CARNIVAL
CORPORATION & PLC REPORTS RECORD SECOND QUARTER REVENUES,
OPERATING INCOME AND BOOKING LEVELS, OUTPERFORMS SECOND QUARTER
GUIDANCE AND RAISES FULL YEAR 2024 GUIDANCE
MIAMI, June 25, 2024 --
Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced
financial results for the second quarter 2024 and provided an
updated outlook for the full year and an outlook for third quarter
2024.
-
Second
quarter net income improved by nearly $500
million compared to 2023 and adjusted net income
outperformed March guidance by nearly $170
million (see "Non-GAAP Financial Measures"
below).
-
Record
second quarter operating income of $560
million,
nearly
five times 2023 levels, on record second quarter revenues of
$5.8 billion.
-
Raised
full year 2024 net yield guidance (in constant currency) to
approximately 10.25 percent on continued strong demand and raised
full year adjusted net income guidance by approximately
$275 million.
-
Cumulative
booked position for the remainder of 2024 continues to be the best
on record in both price (in constant currency) and
occupancy.
-
While
early, cumulative booked position for full year 2025 is even higher
than 2024 in both price (in constant currency) and
occupancy.
-
Total
customer deposits reached an all-time high of $8.3 billion, surpassing the previous record by
$1.1 billion.
"We have
made incredible strides in improving our commercial operations,
strategically reallocating our portfolio composition and
formulating growth plans, while strengthening even further our
global team, the best in the business. Off the back of that effort,
we closed yet another quarter delivering records, this time across
revenues, operating income, customer deposits and booking levels,
exceeding our guidance on every measure," commented Carnival
Corporation & plc's Chief Executive Officer Josh Weinstein.
"Based on
continued strong demand trends, we are taking up our expectations
for the year with net yields now forecasted to top ten percent and
propelling us towards double-digit returns on invested capital. On
our upwardly revised guidance, we will be on average around
two-thirds of the way to achieving our three 2026 SEA Change
targets after just one year. With two years remaining, it certainly
gives us even more conviction in achieving these deliverables,"
Weinstein added.
Second Quarter 2024 Results
-
Net income
was $92 million, or $0.07 diluted EPS, an increase of nearly
$500 million compared to 2023.
Adjusted net income of $134 million,
or $0.11 adjusted EPS, outperformed
March guidance by nearly $170
million, driven by higher ticket prices, higher onboard
spending and the timing of expenses between quarters (see "Non-GAAP
Financial Measures" below).
-
Record
second quarter operating income of $560
million, nearly five times 2023 levels.
-
Record
second quarter adjusted EBITDA of $1.2
billion, increasing over 75 percent compared to 2023 and
outperforming March guidance by approximately $150 million (see "Non-GAAP Financial Measures"
below).
-
Record
second quarter revenues of $5.8
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).
-
Gross
margin yields increased by nearly 50 percent compared to 2023 and
net yields (in constant currency) exceeded 2023 levels by over 12
percent.
-
Net per
diems (in constant currency) were up over 6 percent compared to
2023, driven by both higher ticket prices and higher onboard
spending.
-
Cruise
costs per available lower berth day ("ALBD") increased 4.0 percent
compared to 2023. Adjusted cruise costs excluding fuel per ALBD (in
constant currency) were in line with prior year and better than
March guidance in part due to identified cost savings with most of
the favorability driven by the timing of expenses between the
quarters (see "Non-GAAP Financial Measures" below).
-
Total
customer deposits reached an all-time high of $8.3 billion, surpassing the previous record by
$1.1 billion ($7.2 billion as of May 31,
2023).
Bookings
"We are
very pleased with the continued acceleration of demand for 2025 and
beyond, which builds upon the fantastic achievements in 2024 thus
far. This positive trajectory is a testament to the successful
execution of our demand generation efforts and the delivery of
exceptional vacation experiences once onboard," Weinstein
noted.
The
company continues to experience strong bookings momentum driven by
record booking volumes for 2025 sailings. While still early, the
cumulative advanced booked position for full year 2025 is even
higher than 2024 in both price (in constant currency) and
occupancy.
With less
inventory remaining for sale for the remainder of 2024, the company
achieved considerably higher prices (in constant currency) on
bookings taken during the second quarter compared to the prior
year, which is aligned with the company's yield management
strategy. In fact, pricing for both its North America and Australia ("NAA") and Europe segments is running ahead of the prior
year for each of the third and fourth quarters of 2024.
Driven by
the company's efforts to elongate the booking curve and favorable
pricing trends, the company's cumulative booked position for the
remainder of 2024 continues to be the best on record, with
occupancy still nicely above 2023 levels at considerably higher
prices (in constant currency).
2024 Outlook
For the
full year 2024, the company expects:
-
Net yields
(in constant currency) up approximately 10.25 percent compared to
2023, approximately 75 basis points better than March guidance,
based on continued strength in demand and with occupancy at
historical levels.
-
Adjusted
cruise costs excluding fuel per ALBD (in constant currency)
approximately 0.5 percentage points better than March
guidance.
-
Adjusted
EBITDA of approximately $5.83
billion, up nearly 40 percent compared to 2023, and better
than March guidance by approximately $200
million.
-
Adjusted
net income of approximately $1.55
billion, better than March guidance by approximately
$275 million.
-
Adjusted
return on invested capital ("ROIC") of approximately 10
percent.
For the
third quarter of 2024, the company expects:
-
Net yields
(in constant currency) up approximately 8.0 percent compared to
2023 levels.
-
Adjusted
cruise costs excluding fuel per ALBD (in constant currency) up
approximately 4.5 percent compared to the third quarter of
2023.
-
Adjusted
EBITDA of approximately $2.66
billion, up 20 percent compared to the third quarter of
2023.
-
Adjusted
net income of approximately $1.58
billion, up 35 percent compared to the third quarter of
2023.
See
"Guidance" and "Reconciliation of Forecasted Data" for additional
information on the company's 2024 outlook.
Strategic Portfolio Optimization
As
previously announced, the company will sunset the P&O Cruises
(Australia) brand and fold the
Australia operations into Carnival
Cruise Line in March 2025. This
realignment will further optimize the composition of the company's
global brand portfolio and will strengthen its performance in the
South Pacific through numerous operational efficiencies.
This
change is the latest in a series of strategic moves designed to
increase guest capacity for Carnival Cruise Line, America's cruise
line and the highest-returning brand in the company's global
portfolio. This will result in the addition of nine ships to
Carnival Cruise Line's fleet since 2019, including the successful
shift of three vessels from sister brand Costa Cruises. Through
these strategic asset reallocations and the company's commitment to
restarting its moderate newbuild growth for its highest returning
brands beginning with Carnival Cruise Line, the company will
increase Carnival Cruise Line as a percentage of its portfolio from
29 percent as of 2019 to 37 percent in 2028.
Financing and Capital Activity
"Our
second quarter refinancing, repricing and debt prepayment
activities are all aligned with our path to investment grade as we
continue to manage down debt and interest expense, while reducing
the complexity of our capital structure. During the last fifteen
months, we prepaid $6.6 billion of
debt, which saves a significant amount of interest expense over
time while reducing our secured debt by nearly 40 percent,"
commented Carnival Corporation & plc's Chief Financial Officer
David Bernstein.
"Looking
forward, we expect substantial free cash flow driven by our ongoing
operational execution and the lowest newbuild order book in decades
to deliver continued improvements in our leverage metrics and
balance sheet," Bernstein added.
The
company continues its efforts to proactively manage its debt
profile. Since February 29, 2024, the
company has:
-
Prepaid
$1.6 billion of its first-priority
senior secured term loans
-
Repriced
approximately $1.75 billion of its
first-priority senior secured term loan facility maturing in 2028
and approximately $1.0 billion of its
senior secured term loan facility maturing in 2027
-
Completed
a $535 million private offering of
senior unsecured notes due 2030 from which the proceeds, together
with cash on hand, were used to redeem its senior unsecured notes
due 2026
These
transactions simplified the company's capital structure and will
reduce net interest expense by $55
million in 2024 and $85
million on an annualized basis.
The
company ended the quarter with $4.6
billion of liquidity. As of May 31,
2024, the company's outstanding debt maturities for the
remainder of the year, 2025, and 2026 were $1.2 billion, $1.7
billion, and $2.8
billion.
The second
quarter generated cash from operations of $2.0 billion and adjusted free cash flow of
$1.3 billion. The
company
drew down
on an export credit facility, continuing its strategy to finance
its newbuild program at preferential interest rates.
Other Recent Highlights
-
Completed
the installation of SpaceX's Starlink across its fleet,
transforming the onboard connectivity experience and rivaling
on-land connectivity.
-
Completed
the fleetwide rollout of OneOcean, an environmental compliance and
passage planning software, setting a new standard for journey and
environmental planning.
-
Released
its 14th annual sustainability report, "Sustainable from Ship to
Shore," detailing meaningful progress in its six sustainability
focus areas and surpassing several sustainability goals well in
advance.
-
Recognized
by Forbes as one of America's Best Employers for Diversity for
2024.
-
Carnival
Corporation & plc and its AIDA Cruises brand were honored with
three prestigious Environmental, Social and Governance Shipping
Awards for 2024.
-
Cunard
welcomed Queen Anne, the line's
first new ship in 14 years, and celebrated its phenomenal naming
ceremony with legendary tenor Andrea
Bocelli. In an industry first, a city, Liverpool – Cunard's
birthplace and spiritual home – was named godparent of the
ship.
-
Cunard
achieved record-breaking bookings following the successful launch
of
Queen Anne,
reporting more guests booked in May than any equivalent period on
record.
-
P&O
Cruises (UK) generated significant wide-spread media attention as
the headline sponsor of BAFTA (British Academy of Film and
Television Arts) Television Awards for a second year in a row as
part of its multi-year partnership.
-
Celebrated
spectacular naming ceremonies for Carnival Cruise Line's newest
ship, Carnival
Firenze, named by
Jonathan Bennett fresh off his
starring on Broadway in the hit show Spamalot, and Princess
Cruises' most luxurious ship, Sun
Princess, named by
the great Hannah Waddington of
Ted Lasso fame.
-
Holland
America Line debuted "Glacier Day"
on its Alaska cruises, reinforcing
its commitment to providing guests with awe-inspiring glacier
experiences with breathtaking sights, scenic commentary,
informational viewing stations and authentic Alaskan cuisine
onboard.
Guidance
(See
"Reconciliation of Forecasted Data")
|
3Q
2024
|
|
Full
Year 2024
|
Year over
year change
|
Current
Dollars
|
|
Constant
Currency
|
|
Current
Dollars
|
|
Constant
Currency
|
Net
yields
|
Approx.
8.0%
|
|
Approx.
8.0%
|
|
Approx.
10.5%
|
|
Approx.
10.25%
|
Adjusted
cruise costs excluding fuel per ALBD
|
Approx.
4.5%
|
|
Approx.
4.5%
|
|
Approx.
4.75%
|
|
Approx.
4.5%
|
|
3Q
2024
|
|
Full
Year 2024
|
ALBDs
(in
millions) (a)
|
25.2
|
|
95.7
|
Capacity
growth compared to prior year
|
6.2 %
|
|
4.8 %
|
|
|
|
|
Fuel
consumption in
metric tons (in
millions)
|
0.7
|
|
3.0
|
Fuel cost
per metric ton consumed (excluding European Union Allowance
("EUA"))
|
$
675
|
|
$
675
|
Fuel
expense (including EUA expense) (in
billions)
|
$
0.52
|
|
$
2.04
|
|
|
|
|
Depreciation
and amortization (in
billions)
|
$
0.66
|
|
$
2.58
|
Interest
expense, net of capitalized interest and interest income
(in
billions)
|
$
0.42
|
|
$
1.69
|
|
|
|
|
Adjusted
EBITDA (in
billions)
|
Approx.
$2.66
|
|
Approx.
$5.83
|
Adjusted
net income (loss) (in
billions)
|
Approx.
$1.58
|
|
Approx.
$1.55
|
Adjusted
earnings per share - diluted (b)
|
Approx.
$1.15
|
|
Approx.
$1.18
|
Weighted-average
shares outstanding - basic
|
1,267
|
|
1,273
|
Weighted-average
shares outstanding - diluted
|
1,399
|
|
1,398
|
|
|
(a)
|
See "Notes
to Statistical Information"
|
|
|
(b)
|
Diluted
adjusted earnings per share includes the add-back of dilutive
interest expense related to the company's convertible notes of $25
million and $94 million for the third quarter of 2024 and full year
2024.
|
|
|
Currencies
(USD to 1)
|
3Q
2024
|
Full
Year 2024
|
AUD
|
$
0.66
|
$
0.66
|
CAD
|
$
0.73
|
$
0.73
|
EUR
|
$
1.07
|
$
1.08
|
GBP
|
$
1.27
|
$
1.27
|
Sensitivities
(impact
to adjusted net income (loss) in millions)
|
3Q
2024
|
Remainder
of 2024
|
1% change
in net yields
|
$
54
|
$
97
|
1% change
in adjusted cruise costs excluding fuel per ALBD
|
$
26
|
$
53
|
1% change
in currency exchange rates
|
$
10
|
$
15
|
10% change
in fuel price
|
$
50
|
$
98
|
100 basis
point change in variable rate debt (including
derivatives)
|
—
|
$
23
|
Capital Expenditures
For the
remainder of 2024, contracted newbuild capital expenditures are
$0.1 billion and non-newbuild capital
expenditures are $1.0 billion. These
future capital expenditures will fluctuate with foreign currency
movements relative to the U.S. Dollar. In addition, these figures
do not include potential stage payments for ship orders that the
company may place in the future.
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 earnings
release. This call can be listened to live, and additional
information including the company's earnings presentation and debt
maturities schedule, 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. 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. 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.
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
May
31,
|
|
Six
Months Ended
May
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Revenues
|
|
|
|
|
|
|
|
Passenger
ticket
|
$
3,754
|
|
$
3,141
|
|
$
7,370
|
|
$
6,011
|
Onboard and
other
|
2,027
|
|
1,770
|
|
3,817
|
|
3,332
|
|
5,781
|
|
4,911
|
|
11,187
|
|
9,343
|
Operating
Expenses
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
732
|
|
619
|
|
1,552
|
|
1,274
|
Onboard and
other
|
628
|
|
549
|
|
1,178
|
|
1,033
|
Payroll and
related
|
614
|
|
601
|
|
1,237
|
|
1,183
|
Fuel
|
525
|
|
489
|
|
1,030
|
|
1,024
|
Food
|
360
|
|
325
|
|
706
|
|
636
|
Other
operating
|
938
|
|
875
|
|
1,800
|
|
1,619
|
Cruise and
tour operating expenses
|
3,798
|
|
3,457
|
|
7,502
|
|
6,768
|
Selling and
administrative
|
789
|
|
736
|
|
1,603
|
|
1,448
|
Depreciation
and amortization
|
634
|
|
597
|
|
1,247
|
|
1,179
|
|
5,221
|
|
4,791
|
|
10,352
|
|
9,394
|
Operating
Income (Loss)
|
560
|
|
120
|
|
836
|
|
(52)
|
Nonoperating
Income (Expense)
|
|
|
|
|
|
|
|
Interest
income
|
25
|
|
69
|
|
58
|
|
124
|
Interest
expense, net of capitalized interest
|
(450)
|
|
(542)
|
|
(921)
|
|
(1,082)
|
Debt
extinguishment and modification costs
|
(33)
|
|
(31)
|
|
(66)
|
|
(31)
|
Other
income (expense), net
|
(7)
|
|
(17)
|
|
(25)
|
|
(47)
|
|
(464)
|
|
(522)
|
|
(953)
|
|
(1,036)
|
Income
(Loss) Before Income Taxes
|
96
|
|
(402)
|
|
(118)
|
|
(1,087)
|
Income
Tax Benefit (Expense), Net
|
(5)
|
|
(5)
|
|
(5)
|
|
(13)
|
Net
Income (Loss)
|
$
92
|
|
$
(407)
|
|
$
(123)
|
|
$
(1,100)
|
|
|
|
|
|
|
|
|
Earnings
Per Share
|
|
|
|
|
|
|
|
Basic
|
$
0.07
|
|
$
(0.32)
|
|
$
(0.10)
|
|
$
(0.87)
|
Diluted
|
$
0.07
|
|
$
(0.32)
|
|
$
(0.10)
|
|
$
(0.87)
|
Weighted-Average
Shares Outstanding - Basic
|
1,267
|
|
1,263
|
|
1,265
|
|
1,261
|
Weighted-Average
Shares Outstanding - Diluted
|
1,271
|
|
1,263
|
|
1,265
|
|
1,261
|
CARNIVAL
CORPORATION &
PLC
CONSOLIDATED
BALANCE SHEETS
(UNAUDITED)
(in
millions, except par values)
|
|
|
May
31,
2024
|
|
November
30,
2023
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and
cash equivalents
|
$
1,646
|
|
$
2,415
|
Trade and
other receivables, net
|
494
|
|
556
|
Inventories
|
509
|
|
528
|
Prepaid
expenses and other
|
1,118
|
|
1,767
|
Total
current assets
|
3,768
|
|
5,266
|
Property
and Equipment, Net
|
42,105
|
|
40,116
|
Operating
Lease Right-of-Use Assets, Net
|
1,282
|
|
1,265
|
Goodwill
|
579
|
|
579
|
Other
Intangibles
|
1,167
|
|
1,169
|
Other
Assets
|
702
|
|
725
|
|
$
49,603
|
|
$
49,120
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Current
portion of long-term debt
|
$
2,181
|
|
$
2,089
|
Current
portion of operating lease liabilities
|
144
|
|
149
|
Accounts
payable
|
1,063
|
|
1,168
|
Accrued
liabilities and other
|
2,114
|
|
2,003
|
Customer
deposits
|
7,883
|
|
6,072
|
Total
current liabilities
|
13,385
|
|
11,481
|
Long-Term
Debt
|
27,154
|
|
28,483
|
Long-Term
Operating Lease Liabilities
|
1,174
|
|
1,170
|
Other
Long-Term Liabilities
|
1,075
|
|
1,105
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Carnival
Corporation common stock, $0.01 par value; 1,960 shares authorized;
1,253
shares
issued at 2024 and 1,250 shares issued at 2023
|
13
|
|
12
|
Carnival
plc ordinary shares, $1.66 par value; 217 shares issued at 2024 and
2023
|
361
|
|
361
|
Additional
paid-in capital
|
16,701
|
|
16,712
|
Retained
earnings
|
62
|
|
185
|
Accumulated
other comprehensive income (loss)
|
(1,919)
|
|
(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
|
6,814
|
|
6,882
|
|
$
49,603
|
|
$
49,120
|
CARNIVAL
CORPORATION & PLC
OTHER
INFORMATION
|
|
OTHER
BALANCE SHEET INFORMATION (in
millions)
|
May
31, 2024
|
|
November
30, 2023
|
Liquidity
|
$
4,609
|
|
$
5,392
|
Debt
(current and long-term)
|
$
29,334
|
|
$
30,572
|
Customer
deposits (current and long-term)
|
$
8,279
|
|
$
6,353
|
|
Three
Months Ended
May
31,
|
|
Six
Months Ended
May
31,
|
STATISTICAL
INFORMATION
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Passenger
cruise days ("PCDs") (in
millions) (a)
|
24.3
|
|
21.8
|
|
47.8
|
|
42.0
|
ALBDs
(in
millions) (b)
|
23.5
|
|
22.3
|
|
46.5
|
|
44.3
|
Occupancy
percentage (c)
|
104 %
|
|
98 %
|
|
103 %
|
|
95 %
|
Passengers
carried (in
millions)
|
3.3
|
|
3.0
|
|
6.3
|
|
5.7
|
|
|
|
|
|
|
|
|
Fuel
consumption in metric tons (in
millions)
|
0.7
|
|
0.7
|
|
1.5
|
|
1.5
|
Fuel
consumption in metric tons per thousand ALBDs
|
31.9
|
|
32.5
|
|
31.8
|
|
33.0
|
Fuel cost
per metric ton consumed (excluding EUA)
|
$
684
|
|
$
677
|
|
$
685
|
|
$
704
|
|
|
|
|
|
|
|
|
Currencies
(USD to 1)
|
|
|
|
|
|
|
|
AUD
|
$
0.66
|
|
$
0.67
|
|
$
0.66
|
|
$
0.68
|
CAD
|
$
0.73
|
|
$
0.74
|
|
$
0.74
|
|
$
0.74
|
EUR
|
$
1.08
|
|
$
1.08
|
|
$
1.08
|
|
$
1.08
|
GBP
|
$
1.26
|
|
$
1.23
|
|
$
1.26
|
|
$
1.23
|
|
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
May
31,
|
|
Six
Months Ended
May
31,
|
(in
millions, except per share data)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net
income (loss)
|
$
92
|
|
$
(407)
|
|
$
(123)
|
|
$
(1,100)
|
(Gains)
losses on ship sales and impairments
|
—
|
|
(45)
|
|
—
|
|
(54)
|
Debt
extinguishment and modification costs
|
33
|
|
31
|
|
66
|
|
31
|
Restructuring
expenses
|
10
|
|
15
|
|
11
|
|
15
|
Other
|
—
|
|
11
|
|
—
|
|
23
|
Adjusted
net income (loss)
|
$
134
|
|
$
(395)
|
|
$
(46)
|
|
$
(1,085)
|
Interest
expense, net of capitalized interest
|
450
|
|
542
|
|
921
|
|
1,082
|
Interest
income
|
(25)
|
|
(69)
|
|
(58)
|
|
(124)
|
Income tax
benefit (expense), net
|
5
|
|
5
|
|
5
|
|
13
|
Depreciation
and amortization
|
634
|
|
597
|
|
1,247
|
|
1,179
|
Adjusted
EBITDA
|
$
1,197
|
|
$
681
|
|
$
2,068
|
|
$
1,063
|
|
|
|
|
|
|
|
|
Earnings
per share - diluted (a)
|
$
0.07
|
|
$
(0.32)
|
|
$
(0.10)
|
|
$
(0.87)
|
Adjusted
earnings per share - diluted (a)
|
$
0.11
|
|
$
(0.31)
|
|
$
(0.04)
|
|
$
(0.86)
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - diluted
|
1,271
|
|
1,263
|
|
1,265
|
|
1,261
|
|
|
(a)
|
The
company's convertible notes are antidilutive to the three and six
months ended May 31, 2024 and therefore are not included in the
calculation of diluted earnings per share.
|
|
Three
Months Ended
May
31,
|
|
Six
Months Ended
May
31,
|
(in
millions)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Cash
from (used in) operations
|
$
2,040
|
|
$
1,136
|
|
$
3,807
|
|
$
1,525
|
Capital
expenditures (Purchases of Property and Equipment)
|
(1,318)
|
|
(697)
|
|
(3,457)
|
|
(1,772)
|
Proceeds
from export credits
|
579
|
|
186
|
|
2,314
|
|
1,016
|
Adjusted
free cash flow
|
$
1,300
|
|
$
625
|
|
$
2,664
|
|
$
769
|
|
(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 May 31,
|
|
Six
Months Ended May 31,
|
(in
millions, except per diems and yields data)
|
2024
|
|
2024
Constant
Currency
|
|
2023
|
|
2024
|
|
2024
Constant
Currency
|
|
2023
|
Total
revenues
|
$
5,781
|
|
|
|
$
4,911
|
|
$
11,187
|
|
|
|
$
9,343
|
Less:
Cruise and tour operating expenses
|
(3,798)
|
|
|
|
(3,457)
|
|
(7,502)
|
|
|
|
(6,768)
|
Depreciation
and amortization
|
(634)
|
|
|
|
(597)
|
|
(1,247)
|
|
|
|
(1,179)
|
Gross
margin
|
1,350
|
|
|
|
856
|
|
2,438
|
|
|
|
1,397
|
Less: Tour
and other revenues
|
(37)
|
|
|
|
(35)
|
|
(41)
|
|
|
|
(44)
|
Add:
Payroll and related
|
614
|
|
|
|
601
|
|
1,237
|
|
|
|
1,183
|
Fuel
|
525
|
|
|
|
489
|
|
1,030
|
|
|
|
1,024
|
Food
|
360
|
|
|
|
325
|
|
706
|
|
|
|
636
|
Ship and
other impairments
|
—
|
|
|
|
—
|
|
—
|
|
|
|
—
|
Other
operating
|
938
|
|
|
|
875
|
|
1,800
|
|
|
|
1,619
|
Depreciation
and amortization
|
634
|
|
|
|
597
|
|
1,247
|
|
|
|
1,179
|
Adjusted
gross margin
|
$
4,384
|
|
$
4,386
|
|
$
3,708
|
|
$
8,416
|
|
$
8,399
|
|
$
6,992
|
|
|
|
|
|
|
|
|
|
|
|
|
PCDs
|
24.3
|
|
24.3
|
|
21.8
|
|
47.8
|
|
47.8
|
|
42.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin per diems (per
PCD)
|
$
55.45
|
|
|
|
$
39.21
|
|
$
50.97
|
|
|
|
$
33.26
|
% increase
(decrease)
|
41 %
|
|
|
|
|
|
53 %
|
|
|
|
|
Net
per diems (per
PCD)
|
$
180.11
|
|
$
180.21
|
|
$
169.77
|
|
$
175.95
|
|
$
175.57
|
|
$
166.50
|
% increase
(decrease)
|
6.1 %
|
|
6.1 %
|
|
|
|
5.7 %
|
|
5.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALBDs
|
23.5
|
|
23.5
|
|
22.3
|
|
46.5
|
|
46.5
|
|
44.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin yields (per
ALBD)
|
$
57.45
|
|
|
|
$
38.43
|
|
$
52.45
|
|
|
|
$
31.49
|
% increase
(decrease)
|
49 %
|
|
|
|
|
|
67 %
|
|
|
|
|
Net
yields (per
ALBD)
|
$
186.60
|
|
$
186.70
|
|
$
166.38
|
|
$
181.04
|
|
$
180.65
|
|
$
157.67
|
% increase
(decrease)
|
12 %
|
|
12 %
|
|
|
|
15 %
|
|
15 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 May 31,
|
|
Six
Months Ended May 31,
|
(in
millions, except costs per ALBD data)
|
2024
|
|
2024
Constant
Currency
|
|
2023
|
|
2024
|
|
2024
Constant
Currency
|
|
2023
|
Cruise and
tour operating expenses
|
$
3,798
|
|
|
|
$
3,457
|
|
$
7,502
|
|
|
|
$
6,768
|
Selling and
administrative expenses
|
789
|
|
|
|
736
|
|
1,603
|
|
|
|
1,448
|
Less: Tour
and other expenses
|
(49)
|
|
|
|
(54)
|
|
(69)
|
|
|
|
(77)
|
Cruise
costs
|
4,538
|
|
|
|
4,140
|
|
9,036
|
|
|
|
8,139
|
Less:
Commissions, transportation and other
|
(732)
|
|
|
|
(619)
|
|
(1,552)
|
|
|
|
(1,274)
|
Onboard and
other costs
|
(628)
|
|
|
|
(549)
|
|
(1,178)
|
|
|
|
(1,033)
|
Gains
(losses) on ship sales and impairments
|
—
|
|
|
|
45
|
|
—
|
|
|
|
54
|
Restructuring
expenses
|
(10)
|
|
|
|
(15)
|
|
(11)
|
|
|
|
(15)
|
Other
|
—
|
|
|
|
—
|
|
—
|
|
|
|
—
|
Adjusted
cruise costs
|
3,167
|
|
3,169
|
|
3,002
|
|
6,296
|
|
6,284
|
|
5,871
|
Less:
Fuel
|
(525)
|
|
(525)
|
|
(489)
|
|
(1,030)
|
|
(1,030)
|
|
(1,024)
|
Adjusted
cruise costs excluding fuel
|
$
2,642
|
|
$
2,644
|
|
$
2,513
|
|
$
5,266
|
|
$
5,254
|
|
$
4,847
|
|
|
|
|
|
|
|
|
|
|
|
|
ALBDs
|
23.5
|
|
23.5
|
|
22.3
|
|
46.5
|
|
46.5
|
|
44.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Cruise
costs per ALBD
|
$
193.16
|
|
|
|
$
185.74
|
|
$
194.37
|
|
|
|
$
183.51
|
% increase
(decrease)
|
4.0 %
|
|
|
|
|
|
5.9 %
|
|
|
|
|
Adjusted
cruise costs per ALBD
|
$
134.83
|
|
$
134.91
|
|
$
134.69
|
|
$
135.42
|
|
$
135.16
|
|
$
132.37
|
% increase
(decrease)
|
0.1 %
|
|
0.2 %
|
|
|
|
2.3 %
|
|
2.1 %
|
|
|
Adjusted
cruise costs excluding fuel per ALBD
|
$
112.46
|
|
$
112.54
|
|
$
112.76
|
|
$
113.27
|
|
$
113.00
|
|
$
109.29
|
% increase
(decrease)
|
(0.3) %
|
|
(0.2) %
|
|
|
|
3.6 %
|
|
3.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
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.
SOURCE
Carnival Corporation & plc
CONTACT:
MEDIA: Jody Venturoni, +1 469 797
6380; INVESTOR RELATIONS: Beth
Roberts, +1 305 406 4832