MIAMI, March 27,
2024 /PRNewswire/ -- 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)
|
—
|
|
$
452
|
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.
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SOURCE Carnival Corporation & plc