We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Carnival Plc | LSE:CCL | London | Ordinary Share | GB0031215220 | ORD USD 1.66 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -10.50 | -1.01% | 1,027.50 | 1,024.50 | 1,026.00 | 1,032.00 | 1,008.00 | 1,032.00 | 320,393 | 16:35:20 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Water Trans Of Passenger,nec | 21.59B | -74M | -0.0566 | -181.36 | 13.41B |
Hot Features
Premium
TIDMCCL
Exhibit 99.1
CARNIVAL CORPORATION & PLC
PROVIDES FOURTH QUARTER 2022 BUSINESS UPDATE
MIAMI (December 21, 2022) - Carnival Corporation & plc (NYSE/LSE: CCL; NYSE:
CUK) provides fourth quarter 2022 business update.
* U.S. GAAP net loss of $1.6 billion, or $(1.27) diluted EPS and adjusted net
loss of $1.1 billion, or $(0.85) adjusted EPS, for the fourth quarter of
2022 (see "Non-GAAP Financial Measures" below).
* Adjusted EBITDA for the fourth quarter of 2022 was $(96) million, within
the previous guidance range of breakeven to slightly negative, despite an
approximate $40 million unfavorable impact from fuel price and currency
rates since forecasted information was provided in the Third Quarter
Business Update.
* Adjusted EBITDA for the second half of 2022 was $207 million, inclusive of
an increased investment in advertising to drive revenue in 2023.
* For the cruise segment, revenue per passenger cruise day ("PCD") for the
fourth quarter of 2022 increased 0.5% (3.8% in constant dollar) compared to
a strong 2019, overcoming the dilutive impact of future cruise credits
("FCCs"), and better than the third quarter of 2022 which decreased 4.1%
(2.1% in constant dollar) compared to 2019.
* Occupancy in the fourth quarter of 2022 was 19 percentage points below 2019
levels, on capacity in guest cruise operations approaching 2019 levels.
This was better than the third quarter which was 29 percentage points below
2019 levels on 8% lower capacity than 2019.
* The company's full year 2023 cumulative advanced booked position is higher
than its historical average at higher prices in constant currency,
normalized for FCCs, as compared to a strong 2019.
* Total customer deposits hit a fourth quarter record of $5.1 billion as of
November 30, 2022, surpassing the previous record of $4.9 billion as of
November 30, 2019.
* Fourth quarter 2022 ended with $8.6 billion of liquidity.
Carnival Corporation & plc's Chief Executive Officer Josh Weinstein commented,
"Throughout 2022, we have successfully returned our fleet to service,
aggressively building occupancy on growing capacity, while driving revenue per
passenger cruise day higher than 2019 record levels, both in the fourth quarter
and full year overall. We have also actively managed down our costs while
investing to build future demand."
Weinstein continued, "Booking volumes strengthened following the relaxation in
protocols, cancellation trends are improving globally, and we have seen a
measurable lengthening in the booking curve, across all brands. The momentum
has continued into December, which bodes well for 2023 overall as more markets
open for cruise travel, protocols continue to relax, our closer to home
itineraries play out, our stepped-up advertising efforts pay dividends and our
brands continue to hone all aspects of their revenue generating activities."
Weinstein added, "We believe we are accelerating our return to strong
profitability through our fleet and brand portfolio management which is
delivering prudent capacity growth weighted toward our highest returning brands
and amplified by nearly a quarter of our fleet consisting of newly delivered
vessels. We believe this leaves us well positioned to drive revenue growth
across our global brand portfolio as we continue to leverage our scale on our
industry leading cost base, to deliver free cash flow which over time will
propel us on the path to deleveraging, investment grade credit ratings and
higher ROIC."
Fourth Quarter 2022 Results and Statistical Information
* Continuing to close the gap to a strong 2019:
+ For the cruise segment, revenue per PCD for the fourth quarter of 2022
increased 0.5% (3.8% in constant dollar) compared to a strong 2019,
overcoming the dilutive impact of FCCs, and better than the third
quarter of 2022 which decreased 4.1% (2.1% in constant dollar) compared
to 2019.
+ Occupancy in the fourth quarter of 2022 was 19 percentage points below
2019 levels, on capacity in guest cruise operations approaching 2019
levels. This was better than the third quarter which was 29 percentage
points below 2019 levels on 8% lower capacity than 2019.
+ Revenue in the fourth quarter of 2022 was $3.8 billion, which was 80%
of 2019 levels. This was better than the third quarter which was 66% of
2019 levels, an improvement of 14 percentage points.
* Adjusted cruise costs excluding fuel per ALBD (see "Non-GAAP Financial
Measures" below) continued its sequential quarterly improvement in the
fourth quarter of 2022 with a 7.2% increase (11% in constant currency) as
compared to the fourth quarter of 2019, down from a 25% increase (same in
constant currency) in the first quarter of 2022 as compared to the first
quarter of 2019. Costs remain higher as a result of higher advertising
investments to drive 2023 revenue as well as partially mitigating the
impacts of a high inflation environment. This was in line with the previous
guidance of a low double-digit increase in constant currency.
* Changes in fuel price, fuel mix and currency rates unfavorably impacted the
fourth quarter of 2022 by $267 million compared to the fourth quarter of
2019.
* Adjusted EBITDA (see "Non-GAAP Financial Measures" below) for the fourth
quarter of 2022 was $(96) million, within the previous guidance range of
breakeven to slightly negative, despite an approximate $40 million
unfavorable impact from fuel price and currency rates since forecasted
information was provided in the Third Quarter Business Update.
* Adjusted EBITDA for the second half of 2022 was $207 million, inclusive of
an increased investment in advertising to drive revenue in 2023.
* Total customer deposits hit a fourth quarter record of $5.1 billion as of
November 30, 2022, surpassing the previous record of $4.9 billion as of
November 30, 2019.
Fleet Optimization
The company expects to remove three additional smaller-less efficient ships
from its fleet. Two of these three ships are from Costa Cruises' ("Costa")
fleet as part of the company's strategy to right-size the brand in light of the
continued closure of cruise operations in China, and Costa's significant
presence there prior to the pause in the company's guest cruise operations.
Once completed in spring 2024, the company's fleet optimization strategy will
have reduced Costa's capacity so that it approximates the 2019 capacity Costa
dedicated outside of Asia to its core markets in Continental Europe.
The company now expects total capacity growth of 3% for 2023 compared to 2019,
at the lower end of the previous guidance range of 3% to 5%. The prudent
capacity growth rate includes the benefit that newly delivered ships will
represent nearly a quarter of the company's capacity.
Bookings
Booking volumes during the fourth quarter of 2022 for 2023 sailings are nearing
2019 comparable booking levels, with November booking volumes exceeding 2019
levels. The company's North America and Australia ("NAA") segment's fourth
quarter 2022 booking volumes for 2023 exceeded the comparable period in 2019.
The company's Europe and Asia ("EA") segment's fourth quarter 2022 bookings for
2023 were lower than the comparable period in 2019. However, reflecting the
closer-in booking pattern of its Continental European brands, its fourth
quarter 2022 bookings for fourth quarter sailings significantly exceeded the
comparable period in 2019. Further, the company continues to see an extension
of its EA segment's booking curve, facilitating more optimal revenue yields
over time.
Marking an early start to wave season (peak booking period), the company ended
the year with multiple brands breaking records on very strong Black Friday and
Cyber Monday booking volumes. The company's full year 2023 cumulative advanced
booked position is at higher prices in constant currency, normalized for FCCs,
as compared to strong 2019 pricing with a booked position that is higher than
the historical average. During the second half of 2022, the company
significantly increased its advertising activities to support booking volumes.
(The company's current booking trends are compared to booking trends for 2019
as it is the most recent full year of guest cruise operations.)
Financing and Capital Activity
During the fourth quarter of 2022, the company continued its efforts to address
future debt maturities while paying down its multi-currency revolving credit
facility. The company:
* Completed a $2.0 billion private offering of Senior Priority Notes due
2028.
* Issued $1.1 billion aggregate principal amount of Convertible Senior Notes
due 2027.
* Exchanged an additional $87 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, extending maturities
at the existing rate of 5.75% and the same initial conversion price as the
Existing Notes.
In addition, during the fourth quarter the company invested $1.2 billion in
capital expenditures, repaid $2.5 billion of borrowings outstanding under its
$2.9 billion multi-currency revolving credit facility, repaid $1.0 billion of
debt principal and incurred $0.4 billion of interest expense, net during the
quarter. The company ended the fourth quarter of 2022 with $8.6 billion of
liquidity, including cash, restricted cash from the 2028 Senior Priority Notes
which is now unrestricted, and borrowings available under the revolving credit
facility.
Environmental, Social and Governance ("ESG")
Expanding Air Lubrication Systems ("ALS") to generate savings in fuel
consumption and reductions in carbon emissions
Building on the success of five ALS currently operating in its fleet, the
company is currently installing ALS on six ships and is planning at least eight
more installations. ALS cushion the flat bottom of a ship's hull with air
bubbles which reduces the ship's frictional resistance and the propulsive power
required to drive the ship through the water, which is expected to generate
approximately 5% savings in fuel consumption and reductions in carbon emissions
on ALS equipped ships. Together, this investment along with various other
company initiatives, has enabled the company to increase its expectation for
the reduction of both fuel consumption per ALBD and carbon emissions per ALBD
to 15%, on an annualized basis, both as compared to 2019.
Carnival Chief Maritime Officer William Burke noted, "The installation of air
lubrication technology is another example of our ongoing efforts to drive
energy efficiency and reduce fuel consumption and emissions throughout our
fleet. We look forward to expanding the ALS program and furthering our
long-term sustainability strategy to continually invest in a broad range of
energy reduction initiatives, which has included over $350 million invested in
energy efficiency improvements since 2016."
Carnival Corporation & plc Boards of Directors focus on mix of skills,
experiences and diversity
The Boards of Directors regularly evaluate the composition of the Boards to
ensure the appropriate mix of skills, experiences, and diversity of
perspectives to effectively oversee the strategic direction of Carnival
Corporation & plc. During the quarter, Sara Mathew, retired Chair, President,
and Chief Executive Officer of Dun & Bradstreet Corp., was appointed to the
company's Boards of Directors and Audit Committees. Mathew is an experienced
leader and strategic operator with expertise in technology and innovation,
finance, and global consumer-facing brands. Additionally, during the quarter,
long-time Board member Sir John Parker made the decision not to seek
re-election to the Boards of Directors at the 2023 Annual Meetings of
Shareholders and will retire from the Boards with effect from the conclusion of
the 2023 Annual Meetings of Shareholders. With these changes, as well as the
recently announced retirement of long-time Board member and former President
and CEO Arnold Donald, the company's Boards will be comprised of twelve members
as of April 2023, ten of whom are independent directors, four of whom are
female and one of whom is ethnically diverse.
Other Recent Highlights
* Carnival Corporation & plc and its brands received the following
recognitions:
+ Carnival Corporation was named one of the World's Top Female-Friendly
Companies and one of the World's Best Employers of 2022 by Forbes, both
for the second consecutive year, along with one of America's Greatest
Workplaces for Diversity by Newsweek.
+ Carnival Cruise Line was a big winner in Travel Weekly's Readers'
Choice Awards, taking home top honors in four categories - Best Family
Cruise Line, Best Group Program, Best Short Itinerary Program, as well
as Best Domestic Cruise Line for the seventh year in a row.
+ Other Best in Cruise Line Travel Weekly's Readers' Choice Awards
received by our brands include amongst others:
o Alaska: Princess
o Under 1,000 Berths: Seabourn
o World Cruise Itinerary: Holland America Line
o Best Shipboard Tech: Princess
+ Princess Cruises was awarded Best Premium Cruise Line by Australian
Cruise Passenger Magazine.
+ Seabourn celebrates another banner year after receiving 29 top travel
industry awards and accolades including Condé Nast Travel - Gold List:
The Best Cruise Ships in the World: Seabourn Encore.
+ P&O Cruises (UK) was awarded Best Cruise Line for Family Holidays by
the British Travel Awards.
* Carnival Cruise Line took delivery of Carnival Celebration, sister to Mardi
Gras.
* P&O Cruises (UK) took delivery of Arvia, sister to Iona.
* Carnival Corporation & plc brands achieved record bookings:
+ Carnival Cruise Line achieved a record Cyber Monday booking day that
was 50% above volume for the same day in 2019.
+ Holland America Line's Black Friday booking volumes hit a record high
in the United States, with volume for the day close to 20% higher than
in 2019.
+ Seabourn reported its best performance for the month of November,
booking a record number of guests.
Weinstein added "We've completed a monumental 18-month journey - returning 90
ships to service, re-boarding over 100,000 team members, and restarting our
unmatched portfolio of eight private island and port destinations plus our
unrivaled land-based footprint in Alaska and the Yukon, all while welcoming
back nearly 9 million guests. For that, I sincerely thank our global teams
around the world for the ingenuity and sheer determination it took to see that
through to completion."
Selected Forecast Information
Available Lower Berth Days ("ALBDs") and Capacity Growth vs. 2019
The company's ALBDs consist of contracted new ships and announced ship
removals.
2023
(in millions) 1Q 2Q 3Q 4Q Full Year
ALBDs 22.1 22.2 23.3 22.7 90.3
The company's capacity growth is expected to be 3.7% for the first quarter of
2023 compared to the first quarter of 2019 and 3.3% for the full year 2023
compared to the full year 2019.
Occupancy
The company's occupancy for the first quarter of 2023 is expected to be 90% or
slightly higher, a 14 percentage point gap, or better, from 2019 levels, which
is an improvement from a 19 percentage point gap for the fourth quarter of 2022
compared to the fourth quarter of 2019. The company continues to expect to
close the gap to 2019 levels, with occupancy returning to historical levels in
the summer of 2023, which has historically been well over 100%.
Currencies
USD to 1 1Q 2023
AUD $
0.67
CAD $
0.73
EUR $
1.05
GBP $
1.23
Adjusted Cruise Costs, Excluding Fuel per ALBD
1Q 2023 Full Year 2023
Change compared to 2019 Current Constant Current Constant
Dollars Currency Dollars Currency
Adjusted cruise costs excl. fuel 4.0% to 5.0% 6.5% to 7.5% 5.0% to 6.0% 7.5% to 8.5%
per ALBD
Fuel
1Q 2023 Full Year 2023
Fuel consumption in metric tons (in millions) 0.7 2.9
Blended spot price $ $
670 673
Fuel expense (in billions) $ $
0.5 2.0
Impact to fuel expense of 10% change in fuel price (in $ $
millions) 47 185
The company expects a 15% reduction in both fuel consumption per ALBD and
carbon emissions per ALBD on an annualized basis for the full year 2023, both
as compared to 2019.
Depreciation and Amortization
The company's depreciation and amortization forecast for the first quarter of
2023 is $0.6 billion. The 2023 full year forecast is $2.4 billion.
Interest Expense, Net of Capitalized Interest and Interest Income
The company's interest expense, net of capitalized interest and interest income
forecast for the first quarter of 2023 is $0.5 billion. The 2023 full year
forecast is $2.0 billion.
Adjusted EBITDA and Adjusted Net Income (Loss)
The company expects $250 to $350 million of adjusted EBITDA for the first
quarter of 2023. The company expects a sequential improvement compared to 2019
in each quarter of 2023 as it continues to close the gap. In addition, the
company expects to generate significant positive adjusted EBITDA in 2023. The
company expects an adjusted net loss of $750 to $850 million for the first
quarter of 2023.
Capital Expenditures
The company's annual capital expenditure forecast for 2023, is as follows:
(in billions) 2023 2024 2025 2026
Contracted newbuild $ $ $ $
1.8 2.4 0.9 -
Non-newbuild
1.6 1.7 1.7 1.7
Total (a) $ $ $ $
3.4 4.1 2.6 1.7
a. Forecasted capital expenditures will fluctuate with foreign currency
movements relative to the U.S. Dollar.
Outstanding Debt Maturities
As of November 30, 2022, the company's outstanding debt maturities are as
follows:
(in billions) 2023 2024 2025 2026
First Lien $ $ $ $
0.0 0.0 2.6 0.0
Second Lien
- - - 1.2
All other
2.3 2.4 1.8 3.3
Total Principal payments on outstanding debt $ $ $ $
(a) 2.4 2.4 4.4 4.5
a. Excludes the $2.9 billion multi-currency revolving credit facility at
November 30, 2022. As of November 30, 2022, borrowings under the
multi-currency revolving credit facility were $0.2 billion, which mature in
August 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 after the conference call: 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 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.
MEDIA CONTACT INVESTOR RELATIONS CONTACT
Jody Venturoni Beth Roberts
?+1 469 797 6380 +1 305 406 4832
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 wordslike "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 * Liquidity and credit ratings
* Booking levels * Adjusted earnings per share
* Occupancy * Adjusted EBITDA
* Interest, tax and fuel expenses * Adjusted Net Income (Loss)
* Currency exchange rates * Estimates of ship depreciable lives
and residual values
* Goodwill, ship and trademark fair
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
our substantial debt balance as a result of 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 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.
* 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-corruption, economic sanctions,
trade protection, labor and employment, 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
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.
* Failure to successfully implement our business strategy following our
resumption of guest cruise operations would negatively impact the occupancy
levels and pricing of our cruises and could have a material adverse effect
on our business. 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.
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 November 30, Twelve Months Ended November
30,
2022 2021 2022 2021
Revenues
Passenger ticket $ 2,269 $ 674 $ 7,022 $ 1,000
Onboard and other 1,570 613
5,147 908
3,839 1,287 12,168
1,908
Operating Costs and Expenses
Commissions, transportation and other 489 153
1,630 269
Onboard and other 468 178
1,528 272
Payroll and related 580 475
2,181 1,309
Fuel 580 282
2,157 680
Food 277 107
863 187
Ship and other impairments 433
67 440 591
Other operating 840 560
2,958 1,346
3,665 1,823 11,757
4,655
Selling and administrative 741 580
2,515 1,885
Depreciation and amortization 568 552
2,275 2,233
Goodwill impairments - 226
- 226
4,974 3,180 16,547
8,997
Operating Income (Loss) (1,135) (1,893)
(4,379) (7,089)
Nonoperating Income (Expense)
Interest income
40 2 74 12
Interest expense, net of capitalized interest (448) (348)
(1,609) (1,601)
Gains (losses) on debt extinguishment, net (298)
(1) (1) (670)
Other income (expense), net
(57) (87) (165) (173)
(466) (731)
(1,701) (2,433)
Income (Loss) Before Income Taxes (1,601) (2,624)
(6,080) (9,522)
Income Tax Benefit (Expense), Net
3 4 (14) 21
Net Income (Loss) $ (1,598) $ (2,620) $ (6,093) $ (9,501)
Earnings Per Share
Basic $ (1.27) $ (2.31) $ $
(5.16) (8.46)
Diluted $ (1.27) $ (2.31) $ $
(5.16) (8.46)
Weighted-Average Shares Outstanding - Basic 1,259 1,135
1,180 1,123
Weighted-Average Shares Outstanding - Diluted 1,259 1,135
1,180 1,123
CARNIVAL CORPORATION & PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions)
November 30,
2022 2021
ASSETS
Current Assets
Cash and cash equivalents $ 4,029 $ 8,939
Restricted cash
1,988 14
Short-term investments
- 200
Trade and other receivables, net
395 246
Inventories
428 356
Prepaid expenses and other
652 379
Total current assets 10,133
7,492
Property and Equipment, Net 38,687 38,107
Operating Lease Right-of-Use Assets
1,274 1,333
Goodwill
579 579
Other Intangibles
1,156 1,181
Other Assets
2,515 2,011
$ 51,703 $ 53,344
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings $ $ 2,790
200
Current portion of long-term debt
2,393 1,927
Current portion of operating lease liabilities
146 142
Accounts payable
1,050 797
Accrued liabilities and other
1,942 1,641
Customer deposits
4,874 3,112
Total current liabilities 10,605 10,408
Long-Term Debt 31,953 28,509
Long-Term Operating Lease Liabilities
1,189 1,239
Other Long-Term Liabilities
891 1,043
Commitments and Contingencies
Shareholders' Equity
Carnival Corporation common stock, $0.01 par value; 1,960 shares
authorized; 1,244 shares at 2022 and 1,116 shares at 2021 issued 12 11
Carnival plc ordinary shares, $1.66 par value; 217 shares at 2022
and 2021 issued 361 361
Additional paid-in capital 16,872 15,292
Retained earnings
269 6,448
Accumulated other comprehensive income (loss) ("AOCI")
(1,982) (1,501)
Treasury stock, 130 shares at 2022 and 2021 of Carnival
Corporation and 72 shares at 2022 and 67 shares at 2021 of (8,468) (8,466)
Carnival plc, at cost
Total shareholders' equity 12,144
7,065
$ 51,703 $ 53,344
CARNIVAL CORPORATION & PLC
OTHER INFORMATION
November 30,
OTHER BALANCE SHEET INFORMATION (in millions) 2022 2021
Liquidity (a) $ $
8,635 9,378
Debt (current and long-term) $ $
34,546 33,226
Customer deposits (current and long-term) $ $
5,089 3,508
a. Includes cash, restricted cash from the 2028 Senior Priority Notes which is
now unrestricted, and borrowings available under the revolving credit
facility
Three Months Ended Twelve Months Ended
November 30, November 30,
CASH FLOW INFORMATION (in millions) 2022 2021 2022 2021
Cash from (used in) operations $ $ $ $
(117) (368) (1,670) (4,109)
Capital expenditures $ $ $ $
1,181 487 4,940 3,607
STATISTICAL INFORMATION
PCDs (in millions) (a)
18.3 6.0 54.6 8.2
ALBDs (in millions) (b)
21.5 10.2 72.5 14.6
Occupancy percentage (c) 85 % 58 % 75 % 56 %
Passengers carried (in millions)
2.5 0.9 7.7 1.2
Fuel consumption in metric tons (in millions)
0.7 0.5 2.6 1.3
Fuel consumption in metric tons per thousand (d) (d)
ALBDs 33.4 36.1
Fuel cost per metric ton consumed $ $ $ $
812 590 830 515
Tour and other revenue (in millions) $ $ $ $
30.9 4.1 185.4 46.4
Currencies (USD to 1)
AUD $ $ $ $
0.66 0.73 0.70 0.75
CAD $ $ $ $
0.74 0.80 0.77 0.80
EUR $ $ $ $
1.00 1.16 1.06 1.19
GBP $ $ $ $
1.15 1.36 1.25 1.38
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.
a. ALBD is a standard measure of passenger capacity for the period that we use
to approximate rate and capacity variances, based on consistently applied
formulas that we use to perform analyses to determine the main non-capacity
driven factors that cause our cruise revenues and expenses to vary. ALBDs
assume that each cabin we offer for sale accommodates two passengers and is
computed by multiplying passenger capacity by revenue-producing ship
operating days in the period.
a. 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.
a. 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 November 30, Twelve Months Ended November 30,
(dollars in millions, 2022 2022 2019 2022 2022 2019
except costs per ALBD) Constant Constant
Currency Currency
Operating costs and $ $ 3,077 $ $ 12,909
expenses 3,665 11,757
Selling and 667
administrative 741 2,515 2,480
expenses
Tour and other
expenses (45) (76) (214) (296)
Cruise costs 3,667 15,093
4,362 14,058
Less
Commissions, (595)
transportation and (489) (1,630) (2,720)
other
Onboard and other (481)
(468) (1,528) (2,101)
Gains (losses) on ship
sales and impairments (431) 5 (433) 16
Restructuring expenses
(20) (10) (22) (10)
Other -
(10) (10) (43)
Adjusted cruise costs 2,586 10,234
2,944 10,436
Less fuel (358)
(580) (2,157) (1,562)
Adjusted cruise costs $ $ $ 2,228 $ $ $ 8,672
excluding fuel 2,364 2,449 8,278 8,435
ALBDs (in thousands) 21,753 87,424
21,532 21,532 72,536 72,536
Cruise costs per ALBD $ 202.56 $ 168.58 $ 193.81 $ 172.64
% increase (decrease) 20 % 12 %
vs 2019
Adjusted cruise costs $ 136.71 $ 118.89 $ 143.87 $ 117.07
per ALBD
% increase (decrease) 15 % 23 %
vs 2019
Adjusted cruise costs $ 109.78 $ $ 102.44 $ 114.13 $ $ 99.20
excluding fuel per 113.74 116.29
ALBD
% increase (decrease) 7.2 % 11 % 15 % 17 %
vs 2019
(See Non-GAAP Financial Measures)
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Three Months Ended November Twelve Months Ended November
30, 30,
(in millions) 2022 2021 2022 2021
Net income (loss)
U.S. GAAP net income (loss) $ (1,598) $ (2,620) $ (6,093) $
(9,501)
(Gains) losses on ship sales and impairments 431 292 433
802
(Gains) losses on debt extinguishment, net 298
1 1 670
Restructuring expenses
20 7 22 13
Other 130
77 69 86
Adjusted net income (loss) $ (1,068) $ (1,955) $ (5,508) $
(7,931)
Interest expense, net of capitalized interest 448 348 1,609
1,601
Interest income
(40) (2) (74) (12)
Income tax (expense), benefit
(3) (4) 14 (21)
Depreciation and amortization 568 552 2,275
2,233
Adjusted EBITDA $ $ (1,060) $ (1,684) $
(96) (4,129)
Three Months Ended Twelve Months
November 30, Ended November 30,
(in millions, except per share data) 2022 2021 2022 2021
Adjusted net income (loss) $ $ $ $
(1,068) (1,955) (5,508) (7,931)
Weighted-average shares outstanding - diluted
1,259 1,135 1,180 1,123
Adjusted earnings per share $ $ $ $
(0.85) (1.72) (4.67) (7.06)
Non-GAAP Financial Measures
We use adjusted net income (loss), adjusted EBITDA and adjusted earnings per
share 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 earnings per
share, and accordingly, we present adjusted net income (loss) and adjusted
earnings per share 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.
Reconciliation of Forecasted Data
We have not provided a reconciliation of forecasted U.S. GAAP gross cruise
costs to forecasted adjusted cruise costs, excluding fuel or forecasted U.S.
GAAP net income (loss) to forecasted adjusted EBITDA or forecasted adjusted net
income (loss) because preparation of meaningful U.S. GAAP forecasts of gross
cruise costs and net income (loss) 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, gains and losses on debt
extinguishments, restructuring costs and certain other non-core gains and
losses.
Constant Dollar and Constant Currency
Our operations primarily utilize the U.S. dollar, Australian dollar, euro and
sterling as functional currencies to measure results
and financial condition. Functional currencies other than the U.S. dollar
subject us to foreign currency translational risk. Our operations also have
revenues and expenses that are in currencies other than their functional
currency, which subject us to foreign currency transactional risk.
We report 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 dollar reporting removes only the impact of changes in exchange rates
on the translation of our operations.
Constant currency reporting removes the impact of changes in exchange rates on
the translation of our operations (as in constant dollar) plus the
transactional impact of changes in exchange rates from revenues and expenses
that are denominated in a currency other than the functional currency.
Examples:
* The translation of our operations with functional currencies other than
U.S. dollar to our U.S. dollar reporting currency results in decreases in
reported U.S. dollar revenues and expenses if the U.S. dollar strengthens
against these foreign currencies and increases in reported U.S. dollar
revenues and expenses if the U.S. dollar weakens against these foreign
currencies.
* Our operations have revenue and expense transactions in currencies other
than their functional currency. If their functional currency strengthens
against these other currencies, it reduces the functional currency revenues
and expenses. If the functional currency weakens against these other
currencies, it increases the functional currency revenues and expenses.
END
(END) Dow Jones Newswires
December 21, 2022 09:15 ET (14:15 GMT)
1 Year Carnival Chart |
1 Month Carnival Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
