TIDMCCL
CARNIVAL CORPORATION &PLC REPORTS RECORD FOURTH QUARTER AND FULL YEAR
REVENUESWITH CONTINUED STRONG BOOKINGS AND EARNINGS MOMENTUM
Tracking ahead of SEA Change targets
MIAMI, Dec. 21, 2023 -- Carnival Corporation &plc (NYSE/LSE: CCL; NYSE: CUK)
reports fourth quarter and full year 2023 earnings and provides an outlook for
the full year and first quarter 2024.
Key Highlights
Full Year 2023
· Full year revenues hit an all-time high of $21.6 billion.
· Full year cash from operations was $4.3 billion and adjusted free cash flow
was $2.1 billion (see "Non-GAAP Financial Measures" below).
· U.S. GAAP net loss of $74 million and positive adjusted net income of $1
million outperformed the September guidance range (see "Non-GAAP Financial
Measures" below).
· The company made debt payments of $6 billion, reducing its debt balance by
$4.6 billion from its peak in the first quarter of 2023 and ended the year with
$5.4 billion of liquidity.
· The company entered 2024 with its best booked position on record, for both
price and occupancy
Fourth Quarter 2023
· Record fourth quarter revenues of $5.4 billion with record net per diems (in
constant currency) significantly exceeding 2019 levels and above the September
guidance range and record net yields (in constant currency) (see "Non-GAAP
Financial Measures" below).
· Booking volumes for the two weeks around Black Friday and Cyber Monday
reached an all-time high for that period.
· Total customer deposits reached a fourth quarter record of $6.4 billion,
surpassing the previous fourth quarter record of $5.1 billion (as of November
30, 2022), by 25 percent.
"We ended the year on a high note with another record-breaking quarter that
exceeded expectations and achieved positive full year adjusted net income. In
fact, we consistently outperformed in all four quarters of the year, buoyed by a
strengthening demand environment across all our brands," commented Carnival
Corporation & plc's Chief Executive Officer Josh Weinstein.
"Net yields for the fourth quarter continued on a positive trajectory, were
significantly higher than a very strong 2019 and even higher than we had
anticipated, enabling us to overcome four years of high cost inflation to
deliver five percent higher per unit EBITDA than 2019 (holding fuel and currency
constant)," Weinstein added.
"Thanks to a strong second half of 2023, we are already tracking ahead of our
plan to achieve SEA Change, our three-year financial targets calling for the
highest adjusted ROIC and adjusted EBITDA per ALBD in nearly two decades. Based
on our 2024 guidance, we expect to deliver another big step forward, positioning
us more than halfway toward realizing all our 2026 SEA Change targets. With
nearly two-thirds of 2024 on the books already, we are well positioned to obtain
another year of record revenues and adjusted EBITDA," Weinstein noted.
Fourth Quarter 2023 Results
· U.S. GAAP net loss of $48 million, or $(0.04) diluted EPS, and adjusted net
loss of $90 million, or $(0.07) adjusted EPS, was above the better end of the
September guidance range (see "Non-GAAP Financial Measures" below).
· Adjusted EBITDA of $946 million exceeded the September guidance range,
driven by continued strength in demand, which is driving ticket prices higher
(see "Non-GAAP Financial Measures" below).
· Record fourth quarter revenues of $5.4 billion, with record net per diems
(in constant currency) significantly exceeding 2019 levels, and above the
September guidance range and record net yields (in constant currency).
· While gross margin yields were down 4.6 percent, net yields (in constant
currency) exceeded strong 2019 levels by 7.8 percent.
· Occupancy in the fourth quarter of 2023 was over 101 percent, in line with
the company's expectations and historical levels.
· Gross margin per diems were down 2.3 percent compared to 2019, while net
per diems (in constant currency) exceeded 2019 levels by over 10 percent and
were three percentage points better than the midpoint of the September guidance
range.
· Cruise costs per ALBD increased 12 percent as compared to the fourth quarter
of 2019. Adjusted cruise costs excluding fuel per ALBD (in constant currency)
increased 11 percent compared to the fourth quarter of 2019 and were in line
with September guidance (see "Non-GAAP Financial Measures" below).
· Total customer deposits reached a fourth quarter record of $6.4 billion,
surpassing the previous fourth quarter record of $5.1 billion (as of November
30, 2022), by 25 percent.
Bookings
"We entered the year with the best booked position we have ever seen, and now
have nearly two-thirds of our occupancy already on the books for 2024, at
considerably higher prices (in constant currency). We continue to experience
strong bookings momentum across the board, with our European brands showing
remarkable strength during the quarter with booking volumes running up well into
the double digits at considerably higher prices (in constant currency),"
Weinstein noted.
Weinstein continued, "Our yield management strategy to base load bookings is
clearly working as we pull forward booking volumes on strong pricing. We
continue to build on that momentum with our ongoing advertising investments and
lead generation efforts, increasing support from our trade partners, and the
exceptional guest experiences our team members provide onboard every day,
helping to deliver millions of cruising advocates."
Booking volumes during the fourth quarter continued at significantly elevated
levels, above both prior year and 2019 comparable periods, while recent booking
volumes for the two weeks around Black Friday and Cyber Monday reached an all
-time high for that period. Pricing on bookings during the fourth quarter was
considerably higher than prior year pricing (in constant currency).
The cumulative advanced booked position is at considerably higher prices (in
constant currency) than 2023 levels, with each quarter of 2024 booked above the
high end of the historical range.
2024 Outlook
For the full year 2024, the company expects:
· Adjusted EBITDA of approximately $5.6 billion, over 30 percent growth
compared to 2023
· Net yields (in constant currency) up approximately 8.5 percent compared to
2023, with full year occupancy returning to historical levels and nicely higher
net per diems (in constant currency) reflecting continued strength in pricing
and onboard spending
· Adjusted cruise costs excluding fuel per ALBD (in constant currency) up
approximately 4.5 percent compared to 2023
For the first quarter of 2024, the company expects:
· Adjusted EBITDA of approximately $0.8 billion, more than double the first
quarter of 2023
· Net yields (in constant currency) up approximately 16.5 percent compared to
the first quarter of 2023 with occupancy returning to historical levels as the
company closes the remaining occupancy gap in the first half of the year
· Adjusted cruise costs excluding fuel per ALBD (in constant currency) up
approximately 9.5 percent compared to the first quarter of 2023 primarily due to
higher occupancy levels, the timing of advertising investments and dry-dock
related expenses compared to the prior year
See "Guidance" and "Reconciliation of Forecasted Data" for additional
information on the company's 2024 outlook.
Financing and Capital Activity
"During 2023, we made debt payments of $6 billion and ended the year with just
over $30 billion of debt, which is $3 billion betterthan we forecasted just nine
months ago during our March conference call and almost $5 billion off the first
quarter peak," noted Carnival Corporation & plc Chief Financial Officer David
Bernstein.
"And looking forward, we will continue to evaluate refinancing opportunities and
opportunistically prepay additional debt. Furthermore, we expect durable revenue
growth to drive increases in adjusted free cash flow in 2024 and beyond, which
will be the primary driver for paying down our debt balances on our path back to
investment grade," Bernstein added.
During 2023, the company generated cash from operations of $4.3 billion and
adjusted free cash flow of $2.1 billion, making a significant contribution
toward rebuilding the company's financial strength.
During the fourth quarter of 2023, the company reduced its debt by another $725
million and for the full year made debt payments of $6 billion while ending the
fourth quarter with $5.4 billion of liquidity, including cash and borrowings
available under the revolving credit facility. In addition, the company amended
an agreement with one of its credit card processors and now expects an
additional $800 million to be returned during the first quarter of 2024,
representing substantially all of the credit card reserves balance as of
November 30, 2023.
Sustainability
The company continues to work aggressively towards its greenhouse gases ("GHG")
emission reduction goals and ambitions through innovative projects aligned with
its four-part emission reduction strategy: fleet optimization; energy
efficiency; itinerary efficiency; and new technologies & alternative fuels. In
2023, the company:
· Reduced its absolute GHG emissions by over 10 percent as compared to its
peak year of 2011, despite capacity growth of 30 percent over the same period.
· Achieved a 15.5 percent reduction in fuel consumption per ALBD compared to
2019 and expects another four percent reduction in fuel consumption per ALBD for
full year 2024 compared to 2023.
· Now expects to achieve its 2030 GHG emission intensity reduction goal four
years early, targeting more than a 20 percent reduction in emission intensity by
the end of 2026 compared to 2019.
· Surpassed its 2030 goal to achieve shore power capability for 60 percent of
its fleet, seven years ahead of schedule; now, 64 percent of the company's fleet
has the capability to connect to shore power.
· Successfully piloted the use of biofuels as a replacement for fossil fuel on
one additional ship, bringing its cumulative completed biofuel pilots to three
ships.
· Delivered 38 percent reduction in food waste per person relative to its 2019
baseline, nearing its interim goal to reduce food waste by 40 percent per person
by 2025, and on pace toward its 2030 goal of a 50 percent reduction.
Other Recent Highlights
· Carnival Corporation's brands launched advertising campaigns with Costa
Cruises focusing on moments where guests are left speechless, P&O Cruises (UK)
highlighting the unique experiences of a cruise holiday, AIDA Cruises inviting
guests to experience oneself, and Holland America Line continuing its "Time of
Your Life" campaign.
· Carnival Corporation was named one of the World's Top Female-Friendly
Companies and one of the World's Best Employers of 2023 by Forbes, both for the
third consecutive year.
· Carnival Cruise Line took delivery of Carnival Jubilee, offering an exciting
mix of new entertainment, dining and fun to one of the line's most popular
homeports, Galveston, Texas.
· Carnival Cruise Line announced hundreds of sailings to its new destination
on Grand Bahama Island "Celebration Key" with 18 different ships departing from
nine different homeports.
Guidance
(See "Reconciliation of Forecasted Data")
1Q 2024 Full Year 2024
Year over year change Current Constant Current Constant
Dollars Currency Dollars Currency
Net yields Approx. Approx. Approx. 8.5% Approx. 8.5%
16.5% 16.5%
Adjusted cruise costs Approx. Approx. Approx. 4.5% Approx. 4.5%
excluding fuel per 10.0% 9.5%
ALBD
2024
1Q 2Q 3Q 4Q Full Year
ALBDs (in millions) (a) 23.1 23.9 25.2 24.0 96.2
(a) See "Notes to Statistical Information"
1Q 2024 Full Year 2024
Capacity growth compared to prior year 4.6% 5.4%
Fuel consumptionin metric tons (in 0.7 3.0
millions)
Fuel cost per metric ton consumed $ 665 $ 650
(excluding European Union Allowance
("EUA"))
EUA cost per metric ton of emissions $ 75 $ 75
EUA expense (in millions) $ 3 $ 51
Fuel expense (including EUA expense) $ 0.5 $ 2.0
(in billions)
Depreciation and amortization (in $ 0.6 $ 2.6
billions)
Interest expense, net of capitalized $ 0.45 $ 1.74
interest and interest income (in
billions)
Adjusted EBITDA (in billions) Approx. $0.8 Approx. $5.6
Adjusted net income (loss) (in Approx. $(0.28) Approx. $1.2
billions)
Adjusted earnings per share - diluted Approx. $(0.22) Approx. $0.93
(a)
Weighted-average shares outstanding - 1,264 1,273
basic
Weighted-average shares outstanding - 1,264 1,398
diluted
(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 first quarter of 2024 calculation and accordingly has been excluded.
Currencies (USD to 1) 1Q 2024 Full Year 2024
AUD $ 0.67 $ 0.67
CAD $ 0.75 $ 0.75
EUR $ 1.09 $ 1.09
GBP $ 1.27 $ 1.27
Sensitivities (impact to adjusted 1Q 2024 Full Year 2024
net income (loss) in millions)
1% change in net yields $ 34 $ 171
1% change in adjusted cruise costs $ 24 $ 105
excluding fuel per ALBD
1% change in currency exchange $ 4 $ 21
rates
10% change in fuel price $ 49 $ 191
100 basis point change in variable - $ 62
rate debt (including derivatives)
Capital Expenditures
The company's annual capital expenditure forecast for 2024, is as follows:
(in billions) 2024 2025 2026
Contracted newbuild $ 2.4 $ 1.0 $ -
Non-newbuild 1.8 1.8 1.8
Total (a) $ 4.2 $ 2.8 $ 1.8
(a) 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 November 30, 2023 $ 2.3 $ 0.7
Outstanding Debt Maturities
As of November 30, 2023, the company's outstanding debt maturities are as
follows:
(in billions) 2024 2025 2026
First Lien $ 0.0 $ 0.9 $ 0.0
Second Lien 0.0 - -
Export Credits 1.2 1.2 1.2
Convertible Notes 0.4 - -
All other 0.4 0.2 2.0
Total Principal payments on outstanding debt $ 2.1 $ 2.2 $ 3.2
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. EST
(3:00 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 (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=1638963182&u=https%3A%2F%2Fwww.carnivalcorp.com%2F&a=www.carnivalcorp.com)
and www.carnivalplc.com (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=2933030192&u=https%3A%2F%2Fwww.carnivalplc.com%2F&a=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 (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=1638963182&u=https%3A%2F%2Fwww.carnivalcorp.com%2F&a=www.carnivalcorp.com),
www.aida.de (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=2587215395&u=https%3A%2F%2Fwww.aida.de%2F&a=www.aida.de),
www.carnival.com (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=3768666131&u=https%3A%2F%2Fwww.carnival.com%2F&a=www.carnival.com),
www.costacruise.com (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=410232283&u=https%3A%2F%2Fwww.costacruise.com%2F&a=www.costacruise.com),
www.cunard.com (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=1088370917&u=https%3A%2F%2Fwww.cunard.com%2F&a=www.cunard.com),
www.hollandamerica.com (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=4062127023&u=https%3A%2F%2Fwww.hollandamerica.com%2F&a=www.hollandamerica.co
m), www.pocruises.com.au (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=3425618062&u=https%3A%2F%2Fwww.pocruises.com.au%2F&a=www.pocruises.com.au),
www.pocruises.com (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=2029069008&u=https%3A%2F%2Fwww.pocruises.com%2F&a=www.pocruises.com),
www.princess.com (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=2856271648&u=https%3A%2F%2Fwww.princess.com%2F&a=www.princess.com)and
www.seabourn.com (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=1882582260&u=https%3A%2F%2Fwww.seabourn.com%2F&a=www.seabourn.com). For
more information on Carnival Corporation's industry-leading sustainability
initiatives,
visitwww.carnivalsustainability.com (https://c212.net/c/link/?t=0&l=en&o=4055812
-1&h=2817427080&u=https%3A%2F%2Fwww.carnivalsustainability.com%2F&a=www.carnivals
ustainability.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 · Adjusted free cash flow
expenses
· Currency exchange rates · Net per diems
· Goodwill, ship and · Net yields
trademark fair values
· Liquidity and credit · Adjusted cruise costs per ALBD
ratings
· Investment grade leverage · Adjusted cruise costs excluding fuel per ALBD
metrics
· Estimates of ship · Adjusted return on invested capital
depreciable lives and
residual values
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 impliedby 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 Twelve Months Ended
November 30, November 30,
2023 2022 2023 2022
Revenues
Passenger ticket $ 3,510 $ 2,269 $ 14,067 $ 7,022
Onboard and other 1,886 1,570 7,526 5,147
5,397 3,839 21,593 12,168
Operating Expenses
Commissions, 664 489 2,761 1,630
transportation and
other
Onboard and other 590 468 2,375 1,528
Payroll and related 605 580 2,373 2,181
Fuel 555 580 2,047 2,157
Food 335 277 1,335 863
Ship and other - 433 - 440
impairments
Other operating 879 840 3,426 2,958
Cruise and tour 3,629 3,665 14,317 11,757
operating expenses
Selling and 788 741 2,950 2,515
administrative
Depreciation and 596 568 2,370 2,275
amortization
5,013 4,974 19,637 16,547
Operating Income 384 (1,135) 1,956 (4,379)
(Loss)
Nonoperating Income
(Expense)
Interest income 50 40 233 74
Interest expense, net (466) (448) (2,066) (1,609)
of capitalized
interest
Debt extinguishment 1 (1) (111) (1)
and modification costs
Other income (8) (57) (75) (165)
(expense), net
(423) (466) (2,018) (1,701)
Income (Loss) Before (39) (1,601) (62) (6,080)
Income Taxes
Income Tax Benefit (9) 3 (13) (14)
(Expense), Net
Net Income (Loss) $ (48) $ (1,598) $ (74) $ (6,093)
Earnings Per Share
Basic $ (0.04) $ (1.27) $ (0.06) $ (5.16)
Diluted $ (0.04) $ (1.27) $ (0.06) $ (5.16)
Weighted-Average 1,263 1,259 1,262 1,180
Shares Outstanding -
Basic
Weighted-Average 1,263 1,259 1,262 1,180
Shares Outstanding -
Diluted
CARNIVAL CORPORATION& PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except par values)
November 30,
2023 2022
ASSETS
Current Assets
Cash and cash equivalents $ 2,415 $ 4,029
Restricted cash 11 1,988
Trade and other receivables, net 556 395
Inventories 528 428
Prepaid expenses and other 1,757 652
Total current assets 5,266 7,492
Property and Equipment, Net 40,116 38,687
Operating Lease Right-of-Use Assets, Net 1,265 1,274
Goodwill 579 579
Other Intangibles 1,169 1,156
Other Assets 725 2,515
$ 49,120 $ 51,703
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings $ - $ 200
Current portion of long-term debt 2,089 2,393
Current portion of operating lease liabilities 149 146
Accounts payable 1,168 1,050
Accrued liabilities and other 2,003 1,942
Customer deposits 6,072 4,874
Total current liabilities 11,481 10,605
Long-Term Debt 28,483 31,953
Long-Term Operating Lease Liabilities 1,170 1,189
Other Long-Term Liabilities 1,105 891
Shareholders' Equity
Carnival Corporation common stock, $0.01 par 12 12
value; 1,960 shares authorized; 1,250 shares
at
2023 and 1,244 shares at 2022 issued
Carnival plc ordinary shares, $1.66 par value; 361 361
217 shares at 2023 and 2022 issued
Additional paid-in capital 16,712 16,872
Retained earnings 185 269
Accumulated other comprehensive income (loss) (1,939) (1,982)
Treasury stock, 130 shares at 2023 and 2022 of (8,449) (8,468)
Carnival Corporation and 73 shares at 2023 and
72 shares at 2022 of Carnival plc, at cost
Total shareholders' equity 6,882 7,065
$ 49,120 $ 51,703
CARNIVAL CORPORATION & PLC
OTHER INFORMATION
November 30,
OTHER BALANCE SHEET INFORMATION(in millions) 2023 2022
Liquidity (a) $ 5,392 $ 8,635
Debt (current and long-term) $ 30,572 $ 34,546
Customer deposits (current and long-term) $ 6,353 $ 5,089
(a) November 30, 2022 liquidity includes restricted cash from the 2028 Senior
Priority Notes which became unrestricted in December 2022.
Three Months Ended Twelve Months Ended
November 30, November 30,
STATISTICAL INFORMATION 2023 2022 2023 2022
Passenger cruise days 23.6 18.3 91.4 54.6
("PCDs") (in millions)
(a)
ALBDs (in millions) (b) 23.2 21.5 91.3 72.5
Occupancy percentage (c) 101% 85% 100% 75%
Passengers carried (in 3.1 2.5 12.5 7.7
millions)
Fuel consumption in 0.7 0.7 2.9 2.6
metric tons (in millions)
Fuel consumption in 31.5 33.4 32.1 36.1
metric tons per thousand
ALBDs
Fuel cost per metric ton $ 759 $ 812 $ 701 $ 830
consumed
Currencies (USD to 1)
AUD $ 0.64 $ 0.66 $ 0.66 $ 0.70
CAD $ 0.73 $ 0.74 $ 0.74 $ 0.77
EUR $ 1.07 $ 1.00 $ 1.08 $ 1.06
GBP $ 1.23 $ 1.15 $ 1.24 $ 1.25
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 Twelve Months Ended
November 30, November 30,
(in millions) 2023 2022 2023 2022
Net income (loss) $ (48) $ (1,598) $ (74) $ (6,093)
(Gains) losses on ship sales (34) 431 (88) 433
and impairments
Debt extinguishment and (1) 1 111 1
modification costs
Restructuring expenses 3 20 19 22
Other (10) 77 33 130
Adjusted net income (loss) $ (90) $ (1,068) $ 1 $ (5,508)
Interest expense, net of 466 448 2,066 1,609
capitalized interest
Interest income (50) (40) (233) (74)
Income tax benefit (expense), 24 (3) 28 14
net
Depreciation and amortization 596 568 2,370 2,275
Adjusted EBITDA $ 946 $ (96) $ 4,231 $ (1,684)
Three Months Ended Twelve Months Ended
November 30, November 30,
2023 2022 2023 2022
Earnings per share - diluted $ (0.04) $ (1.27) $ (0.06) $ (5.16)
(a)
(Gains) losses on ship sales (0.03) 0.34 (0.07) 0.37
and impairments
Debt extinguishment and - - 0.09 -
modification costs
Restructuring expenses - 0.02 0.01 0.02
Other (0.01) 0.06 0.03 0.11
Adjusted earnings per share - $ (0.07) $ (0.85) $ 0.00 $ (4.67)
diluted (a)
Weighted-average shares 1,263 1,259 1,262 1,180
outstanding - diluted (in
millions)
(a) For the fourth quarter and full year 2023, the company's convertible
notes are antidilutive and therefore are not included in diluted weighted
-averageshares outstanding.
Three Months Ended Twelve Months Ended
November 30, November 30,
(in millions) 2023 2022 2023 2022
Cash from (used in) $ 915 $ (117) $ 4,273 $ (1,670)
operations
Capital expenditures (675) (1,181) (3,284) (4,940)
(Purchases of Property and
Equipment)
Proceeds from export credits - 799 1,157 3,142
Adjusted free cash flow $ 240 $ (499) $ 2,146 $ (3,468)
(See Non-GAAP Financial Measures)
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Data in the below table is compared against 2019 as it is the most recent year
of full operations due to the pause and resumption of guest cruise operations.
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 Twelve Months
EndedNovember EndedNovember
30, 30,
(in 2023 2023 2019 2023 2023 2019
millions,
except Constant Constant
per diems
and yields Currency Currency
data)
Total $ 5,397 $ 4,781 $ 21,593 $
20,825
revenues
Less: Cruise (3,629) (3,077) (14,317)
(12,909)
and tour
operating
expenses
Depreciation (596) (554) (2,370)
(2,160)
and
amortization
Gross margin 1,172 1,151 4,906 5,755
Less: Tour (50) (91) (265) (390)
and other
revenues
Add: Payroll 605 578 2,373 2,249
and
related
Fuel 555 358 2,047 1,562
Food 335 262 1,335 1,083
Ship and - - - -
other
impairments
Other 879 802 3,426 3,193
operating
Depreciation 596 554 2,370 2,160
and
amortization
Adjusted $ 4,093 $ 4,162 $ 3,614 $ 16,192 $ 16,449 $
15,613
gross margin
PCDs 23.6 23.6 22.6 91.4 91.4 93.4
Gross margin $ 49.72 $ 50.89 $ 53.67 $
61.62
per diems
(per PCD)
Net per $ 173.60 $ 176.52 $ 159.79 $ 177.13 $ 179.94 $
167.17
diems (per
PCD)
ALBDs 23.2 23.2 21.8 91.3 91.3 87.4
Gross margin $ 50.47 $ 52.92 $ 53.73 $
65.83
yields
(per ALBD)
Net yields $ 176.20 $ 179.16 $ 166.16 $ 177.34 $ 180.15 $
178.59
(per ALBD)
(See Non
-GAAP
Financial
Measures)
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Data in the below table is compared against 2019 as it is the most recent year
of full operations due to the pause and resumption of guest cruise operations.
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 Twelve
Months Months
Ended Ended
November November
30, 30,
(in millions, 2023 2023 2019 2023 2023 2019
except
costs per ALBD Constant Constant
data) Currency Currency
Cruise and $ 3,629 $ 3,07 $ 14,317 $
12,909
tour
operating 7
expenses
Selling and 788 667 2,950 2,480
administrative
expenses
Less: Tour and (42) (76) (231) (296)
other
expenses
Cruise costs 4,375 3,667 17,035 15,093
Less: (664) (595) (2,761)
(2,720)
Commissions,
transportation
and
other
Onboard and (590) (481) (2,375)
(2,101)
other
costs
Gains (losses) 34 5 88 16
on
ship sales and
impairments
Restructuring (3) (10) (19) (10)
expenses
Other - - - (43)
Adjusted 3,153 3,196 2,586 11,969 12,130 10,234
cruise costs
Less: Fuel (555) (555) (358) (2,047) (2,047)
(1,562)
Adjusted $ 2,597 $ 2,641 $ 2,22 $ 9,922 $ 10,083 $
8,672
cruise costs
excluding fuel 8
ALBDs 23.2 23.2 21.8 91.3 91.3 87.4
Cruise costs $ 188.31 $ 168. $ 186.57 $
172.64
per ALBD
5
8
% increase 12% 8.1%
(decrease)
vs 2019
Adjusted $ 135.70 $ 137.58 $ 118. $ 131.08 $ 132.85 $
117.07
cruise costs
per ALBD 8
9
% increase 14% 16% 12% 13%
(decrease)
vs 2019
Adjusted $ 111.80 $ 113.68 $ 102. $ 108.67 $ 110.43 $
99.20
cruise costs
excluding fuel 4
per 4
ALBD
% increase 9.1% 11% 9.5% 11%
(decrease)
vs 2019
(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 Use Non-GAAP Measure to Assess
Measure
· Adjusted net income · Net income · Company Performance
(loss) and adjusted (loss)
EBITDA
· Adjusted earnings per · Earnings per · Company Performance
share share
· Adjusted free cash · Cash from · Impact on Liquidity Level
flow (used in)
operations
· Net per diems · Gross margin · Cruise Segments Performance
per diems
· Net yields · Gross margin · Cruise Segments Performance
yields
· Adjusted cruise costs · Gross cruise · Cruise Segments Performance
per ALBD and costs per ALBD
adjustedcruise costs
excluding fuel per ALBD
· Adjusted return on - · Company Performance
invested capital
("ROIC")
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 EBITDAprovides 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 flowprovides 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 diemsand 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 ALBDand 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 ROICprovides 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 per diems, adjusted cruise costs excluding
fuel and adjusted cruise costs excluding fuel per ALBD on a "constant currency"
basis assuming the 2023 periods' currency exchange rates have remained constant
with the 2019 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 CONTACT, Jody Venturoni, +1 469 797 6380; INVESTOR RELATIONS
CONTACT, Beth Roberts, +1 305 406 4832
This information was brought to you by Cision http://news.cision.com
END
(END) Dow Jones Newswires
December 21, 2023 09:15 ET (14:15 GMT)
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