Carnival PLC Carnival Corporation 3Q 2022 Business Update

 
TIDMCCL 
 
CARNIVAL CORPORATION & PLC PROVIDES THIRD QUARTER 2022 BUSINESS UPDATE 
 
MIAMI, Sept. 30, 2022 /PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE: 
CCL; NYSE: CUK) provides third quarter 2022 business update. 
 
  * U.S. GAAP net loss of $770 million and adjusted net loss of $688 million 
    for the third quarter of 2022. 
  * Adjusted EBITDA for the third quarter of 2022 was over $300 million, 
    turning positive for the first time since the resumption of guest cruise 
    operations and marking a significant milestone. 
  * Revenue increased by nearly 80% in the third quarter of 2022 compared to 
    second quarter 2022, reflecting continued sequential improvement. 
  * Occupancy in the third quarter of 2022 increased 15 percentage points from 
    the prior quarter. 
  * Since the announcement of the company's relaxed protocols in mid-August, 
    aligning the company towards land-based vacation alternatives, booking 
    volumes for all future sailings are considerably higher than strong 2019 
    levels. 
  * Third quarter 2022 ended with $7.4 billion of liquidity, including cash and 
    borrowings available under the company's revolving credit facility. 
 
Carnival Corporation & plc's Chief Executive Officer Josh Weinstein commented, 
"The well-being of the Caribbean region, Florida and other states still in the 
path of Hurricane Ian is very important to us. On behalf of Carnival 
Corporation, I would like to extend our deepest concern for those affected by 
Hurricane Ian and Fiona, some of whom are our own employees, travel agent 
partners, destination communities and loyal guests." 
 
Weinstein noted, "During our third quarter our business continued its positive 
trajectory, achieving over $300 million of adjusted EBITDA and reaching nearly 
90% occupancy on our August sailings. We are continuing to close the gap to 
2019 as we progress through the year, building occupancy on higher capacity and 
lower unit costs." 
 
Weinstein continued, "Since announcing the relaxation of our protocols last 
month, we have seen a meaningful improvement in booking volumes and are now 
running considerably ahead of strong 2019 levels. We expect to further 
capitalize on this momentum with renewed efforts to generate demand. We are 
focused on delivering significant revenue growth over the long-term, while 
taking advantage of near-term tactics to quickly capture price and bookings in 
the interim." 
 
Weinstein added, "With a transformed fleet, an unmatched portfolio of well 
recognized brands, unparalleled scale in an under-penetrated industry and an 
incredibly talented global team, we have the ability to drive durable revenue 
growth through pricing improvements over time. We believe this will provide 
significant free cash flow and accelerate our return to strong profitability 
and investment grade credit ratings." 
 
Third Quarter 2022 Results and Statistical Information 
 
  * Revenue increased by nearly 80% in the third quarter of 2022 compared to 
    second quarter 2022, reflecting continued sequential improvement. For the 
    cruise segments, revenue per passenger cruise day ("PCD") for the third 
    quarter of 2022 decreased compared to a strong 2019. 
  * Onboard and other revenue per PCD for the third quarter of 2022 increased 
    significantly compared to a strong 2019. 
  * PCDs for the third quarter of 2022 were 17.7 million, representing a 55% 
    increase from the prior quarter. 
  * Occupancy in the third quarter of 2022 increased 15 percentage points from 
    the prior quarter. 
  * Available lower berth days ("ALBD") for the third quarter of 2022 were 21.0 
    million, which represents 92% of total fleet capacity, increasing from 74% 
    in the second quarter of 2022. 
  * Adjusted EBITDA for the third quarter of 2022 was over $300 million, 
    turning positive for the first time since the resumption of guest cruise 
    operations and marking a significant milestone. 
 
Total customer deposits were $4.8 billion as of August 31, 2022, approaching 
the $4.9 billion as of August 31, 2019, which was a record third quarter. New 
bookings during the third quarter of 2022 primarily offset the historical third 
quarter seasonal decline in customer deposits ($0.3 billion decline in the 
third quarter of 2022 compared to $1.1 billion decline for the same period in 
2019). 
 
Guest Cruise Operations 
 
Weinstein noted, "With our return to guest cruise operations essentially 
complete, we are now relentlessly focused on driving top line growth and 
returning to strong profitability. We believe the strategic changes we have 
already made to our fleet resulting in a younger and more efficient fleet, 
coupled with our recent portfolio optimization efforts including COSTA® by 
CARNIVAL®, will provide strong tailwinds along our path to profitability." 
 
As of September 30, 2022, approximately 95% of the company's capacity is 
serving guests. The company expects eight of its nine brands will have their 
entire fleet serving guests by the end of the fourth quarter of 2022. Given 
Costa Cruises' significant presence in Asia, particularly China, which remains 
closed to cruising, the brand continues to evaluate deployment options and 
fleet optimization alternatives beyond the previously announced transfers 
of Costa Luminosa to Carnival Cruise Line as well as Costa Venezia and Costa 
Firenze to the COSTA® by CARNIVAL® concept. 
 
Based on the evolving nature of COVID-19 and the company's ongoing 
collaboration with local and national public health authorities, the company's 
brands continue to responsibly relax their COVID-19 related protocols ("relaxed 
protocols") aligning the company towards land-based vacation alternatives. This 
generally includes greatly reduced or eliminated testing requirements and 
significantly broadens the demand pool by welcoming unvaccinated guests. These 
relaxed protocols generally became effective throughout September and are 
subject to local destination regulations. 
 
The company saw a continuation of its 2022 sequential improvement in adjusted 
cruise costs excluding fuel per ALBD in constant currency (see "Non-GAAP 
Financial Measures" below) in the third quarter of 2022 and expects to see 
continued improvement in the fourth quarter of 2022 with a low double-digit 
increase as compared to the fourth quarter of 2019 driven in part by higher 
advertising expense to drive 2023 revenue. While the company's year-to-date 
adjusted cruise costs excluding fuel per ALBD during 2022 has benefited from 
the sale of smaller-less efficient ships and the delivery of larger-more 
efficient ships, this benefit is offset by a portion of its fleet being in 
pause status for part of the year, restart related expenses, an increase in the 
number of dry dock days, the cost of maintaining enhanced health and safety 
protocols, inflation and supply chain disruptions. The company anticipates that 
many of these costs and expenses will end in 2022. 
 
Given the seasonality of its business, the company expects a net loss and 
breakeven to slightly negative adjusted EBITDA for the fourth quarter ending 
November 30, 2022. Having achieved over $300 million adjusted EBITDA in the 
third quarter, the company anticipates positive adjusted EBITDA for the second 
half of 2022 despite the seasonality of its business and the increasing 
investment in advertising to drive yields in 2023. Additionally, on a 
year-over-year basis, the company expects improvement in adjusted EBITDA and 
occupancy, with occupancy returning to historical levels during 2023. 
 
Bookings 
 
Booking volumes for all future sailings during the third quarter of 2022 saw a 
continuation of the accelerated booking volumes during the second quarter of 
2022, closing the gap to strong 2019 levels. Since the announcement of the 
company's relaxed protocols in mid-August, aligning the company towards 
land-based vacation alternatives, booking volumes for all future sailings are 
considerably higher than strong 2019 levels. (The company's current booking 
trends will be compared to booking trends for 2019 sailings as it is the most 
recent full year of guest cruise operations.) 
 
Cumulative advance bookings for the fourth quarter of 2022 are below the 
historical range and at lower prices, primarily due to future cruise credits 
("FCCs"), as compared to 2019 sailings. 
 
Cumulative advance bookings for full year 2023 are slightly above the 
historical average and at considerably higher prices, as compared to 2019 
sailings, normalized for FCCs. 
 
Financing and Capital Activity 
 
During the third quarter of 2022, the company completed a $1.15 billion public 
equity offering of its common stock. The company expects to use the net 
proceeds from the offering for general corporate purposes, which could include 
addressing 2023 debt maturities. In addition, the company invested $0.5 billion 
in capital expenditures, repaid $0.4 billion of debt principal and incurred 
$0.4 billion of interest expense, net during the quarter. The company ended the 
third quarter of 2022 with $7.4 billion of liquidity, including cash and 
borrowings available under the revolving credit facility. 
 
Additionally, the company exchanged $339 million in aggregate principal amount 
of its outstanding Convertible Senior Notes due 2023 (the "Existing Notes") for 
the same amount of Convertible Senior Notes due 2024 (the "New Notes"), 
extending maturities at the existing rate of 5.75%. The New Notes have the same 
initial conversion price as the Existing Notes, representing no dilution to 
shareholders at scheduled maturity versus the Existing Notes, the same coupon 
and no upfront cost to the company. 
 
Sustainability 
 
Carnival Chief Maritime Officer William Burke noted, "We recently completed 
successful pilots using biofuels which demonstrate continued innovation in our 
commitment to decarbonization. In addition, we are working aggressively toward 
our 2030 carbon reduction goals through the technology upgrades currently being 
rolled out, investing in port and destination projects and even more focus on 

itinerary optimization across the portfolio while realizing the benefit of our 
fleet optimization efforts, which combine to drive down our carbon footprint, 
fuel consumption and cost. This reinforces our commitment to maintaining 
excellence in compliance, protecting the environment and the health, safety and 
well-being of our guests, employees and the communities we touch and serve." 
 
AIDA Cruises and Holland America Line achieve milestones in their 
decarbonization strategies through initiating use of biofuels 
 
In July 2022, AIDA Cruises piloted its use of biofuels when AIDAprima became 
the first larger-scale cruise ship to be powered with a blend of marine 
biofuel, which is made from 100% sustainable raw materials, and marine gas oil. 
In addition, Holland America Line recently completed two pilots on Volendam, 
one using a blend of marine biofuel and another using 100% biofuel, becoming 
the first larger-scale cruise ship to be powered 100% by biofuel. The certified 
biofuels used in these pilots offer environmental benefits compared to using 
fossil fuels alone, through their lifecycle CO2 reductions. They can be used in 
currently installed ship main engines without modifications to the engine or 
fuel infrastructure, including on ships already in service. 
 
Global fleet upgrades will improve energy and fuel efficiency and support 
sustainability goals 
 
In August 2022, the company announced the global rollout of Service Power 
Packages, a comprehensive set of technology upgrades, which will be implemented 
over the next several years across a portion of the fleet. These upgrades 
include the following elements designed to reduce both fuel usage and 
greenhouse gas emissions while also contributing to cost savings: 
 
  * Comprehensive upgrades to each ship's hotel HVAC systems 
  * Technical systems upgrades on each ship 
  * State-of-the-art LED lighting systems 
  * Remote monitoring and maintenance of energy usage and performance 
 
The Service Power Package upgrades are part of the company's ongoing energy 
efficiency investment program, in which the company has invested over $350 
million in energy efficiency improvements since 2016, and are expected to 
further improve energy savings and reduce fuel consumption across the company's 
nine cruise brands. Upon completion, these upgrades are expected to generate 
approximately $150 million in annual fuel cost savings by delivering an average 
of 5-10% fuel savings per ship. These investments, along with the company's 
fleet optimization and recently launched itinerary reviews, are expected to 
drive a 10% reduction in fuel consumption per ALBD in 2023, along with a 9% 
reduction in carbon emissions per ALBD on an annualized basis, both as compared 
to 2019. This multi-year program will also contribute to carbon emission 
reductions in 2024 and beyond, ultimately advancing the company's 2030 
sustainability goals. 
 
Other Recent Highlights 
 
  * Seabourn took delivery of Seabourn Venture, the line's first purpose-built 
    ultra-luxury expedition ship. 
  * Carnival Cruise Line's booking activity for Monday, August 15 nearly 
    doubled the level for the equivalent day in 2019 after announcing the 
    relaxed protocols. 
  * Carnival Cruise Line received the 2022 Seatrade Cruise Award in the 
    Investment in People Award category for their DEI, Learning and Community 
    initiatives. 
  * Carnival continues to lead in destination port development including 
    Carnival Cruise Line's recently announced economic opportunities for its 
    Grand Bahama Cruise Port Development, which is opening in late 2024 and 
    will generate an estimated 1,000 local jobs. 
  * Holland America Line launched its "See the World from Your Doorstep" 
    campaign, highlighting the cruise line's leadership in longer duration 
    round-trip cruises from U.S. homeports, as it sees a higher interest for 
    these kinds of voyages. 
  * Carnival Corporation released its 12th annual sustainability report, 
    detailing the key initiatives and progress made in 2021 toward its 2030 
    sustainability goals and 2050 aspirations. 
 
Selected Forecast Information 
 
Available Lower Berth Days ("ALBDs") 
 
The company's ALBD forecast consists of contracted new ships, announced sales 
and planned restart schedule. 
 
                       Actuals           Forecast  Full Year 
                                                        2022 
(in millions) 1Q 2022  2Q 2022  3Q 2022  4Q 2022 
 
ALBDs              13       17       21        22         73 
 
Fuel 
 
The company's fuel consumption forecast for the remainder of the year is 724 
thousand metric tons. The blended spot price for fuel is currently $675 per 
metric ton. 
 
Depreciation and Amortization 
 
The company's depreciation and amortization forecast for the remainder of the 
year is $0.6 billion. The 2022 full year forecast, which includes year-to-date 
actuals, is $2.3 billion. 
 
Interest Expense, Net of Capitalized Interest 
 
The company's interest expense, net of capitalized interest forecast for the 
remainder of the year is $0.4 billion. The 2022 full year forecast, which 
includes year-to-date actuals, is $1.6 billion. 
 
Outstanding Debt Maturities 
 
As of August 31, 2022, the company's outstanding debt maturities are as 
follows: 
 
(in billions)                 2022           2023           2024           2025 
 
Principal       $                   $              $              $ 
payments on                    1.0            2.4            2.3            4.3 
outstanding 
debt (a) 
 
(a)            Excludes the revolving credit facility. As of August 31, 2022, 
               borrowings under the revolving credit facility were $2.7 
               billion, which mature in 2024. 
 
Refer to Financial Information within the Investor Relations section of the 
corporate website for further details on its Debt Maturities, which will be 
available upon filing the Form 10-Q:  https://www.carnivalcorp.com/ 
financial-information/supplemental-schedules 
 
Capital Expenditures 
 
The company's annual capital expenditure forecast, which includes year-to-date 
actuals for 2022, is as follows: 
 
(in                      2022                 2023              2024              2025 
billions) 
 
Contracted   $                (a) $                 $                 $ 
newbuild                  4.1                  2.3               1.5               0.9 
 
Non-newbuild              1.1                  1.9               2.0               2.0 
 
Total (b)    $                    $                 $                 $ 
                          5.2                  4.2               3.5               2.9 
 
(a)          Includes three newbuild deliveries during the first quarter of 2022 and 
             one newbuild delivery during the third quarter of 2022. 
 
(b)          Forecasted capital expenditures will fluctuate with foreign currency 
             movements relative to the U.S. Dollar. 
 
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 business update. 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 one of the world's largest leisure travel 
companies with a portfolio of nine of the world's leading cruise lines. With 
operations in North America, Australia, Europe and Asia, its portfolio features 
- Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises 
(Australia), Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK) and 
Cunard. 
 
Additional information can be found on  www.carnivalcorp.com, 
www.carnivalsustainability.com,  www.carnival.com,  www.princess.com, 
www.hollandamerica.com,  www.pocruises.com.au,  www.seabourn.com, 
www.costacruise.com,  www.aida.de,  www.pocruises.com and  www.cunard.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                    . Goodwill, ship and trademark fair values 
 
. Booking levels             . Liquidity and credit ratings 
 
. Occupancy                  . Adjusted earnings per share 
 
. Interest, tax and fuel     . Return to guest cruise operations 
  expenses 
 
. Currency exchange rates    . Impact of the COVID-19 coronavirus global 
                               pandemic on our financial condition and results 
. Estimates of ship            of operations 
  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 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 
COVID-19. It is not possible to predict or identify all such risks. There may 
be additional risks that we consider immaterial or which are unknown. These 
factors include, but are not limited to, the following: 
 
  * COVID-19 has had, and is expected to continue to have, a significant impact 
    on our financial condition and operations. The current, and uncertain 
    future, impact of COVID-19, including its effect on the ability or desire 
    of people to travel (including on cruises), is expected to continue to 
    impact our results, operations, outlooks, plans, goals, reputation, 
    litigation, cash flows, liquidity, and stock price. 
  * Events and conditions around the world, including war and other military 
    actions, such as the current invasion of Ukraine, 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, impacting our operating costs and 
    profitability. 
  * Incidents concerning our ships, guests or the cruise industry have in the 
    past and may, in the future, impact the satisfaction of our guests and crew 
    and lead to reputational damage. 
  * Changes in and non-compliance with laws and regulations under which we 
    operate, such as those relating to health, environment, safety and 
    security, data privacy and protection, anti-corruption, economic sanctions, 
    trade protection and tax 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 sustainability related goals, aspirations, 
    initiatives, and our public statements and disclosures regarding them, 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 employees, our inability to recruit or retain qualified 
    shoreside and shipboard employees 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 are also affected by 
    COVID-19 and may be unable to deliver on their commitments which could 
    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 lead to a decline in 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. 
 
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-related statements may be based on standards for 
measuring progress that are still developing, internal controls and processes 
that continue to evolve, and assumptions that are subject to change in the 
future. 
 
                          CARNIVAL CORPORATION & PLC 
                   CONSOLIDATED STATEMENTS OF INCOME (LOSS) 
                                  (UNAUDITED) 
                     (in millions, except per share data) 
 
                                Three Months Ended        Nine Months Ended 
                                    August 31,                August 31, 
 
                                   2022          2021        2022          2021 
 
Revenues 
 
  Passenger ticket            $          $              $          $ 
                                  2,595           303       4,753           326 
 
  Onboard and other               1,711           243       3,577           295 
 
                                  4,305           546       8,329           621 
 
Operating Costs and Expenses 
 
  Commissions,                      565            79       1,141           116 
transportation and other 
 
  Onboard and other                 537            72       1,060            94 
 
  Payroll and related               563           375       1,601           834 
 
  Fuel                              668           182       1,577           398 
 
  Food                              259            52         586            80 
 
  Ship and other impairments          -           475           8           524 
 
  Other operating                   787           381       2,118           786 
 
                                  3,379         1,616       8,092         2,832 
 
Selling and administrative          625           425       1,774         1,305 
 
Depreciation and                    581           562       1,707         1,681 
amortization 
 
                                  4,585         2,603      11,573         5,817 
 
Operating Income (Loss)           (279)       (2,057)     (3,244)       (5,196) 
 
Nonoperating Income 
(Expense) 
 
 Interest income                     24             3          34            10 
 
 Interest expense, net of         (422)         (418)     (1,161)       (1,253) 
capitalized interest 
 
 Gain (loss) on debt                  -         (376)           -         (372) 
extinguishment, net 
 
 Other income (expense), net       (81)          (11)       (108)          (87) 
 
                                  (479)         (802)     (1,235)       (1,702) 
 
Income (Loss) Before Income       (759)       (2,859)     (4,478)       (6,898) 
Taxes 
 
Income Tax Benefit                 (11)            23        (17)            17 
(Expense), Net 
 
Net Income (Loss)            $                $           $             $ 
                                  (770)       (2,836)     (4,495)       (6,881) 
 
Earnings Per Share 
 
Basic                         $             $           $             $ 
                                 (0.65)        (2.50)      (3.89)        (6.14) 
 
Diluted                       $             $           $             $ 
                                 (0.65)        (2.50)      (3.89)        (6.14) 
 
Weighted-Average Shares           1,185         1,133       1,154         1,120 
Outstanding - Basic 
 
Weighted-Average Shares           1,185         1,133       1,154         1,120 
Outstanding - Diluted 
 
 
 
                          CARNIVAL CORPORATION & PLC 
                          CONSOLIDATED BALANCE SHEETS 
                                  (UNAUDITED) 
                       (in millions, except par values) 
 
                                                     August 31,    November 30, 
                                                           2022            2021 
 
ASSETS 
 
Current Assets 
 
Cash and cash equivalents                        $               $ 
                                                          7,071           8,939 
 
Short term investments                                        -             200 
 
Trade and other receivables, net                            360             246 
 
Inventories                                                 420             356 
 
Prepaid expenses and other                                  581             392 
 
  Total current assets                                    8,432          10,133 
 
Property and Equipment, Net                              38,137          38,107 
 
Operating Lease Right-of-Use Assets, Net                  1,163           1,333 
 
Goodwill                                                    579             579 
 
Other Intangibles                                         1,151           1,181 
 
Other Assets                                              2,455           2,011 
 
                                                   $               $ 
                                                         51,917          53,344 
 
LIABILITIES AND SHAREHOLDERS' EQUITY 
 
Current Liabilities 
 
Short-term borrowings                            $               $ 
                                                          2,675           2,790 
 

Current portion of long-term debt                         2,877           1,927 
 
Current portion of operating lease liabilities              139             142 
 
Accounts payable                                            920             797 
 
Accrued liabilities and other                             1,873           1,641 
 
Customer deposits                                         4,470           3,112 
 
  Total current liabilities                              12,954          10,408 
 
Long-Term Debt                                           28,518          28,509 
 
Long-Term Operating Lease Liabilities                     1,076           1,239 
 
Other Long-Term Liabilities                                 989           1,043 
 
Shareholders' Equity 
 
Common stock of Carnival Corporation, $0.01 par              12              11 
value; 1,960 shares authorized; 1,243 
shares at 2022 and 1,116 shares at 2021 issued 
 
Ordinary shares of Carnival plc, $1.66 par                  361             361 
value; 217 shares at 2022 and 2021 issued 
 
Additional paid-in capital                               16,626          15,292 
 
Retained earnings                                         1,868           6,448 
 
Accumulated other comprehensive income (loss)           (2,024)         (1,501) 
 
Treasury stock, 130 shares at 2022 and 2021 of          (8,464)         (8,466) 
Carnival Corporation and 71 shares at 
2022 and 67 shares at 2021 of Carnival plc, at 
cost 
 
  Total shareholders' equity                              8,379          12,144 
 
                                                   $               $ 
                                                         51,917          53,344 
 
 
 
                          CARNIVAL CORPORATION & PLC 
                               OTHER INFORMATION 
 
OTHER BALANCE SHEET                  August 31, 2022          November 30, 2021 
INFORMATION (in millions) 
 
Liquidity                  $                          $ 
                                               7,371                      9,378 
 
Debt (current and             $                          $ 
long-term)                                    34,071                     33,226 
 
Customer deposits (current $                          $ 
and long-term)                                 4,760                      3,508 
 
 
 
                          Three Months Ended            Nine Months Ended 
                              August 31,                    August 31, 
 
CASH FLOW                     2022           2021           2022           2021 
INFORMATION  (in 
millions) 
 
Cash from (used in)    $              $                 $              $ 
operations                   (344)          (879)        (1,553)        (3,741) 
 
Capital expenditures $              $                   $            $ 
                               538            963        (3,759)          3,120 
 
STATISTICAL 
INFORMATION 
 
PCDs (in thousands)         17,700          2,053         36,363          2,219 
(a) 
 
ALBDs (in thousands)        21,015          3,788         51,004          4,405 
(b) 
 
Occupancy percentage          84 %           54 %           71 %           50 % 
(c) 
 
Passengers carried           2,571            340          5,233            372 
(in thousands) 
 
Fuel consumption in            701            344          1,899            852 
metric tons (in 
thousands) 
 
Fuel consumption in             33            (d)             37            (d) 
metric tons per 
thousand ALBDs 
 
Fuel cost per metric $              $              $              $ 
ton consumed                   958            537            836            472 
 
Currencies (USD to 
1) 
 
AUD                   $              $              $              $ 
                              0.70           0.75           0.71           0.76 
 
CAD                   $              $              $              $ 
                              0.78           0.80           0.78           0.80 
 
EUR                   $              $              $              $ 
                              1.03           1.19           1.08           1.20 
 
GBP                   $              $              $              $ 
                              1.21           1.39           1.28           1.38 
 
The resumption of guest cruise operations has impacted the comparability of all 
aspects of the company's business. 
 
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 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. 
 
(d) Fuel consumption in metric tons per thousand ALBDs for 2021 is not 
    meaningful. 
 
 
 
                          CARNIVAL CORPORATION & PLC 
                          NON-GAAP FINANCIAL MEASURES 
 
Data in the below table is compared against 2019 as it is the most recent year 
of full operations since 2021 and 2020 were 
impacted by the pause and resumption of guest cruise operations. 
 
Consolidated 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 ALBD as follows: 
 
                Three Months Ended August 31,    Nine Months Ended August 31, 
 
(dollars in        2022    2022           2019      2022    2022           2019 
millions,                Constant                         Constant 
except costs             Currency                         Currency 
per ALBD) 
 
Operating      $                   $            $                   $ 
costs and         3,379                  3,532     8,092                  9,833 
expenses 
 
Selling and         625                    563     1,774                  1,813 
administrative 
expenses 
 
Tour and other    (100)                  (117)     (169)                  (220) 
expenses 
 
Cruise costs      3,904                  3,978     9,697                 11,426 
 
Less 
 
Commissions,      (565)                  (803)   (1,141)                (2,125) 
transportation 
and other 
 
Onboard and       (537)                  (668)   (1,060)                (1,620) 
other 
 
Gains (losses)        -                    (3)       (1)                     11 
on ship sales 
and 
impairments 
 
Restructuring       (1)                      -       (2)                      - 
expenses 
 
Other                 -                   (23)         -                   (43) 
 
Adjusted          2,801                  2,480     7,492                  7,648 
cruise costs 
 
Less fuel         (668)                  (401)   (1,577)                (1,204) 
 
Adjusted       $         $         $            $         $         $ 
cruise costs      2,133     2,182        2,079     5,914     5,986        6,444 
excluding fuel 
 
ALBDs (in        21,015    21,015       22,727    51,004    51,004       65,671 
thousands) 
 
Cruise costs      $                      $         $                      $ 
per ALBD         185.77                 175.01    190.12                 173.98 
 
% increase          6 %                              9 % 
(decrease) vs 
2019 
 
Adjusted          $                      $         $                      $ 
cruise costs     133.28                 109.12    146.89                 116.46 
per ALBD 
 
% increase         22 %                             26 % 
(decrease) vs 
2019 
 
Adjusted          $         $         $            $         $         $ 
cruise costs     101.51    103.85        91.49    115.96    117.37        98.12 
excluding fuel 
per ALBD 
 
% increase         11 %      14 %                   18 %      20 % 
(decrease) vs 
2019 
 
(See Non-GAAP Financial Measures) 
 
 
 
                          CARNIVAL CORPORATION & PLC 
                    NON-GAAP FINANCIAL MEASURES (CONTINUED) 
 
                                          Three Months Ended 
 
(in millions)                       August 31, 2022                May 31, 2022 
 
Net income (loss) 
 
     U.S. GAAP net       $                              $ 
income (loss)                                 (770)                     (1,834) 
 
(Gains) losses on ship                            -                         (5) 
sales and impairments 
 
(Gains) losses on debt                            -                           - 
extinguishment, net 
 
     Restructuring                                -                           1 
expenses 
 
     Other                                       82                        (29) 
 
     Adjusted net        $                              $ 
income (loss)                                 (688)                     (1,867) 
 
Interest expense, net                           422                         370 
of capitalized 
interest 
 
  Interest income                              (24)                         (6) 
 
  Income tax                                     11                           3 
(expense), benefit 
 
  Depreciation and                              581                         572 
amortization 
 
Adjusted EBITDA        $                             $ 
                                                303                       (928) 
 
 
 

                          Three Months Ended             Nine Months Ended 
                              August 31,                     August 31, 
 
(in millions)                    2022          2021          2022          2021 
 
Net income (loss) 
 
     U.S. GAAP net    $                $             $             $ 
income (loss)                   (770)       (2,836)       (4,495)       (6,881) 
 
(Gains) losses on                   -           472             1           510 
ship sales and 
impairments 
 
(Gains) losses on                   -           376             -           372 
debt 
extinguishment, net 
 
     Restructuring                  -             2             2             5 
expenses 
 
     Other                         82             -            53            17 
 
     Adjusted net     $                $             $             $ 
income (loss)                   (688)       (1,986)       (4,439)       (5,976) 
 
Interest expense,                 422           418         1,161         1,253 
net of capitalized 
interest 
 
  Interest income                (24)           (3)          (34)          (10) 
 
  Income tax                       11          (23)            17          (17) 
(expense), benefit 
 
  Depreciation and                581           562         1,707         1,681 
amortization 
 
Adjusted EBITDA     $                  $             $             $ 
                                  303       (1,033)       (1,588)       (3,069) 
 
Non-GAAP Financial Measures 
 
We use adjusted net income (loss) and adjusted EBITDA as non-GAAP financial 
measures of the company's financial performance. We use adjusted cruise costs 
per ALBD and adjusted cruise costs excluding fuel per ALBD as non-GAAP 
financial measures of our cruise segments' financial performance. These 
non-GAAP financial measures are provided along with U.S. GAAP cruise costs per 
ALBD and U.S. GAAP net income (loss). 
 
We believe that gains and losses on ship sales, impairment charges, gains and 
losses on debt extinguishments, 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. Therefore, we believe it is more meaningful 
for these items to be excluded from our net income (loss), and accordingly, we 
present adjusted net income (loss) excluding these items as additional 
information to investors. 
 
We believe that the presentation of adjusted EBITDA provides additional 
information to investors about our operating profitability by excluding certain 
gains 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 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 cruise costs per ALBD and adjusted cruise costs excluding fuel per 
ALBD  enable us to separate the impact of predictable capacity or ALBD changes 
from price and other changes that affect our business. We believe these 
non-GAAP measures provide useful information to investors and expanded insight 
to measure our cost performance as a supplement to our U.S. GAAP consolidated 
financial statements. 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 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, as well as fuel expense to calculate adjusted cruise costs without fuel. 
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. 
 
The presentation of our non-GAAP financial information is not intended to be 
considered in isolation from, as substitute for, or superior to the financial 
information prepared in accordance with U.S. GAAP. It is possible that our 
non-GAAP financial measures may not be exactly comparable to the like-kind 
information presented by other companies, which is a potential risk associated 
with using these measures to compare us to other companies. 
 
Constant Currency 
 
Our operations primarily utilize the U.S. dollar, Australian dollar, euro and 
sterling as functional currencies to measure results and financial condition. 
Functional currencies other than the U.S. dollar subject us to foreign currency 
translational risk. Our operations also have revenues and expenses that are in 
currencies other than their functional currency, which subject us to foreign 
currency transactional risk. 
 
We report adjusted cruise costs excluding fuel per ALBD on a "constant 
currency" basis assuming the 2022 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. 
 
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. 
 
Examples: 
 
  * The translation of our operations with functional currencies other than 
    U.S. dollar to our U.S. dollar reporting currency results in decreases in 
    reported U.S. dollar revenues and expenses if the U.S. dollar strengthens 
    against these foreign currencies and increases in reported U.S. dollar 
    revenues and expenses if the U.S. dollar weakens against these foreign 
    currencies. 
  * Our operations have revenue and expense transactions in currencies other 
    than their functional currency. If their functional currency strengthens 
    against these other currencies, it reduces the functional currency revenues 
    and expenses. If the functional currency weakens against these other 
    currencies, it increases the functional currency revenues and expenses. 
 
CONTACT: MEDIA CONTACT: Roger Frizzell, [phone]; INVESTOR RELATIONS 
CONTACT: Beth Roberts, [phone] 
 
 
 
END 
 
 

(END) Dow Jones Newswires

September 30, 2022 09:15 ET (13:15 GMT)