MIAMI (September 26, 2016) - Carnival
Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced U.S. GAAP net income
of $1.4 billion, or $1.93 diluted EPS, for the third quarter of 2016 compared
to U.S. GAAP net income for the third quarter of 2015 of $1.2 billion, or $1.56
diluted EPS. Third quarter 2016 adjusted net income of $1.4 billion, or $1.92
adjusted EPS, was higher than adjusted net income of $1.4 billion, or $1.75
adjusted EPS, for the third quarter of 2015. Adjusted net income excludes
unrealized gains and losses on fuel derivatives and other net charges, totaling
$7 million in gains for the third quarter 2016 and $149 million of losses for
the third quarter 2015. Revenues for the third quarter of 2016 were $5.1
billion, $0.2 billion higher than the $4.9 billion in the prior year.
Carnival Corporation & plc
President and Chief Executive Officer Arnold Donald noted, “We delivered the
strongest quarterly earnings in our company’s history affirming our ongoing
efforts to expand consumer demand in excess of measured capacity increases and
leverage our industry leading scale. Revenues during the peak summer season
were bolstered by strong performances from both our North American and European
brands and across all major deployments including the Caribbean, Alaska and
Europe,” Donald added.
Key metrics for the third quarter 2016 compared to the
prior year were as follows:
•
Gross revenue yields (revenue
per available lower berth day or “ALBD”) increased 0.6 percent.Net revenue
yields on a constant currency basis increased 2.7 percent for 3Q 2016, toward
the top end of the June guidance range of up 2 to 3 percent.
•
Gross cruise costs including
fuel per ALBD decreased 0.2 percent. Net cruise costs excluding fuel per ALBD
on a constant currency basis increased 5.5 percent, better than June guidance
of up 6 to 7 percent, due to the timing of certain expenses.
•
Changes in fuel prices
(including realized fuel derivatives) and changes in currency exchange rates
increased earnings by $0.02 per share.
Highlights during the third quarter included the grand
opening of the Arison Maritime Center in Almere, Netherlands, named for
Carnival Corporation & plc Chairman Micky Arison and his father, the late
Ted Arison, who founded the company. The 110,000-square-foot purpose
built facility is a major expansion from the existing training center that
opened in 2009. The center will provide comprehensive safety and skills
training for bridge and engineering officers. The facility includes four
bridge and engine room simulators and is expected to train over 6,500 officers
annually across the company's 10 brands.
The company also signed a memorandum of agreement with
shipbuilders Meyer Werft and Meyer Turku for the construction of three new
180,000-ton cruise ships. Two of the ships, to be built in Finland, will
be added to the Carnival Cruise Line fleet in 2020 and 2022. The third ship, to
be constructed in Germany, will join the P&O Cruises UK fleet in 2020.
All three vessels will be fully powered by Liquefied Natural Gas, the world’s
cleanest burning fossil fuel. In conjunction with these new ship orders,
the delivery dates for two previously contracted ships, one for AIDA Cruises
and one for Costa Cruises, will shift from 2020 to 2021 to ensure a measured
pace of capacity growth over the coming years.
At this time, cumulative advance
bookings for the first half of next year are ahead of the prior year at
considerably higher prices. Since June, booking volumes for the first half of
next year are lower than the prior year, as there is less inventory remaining
for sale, at significantly higher prices.
The company continues to expect full
year 2016 net revenue yields to be up approximately 3.5 percent compared to the
prior year, on a constant currency basis. The company continues to expect full
year net cruise costs excluding fuel per ALBD to be up approximately 1.5
percent compared to the prior year, on a constant currency basis.
Taking the above factors into
consideration, the company has increased its full year 2016 adjusted earnings
per share guidance to be in the range of $3.33 to $3.37, compared to the June
guidance range of $3.25 to $3.35 and 2015 adjusted earnings per share of $2.70.
Donald
commented, “We are well on track to deliver nearly 25 percent earnings growth
in 2016. With cash from operations expected to reach a record $5 billion this
year, we continue to fund our growth and return cash to shareholders. During
the third quarter we repurchased $700 million of Carnival Corporation shares
bringing the cumulative total to $2.5 billion in share repurchases over the
past year.”
Donald added, “Looking forward, we
are well positioned for continued earnings growth given the current strength of
our booking and pricing trends in 2017.”
Fourth quarter
constant currency net revenue yields are expected to be up approximately 3 percent
compared to the prior year. Fourth quarter constant currency net cruise costs
excluding fuel per ALBD are expected to be higher by approximately 1 percent
compared to the prior year. Based on the above factors, the company expects
adjusted earnings per share for the fourth quarter 2016 to be in the range of
$0.55 to $0.59 versus 2015 adjusted earnings per share of $0.50.
Full Year 2016
|
Fourth Quarter 2016
|
|||||||
Year over year change:
|
Current
Dollars
|
Constant
Currency
|
Current
Dollars
|
Constant
Currency
|
||||
Net revenue yields
|
Approx 1.0%
|
Approx 3.5%
|
Approx 1.5%
|
Approx 3.0%
|
||||
Net cruise costs excl. fuel / ALBD
|
Approx 0.5%
|
Approx 1.5%
|
Approx 0.5%
|
Approx 1.0%
|
||||
Full Year 2016
|
Fourth Quarter 2016
|
||
Fuel price per metric ton
|
$285
|
$332
|
|
Fuel consumption (metric tons in
thousands)
|
3,250
|
830
|
|
Currency: Euro
|
$1.11 to €1
|
$1.11 to €1
|
|
Sterling
|
$1.38 to £1
|
$1.30 to £1
|
|
Australian dollar
|
$0.74 to A$1
|
$0.76 to A$1
|
|
Canadian dollar
|
$0.76 to C$1
|
$0.76 to C$1
|
The company has scheduled a
conference call with analysts at 10:00 a.m. EDT (3:00 p.m. BST) today to
discuss its 2016 third quarter results.
This call can be listened to live, and additional information can be
obtained, via Carnival Corporation & plc’s Web site at www.carnivalcorp.com
and www.carnivalplc.com.
Carnival Corporation & plc
is the largest leisure travel company in the world, and among the most
profitable and financially strong in the industry. With a portfolio of 10 cruise brands
in North America, Europe, Australia and Asia,
comprised of Carnival Cruise Line, Fathom, Holland America Line, Princess
Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, P&O
Cruises (Australia) and P&O Cruises (UK).
Together, these brands operate 101
ships visiting over 700 ports around the world and totaling 225,000 lower
berths with 18 new ships scheduled to be delivered between 2016 and
2022. Carnival Corporation & plc also operates Holland America
Princess Alaska Tours, the leading tour companies in Alaska and the
Canadian Yukon. Traded on both the New York and London Stock
Exchanges, Carnival Corporation & plc is the only group in the
world to be included in both the S&P 500 and the FTSE 100 indices.
