Carnival PLC Carnival Provides Second Quarter Business Update

 
TIDMCCL 
 
Carnival Corporation & plc Provides A Business Update And Additional Financial 
                      Information For The Second Quarter 
 
MIAMI, July 10, 2020 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) 
provides a business update and additional financial information for the second 
quarter ended May 31, 2020. 
 
Business Update 
 
In the face of the global impact of COVID-19, the company paused its guest 
cruise operations in mid-March. The company expects to resume guest operations, 
with ongoing collaboration from both government and health authorities, in a 
phased manner. Specific brands and ships are expected to return to service over 
time to provide guests with unmatched joyful vacations in a manner consistent 
with the company's highest priorities, which are compliance, environmental 
protection and the health, safety and well-being of its guests, crew and the 
communities its ships visit. 
 
AIDA to resume cruise operations 
 
AIDA previously announced it will resume guest cruise operations from ports in 
Germany beginning August 2020 with three of its ships, making it the first of 
the company's nine cruise brands to resume guest cruise operations. AIDA will 
introduce additional safety and protective measures which will include 
pre-boarding health questionnaires and temperature checks for both guests and 
crew, physical distancing guidelines, routing systems on arrival, departure and 
onboard, increased mitigation and sanitation efforts in all cabins and public 
areas, as well as closely managing capacities at onboard experiences. These 
enhanced measures have been developed with advice from medical experts and 
align with the current guidance from the World Health Organization ("WHO") and 
the German Robert Koch Institute ("RKI"), as well as other governmental and 
health authorities. 
 
Capacity reduced by ship delivery deferrals and 13 expected ship dispositions 
 
The company expects future capacity to be moderated by the phased re-entry of 
its ships, the removal of capacity from its fleet and delays in new ship 
deliveries. As previously announced, the company intends to accelerate the 
removal of ships in fiscal 2020 which were previously expected to be sold over 
the ensuing years. The company sold one ship during June 2020 and has 
agreements for the disposal of five ships and preliminary agreements for an 
additional three ships, all of which are expected to leave the fleet in the 
next 90 days. These agreements are in addition to the sale of four ships, which 
were announced prior to fiscal 2020. In total, the 13 ships expected to leave 
the fleet represent a nearly nine percent reduction in current capacity. The 
company currently expects only five of the nine ships originally scheduled for 
delivery in fiscal 2020 and fiscal 2021 will be delivered prior to the end of 
fiscal year 2021. In addition, the company expects later deliveries of ships 
originally scheduled for fiscal 2022 and 2023. 
 
Carnival Corporation & plc President and Chief Executive Officer Arnold Donald 
noted, "We have been transitioning the fleet into a prolonged pause and right 
sizing our shoreside operations. We have already reduced operating costs by 
over $7 billion on an annualized basis and reduced capital expenditures also by 
more than $5 billion over the next 18 months. We have secured over $10 billion 
of additional liquidity to sustain another full year with additional 
flexibility remaining. We have aggressively shed assets while actively 
deferring new ship deliveries. We are working hard to resume operations while 
serving the best interests of public health with our way forward informed 
through consultation with medical experts and scientists from around the 
world." 
 
Donald added, "We will emerge a leaner, more efficient company to optimize cash 
generation, pay down debt and position us to return to investment grade credit 
over time providing strong returns to our shareholders." 
 
Maximizing Liquidity 
 
Successfully raised over $10 billion through a series of financing transactions 
 
Since the pause in guest operations, the company has taken significant actions 
to preserve cash and secure additional financing to maximize its liquidity. 
While maintaining compliance, environmental protection and safety, the company 
significantly reduced ship operating expenses by transitioning ships into 
paused status. The company also reduced its administrative expenses, 
non-newbuild capital expenditures by $1.3 billion for 2020 and expects to 
reduce its newbuild capital expenditures by over $600 million for 2020, (net of 
export credit facilities). Additionally, since March, the company has raised 
over $10 billion through a series of financing transactions, including 
transactions that have occurred in the last three weeks, as follows: 
 
  * Borrowed an aggregate principal amount of $2.8 billion in two tranches 
    under a first priority senior secured term loan facility on June 30, 2020 
  * Negotiated Debt Holiday amendments, deferring certain principal repayments 
    otherwise due through March 2021. (Certain export credit agencies have 
    offered a 12-month debt amortization and financial covenant holiday ("Debt 
    Holiday")) 
 
In addition, the company has $8.8 billion of committed export credit facilities 
that are available to fund ship deliveries originally planned through 2023. 
 
Carnival Corporation & plc Chief Financial Officer and Chief Accounting Officer 
David Bernstein noted, "Quickly recognizing the financial situation, we took 
swift action to improve our liquidity by reducing expenses and leveraging our 
strong balance sheet to complete several capital transactions". 
 
During the pause in guest operations, the monthly average cash burn rate for 
the second half of 2020 is estimated to be approximately $650 million. This 
rate includes approximately $250 million of ongoing ship operating and 
administrative expenses, working capital changes (excluding changes in customer 
deposits and reserves for credit card processors), interest expense and 
committed capital expenditures (net of committed export credit facilities) and 
also excludes scheduled debt maturities. The company continues to explore 
opportunities to further reduce its monthly cash burn rate. 
 
The pause in guest operations is continuing to have material negative impacts 
on all aspects of the company's business. The longer the full or partial pause 
in guest operations continues, the greater the impact on the company's 
liquidity and financial position. The company continues to expect a net loss on 
both a U.S. GAAP and adjusted basis for the second half of 2020. 
 
Update on Bookings 
 
Demand continues for 2021 sailings 
 
The company's brands have announced various incentives and flexibility for 
certain booking payments on select sailings to support guest confidence in 
making new bookings. These incentives vary by brand and sailing and include 
onboard credits and reduced or refundable deposits. In addition, the company is 
providing flexibility to guests with bookings on sailings cancelled due to the 
pause by offering guests the flexibility of enhanced future cruise credits 
("FCC") or an election for a refund in cash. Enhanced FCCs increase the value 
of the guest's original booking or provide incremental onboard credits. As of 
June 21, 2020, approximately half of guests affected have requested cash 
refunds. Despite substantially reduced marketing and selling spend, the company 
continues to see demand from new bookings for 2021. For the most recent booking 
period, the first three weeks in June 2020, almost 60 percent of 2021 bookings 
were new bookings. The remaining 2021 booking volumes resulted from guests 
applying their FCCs to specific future cruises. 
 
As of June 21, 2020, cumulative advanced bookings for the full year of 2021 
capacity currently available for sale remain within historical ranges at prices 
that are down in the low to mid-single digits range, on a comparable basis, 
including the negative yield impact of FCCs and onboard credits applied. 
 
As of May 31, 2020, the current portion of customer deposits was $2.6 billion, 
the majority of which are FCCs. $121 million of the company's customer deposit 
balance relates to third quarter sailings and $353 million relates to fourth 
quarter sailings. The company continues to expect any decline in the customer 
deposits balance in the second half of 2020, all of which is expected to occur 
in the third quarter, to be significantly less than the decline in the second 
quarter of 2020. 
 
Protecting the Health and Safety of Guests and Team Members 
 
Throughout the pause in its guest cruise operations, the company has acted to 
protect the health and safety of guests and shipboard team members. The company 
returned over 260,000 guests to their homes, coordinating with a large number 
of countries around the globe. In addition, the company worked around the clock 
with various local governmental authorities, utilized its ships and chartered 
hundreds of planes to repatriate shipboard team members as quickly as possible. 
The company is extremely pleased with its ability to successfully repatriate 
approximately 77,000 of its shipboard team members to more than 130 countries 
around the globe, which is substantially all of its onboard workforce other 
than the safe manning team members who will remain on the ships, and thanks the 
numerous governments who worked closely with the company during the 
repatriation process. 
 
Donald commented, "I could not be more proud of how collectively our team has 
handled this. We looked after our guests, each other and the over 700 places we 
go each year. Thanks to our crew for continuing to exceed guest expectations 
through challenging circumstances and our shoreside operations for working 24/7 
to enhance our liquidity and to repatriate our guests and our crew. Also, 
thanks to our loyal guests, travel partners, shareholders and other 
stakeholders for their support during this challenging time." 
 
Active consultation with science and medical experts 
 

Throughout the pause in guest cruise operations, the company has been 
consulting and assembling the best minds in medical science, public health and 
infectious disease. These individuals include a robust line-up of world 
renowned medical, epidemiology and public health experts to provide the company 
with the latest science and medical evidence to inform practical, adaptable and 
science-based solutions for detection, prevention and mitigation of COVID-19. 
 
In coordination with the World Travel and Tourism Council, the company is 
hosting an online Global Scientific Summit on COVID-19 on July 28, a forum 
which is open to the public and free of charge. Speakers and panelists include 
the company's expert advisors, representing a diverse range of science, 
research and business backgrounds, including amongst others, members of 
Scientists to Stop COVID-19, who have volunteered to participate. The company 
is grateful to bring together a select group of science and medical experts who 
will bring such relevant insight into COVID-19. To register for the Summit, 
please go to CovidScienceSummit.com. 
 
Conference Call 
 
The company has scheduled a conference call with analysts at 10:00 a.m. EDT (3: 
00 p.m. BST) today to provide a business update and discuss its 2020 second 
quarter results. 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 
 
Carnival Corporation and Carnival plc and their respective subsidiaries are 
referred to collectively in this document as "Carnival Corporation & plc," 
"our," "us" and "we." 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. 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," "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: 
 
* Net revenue yields           * Estimates of ship depreciable lives and 
                               residual values 
 
* Booking levels               * Goodwill, ship and trademark fair values 
 
* Pricing and occupancy        * Liquidity 
 
* Interest, tax and fuel       * Adjusted earnings per share 
expenses 
 
* Currency exchange rates      * Impact of the COVID-19 coronavirus global 
                               pandemic on our financial condition and results 
* Net cruise costs, excluding  of operations 
fuel per available lower berth 
day 
 
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 amplified by and will continue to be amplified by, or in the future 
may be amplified by, the COVID-19 outbreak. 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, which impacts our ability to 
    obtain acceptable financing to fund resulting reductions in cash from 
    operations. The current, and uncertain future, impact of the COVID-19 
    outbreak, 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, growth, reputation, litigation, cash 
    flows, liquidity, and stock price 
  * As a result of the COVID-19 outbreak, we have paused our guest cruise 
    operations, and if we are unable to re-commence normal operations in the 
    near-term, we may be out of compliance with a maintenance covenant in 
    certain of our debt facilities as of May 31, 2021 
  * World events impacting the ability or desire of people to travel may lead 
    to a decline in demand for cruises 
  * Incidents concerning our ships, guests or the cruise vacation industry as 
    well as adverse weather conditions and other natural disasters may 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 may lead to litigation, enforcement actions, 
    fines, penalties, and reputational damage 
  * 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 lead to reputational damage 
  * Ability to recruit, develop and retain qualified shipboard personnel who 
    live away from home for extended periods of time may adversely impact our 
    business operations, guest services and satisfaction 
  * Increases in fuel prices, changes in the types of fuel consumed and 
    availability of fuel supply may adversely impact our scheduled itineraries 
    and costs 
  * 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 
  * Geographic regions in which we try to expand our business may be slow to 
    develop or ultimately not develop how we expect 
  * 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. 
 
                          CARNIVAL CORPORATION & PLC 
 
                   CONSOLIDATED STATEMENTS OF INCOME (LOSS) 
 
                                 (UNAUDITED) 
 
                    (in millions, except per share data) 
 
                      Three Months Ended              Six Months Ended 
                           May 31,                         May 31, 
 
                      2020           2019            2020            2019 
 
Revenues 
 
Passenger ticket $          446   $    3,257    $        3,680   $      6,456 
 
Onboard and                 294        1,580             1,849          3,054 
other (a) 
 
                            740        4,838             5,529          9,511 
 
Operating Costs 
and Expenses 
 
Commissions,                297          613             1,064          1,322 
transportation 
and other 
 
Onboard and                 114          485               585            952 
other 
 
Payroll and                 705          566             1,315          1,123 
related 
 
Fuel                        201          423               598            804 
 
Food                        108          269               385            538 
 
Ship and other              589            -               919              - 
impairments 
 
Other operating             471          803             1,142          1,562 
(b) 
 
                          2,484        3,159             6,007          6,301 
 

Selling and                 492          621             1,170          1,250 
administrative 
 
Depreciation and            577          542             1,147          1,059 
amortization 
 
Goodwill                  1,364            -             2,096              - 
impairment (c) 
 
                          4,918        4,323            10,420          8,609 
 
Operating Income        (4,177)          515           (4,891)            902 
(Loss) 
 
Nonoperating 
Income (Expense) 
 
Interest income               6            5                11              9 
 
Interest                  (182)         (54)             (237)          (105) 
expense, net of 
capitalized 
interest 
 
Other income               (32)          (7)              (39)            (9) 
(expense), net 
 
                          (208)         (56)             (265)          (105) 
 
Income (Loss)           (4,385)          459           (5,155)            797 
Before Income 
Taxes 
 
Income Tax                   11          (8)                 -           (10) 
Benefit 
(Expense), Net 
 
Net Income       $      (4,374)   $      451    $      (5,155)   $        787 
(Loss) 
 
Earnings Per 
Share 
 
Basic            $       (6.07)   $     0.65    $       (7.34)   $       1.14 
 
Diluted          $       (6.07)   $     0.65    $       (7.34)   $       1.13 
 
Dividends        $            -   $     0.50    $         0.50   $       1.00 
Declared Per 
Share 
 
Weighted-Average            721          691               702            692 
Shares 
Outstanding - 
Basic 
 
Weighted-Average            721          693               702            694 
Shares 
Outstanding - 
Diluted 
 
(a)              Includes $24 million and $71 million of tour and other 
                 revenues during the three months ended May 31, 2020 and 2019, 
                 respectively. Includes $76 million and $99 million of tour 
                 and other revenues during the six months ended May 31, 2020 
                 and 2019, respectively. 
 
(b)              Includes $28 million and $61 million of tour and other costs 
                 and expenses during the three months ended May 31, 2020 and 
                 2019, respectively. Includes $47 million and $90 million of 
                 tour and other costs and expenses during the six months ended 
                 May 31, 2020 and 2019, respectively. 
 
(c)              Includes noncash impairment charges for goodwill of $1.0 
                 billion in our North America and Australia ("NAA") segment 
                 and $345 million in our Europe and Asia ("EA") segment during 
                 the three months ended May 31, 2020. Includes noncash 
                 impairment charges for goodwill of $1.3 billion in our NAA 
                 segment and $777 million in our EA segment during the six 
                 months ended May 31, 2020. 
 
 
 
                          CARNIVAL CORPORATION & PLC 
 
                          CONSOLIDATED BALANCE SHEETS 
 
                                  (UNAUDITED) 
 
                       (in millions, except par values) 
 
                                                           May 31,    November 
                                                            2020        30, 
                                                                        2019 
 
ASSETS 
 
Current Assets 
 
Cash and cash equivalents                                 $  6,881    $    518 
 
Trade and other receivables, net                               604         444 
 
Inventories                                                    362         427 
 
Prepaid expenses and other                                     374         671 
 
  Total current assets                                       8,222       2,059 
 
Property and Equipment, Net                                 37,139      38,131 
 
Operating Lease Right-of-Use Assets (a)                      1,413           - 
 
Goodwill                                                       790       2,912 
 
Other Intangibles                                            1,168       1,174 
 
Other Assets                                                 1,086         783 
 
                                                          $ 49,817    $ 45,058 
 
LIABILITIES AND SHAREHOLDERS' EQUITY 
 
Current Liabilities 
 
Short-term borrowings                                     $  3,562    $    231 
 
Current portion of long-term debt                            2,373       1,596 
 
Current portion of operating lease liabilities (a)             153           - 
 
Accounts payable                                             1,809         756 
 
Accrued liabilities and other                                1,343       1,809 
 
Customer deposits                                            2,618       4,735 
 
  Total current liabilities                                 11,858       9,127 
 
Long-Term Debt                                              14,870       9,675 
 
Long-Term Operating Lease Liabilities (a)                    1,292           - 
 
Other Long-Term Liabilities                                    956         890 
 
Shareholders' Equity 
 
Common stock of Carnival Corporation, $0.01 par value;           7           7 
1,960 shares authorized; 731 shares at 2020 and 657 
shares at 2019 issued 
 
Ordinary shares of Carnival plc, $1.66 par value; 217          360         358 
shares at 2020 and 2019 issued 
 
Additional paid-in capital                                   9,683       8,807 
 
Retained earnings                                           21,155      26,653 
 
Accumulated other comprehensive income (loss)              (1,962)     (2,066) 
 
Treasury stock, 130 shares at 2020 and 2019 of Carnival    (8,404)     (8,394) 
Corporation and 60 shares at 2020 and 2019 of Carnival 
plc, at cost 
 
  Total shareholders' equity                                20,840      25,365 
 
                                                          $ 49,817    $ 45,058 
 
(a) We adopted the provisions of Leases on December 1, 
    2019. 
 
 
 
                           CARNIVAL CORPORATION & PLC 
 
                     CONSOLIDATED STATEMENTS OF CASH FLOWS 
 
                                  (UNAUDITED) 
 
                                 (in millions) 
 
                                                              Six Months Ended 
                                                                  May 31, 
 
                                                               2020       2019 
 
OPERATING ACTIVITIES 
 
Net income (loss)                                           $ (5,155)   $   787 
 
Adjustments to reconcile net income (loss) to net cash 
provided by operating activities 
 
Depreciation and amortization                                   1,147     1,059 
 
Impairments                                                     3,015         2 
 
Share-based compensation                                           38        27 
 
Gain on ship sales and other, net                                  56         7 
 
                                                                (900)     1,883 
 
Changes in operating assets and liabilities 
 
Receivables                                                     (202)      (50) 
 
Inventories                                                        58         5 
 
Prepaid expenses and other                                        171     (302) 
 
Accounts payable                                                1,052        68 
 
Accrued liabilities and other                                       3        48 
 
Customer deposits                                             (1,987)     1,516 
 
Net cash provided by (used in) operating activities           (1,804)     3,169 
 
INVESTING ACTIVITIES 
 
Purchases of property and equipment                           (1,668)   (3,021) 
 
Proceeds from sales of ships                                      236         6 
 
Payments of fuel derivative settlements                             -       (6) 
 
Purchase of minority interest                                    (81)         - 
 
Derivative settlements and other, net                             257       103 
 
Net cash provided by (used in) investing activities           (1,256)   (2,918) 
 
FINANCING ACTIVITIES 
 
Proceeds from (repayments of) short-term borrowings, net        3,333     (357) 
 
Principal repayments of long-term debt                          (383)     (338) 
 
Proceeds from issuance of long-term debt                        6,674     1,722 
 
Dividends paid                                                  (689)     (694) 
 
Purchases of treasury stock                                      (12)     (316) 
 
Issuance of common stock, net                                     558         2 
 
Other, net                                                       (56)      (45) 
 
Net cash provided by (used in) financing activities             9,425      (26) 
 
Effect of exchange rate changes on cash, cash equivalents           1       (5) 
and restricted cash 
 
Net increase (decrease) in cash, cash equivalents and           6,366       220 
restricted cash 
 
Cash, cash equivalents and restricted cash at beginning of        530       996 
period 
 
Cash, cash equivalents and restricted cash at end of period $   6,896   $ 1,215 
 
 
 
                           CARNIVAL CORPORATION & PLC 
 
                           NON-GAAP FINANCIAL MEASURES 
 
                                         Three Months Ended    Six Months Ended 
                                               May 31,              May 31, 
 
(in millions, except per share data)        2020      2019       2020      2019 
 
Net income (loss) 
 
     U.S. GAAP net income (loss)         $ (4,374)   $  451   $ (5,155)   $  787 
 
     (Gains) losses on ship sales and        1,953     (16)       2,882     (14) 
impairments 
 
     Restructuring expenses                     39        -          39        - 
 
     Other                                       -       22           3       22 
 

     Adjusted net income (loss)          $ (2,382)   $  457   $ (2,231)   $  795 
 
Weighted-average shares outstanding            721      693         702      694 
 
Earnings per share 
 
     U.S. GAAP diluted earnings per      $  (6.07)   $ 0.65   $  (7.34)   $ 1.13 
share 
 
     (Gains) losses on ship sales and         2.71   (0.02)        4.10   (0.02) 
impairments 
 
     Restructuring expenses                   0.05        -        0.06        - 
 
     Other                                       -     0.03           -     0.03 
 
     Adjusted earnings per share         $  (3.30)   $ 0.66   $  (3.18)   $ 1.15 
 
 
Explanations of Non-GAAP Financial Measures 
 
Non-GAAP Financial Measures 
 
We use adjusted net income and adjusted earnings per share as non-GAAP 
financial measures of our cruise segments' and the company's financial 
performance. These non-GAAP financial measures are provided along with U.S. 
GAAP net income (loss) and U.S. GAAP diluted earnings per share. 
 
We believe that gains and losses on ship sales, impairment charges, 
restructuring costs and 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 and adjusted earnings per share excluding these 
items. 
 
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. 
 
                           CARNIVAL CORPORATION & PLC 
 
                            STATISTICAL INFORMATION 
 
                                          Three Months Ended   Six Months Ended 
                                               May 31,             May 31, 
 
                                            2020      2019      2020      2019 
 
ALBDs (in thousands) (a)                   3,621    21,645    25,598    42,944 
 
Occupancy percentage (b)                    96.1 %   105.3 %   103.1 %   105.0 % 
 
Passengers carried (in thousands)            426     3,101     3,489     6,038 
 
Fuel consumption in metric tons (in          482       835     1,314     1,664 
thousands) 
 
Fuel cost per metric ton consumed         $  418    $  507    $  455    $  483 
 
Currencies (USD to 1) 
 
AUD                                       $ 0.63    $ 0.70    $ 0.66    $ 0.71 
 
CAD                                       $ 0.72    $ 0.75    $ 0.74    $ 0.75 
 
EUR                                       $ 1.09    $ 1.12    $ 1.10    $ 1.13 
 
GBP                                       $ 1.24    $ 1.30    $ 1.27    $ 1.29 
 
RMB                                       $ 0.14    $ 0.15    $ 0.14    $ 0.15 
 
We paused our guest operations in mid-March 2020 and have been in a pause for a 
majority of the second quarter. The pause in guest operations is continuing to 
have material negative impacts on all aspects of our business, including the 
above statistical information. 
 
Notes to Statistical Information 
 
(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. 
 
(b) In accordance with cruise industry practice, occupancy is calculated using 
    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. 
 
SOURCE Carnival Corporation & plc 
 
MEDIA CONTACT: Roger Frizzell, [phone], or INVESTOR RELATIONS CONTACT: 
Beth Roberts, [phone] 
 
 
 
END 
 

(END) Dow Jones Newswires

July 10, 2020 09:15 ET (13:15 GMT)