MIAMI, June 24,
2022 /PRNewswire/ -- Carnival Corporation & plc
(NYSE/LSE: CCL; NYSE: CUK) provides second quarter 2022 business
update.
- U.S. GAAP net loss of $1.8
billion and adjusted net loss of $1.9
billion for the second quarter of 2022.
- Cash from operations turned positive in the second quarter
of 2022.
- Second quarter 2022 ended with $7.5
billion of liquidity, including cash, short-term investments
and borrowings available under the company's revolving credit
facility.
- Revenue increased by nearly 50% in the second quarter of
2022 compared to first quarter 2022, reflecting continued
sequential improvement. For the cruise segments, revenue per
passenger cruise day ("PCD") for the second quarter of 2022
decreased slightly compared to a strong 2019.
- Occupancy in the second quarter of 2022 was 69%, an increase
from 54% in the prior quarter.
- Customer deposits increased $1.4
billion to $5.1 billion as of
May 31, 2022 from $3.7 billion as of February 28, 2022.
- As of June 24, 2022, 91% of
the company's capacity is in guest cruise operation.
- Booking volumes for all future sailings during the second
quarter of 2022 were nearly double the booking volumes during the
first quarter of 2022; the company notes these were its best
quarterly booking volumes since the beginning of the
pandemic.
As previously announced, effective August
1st, Arnold Donald, President
and CEO, is being appointed Vice Chair of the Boards of Directors.
Josh Weinstein, currently Chief
Operations Officer for the company, will assume the role of
President and CEO of Carnival Corporation & plc. At that time,
Weinstein will also assume the role of Chief Climate Officer and
become a Director on the Boards of Directors. A 20-year veteran of
Carnival Corporation & plc, Weinstein has a long history of
success in critical senior-level roles in the company. In his most
recent assignment for the past two years as Carnival Corporation
& plc's Chief Operations Officer, Weinstein oversaw several
major operational functions including global maritime, global ports
and destinations, global sourcing, global IT and global internal
audit. During this time, he also oversaw Carnival UK, the operating
company for P&O Cruises (UK) and Cunard, which he previously
managed directly for three years as president. Prior to his role
with Carnival UK, Weinstein was treasurer for the company for 10
years and an attorney in the corporate legal department for five
years.
Carnival Corporation & plc President and CEO Arnold Donald noted, "With cash from operations
turning positive and the company heading in the right direction,
now is the time to transition leadership to the next generation.
Josh Weinstein has the skill set
ideally suited to take this company forward, including strong
operating experience and in-depth industry knowledge cultivated
over the past two decades. I am confident our positive momentum
will continue under Josh's leadership and I remain confident in the
long-term future of our company."
Carnival Corporation & plc's next President and CEO
Josh Weinstein noted, "I am honored
to lead this company as we push forward with a relentless long-term
focus on driving revenue and returns to improve our balance sheet,
while ensuring each brand provides an authentic cruise experience
that resonates with their unique guest base, delivering value for
our shareholders and our other many stakeholders."
Weinstein added, "It is truly humbling to support our
exceptionally talented team—150,000 strong ship and shore—in this
effort. They've accomplished so much during our restart, with
incredible determination, perseverance and integrity. This gives me
tremendous confidence and optimism about our future."
Second Quarter 2022 Results and Statistical
Information
- Revenue increased by nearly 50% in the second quarter of 2022
compared to first quarter 2022, reflecting continued sequential
improvement. For the cruise segments, revenue per PCD for the
second quarter of 2022 decreased slightly compared to a strong
2019.
- Onboard and other revenue per PCD for the second quarter of
2022 increased significantly compared to a strong 2019.
- Occupancy in the second quarter of 2022 was 69%, an increase
from 54% in the prior quarter.
- Available lower berth days ("ALBD") for the second quarter of
2022 were 16.7 million, which represents 74% of total fleet
capacity, increasing from 60% in the first quarter of 2022.
- Adjusted EBITDA for the second quarter of 2022 was $(0.9) billion, an improvement over the first
quarter of 2022.
- Total customer deposits increased $1.4
billion to $5.1 billion as of
May 31, 2022 from $3.7 billion as of February 28, 2022.
- Cash from operations turned positive in April and was positive
for the second quarter of 2022.
During the second quarter of 2022, the company issued
$1.0 billion aggregate principal
amount of senior unsecured notes due 2030, intended to refinance
various 2023 debt maturities and invested $0.5 billion in capital expenditures. In
addition, the company repaid $0.2
billion of debt principal and incurred $0.4 billion of interest expense, net during the
quarter. The company ended the second quarter of 2022 with
$7.5 billion of liquidity,
including cash, short-term investments and borrowings available
under the revolving credit facility.
Resumption of Guest Cruise Operations
Donald noted, "We are aggressively, yet thoughtfully, ramping up
to full operations with over 90 percent of the fleet now in
service. We are driving occupancy higher, while at the same time
significantly increasing available capacity, resulting in a nearly
50 percent sequential improvement in revenue in the second quarter,
despite facing constantly changing and far more restrictive
protocols than broader society and travel at large."
Donald added, "Carnival Cruise Line, our largest brand, achieved
consistently positive adjusted EBITDA beginning in March. Carnival
Cruise Line also became our first brand to sail its entire fleet in
May and is expecting occupancy to approach 110 percent during our
third quarter."
As of June 24, 2022, 91% of the
company's capacity is in guest cruise operation as part of its
ongoing return to service. Five of the company's nine brands now
have their entire fleet back in guest cruise operations, including
Carnival Cruise Line, which became the first major cruise line in
the U.S. to celebrate its entire fleet entering service. The
company's enhanced COVID-19 protocols have helped it become among
the safest forms of socializing and travel, with far lower
incidence rates than on land.
While the company's adjusted cruise costs excluding fuel per
ALBD (see Non-GAAP Financial Measures) have 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 some of
these costs and expenses will end in 2022. Additionally, the
company continues to expect to see a significant improvement in
adjusted cruise costs excluding fuel per ALBD from the first half
of 2022 to the second half of 2022 with a mid-teens increase for
the full year 2022 compared to 2019.
The COVID-19 global pandemic and its ongoing effects, inflation
and higher fuel prices are collectively having a material impact on
the company's business, including its results of operations,
liquidity and financial position. In addition, as is the case with
the travel and leisure sector generally, the company is making
meaningful progress in resolving the challenges it is experiencing
with onboard staffing which have resulted in occupancy constraints
on certain voyages.
The company expects a net loss for the third quarter of 2022.
For the full year 2022, the company continues to expect a net loss.
The company continues to believe that adjusted EBITDA will improve
with the ongoing resumption of guest cruise operations and
continues to expect improvement in occupancy throughout 2022 until
it returns to historical levels in 2023. The company expects
positive adjusted EBITDA for the third quarter of 2022.
Fleet Optimization
Carnival Cruise Line – proudly known as America's cruise line –
is teaming up with Costa Cruises – Italy's favorite cruise line – creating a new
concept for Carnival's North American guests when COSTA® by
CARNIVAL® debuts in the spring of 2023 and Costa Venezia
joins the Carnival fleet. Costa Venezia will be followed by
Costa Firenze arriving in
the spring of 2024. Carnival will operate the ships, which will
marry the great service, food and entertainment that Carnival's
guests enjoy with Costa's Italian design features.
In addition, Carnival Cruise Line announced earlier this month
that Costa Luminosa will join their fleet later this year
and will start guest operations as Carnival Luminosa in
November 2022. This will allow
Carnival to finally start highly anticipated itineraries from
Brisbane and have two ships
operating in Australia for the
high season Down-Under.
Furthermore, last week the company announced the removal of
another smaller-less efficient ship from our fleet. This brings the
planned removal to 23 smaller-less efficient ships since the
beginning of the pause in guest cruise operations further reducing
the company's rate of capacity growth.
Donald noted, "We continue to build on our fleet optimization
efforts by reallocating capacity in a highly differentiated way to
strengthen return on invested capital across our portfolio. In
addition, we continue to further refine our fleet and have
announced the removal of an additional smaller-less efficient ship.
Upon returning to full operations, nearly a quarter of our capacity
will consist of newly delivered ships, expediting our return to
profitability."
Update on Bookings
Donald noted, "It is reinforcing to see continued strength in
demand with our guests overcoming far more restrictive protocols
than broader society and travel at large, leading to a near
doubling of booking volumes since last quarter with near-term
bookings even outpacing 2019. We were encouraged by close-in demand
and remain focused on optimizing occupancy while preserving long
term pricing."
Donald added, "As friction from protocols is removed and society
becomes increasingly more comfortable managing the virus, we expect
to see demand continue to build, as we have already seen with the
strength in Carnival Cruise Line's closer-to-home cruises."
Booking volumes for all future sailings during the second
quarter of 2022 were nearly double the booking volumes during the
first quarter of 2022; the company notes these were its best
quarterly booking volumes since the beginning of the pandemic,
albeit still below 2019 levels. Booking volumes for the second half
of 2022 sailings, since the beginning of April, have been higher
than 2019 levels. The company believes this is a reflection of the
previously expected extended wave season. (Due to the ongoing
resumption of guest cruise operations, the company's current
booking trends will be compared to booking trends for 2019
sailings.)
While cumulative advance bookings for the second half of 2022
are below the historical range, the company's booked position is
consistent with its expected improving occupancy levels for the
second half of 2022. Cumulative advance bookings for the second
half of 2022 are at lower prices, with or without future cruise
credits ("FCCs"), normalized for bundled packages, as compared to
2019 sailings.
Cumulative advanced bookings for the full year 2023 continue to
be both at the higher end of the historical range and at higher
prices, with or without FCCs, normalized for bundled packages, as
compared to 2019 sailings.
Sustainability Update
Continued focus on decarbonization and transparency of
disclosures
The company has made significant progress over the past 15 years
reducing its carbon emission intensity and achieving its 2020 goal
three years early (in 2017). The company has also made significant
progress towards its 2030 carbon intensity reduction goals of 40%
from a 2008 baseline, measured in both grams of CO2e per ALB-km and
kilograms of CO2e per ALBD.
The company has decided to update the baseline year for both
goals to 2019 from 2008. This new baseline year will help the
company better communicate recent progress against its climate
goals to its investors and stakeholders as well as modernize its
disclosures in alignment with developing best practice and
reporting standards. Both 2030 goals now require a 20% improvement
from 2019. With the updated baseline year, the company strengthened
its goal measured in kilograms of CO2e per ALBD since the initial
2030 goal would only have required a further 15% reduction from
2019 levels. Its goal measured in grams of CO2e per ALB-km remains
the same.
Achieving these 2030 goals will require:
- The delivery of larger-more efficient ships, as part of its
ongoing newbuild program, some of which will replace existing ships
in its fleet
- Investing in energy efficiency projects for its existing
fleet
- Designing more energy efficient itineraries
- Investing in port and destination projects
The company continues to evaluate and implement changes to its
various annual planning processes to further support its focus on
decarbonization, such as the recently adopted Corporate Itinerary
Decarbonization Reviews. These changes, together with the updates
to its 2030 carbon intensity reduction goals, will improve both
performance in sustainability and transparency to its investors and
stakeholders on its progress.
Advancing progress on circular economy through food waste
management
In May the company announced the installation of nearly 600
shipboard food waste bio-digesters across its fleet, as a
continuation of its efforts to manage food waste and contribute to
a circular economy. First piloted in 2019, this food waste
processing technology naturally breaks down food waste, which
supports the company's ongoing waste management and drives progress
against its goal to achieve a 30% reduction in unit food waste by
2022 and a 50% reduction in unit food waste by 2030. These goals
build on the company's latest achievement of reducing food waste
per person by over 20% in December
2021 relative to a 2019 baseline.
2024 Mandatory Auditor Rotation
Carnival plc is subject to UK law regarding mandatory
auditor rotation. Under UK law, PricewaterhouseCoopers LLP ("PwC")
must be changed as Carnival plc's auditor for the 2024 audit at the
latest. Yesterday, the Boards of Directors appointed Deloitte &
Touche LLP ("Deloitte") as the company's independent registered
public accounting firm for 2024 to be effective upon the execution
of an engagement letter and related completion of Deloitte's
standard client acceptance procedures to ensure their independence.
The Boards of Directors will propose the appointment of Deloitte as
external auditors for 2024 at the company's annual shareholder
meetings as required.
Other Recent Highlights
- Carnival Cruise Line broke ground on its new cruise port
destination on Grand Bahama Island, expected to open in late
2024.
- Carnival Cruise Line saw its busiest booking week in the
company's history, for the one-week period of March 28 -April 3.
- Cunard saw its busiest booking day in a decade for the first
day of bookings for new ship Queen
Anne.
- Holland America Line's
Volendam is being used to provide temporary housing for
Ukrainian refugees through September
2022.
- Carnival Corporation was recognized on Forbes' annual listing
of Best Employers for Diversity for the fourth consecutive year and
by Latino Leaders Magazine as one of the Best Companies for Latino
to Work in 2022 for the second consecutive year.
- Carnival Corporation and BetMGM announced their partnership to
provide on-ship mobile sports betting and iGaming experiences.
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
|
13.3
|
|
16.7
|
|
20.9
|
|
21.7
|
|
72.6
|
Fuel
The company's fuel consumption forecast for the remainder of the
year is 1.4 million metric tons. The blended spot price for fuel is
currently $978 per metric ton.
Depreciation and Amortization
The company's depreciation and amortization forecast for the
remainder of the year is $1.1
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 $0.8 billion. The 2022 full year forecast, which
includes year-to-date actuals, is $1.6
billion.
Outstanding Debt Maturities
As of May 31, 2022, the company's
outstanding debt maturities are as follows:
(in
billions)
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
Principal payments on
outstanding debt (a)
|
|
$
1.3
|
|
$
2.8
|
|
$
2.0
|
|
$
4.4
|
|
|
(a)
|
Excludes the revolving
credit facility. As of May 31, 2022, borrowings under the revolving
credit facility were $2.7 billion, which mature in 2024.
|
Capital Expenditures
The company's annual capital expenditure forecast, which
includes year-to-date actuals for 2022, is as follows:
(in
billions)
|
2022
|
|
2023
|
|
2024
|
|
2025
|
Contracted
newbuild
|
$
4.2
|
(a)
|
$
2.4
|
|
$
1.6
|
|
$
0.9
|
Non-newbuild
|
1.4
|
|
1.9
|
|
2.0
|
|
2.0
|
Total (b)
|
$
5.6
|
|
$
4.3
|
|
$
3.6
|
|
$
2.9
|
|
|
(a)
|
Includes three newbuild
deliveries during the first 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
expenses
|
•
|
Return to guest cruise
operations
|
•
|
Currency exchange
rates
|
•
|
Impact of the COVID-19
coronavirus global pandemic on
our financial condition and results of operations
|
•
|
Estimates of ship
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 amplified by and will
continue to be amplified by, or in the future may 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, heightened inflation and other
general concerns impacting the ability or desire of people to
travel have and may lead to a decline in demand for cruises, impact
our operating costs and profitability.
- Incidents concerning our ships, guests or the cruise vacation
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 May
31,
|
|
Six Months
Ended May
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues
|
|
|
|
|
|
|
|
Passenger
ticket
|
$
1,285
|
|
$
20
|
|
$
2,158
|
|
$
23
|
Onboard and
other
|
1,116
|
|
29
|
|
1,866
|
|
52
|
|
2,401
|
|
50
|
|
4,024
|
|
75
|
Operating Costs and
Expenses
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
325
|
|
22
|
|
576
|
|
37
|
Onboard and
other
|
314
|
|
15
|
|
523
|
|
22
|
Payroll and
related
|
533
|
|
241
|
|
1,038
|
|
460
|
Fuel
|
545
|
|
113
|
|
910
|
|
216
|
Food
|
191
|
|
17
|
|
327
|
|
28
|
Ship and other
impairments
|
—
|
|
49
|
|
8
|
|
49
|
Other
operating
|
774
|
|
224
|
|
1,331
|
|
404
|
|
2,683
|
|
681
|
|
4,713
|
|
1,216
|
Selling and
administrative
|
619
|
|
417
|
|
1,149
|
|
879
|
Depreciation and
amortization
|
572
|
|
567
|
|
1,126
|
|
1,119
|
|
3,874
|
|
1,665
|
|
6,988
|
|
3,214
|
Operating Income
(Loss)
|
(1,473)
|
|
(1,616)
|
|
(2,964)
|
|
(3,139)
|
Nonoperating Income
(Expense)
|
|
|
|
|
|
|
|
Interest
income
|
6
|
|
4
|
|
9
|
|
7
|
Interest
expense, net of capitalized interest
|
(370)
|
|
(437)
|
|
(738)
|
|
(835)
|
Gain (loss) on
debt extinguishment, net
|
—
|
|
2
|
|
—
|
|
4
|
Other income
(expense), net
|
6
|
|
(13)
|
|
(26)
|
|
(75)
|
|
(358)
|
|
(444)
|
|
(755)
|
|
(900)
|
Income (Loss) Before
Income Taxes
|
(1,831)
|
|
(2,060)
|
|
(3,719)
|
|
(4,039)
|
Income Tax Benefit
(Expense), Net
|
(3)
|
|
(12)
|
|
(6)
|
|
(6)
|
Net Income
(Loss)
|
$
(1,834)
|
|
$
(2,072)
|
|
$
(3,726)
|
|
$
(4,045)
|
Earnings Per
Share
|
|
|
|
|
|
|
|
Basic
|
$
(1.61)
|
|
$
(1.83)
|
|
$
(3.27)
|
|
$
(3.63)
|
Diluted
|
$
(1.61)
|
|
$
(1.83)
|
|
$
(3.27)
|
|
$
(3.63)
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding - Basic
|
1,140
|
|
1,132
|
|
1,139
|
|
1,113
|
Weighted-Average
Shares Outstanding - Diluted
|
1,140
|
|
1,132
|
|
1,139
|
|
1,113
|
CARNIVAL CORPORATION
& PLC
|
OTHER
INFORMATION
|
|
|
BALANCE SHEET
INFORMATION (in millions)
|
May 31,
2022
|
|
November 30,
2021
|
Cash, cash equivalents
and short-term investments
|
$
7,205
|
|
$
9,139
|
Debt (current and
long-term)
|
$
35,135
|
|
$
33,226
|
Customer deposits
(current and long-term)
|
$
5,080
|
|
$
3,508
|
|
Three Months
Ended May
31,
|
|
Six Months
Ended May
31,
|
STATISTICAL
INFORMATION
|
2022
|
|
2021
|
|
2022
|
|
2021
|
PCDs (in thousands)
(a)
|
11,434
|
|
138
|
|
18,663
|
|
166
|
ALBDs (in thousands)
(b)
|
16,666
|
|
444
|
|
29,989
|
|
617
|
Occupancy percentage
(c)
|
69 %
|
|
31 %
|
|
62 %
|
|
27 %
|
Passengers carried (in
thousands)
|
1,652
|
|
27
|
|
2,663
|
|
32
|
Fuel consumption in
metric tons (in thousands)
|
632
|
|
246
|
|
1,198
|
|
508
|
Fuel consumption in
metric tons per thousand ALBDs
|
37.9
|
|
(d)
|
|
40.0
|
|
(d)
|
Fuel cost per metric
ton consumed
|
$
869
|
|
$
467
|
|
$
765
|
|
$
428
|
Currencies (USD to
1)
|
|
|
|
|
|
|
|
AUD
|
$
0.73
|
|
$
0.77
|
|
$
0.72
|
|
$
0.77
|
CAD
|
$
0.79
|
|
$
0.81
|
|
$
0.79
|
|
$
0.80
|
EUR
|
$
1.08
|
|
$
1.20
|
|
$
1.11
|
|
$
1.21
|
GBP
|
$
1.29
|
|
$
1.39
|
|
$
1.32
|
|
$
1.38
|
The ongoing resumption of guest cruise operations is continuing
to have a material impact on all aspects of the company's business,
including the above statistical information.
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. 2021 and 2020 were impacted by
the pause and ongoing 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
May 31,
|
|
Six Months Ended May
31,
|
(dollars in
millions, except costs per ALBD)
|
2022
|
|
2022 Constant
Currency
|
|
2019
|
|
2022
|
|
2022 Constant
Currency
|
|
2019
|
Operating costs and
expenses
|
$
2,683
|
|
|
|
$
3,159
|
|
$
4,713
|
|
|
|
$
6,301
|
Selling and
administrative expenses
|
619
|
|
|
|
621
|
|
1,149
|
|
|
|
1,250
|
Tour and other
expenses
|
(47)
|
|
|
|
(68)
|
|
(69)
|
|
|
|
(103)
|
Cruise
costs
|
3,255
|
|
|
|
3,712
|
|
5,793
|
|
|
|
7,448
|
Less
|
|
|
|
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
(325)
|
|
|
|
(613)
|
|
(576)
|
|
|
|
(1,322)
|
Onboard and
other
|
(314)
|
|
|
|
(485)
|
|
(523)
|
|
|
|
(952)
|
Gains (losses) on ship
sales and impairments
|
5
|
|
|
|
16
|
|
(1)
|
|
|
|
14
|
Restructuring
expenses
|
(1)
|
|
|
|
—
|
|
(1)
|
|
|
|
—
|
Other
|
—
|
|
|
|
(20)
|
|
—
|
|
|
|
(20)
|
Adjusted cruise
costs
|
2,620
|
|
|
|
2,610
|
|
4,691
|
|
|
|
5,168
|
Less fuel
|
(545)
|
|
|
|
(423)
|
|
(910)
|
|
|
|
(804)
|
Adjusted cruise
costs excluding fuel
|
$
2,075
|
|
$
2,100
|
|
$
2,187
|
|
$
3,781
|
|
$
3,804
|
|
$
4,364
|
ALBDs (in thousands)
|
16,666
|
|
16,666
|
|
21,645
|
|
29,989
|
|
29,989
|
|
42,944
|
|
|
|
|
|
|
|
|
|
|
|
|
Cruise costs per
ALBD
|
$ 195.29
|
|
|
|
$ 171.51
|
|
$ 193.17
|
|
|
|
$ 173.44
|
% increase (decrease)
vs 2019
|
13.9 %
|
|
|
|
|
|
11.4 %
|
|
|
|
|
Adjusted cruise
costs per ALBD
|
$ 157.18
|
|
|
|
$ 120.60
|
|
$ 156.42
|
|
|
|
$ 120.34
|
% increase (decrease)
vs 2019
|
30.3 %
|
|
|
|
|
|
30.0 %
|
|
|
|
|
Adjusted cruise
costs excluding fuel per ALBD
|
$ 124.49
|
|
$ 126.02
|
|
$ 101.05
|
|
$ 126.09
|
|
$ 126.85
|
|
$ 101.63
|
% increase (decrease)
vs 2019
|
23.2 %
|
|
24.7 %
|
|
|
|
24.1 %
|
|
24.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(See Non-GAAP
Financial Measures)
|
CARNIVAL CORPORATION
& PLC
|
NON-GAAP FINANCIAL
MEASURES (CONTINUED)
|
|
|
Three Months
Ended
|
(in
millions)
|
May 31,
2022
|
|
February 28,
2022
|
|
November 30,
2021
|
Net income
(loss)
|
|
|
|
|
|
U.S. GAAP net income
(loss)
|
$
(1,834)
|
|
$
(1,891)
|
|
$
(2,620)
|
(Gains) losses on ship
sales and impairments
|
(5)
|
|
7
|
|
292
|
(Gains) losses on debt
extinguishment, net
|
—
|
|
—
|
|
298
|
Restructuring
expenses
|
1
|
|
—
|
|
7
|
Other
|
(29)
|
|
—
|
|
69
|
Adjusted net income
(loss)
|
$
(1,867)
|
|
$
(1,884)
|
|
$
(1,955)
|
Interest expense, net
of capitalized interest
|
370
|
|
368
|
|
348
|
Interest
income
|
(6)
|
|
(3)
|
|
(2)
|
Income tax
expense, net
|
3
|
|
3
|
|
(4)
|
Depreciation and
amortization
|
572
|
|
554
|
|
552
|
Adjusted
EBITDA
|
$
(928)
|
|
$
(962)
|
|
$
(1,060)
|
|
Three Months
Ended May
31,
|
|
Six Months
Ended May
31,
|
(in
millions)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
(loss)
|
|
|
|
|
|
|
|
U.S. GAAP net income
(loss)
|
$
(1,834)
|
|
$
(2,072)
|
|
$
(3,726)
|
|
$
(4,045)
|
(Gains) losses on ship
sales and impairments
|
(5)
|
|
36
|
|
1
|
|
39
|
(Gains) losses on debt
extinguishment, net
|
—
|
|
(2)
|
|
—
|
|
(4)
|
Restructuring
expenses
|
1
|
|
3
|
|
1
|
|
3
|
Other
|
(29)
|
|
—
|
|
(29)
|
|
17
|
Adjusted net income
(loss)
|
$
(1,867)
|
|
$
(2,036)
|
|
$
(3,752)
|
|
$
(3,990)
|
Interest expense, net
of capitalized interest
|
370
|
|
437
|
|
738
|
|
835
|
Interest
income
|
(6)
|
|
(4)
|
|
(9)
|
|
(7)
|
Income tax
expense, net
|
3
|
|
12
|
|
6
|
|
6
|
Depreciation and
amortization
|
572
|
|
567
|
|
1,126
|
|
1,119
|
Adjusted
EBITDA
|
$
(928)
|
|
$
(1,023)
|
|
$
(1,891)
|
|
$
(2,037)
|
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 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.
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SOURCE Carnival Corporation & plc