Record
full year revenues of $17.5 billion, up $1.1 billion
MIAMI (December 19, 2017) - Carnival Corporation
& plc (NYSE/LSE: CCL; NYSE: CUK) announced U.S. GAAP net income for the
full year 2017 of $2.6 billion, or $3.59 diluted EPS, compared to $2.8 billion,
or $3.72 diluted EPS, for the prior year. Full year 2017 adjusted net income of
$2.8 billion, or $3.82 adjusted EPS, was higher than adjusted net income of
$2.6 billion, or $3.45 adjusted EPS, for the full year 2016. Adjusted net
income excludes unrealized gains on fuel derivatives of $227 million and
previously reported impairments and other net charges of $390 million for the
full year 2017. For the full year 2016, adjusted net income excludes unrealized
gains on fuel derivatives of $236 million and other net charges of $37 million.
Revenues for the full year 2017 were $17.5 billion, $1.1 billion higher than
the $16.4 billion in the prior year.
Carnival Corporation & plc President and Chief
Executive Officer Arnold Donald noted, “We exceeded the high end of our
original full year 2017 guidance by $0.22 per share, achieving record cash from
operations of $5.3 billion and another adjusted earnings per share record
despite a significant drag from fuel and currency. Our full year
performance was led by over 4.5 percent growth in ticket prices while
overcoming a variety of headwinds, affirming that our core strategy, which is
anchored in delivering exceptional guest experiences, driving demand through
marketing programs to increase cruise consideration, and introducing new more
efficient ships through measured capacity growth all while leveraging our
scale, can deliver consistent earnings improvements.”
Key information for the fourth quarter 2017 compared to
the prior year:
•
U.S. GAAP net income for 4Q
2017 of $546 million, or $0.76 diluted EPS, compared to $609 million or $0.83
diluted EPS, for the prior year. On an adjusted basis, 4Q 2017 net income of
$452 million, or $0.63 EPS, compared to net income of $491 million, or $0.67
EPS, for the prior year. Adjusted net income excludes unrealized gains and
losses on fuel derivatives and other net charges, totaling $94 million in net
gains for 4Q 2017 and $118 million of net gains for 4Q 2016.
•
Gross revenue yields (revenue
per available lower berth day or “ALBD”) increased 6.8 percent.In constant
currency, net revenue yields increased 4.2 percent for 4Q 2017, better than September
guidance of up 1.5 to 2.5 percent.
•
Gross cruise costs including
fuel per ALBD increased 9.7 percent. In constant currency, net cruise costs
excluding fuel per ALBD increased 6.1 percent, in line with September guidance
of up 6.0 to 7.0 percent.
•
Changes in fuel prices
(including realized fuel derivatives) and currency exchange rates decreased
earnings by $0.03 per share.
•
Voyage disruptions due to
hurricanes reduced fourth quarter earnings by approximately $0.11 per share.
Highlights during the fourth
quarter included the official start of construction on AIDA Cruises’ AIDAnova entering service in December
2018, the first of seven next-generation ships for the corporation that will be
fully powered by liquefied natural gas (LNG), as well as an agreement reached
between Carnival Cruise Line and Shell, which will supply fuel for the brand’s
two LNG-powered ships, to be the first in North America when they enter service
in 2020 and 2022. Also during the quarter, the company announced an agreement with
Italian shipbuilder Fincantieri for the construction of a new ship for its
iconic Cunard brand, to be delivered in 2022. Several new innovations under the
company’s OCEAN® experience platform launched including Ocean MedallionTM,
PlayOceanTM a mobile gaming portfolio, OceanViewTM, which
is the world’s first digital streaming travel channel for land and sea, and
MedallionNetTM, a new easy-to-access Wi-Fi that features exceptional
speeds, bandwidth and service consistency. Other milestones included Seabourn
being named “Best Small-Ship Cruise Line” by the prestigious Condè Nast
Traveler magazine and the announcement of a one-of-a-kind restaurant and
microbrewery in partnership with celebrity chef Guy Fieri to be featured on
Carnival Cruise Line’s Carnival Horizon
debuting in April 2018.
At this time, cumulative advance bookings for full year
2018 are ahead of the prior year at higher prices. Since November, booking
volumes for 2018 have been running well ahead of the prior year at higher
prices.
Donald commented, “Despite booking disruptions from this
year’s multiple hurricanes, we are still heading into 2018 with a stronger base
of business and higher prices than last year. We have numerous efforts underway
to keep the momentum going in 2018 and beyond, from our innovative approaches
to increase consideration for cruising, including our recently announced
partnership with Univision, to the further roll-out of our state-of-the-art
revenue management system. In 2018 we also look forward to the delivery of four
new cutting-edge ships, Carnival Horizon,
Seabourn Ovation, AIDAnova, and Nieuw Statendam to further our strategic fleet enhancement program.”
Based on
current booking trends, the company expects full year 2018 net revenue yields
in constant currency to be up approximately 2.5 percent compared to the prior
year. The company expects full year net cruise costs excluding fuel per ALBD in
constant currency to be up approximately 1.0 percent compared to the prior
year.
As a result of
higher fuel prices, forecasted fuel costs for the full year 2018 are expected
to increase approximately $117 million compared to the prior year, net of
realized fuel derivatives, reducing earnings by $0.16 per share. This is
partially offset by favorable movements in currency exchange rates, which are
forecasted to increase earnings by $0.08 per share.
Taking the above factors into consideration, the company
expects full year 2018 adjusted earnings per share to be in the range of $4.00
to $4.30, compared to 2017 adjusted earnings per share of $3.82.
Donald added, “We remain on
track to achieve double digit return on invested capital in 2018. We are
committed to the continued distribution of cash to shareholders through
increasing dividends, currently totaling $1.3 billion annually, and ongoing
share repurchases, which have exceeded $3 billion since late 2015.”
First quarter constant currency
net revenue yields are expected to be up approximately 1.5 to 2.5 percent
compared to the prior year. Net cruise costs excluding fuel per ALBD in
constant currency for the first quarter of 2018 are expected to increase by
approximately 2.0 to 3.0 percent compared to the prior year. Changes in fuel
prices (including realized fuel derivatives) and changes in currency exchange
rates compared to prior year are expected to decrease earnings by $0.02 per
share. Based on the above factors, the company expects adjusted earnings per
share for the first quarter 2018 to be in the range of $0.37 to $0.41 versus
2017 adjusted earnings per share of $0.38.
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Full Year 2018
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First Quarter 2018
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Year over year change:
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|
Current
Dollars
|
|
Constant
Currency
|
|
Current
Dollars
|
|
Constant
Currency
|
|
Net revenue yields
|
|
Approx 4.0%
|
|
Approx 2.5%
|
|
5.0 to 6.0%
|
|
1.5 to 2.5%
|
|
Net cruise costs excl. fuel / ALBD
|
|
Approx 3.0%
|
|
Approx 1.0%
|
|
5.5 to 6.5%
|
|
2.0 to 3.0%
|
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Full Year 2018
|
|
First Quarter 2018
|
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Fuel cost per metric ton consumed
|
$442
|
|
$420
|
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Fuel consumption (metric tons in
thousands)
|
3,315
|
|
820
|
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Currencies (USD to 1)
|
|
|
|
|
AUD
|
$0.76
|
|
$0.76
|
|
CAD
|
$0.78
|
|
$0.78
|
|
EUR
|
$1.18
|
|
$1.18
|
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GBP
|
$1.34
|
|
$1.34
|
|
RMB
|
$0.15
|
|
$0.15
|
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Three Months Ended
November 30,
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Twelve Months Ended
November 30,
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2017
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2016
|
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2017
|
|
2016
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|
Net income (in millions)
|
$
|
546
|
|
|
$
|
609
|
|
|
$
|
2,606
|
|
|
$
|
2,779
|
|
|
Adjusted net income (in millions)
(a)
|
$
|
452
|
|
|
$
|
491
|
|
|
$
|
2,770
|
|
|
$
|
2,580
|
|
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|
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Earnings per share-diluted
|
$
|
0.76
|
|
|
$
|
0.83
|
|
|
$
|
3.59
|
|
|
$
|
3.72
|
|
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Adjusted earnings per share-diluted (a)
|
$
|
0.63
|
|
|
$
|
0.67
|
|
|
$
|
3.82
|
|
|
$
|
3.45
|
|
(a)
See the net income to adjusted net income and EPS to adjusted EPS
reconciliations in the Non-GAAP Financial Measures included herein.
Tags:Carnival Corporation
