MIAMI,
July 10, 2020 /PRNewswire/
-- 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 expenses
|
• Adjusted earnings
per share
|
• Currency exchange
rates
|
• Impact of the
COVID-19 coronavirus global pandemic on our financial condition and
results of operations
|
• Net cruise costs,
excluding 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
May 31,
|
|
Six Months Ended May 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues
|
|
|
|
|
|
|
|
Passenger
ticket
|
$
|
446
|
|
|
$
|
3,257
|
|
|
$
|
3,680
|
|
|
$
|
6,456
|
|
Onboard and other
(a)
|
294
|
|
|
1,580
|
|
|
1,849
|
|
|
3,054
|
|
|
740
|
|
|
4,838
|
|
|
5,529
|
|
|
9,511
|
|
Operating Costs and Expenses
|
|
|
|
|
|
|
|
Commissions,
transportation and other
|
297
|
|
|
613
|
|
|
1,064
|
|
|
1,322
|
|
Onboard and
other
|
114
|
|
|
485
|
|
|
585
|
|
|
952
|
|
Payroll and
related
|
705
|
|
|
566
|
|
|
1,315
|
|
|
1,123
|
|
Fuel
|
201
|
|
|
423
|
|
|
598
|
|
|
804
|
|
Food
|
108
|
|
|
269
|
|
|
385
|
|
|
538
|
|
Ship and other
impairments
|
589
|
|
|
—
|
|
|
919
|
|
|
—
|
|
Other operating
(b)
|
471
|
|
|
803
|
|
|
1,142
|
|
|
1,562
|
|
|
2,484
|
|
|
3,159
|
|
|
6,007
|
|
|
6,301
|
|
Selling and
administrative
|
492
|
|
|
621
|
|
|
1,170
|
|
|
1,250
|
|
Depreciation and
amortization
|
577
|
|
|
542
|
|
|
1,147
|
|
|
1,059
|
|
Goodwill impairment
(c)
|
1,364
|
|
|
—
|
|
|
2,096
|
|
|
—
|
|
|
4,918
|
|
|
4,323
|
|
|
10,420
|
|
|
8,609
|
|
Operating Income (Loss)
|
(4,177)
|
|
|
515
|
|
|
(4,891)
|
|
|
902
|
|
Nonoperating Income (Expense)
|
|
|
|
|
|
|
|
Interest
income
|
6
|
|
|
5
|
|
|
11
|
|
|
9
|
|
Interest expense, net
of capitalized interest
|
(182)
|
|
|
(54)
|
|
|
(237)
|
|
|
(105)
|
|
Other income
(expense), net
|
(32)
|
|
|
(7)
|
|
|
(39)
|
|
|
(9)
|
|
|
(208)
|
|
|
(56)
|
|
|
(265)
|
|
|
(105)
|
|
Income (Loss) Before Income
Taxes
|
(4,385)
|
|
|
459
|
|
|
(5,155)
|
|
|
797
|
|
Income Tax Benefit (Expense),
Net
|
11
|
|
|
(8)
|
|
|
—
|
|
|
(10)
|
|
Net Income (Loss)
|
$
|
(4,374)
|
|
|
$
|
451
|
|
|
$
|
(5,155)
|
|
|
$
|
787
|
|
Earnings Per Share
|
|
|
|
|
|
|
|
Basic
|
$
|
(6.07)
|
|
|
$
|
0.65
|
|
|
$
|
(7.34)
|
|
|
$
|
1.14
|
|
Diluted
|
$
|
(6.07)
|
|
|
$
|
0.65
|
|
|
$
|
(7.34)
|
|
|
$
|
1.13
|
|
|
|
|
|
|
|
|
|
Dividends Declared Per Share
|
$
|
—
|
|
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
$
|
1.00
|
|
Weighted-Average Shares Outstanding -
Basic
|
721
|
|
|
691
|
|
|
702
|
|
|
692
|
|
Weighted-Average Shares Outstanding -
Diluted
|
721
|
|
|
693
|
|
|
702
|
|
|
694
|
|
|
|
(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, 2020
|
|
November 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; 1,960 shares authorized; 731
shares at 2020 and 657 shares at 2019 issued
|
7
|
|
|
7
|
|
Ordinary shares of
Carnival plc, $1.66 par value; 217 shares at 2020 and 2019
issued
|
360
|
|
|
358
|
|
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 Corporation and 60 shares at
2020 and 2019 of Carnival plc, at cost
|
(8,404)
|
|
|
(8,394)
|
|
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 and restricted
cash
|
1
|
|
|
(5)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
6,366
|
|
|
220
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
530
|
|
|
996
|
|
Cash, cash equivalents
and restricted cash at end of period
|
$
|
6,896
|
|
|
$
|
1,215
|
|
CARNIVAL
CORPORATION & PLC
|
NON-GAAP FINANCIAL
MEASURES
|
|
|
Three Months Ended May 31,
|
|
Six Months Ended 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 impairments
|
1,953
|
|
|
(16)
|
|
|
2,882
|
|
|
(14)
|
|
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 share
|
$
|
(6.07)
|
|
|
$
|
0.65
|
|
|
$
|
(7.34)
|
|
|
$
|
1.13
|
|
(Gains) losses on ship sales
and impairments
|
2.71
|
|
|
(0.02)
|
|
|
4.10
|
|
|
(0.02)
|
|
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 May 31,
|
|
Six Months Ended 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 thousands)
|
482
|
|
|
835
|
|
|
1,314
|
|
|
1,664
|
|
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.
|
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SOURCE Carnival Corporation & plc