict or identify all such risks. There may be
additional risks that we consider immaterial or which are unknown.
These factors include, but are not limited to, the following:
- World events impacting the ability or desire of people to
travel may lead to a decline in demand for cruises
- Incidents concerning our ships, guests or the cruise vacation
industry as well as adverse weather conditions and other natural
disasters may 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-corruption,
economic sanctions, trade protection and tax may lead to
litigation, enforcement actions, fines, penalties, and reputational
damage
- 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 lead to
reputational damage
- Ability to recruit, develop and retain qualified shipboard
personnel who live away from home for extended periods of time may
adversely impact our business operations, guest services and
satisfaction
- Increases in fuel prices, changes in the types of fuel consumed
and availability of fuel supply may adversely impact our scheduled
itineraries and costs
- Fluctuations in foreign currency exchange rates may adversely
impact our financial results
- Overcapacity and competition in the cruise and land-based
vacation industry may lead to a decline in our cruise sales,
pricing and destination options
- Geographic regions in which we try to expand our business may
be slow to develop or ultimately not develop how we expect
- Inability to implement our shipbuilding programs and ship
repairs, maintenance and refurbishments may adversely impact our
business operations and the satisfaction of our guests
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.
CARNIVAL
CORPORATION & PLC
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(UNAUDITED)
|
(in millions, except
per share data)
|
|
|
Three Months
Ended
November 30,
|
|
Twelve Months
Ended
November 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues
|
|
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
|
|
Passenger
ticket
|
$
|
3,171
|
|
|
$
|
3,236
|
|
|
$
|
14,104
|
|
|
$
|
13,930
|
|
Onboard and other
(a)
|
1,520
|
|
|
1,170
|
|
|
6,331
|
|
|
4,679
|
|
Tour and
other
|
91
|
|
|
50
|
|
|
390
|
|
|
272
|
|
|
4,781
|
|
|
4,456
|
|
|
20,825
|
|
|
18,881
|
|
Operating Costs
and Expenses
|
|
|
|
|
|
|
|
Cruise
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
595
|
|
|
590
|
|
|
2,720
|
|
|
2,590
|
|
Onboard and other
(a)
|
481
|
|
|
153
|
|
|
2,101
|
|
|
638
|
|
Payroll and
related
|
578
|
|
|
552
|
|
|
2,249
|
|
|
2,190
|
|
Fuel
|
358
|
|
|
453
|
|
|
1,562
|
|
|
1,619
|
|
Food
|
262
|
|
|
261
|
|
|
1,083
|
|
|
1,066
|
|
Other ship
operating
|
733
|
|
|
693
|
|
|
2,925
|
|
|
2,807
|
|
Tour and
other
|
69
|
|
|
39
|
|
|
268
|
|
|
180
|
|
|
3,077
|
|
|
2,741
|
|
|
12,909
|
|
|
11,089
|
|
Selling and
administrative
|
667
|
|
|
656
|
|
|
2,480
|
|
|
2,450
|
|
Depreciation and
amortization
|
554
|
|
|
506
|
|
|
2,160
|
|
|
2,017
|
|
|
4,297
|
|
|
3,903
|
|
|
17,549
|
|
|
15,556
|
|
Operating
Income
|
484
|
|
|
552
|
|
|
3,276
|
|
|
3,325
|
|
Nonoperating
Income (Expense)
|
|
|
|
|
|
|
|
Interest
income
|
7
|
|
|
4
|
|
|
23
|
|
|
14
|
|
Interest expense, net
of capitalized interest
|
(49)
|
|
|
(47)
|
|
|
(206)
|
|
|
(194)
|
|
Gains on fuel
derivatives, net (b)
|
—
|
|
|
(2)
|
|
|
—
|
|
|
59
|
|
Other income
(expense), net
|
(5)
|
|
|
1
|
|
|
(32)
|
|
|
3
|
|
|
(48)
|
|
|
(44)
|
|
|
(215)
|
|
|
(118)
|
|
Income Before
Income Taxes
|
437
|
|
|
508
|
|
|
3,060
|
|
|
3,207
|
|
Income Tax
Expense, Net
|
(14)
|
|
|
(14)
|
|
|
(71)
|
|
|
(54)
|
|
Net
Income
|
$
|
423
|
|
|
$
|
494
|
|
|
$
|
2,990
|
|
|
$
|
3,152
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
Basic
|
$
|
0.62
|
|
|
$
|
0.71
|
|
|
$
|
4.34
|
|
|
$
|
4.45
|
|
Diluted
|
$
|
0.61
|
|
|
$
|
0.71
|
|
|
$
|
4.32
|
|
|
$
|
4.44
|
|
|
|
|
|
|
|
|
|
Dividends Declared
Per Share
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
$
|
2.00
|
|
|
$
|
1.95
|
|
Weighted-Average
Shares Outstanding - Basic
|
686
|
|
|
698
|
|
|
690
|
|
|
709
|
Weighted-Average
Shares Outstanding - Diluted
|
688
|
|
|
699
|
|
|
692
|
|
|
710
|
|
(a)
|
Includes the effect
of the adoption of new accounting guidance of $317 million and $1.4
billion for the three and twelve months ended November 30,
2019, respectively.
|
(b)
|
During the three
months ended November 30, 2018, our gains on fuel derivatives, net
include net unrealized gains of $4 million and realized (losses) of
$(6) million. During the twelve months ended November 30, 2018, our
gains on fuel derivatives, net include net unrealized gains of $94
million and realized (losses) of $(35) million.
|
CARNIVAL
CORPORATION & PLC
|
CONSOLIDATED
BALANCE SHEETS
|
(UNAUDITED)
|
(in millions, except
par values)
|
|
|
November
30,
|
|
2019
|
|
2018
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
518
|
|
|
$
|
982
|
|
Trade and other
receivables, net
|
444
|
|
|
358
|
|
Inventories
|
427
|
|
|
450
|
|
Prepaid expenses and
other (a)
|
671
|
|
|
436
|
|
Total current
assets
|
2,059
|
|
|
2,225
|
|
Property and
Equipment, Net
|
38,131
|
|
|
35,336
|
|
Goodwill
|
2,912
|
|
|
2,925
|
|
Other
Intangibles
|
1,174
|
|
|
1,176
|
|
Other
Assets
|
783
|
|
|
738
|
|
|
$
|
45,058
|
|
|
$
|
42,401
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Short-term
borrowings
|
$
|
231
|
|
|
$
|
848
|
|
Current portion of
long-term debt
|
1,596
|
|
|
1,578
|
|
Accounts
payable
|
756
|
|
|
730
|
|
Accrued liabilities
and other
|
1,809
|
|
|
1,654
|
|
Customer deposits
(a)
|
4,735
|
|
|
4,395
|
|
Total current
liabilities
|
9,127
|
|
|
9,204
|
|
Long-Term
Debt
|
9,675
|
|
|
7,897
|
|
Other Long-Term
Liabilities
|
890
|
|
|
856
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Common stock of
Carnival Corporation, $0.01 par value; 1,960 shares authorized;
657
shares at 2019 and 656 shares at 2018
issued
|
7
|
|
|
7
|
|
Ordinary shares of
Carnival plc, $1.66 par value; 217 shares at 2019 and 2018
issued
|
358
|
|
|
358
|
|
Additional paid-in
capital
|
8,807
|
|
|
8,756
|
|
Retained
earnings
|
26,653
|
|
|
25,066
|
|
Accumulated other
comprehensive income (loss)
|
(2,066)
|
|
|
(1,949)
|
|
Treasury stock, 130
shares at 2019 and 129 shares at 2018 of Carnival Corporation and
60
shares at 2019 and 48 shares at 2018
of Carnival plc, at cost
|
(8,394)
|
|
|
(7,795)
|
|
Total
shareholders' equity
|
25,365
|
|
|
24,443
|
|
|
$
|
45,058
|
|
|
$
|
42,401
|
|
|
(a)
|
Includes the effect
of the adoption of new accounting guidance of $154 million as of
November 30, 2019.
|
CARNIVAL
CORPORATION & PLC
|
OTHER
INFORMATION
|
|
|
Three Months
Ended
November 30,
|
|
Twelve Months
Ended
November 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
STATISTICAL
INFORMATION
|
|
|
|
|
|
|
|
ALBDs (in thousands)
(a) (b)
|
21,753
|
|
|
21,246
|
|
|
87,424
|
|
|
83,872
|
|
Occupancy percentage
(c)
|
104.0
|
%
|
|
104.5
|
%
|
|
106.8
|
%
|
|
106.9
|
%
|
Passengers carried
(in thousands)
|
3,076
|
|
|
3,014
|
|
|
12,866
|
|
|
12,407
|
|
Fuel consumption in
metric tons (in thousands)
|
825
|
|
|
837
|
|
|
3,312
|
|
|
3,296
|
|
Fuel consumption in
metric tons per thousand ALBDs
|
37.9
|
|
|
39.4
|
|
|
37.9
|
|
|
39.3
|
|
Fuel cost per metric
ton consumed
|
$
|
434
|
|
|
$
|
541
|
|
|
$
|
472
|
|
|
$
|
491
|
|
Currencies (USD to
1)
|
|
|
|
|
|
|
|
AUD
|
$
|
0.68
|
|
|
$
|
0.72
|
|
|
$
|
0.70
|
|
|
$
|
0.75
|
|
CAD
|
$
|
0.76
|
|
|
$
|
0.77
|
|
|
$
|
0.75
|
|
|
$
|
0.78
|
|
EUR
|
$
|
1.10
|
|
|
$
|
1.15
|
|
|
$
|
1.12
|
|
|
$
|
1.18
|
|
GBP
|
$
|
1.26
|
|
|
$
|
1.30
|
|
|
$
|
1.27
|
|
|
$
|
1.34
|
|
RMB
|
$
|
0.14
|
|
|
$
|
0.14
|
|
|
$
|
0.14
|
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
CASH FLOW
INFORMATION (in millions)
|
|
|
|
|
|
|
|
Cash from
operations
|
$
|
1,062
|
|
|
$
|
1,113
|
|
|
$
|
5,475
|
|
|
$
|
5,549
|
|
Capital
expenditures
|
$
|
1,981
|
|
|
$
|
966
|
|
|
$
|
5,429
|
|
|
$
|
3,749
|
|
Dividends
paid
|
$
|
346
|
|
|
$
|
352
|
|
|
$
|
1,387
|
|
|
$
|
1,355
|
|
Notes to
Statistical Information
|
|
(a)
|
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.
|
|
|
(b)
|
For the three months
ended November 30, 2019, compared to the three months ended
November 30, 2018, we had a 2.4% capacity increase in ALBDs
comprised of a 0.1% capacity decrease in our North America and
Australia ("NAA") segment and a 6.8% capacity increase in our
Europe and Asia ("EA") segment.
|
|
|
Our NAA segment's
capacity decrease was caused by:
|
|
• Full period
impact from one P&O Cruises (Australia) 1,680-passenger
capacity ship removed from service in March 2019
|
|
• Full period
impact from one P&O Cruises (Australia) 1,260-passenger
capacity ship removed from service in April 2019
|
|
• Full period
impact from one Holland America Line 840-passenger capacity ship
removed from service in July 2019
|
|
|
These decreases were
partially offset by:
|
|
• Full period
impact from one Holland America Line 2,670-passenger capacity ship
that entered into service in December 2018
|
|
• Partial
period impact from one Princess Cruises 3,660-passenger capacity
ship that entered into service in October 2019
|
|
|
Our EA segment's
capacity increase was caused by:
|
|
• Partial
period impact from one AIDA 5,230-passenger capacity ship that
entered into service in December 2018
|
|
• Full period
impact from one Costa 4,200-passenger capacity ship that entered
into service in March 2019
|
|
|
These increases in
our EA segment's capacity were partially offset by the full period
impact from one P&O Cruises (UK) 1,880-passenger capacity ship
removed from service in August 2019.
|
|
For the twelve months
ended November 30, 2019, compared to the twelve months ended
November 30, 2018, we had a 4.2% capacity increase in ALBDs
comprised of a 1.8% capacity increase in our NAA segment and a 8.6%
capacity increase in our EA segment.
|
|
|
Our NAA segment's
capacity increase was caused by:
|
|
• Partial
period impact from one Carnival Cruise Line 3,960-passenger
capacity ship that entered into service in April 2018
|
|
• Partial
period impact from one Seabourn 600-passenger capacity ship that
entered into service in May 2018
|
|
• Partial
period impact from one Holland America Line 2,670-passenger
capacity ship that entered into service in December 2018
|
|
• Partial
period impact from one Princess Cruises 3,660-passenger capacity
ship that entered into service in October 2019
|
|
|
These increases were
partially offset by:
|
|
• Partial
period impact from one P&O Cruises (Australia) 1,680-passenger
capacity ship removed in March 2019
|
|
• Partial
period impact from one P&O Cruises (Australia) 1,260-passenger
capacity ship removed in April 2019
|
|
• Partial
period impact from one Holland America Line 840-passenger capacity
ship removed in July 2019
|
|
|
Our EA segment's
capacity increase was caused by:
|
|
• Partial
period impact from one AIDA 5,230-passenger capacity ship that
entered into service in December 2018
|
|
• Partial
period impact from one Costa 4,200-passenger capacity ship that
entered into service in March 2019
|
|
|
These increases were
partially offset by:
|
|
• Partial
period impact from one P&O Cruises (UK) 700-passenger capacity
ship removed from service in March 2018
|
|
• Partial
period impact from one Costa 1,300-passenger capacity ship removed
from service in April 2018
|
|
• Partial
period impact from one P&O Cruises (UK) 1,880-passenger
capacity ship removed from service in August 2019
|
|
|
(c)
|
In accordance with
cruise industry practice, occupancy is calculated using 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
|
|
Consolidated gross
and net revenue yields were computed by dividing the gross and net
cruise revenues by ALBDs as follows:
|
|
|
Three Months Ended
November 30,
|
|
Twelve Months
Ended November 30,
|
(dollars in
millions, except yields)
|
2019
|
|
2019
Constant
Dollar
|
|
2018
|
|
2019
|
|
2019
Constant
Dollar
|
|
2018
|
Passenger ticket
revenues
|
$
|
3,171
|
|
|
$
|
3,219
|
|
|
$
|
3,236
|
|
|
$
|
14,104
|
|
|
$
|
14,409
|
|
|
$
|
13,930
|
|
Onboard and other
revenues (a)
|
1,520
|
|
|
1,534
|
|
|
1,170
|
|
|
6,331
|
|
|
6,420
|
|
|
4,679
|
|
Gross cruise
revenues
|
4,691
|
|
|
4,753
|
|
|
4,406
|
|
|
20,435
|
|
|
20,828
|
|
|
18,609
|
|
Less cruise
costs
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation and
other
|
(595)
|
|
|
(604)
|
|
|
(590)
|
|
|
(2,720)
|
|
|
(2,786)
|
|
|
(2,590)
|
|
Onboard and other
(a)
|
(481)
|
|
|
(485)
|
|
|
(153)
|
|
|
(2,101)
|
|
|
(2,128)
|
|
|
(638)
|
|
|
(1,076)
|
|
|
(1,089)
|
|
|
(743)
|
|
|
(4,822)
|
|
|
(4,914)
|
|
|
(3,228)
|
|
Net passenger ticket
revenues
|
2,575
|
|
|
2,615
|
|
|
2,646
|
|
|
11,384
|
|
|
11,623
|
|
|
11,340
|
|
Net onboard and other
revenues
|
1,039
|
|
|
1,049
|
|
|
1,017
|
|
|
4,230
|
|
|
4,292
|
|
|
4,041
|
|
Net cruise
revenues
|
$
|
3,614
|
|
|
$
|
3,665
|
|
|
$
|
3,663
|
|
|
$
|
15,613
|
|
|
$
|
15,915
|
|
|
$
|
15,381
|
|
ALBDs
|
21,752,975
|
|
|
21,752,975
|
|
|
21,245,942
|
|
|
87,424,190
|
|
|
87,424,190
|
|
|
83,872,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue
yields
|
$
|
215.63
|
|
|
$
|
218.51
|
|
|
$
|
207.38
|
|
|
$
|
233.74
|
|
|
$
|
238.25
|
|
|
$
|
221.87
|
|
% increase
(decrease)
|
4.0
|
%
|
|
5.4
|
%
|
|
|
|
5.4
|
%
|
|
7.4
|
%
|
|
|
Net revenue
yields
|
$
|
166.16
|
|
|
$
|
168.46
|
|
|
$
|
172.42
|
|
|
$
|
178.59
|
|
|
$
|
182.04
|
|
|
$
|
183.38
|
|
% increase
(decrease)
|
(3.6)
|
%
|
|
(2.3)
|
%
|
|
|
|
(2.6)
|
%
|
|
(0.7)
|
%
|
|
|
Net passenger
ticket revenue
yields
|
$
|
118.40
|
|
|
$
|
120.22
|
|
|
$
|
124.55
|
|
|
$
|
130.21
|
|
|
$
|
132.95
|
|
|
$
|
135.21
|
|
%
increase (decrease)
|
(4.9)
|
%
|
|
(3.5)
|
%
|
|
|
|
(3.7)
|
%
|
|
(1.7)
|
%
|
|
|
Net onboard and
other revenue
yields
|
$
|
47.76
|
|
|
$
|
48.24
|
|
|
$
|
47.87
|
|
|
$
|
48.38
|
|
|
$
|
49.09
|
|
|
$
|
48.17
|
|
%
increase (decrease)
|
(0.2)
|
%
|
|
0.8
|
%
|
|
|
|
0.4
|
%
|
|
1.9
|
%
|
|
|
|
|
(a)
|
Includes the effect
of the adoption of new accounting guidance of $317 million ($320
million in constant dollar) and $1.4 billion ($1.4 billion in
constant dollar) for the three and twelve months ended
November 30, 2019, respectively.
|
|
Three Months Ended
November 30,
|
|
Twelve Months
Ended November 30,
|
(dollars in
millions, except yields)
|
2019
|
|
2019
Constant
Currency
|
|
2018
|
|
2019
|
|
2019
Constant
Currency
|
|
2018
|
Net passenger ticket
revenues
|
$
|
2,575
|
|
|
$
|
2,631
|
|
|
$
|
2,646
|
|
|
$
|
11,384
|
|
|
$
|
11,702
|
|
|
$
|
11,340
|
|
Net onboard and other
revenues
|
1,039
|
|
|
1,050
|
|
|
1,017
|
|
|
4,230
|
|
|
4,294
|
|
|
4,041
|
|
Net cruise
revenues
|
$
|
3,614
|
|
|
$
|
3,682
|
|
|
$
|
3,663
|
|
|
$
|
15,613
|
|
|
$
|
15,996
|
|
|
$
|
15,381
|
|
ALBDs
|
21,752,975
|
|
|
21,752,975
|
|
|
21,245,942
|
|
|
87,424,190
|
|
|
87,424,190
|
|
|
83,872,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
yields
|
$
|
166.16
|
|
|
$
|
169.25
|
|
|
$
|
172.42
|
|
|
$
|
178.59
|
|
|
$
|
182.98
|
|
|
$
|
183.38
|
|
% increase
(decrease)
|
(3.6)
|
%
|
|
(1.8)
|
%
|
|
|
|
(2.6)
|
%
|
|
(0.2)
|
%
|
|
|
Net passenger
ticket revenue
yields
|
$
|
118.40
|
|
|
$
|
120.97
|
|
|
$
|
124.55
|
|
|
$
|
130.21
|
|
|
$
|
133.86
|
|
|
$
|
135.21
|
|
%
increase (decrease)
|
(4.9)
|
%
|
|
(2.9)
|
%
|
|
|
|
(3.7)
|
%
|
|
(1.0)
|
%
|
|
|
Net onboard and
other revenue
yields
|
$
|
47.76
|
|
|
$
|
48.28
|
|
|
$
|
47.87
|
|
|
$
|
48.38
|
|
|
$
|
49.12
|
|
|
$
|
48.17
|
|
%
increase (decrease)
|
(0.2)
|
%
|
|
0.9
|
%
|
|
|
|
0.4
|
%
|
|
2.0
|
%
|
|
|
(See Explanations
Non-GAAP Financial Measures.)
|
CARNIVAL
CORPORATION & PLC
|
NON-GAAP FINANCIAL
MEASURES (CONTINUED)
|
|
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 by ALBDs as follows:
|
|
|
Three Months Ended
November 30,
|
|
Twelve Months
Ended November 30,
|
(dollars in
millions, except costs per
ALBD)
|
2019
|
|
2019
Constant
Dollar
|
|
2018
|
|
2019
|
|
2019
Constant
Dollar
|
|
2018
|
Cruise operating
expenses (a)
|
$
|
3,007
|
|
|
$
|
3,042
|
|
|
$
|
2,702
|
|
|
$
|
12,641
|
|
|
$
|
12,862
|
|
|
$
|
10,910
|
|
Cruise selling and
administrative
expenses
|
660
|
|
|
668
|
|
|
650
|
|
|
2,452
|
|
|
2,496
|
|
|
2,422
|
|
Gross cruise
costs
|
3,667
|
|
|
3,710
|
|
|
3,352
|
|
|
15,093
|
|
|
15,359
|
|
|
13,332
|
|
Less cruise costs
included above
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation and
other
|
(595)
|
|
|
(604)
|
|
|
(590)
|
|
|
(2,720)
|
|
|
(2,786)
|
|
|
(2,590)
|
|
Onboard and other
(a)
|
(481)
|
|
|
(485)
|
|
|
(153)
|
|
|
(2,101)
|
|
|
(2,128)
|
|
|
(638)
|
|
Gains (losses) on
ship sales and
impairments
|
5
|
|
|
5
|
|
|
—
|
|
|
16
|
|
|
17
|
|
|
38
|
|
Restructuring
expenses
|
(10)
|
|
|
(10)
|
|
|
(1)
|
|
|
(10)
|
|
|
(10)
|
|
|
(1)
|
|
Other
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(43)
|
|
|
(43)
|
|
|
(2)
|
|
Net cruise
costs
|
2,586
|
|
|
2,616
|
|
|
2,607
|
|
|
10,234
|
|
|
10,409
|
|
|
10,139
|
|
Less fuel
|
(358)
|
|
|
(358)
|
|
|
(453)
|
|
|
(1,562)
|
|
|
(1,562)
|
|
|
(1,619)
|
|
Net cruise costs
excluding fuel
|
$
|
2,228
|
|
|
$
|
2,259
|
|
|
$
|
2,154
|
|
|
$
|
8,672
|
|
|
$
|
8,847
|
|
|
$
|
8,521
|
|
ALBDs
|
21,752,975
|
|
|
21,752,975
|
|
|
21,245,942
|
|
|
87,424,190
|
|
|
87,424,190
|
|
|
83,872,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross cruise costs
per ALBD
|
$
|
168.58
|
|
|
$
|
170.55
|
|
|
$
|
157.76
|
|
|
$
|
172.64
|
|
|
$
|
175.68
|
|
|
$
|
158.96
|
|
% increase
(decrease)
|
6.9
|
%
|
|
8.1
|
%
|
|
|
|
8.6
|
%
|
|
10.5
|
%
|
|
|
Net cruise costs
excluding fuel per
ALBD
|
$
|
102.44
|
|
|
$
|
103.83
|
|
|
$
|
101.39
|
|
|
$
|
99.20
|
|
|
$
|
101.20
|
|
|
$
|
101.59
|
|
% increase
(decrease)
|
1.0
|
%
|
|
2.4
|
%
|
|
|
|
(2.4)
|
%
|
|
(0.4)
|
%
|
|
|
|
|
(a)
|
Includes the effect
of the adoption of new accounting guidance of $317 million ($320
million in constant dollar) and $1.4 billion ($1.4 billion in
constant dollar) for the three and twelve months ended
November 30, 2019, respectively.
|
|
Three Months Ended
November 30,
|
|
Twelve Months
Ended November 30,
|
(dollars in
millions, except costs per
ALBD)
|
2019
|
|
2019
Constant
Currency
|
|
2018
|
|
2019
|
|
2019
Constant
Currency
|
|
2018
|
Net cruise costs
excluding fuel
|
$
|
2,228
|
|
|
$
|
2,262
|
|
|
$
|
2,154
|
|
|
$
|
8,672
|
|
|
$
|
8,858
|
|
|
$
|
8,521
|
|
ALBDs
|
21,752,975
|
|
|
21,752,975
|
|
|
21,245,942
|
|
|
87,424,190
|
|
|
87,424,190
|
|
|
83,872,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cruise costs
excluding fuel per
ALBD
|
$
|
102.44
|
|
|
$
|
103.98
|
|
|
$
|
101.39
|
|
|
$
|
99.20
|
|
|
$
|
101.32
|
|
|
$
|
101.59
|
|
% increase
(decrease)
|
1.0
|
%
|
|
2.6
|
%
|
|
|
|
(2.4)
|
%
|
|
(0.3)
|
%
|
|
|
(See Explanations
of Non-GAAP Financial Measures.)
|
CARNIVAL
CORPORATION & PLC
|
NON-GAAP FINANCIAL
MEASURES (CONTINUED)
|
|
|
Three Months
Ended
November 30,
|
|
Twelve Months
Ended
November 30,
|
(in millions,
except per share data)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
income
|
|
|
|
|
|
|
|
U.S. GAAP net
income
|
$
|
423
|
|
|
$
|
494
|
|
|
$
|
2,990
|
|
|
$
|
3,152
|
|
Unrealized (gains) losses on
fuel derivatives, net
|
—
|
|
|
(4)
|
|
|
—
|
|
|
(94)
|
|
(Gains) losses on ship sales
and impairments
|
(5)
|
|
|
—
|
|
|
(6)
|
|
|
(38)
|
|
Restructuring
expenses
|
10
|
|
|
1
|
|
|
10
|
|
|
1
|
|
Other
|
—
|
|
|
1
|
|
|
47
|
|
|
8
|
|
Adjusted net
income
|
$
|
427
|
|
|
$
|
492
|
|
|
$
|
3,041
|
|
|
$
|
3,029
|
|
Weighted-average
shares outstanding
|
688
|
|
|
699
|
|
|
692
|
|
|
710
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
U.S. GAAP earnings per
share
|
$
|
0.61
|
|
|
$
|
0.71
|
|
|
$
|
4.32
|
|
|
$
|
4.44
|
|
Unrealized (gains) losses on
fuel derivatives, net
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(0.13)
|
|
(Gains) losses on ship sales
and impairments
|
(0.01)
|
|
|
—
|
|
|
(0.01)
|
|
|
(0.05)
|
|
Restructuring
expenses
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Other
|
—
|
|
|
—
|
|
|
0.07
|
|
|
0.01
|
|
Adjusted earnings per
share
|
$
|
0.62
|
|
|
$
|
0.70
|
|
|
$
|
4.40
|
|
|
$
|
4.26
|
|
|
|
|
|
|
|
|
|
Explanations of Non-GAAP Financial Measures
Non-GAAP Financial Measures
We use net cruise revenues per ALBD ("net revenue yields"), net
cruise costs excluding fuel per ALBD, adjusted net income and
adjusted earnings per share as non-GAAP financial measures of our
cruise segments' and the company's financial
performance. These non-GAAP financial measures are provided
along with U.S. GAAP gross cruise revenues per ALBD ("gross revenue
yields"), gross cruise costs per ALBD and U.S. GAAP net income and
U.S. GAAP earnings per share.
Net revenue yields and net cruise costs excluding fuel per ALBD
enable us 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
investors and expanded insight to measure our revenue and cost
performance as a supplement to our U.S. GAAP consolidated financial
statements.
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 adjusted net income and
adjusted earnings per share excluding these unrealized gains and
losses.
We believe that gains and losses on ship sales, impairment
charges, restructuring and other expenses are not part of our core
operating business and are not an indication of our future earnings
performance. Therefore, we believe it is more meaningful for gains
and losses on ship sales, impairment charges, and restructuring and
other non-core gains and charges to be excluded from our net income
and earnings per share and, accordingly, we present adjusted net
income and adjusted earnings per share excluding these items.
The presentation of our non-GAAP financial information is not
intended to be considered in isolation from, as 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.
Net revenue yields are commonly used in the cruise industry 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 and debit card fees.
Net passenger ticket revenues reflect gross passenger ticket
revenues, net of commissions, transportation and other costs.
Net onboard and other revenues reflect gross onboard and other
revenues, net of onboard and other cruise costs.
Net cruise costs excluding fuel per ALBD is the measure we use
to monitor our ability to control our cruise segments' costs rather
than gross cruise costs per ALBD. We exclude the same variable
costs that are included in the calculation of net cruise revenues
as well as fuel expense to calculate net cruise costs without fuel
to avoid duplicating these variable costs in our non-GAAP financial
measures. Substantially all of our net cruise costs excluding fuel
are largely fixed, except for the impact of changing prices once
the number of ALBDs has been determined.
Reconciliation of Forecasted Data
We have not provided a reconciliation of forecasted gross cruise
revenues to forecasted net cruise revenues or forecasted gross
cruise costs to forecasted net cruise costs without fuel or
forecasted U.S. GAAP net income to forecasted adjusted net income
or forecasted U.S. GAAP earnings per share to forecasted adjusted
earnings per share because preparation of meaningful U.S. GAAP
forecasts of gross cruise revenues, gross cruise costs, net income
and earnings per share 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 or losses on ships sales,
restructuring expenses and other non-core gains and charges.
Constant Dollar and 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.
We report net revenue yields, net passenger revenue yields, net
onboard and other revenue yields and net cruise costs excluding
fuel per ALBD on a "constant dollar" and "constant currency" basis
assuming the 2019 periods' currency exchange rates have remained
constant with the 2018 periods' rates. These metrics facilitate a
comparative view for the changes in our business in an environment
with fluctuating exchange rates.
Constant dollar reporting removes only the impact of changes in
exchange rates on the translation of our operations.
Constant currency reporting removes the impact of changes in
exchange rates on the translation of our operations (as in constant
dollar) plus the transactional impact of changes in exchange rates
from revenues and expenses that are denominated in a currency other
than the functional currency.
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.
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SOURCE Carnival Corporation & plc