MIAMI (June 22, 2017) - Carnival Corporation & plc
(NYSE/LSE: CCL; NYSE: CUK) announced U.S. GAAP net income of $379 million, or
$0.52 diluted EPS, for the second quarter of 2017 compared to U.S. GAAP net
income for the second quarter of 2016 of $605 million, or $0.80 diluted EPS.
Second quarter 2017 adjusted net income of $378 million, or $0.52 adjusted EPS,
was higher than adjusted net income of $370 million, or $0.49 adjusted EPS, for
the second quarter of 2016. Adjusted net income excludes unrealized
gains/(losses) on fuel derivatives and other net charges, which totaled gains
of $1 million for the second quarter 2017 and $235 million, or $0.31 per share,
for the second quarter 2016. Revenues for the second quarter of 2017 of $3.9
billion were higher than the $3.7 billion in the prior year.
Carnival Corporation & plc President and Chief
Executive Officer Arnold Donald noted, “Strong execution drove significant
operational improvements, which more than offset the substantial drag from fuel
and currency, leading to another second quarter adjusted earnings record. It
was reinforcing to see over five percent improvement in cruise ticket prices,
affirming our efforts to increase demand by building positive word of mouth
through the delivery of exceptional guest experiences as well as our innovative
marketing and public relations programs.”
Key information for the second quarter 2017 compared to
the prior year:
•
Gross revenue yields (revenue
per available lower berth day or “ALBD”) increased 2.7 percent.In constant
currency, net revenue yields increased 5.1 percent for 2Q 2017, better than
March guidance of up 2.5 to 3.5 percent.
•
Gross cruise costs including
fuel per ALBD increased 3.2 percent. In constant currency, net cruise costs
excluding fuel per ALBD increased 1.5 percent, in line with March guidance of
up 1.5 to 2.5 percent.
•
Changes in fuel prices
(including realized fuel derivatives) and currency exchange rates decreased earnings
by $0.12 per share.
Highlights from
the second quarter include the delivery of Princess Cruises’ Majestic Princess, the first ship
tailored for the China market, as well as the addition of AIDAperlato the company's German brand, AIDA Cruises. Also during
the quarter, two additional Princess Cruises ships, Caribbean Princess and Royal
Princess, were outfitted with the technical requirements to transition them
in early 2018 to the Ocean Platform featuring Ocean MedallionTM.
This cutting edge interactive guest experience will debut on Regal Princess this November.
Additionally, Carnival
Corporation was ranked among the 100 Best Corporate Citizens by Corporate
Responsibility magazine and was ranked number one, globally, for the year’s
most engaging and informative sustainability report in the 10th annual
Corporate Register Reporting Awards.
At this time,
cumulative bookings for the next three quarters are higher at prices that are
well ahead of the prior year. During the quarter, booking volumes for the next
three quarters have been running in line with last year, also at prices that
are well ahead.
Looking
forward, Donald commented, “We are realizing sustained strength in booking
trends across all core products. We are delivering on our strategy to grow
demand in excess of measured capacity growth while leveraging our
industry-leading scale resulting in increased return on invested capital. We
are working hard to sustain the momentum. We have accelerated returns to
shareholders through our recent dividend increase, with annual dividend
distributions now approaching $1.2 billion, and the reauthorization of up to $1
billion in share repurchases.” Donald added that the company has completed $2.7
billion in share repurchases since late 2015.
The company
expects full year 2017 net revenue yields in constant currency to be up
approximately 3.5 percent compared to the prior year, better than March
guidance of up approximately 3 percent. The company expects full year net
cruise costs excluding fuel per ALBD in constant currency to be up
approximately 1.5 percent compared to March guidance of up approximately 1
percent. Changes in fuel prices (including realized fuel derivatives) and
currency exchange rates compared to the prior year are expected to decrease
earnings by $0.35 per share.
Taking the above factors into consideration, the company expects
full year 2017 adjusted earnings per share to be in the range of $3.60 to $3.70
compared to March guidance of $3.50 to $3.70 and 2016 adjusted earnings per
share of $3.45.
Third quarter
constant currency net revenue yields are expected to be up approximately 4
percent compared to the prior year. Net cruise costs excluding fuel per ALBD in
constant currency for the third quarter of 2017 are expected to be in line with
the prior year. Changes in fuel prices (including realized fuel derivatives)
and currency exchange rates compared to the prior year are expected to decrease
earnings by $0.05 per share. Based on the above factors, the company expects
adjusted earnings per share for the third quarter 2017 to be in the range of
$2.16 to $2.20 versus 2016 adjusted earnings per share of $1.92.
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Full Year 2017
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Third Quarter 2017
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Year over year change:
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Current
Dollars
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Constant
Currency
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Current
Dollars
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Constant
Currency
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Net revenue yields
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Approx 2.5%
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Approx 3.5%
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Approx 3.5%
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Approx 4.0%
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Net cruise costs excl. fuel / ALBD
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Approx 1.0%
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Approx 1.5%
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Approx (0.5%)
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Approx flat
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Full Year 2017
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Third Quarter 2017
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Fuel price per metric ton
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$367
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$372
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Fuel consumption (metric tons in
thousands)
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3,300
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815
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Currency: Euro
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$1.10 to €1
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$1.12 to €1
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Sterling
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$1.26 to £1
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$1.27 to £1
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Australian dollar
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$0.75 to A$1
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$0.75 to A$1
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Three
Months Ended
May 31, |
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Six
Months Ended
May 31, |
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2017
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2016
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2017
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2016
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Net income (in millions)
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$
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379
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$
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605
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$
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730
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$
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747
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Adjusted net income (in millions)
(a)
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$
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378
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$
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370
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$
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657
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$
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672
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Earnings per share-diluted
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$
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0.52
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$
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0.80
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$
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1.00
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$
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0.98
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Adjusted earnings per share-diluted (a)
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$
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0.52
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$
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0.49
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$
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0.90
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$
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0.88
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(a) See the net income to adjusted net income and EPS to
adjusted EPS reconciliations in the Non-GAAP Financial Measures included
herein.
