MIAMI (June 25, 2018) - Carnival Corporation &
plc (NYSE/LSE: CCL; NYSE: CUK) announced U.S. GAAP net income of $561 million,
or $0.78 diluted EPS, for the second quarter of 2018, higher than U.S. GAAP net
income for the second quarter of 2017 of $379 million, or $0.52 diluted EPS.
Second quarter 2018 adjusted net income of $489 million, or $0.68 adjusted EPS,
was higher than adjusted net income of $378 million, or $0.52 adjusted EPS, for
the second quarter of 2017. Adjusted net income excludes unrealized gains and
losses on fuel derivatives and other net charges, totaling $72 million in net
gains for the second quarter of 2018 and $1 million in net gains for the second
quarter of 2017. Revenues for the second quarter of 2018 were $4.4 billion,
higher than the $3.9 billion in the prior year.
Carnival Corporation & plc President and Chief
Executive Officer Arnold Donald stated, “We delivered another strong quarter,
again achieving record adjusted earnings on record revenues and exceeding the
high end of our guidance range. Strong operational execution drove a 30 percent
increase in adjusted earnings affirming the strength of our core strategy to
create demand that outpaces measured capacity growth through outstanding guest
experience efforts coupled with innovative actions to increase consideration
for cruising across all global markets.”
Key information for the second quarter of 2018 compared
to the second quarter of 2017:
•
Gross revenue yields (revenue
per available lower berth day or “ALBD”) increased 8.8 percent. In constant currency, net revenue
yields increased 4.8 percent exceeding March guidance of up 2.5 to 3.5 percent.
•
Gross cruise costs including
fuel per ALBD increased 8.2 percent. In constant currency, net cruise costs
excluding fuel per ALBD increased 3.6 percent, better than March guidance of up
4.0 to 5.0 percent, principally due to the timing of expenses between quarters.
•
Changes in fuel prices
(including realized fuel derivatives) and currency exchange rates increased
earnings by $0.01 per share.
Highlights from the second
quarter include the delivery of Carnival Cruise Line’s 26th ship in its fleet, Carnival Horizon in March 2018.
Additionally, in April 2018 Seabourn took delivery of the 5th all-suite ship in
its ultra luxury fleet, Seabourn Ovation.
As a result of the strong guest response to sailings to Cuba, Carnival Cruise
Line received approval for more than 20 additional calls, bringing the total to
40 calls to Cuba in 2019, departing from home-ports in Miami, Fort Lauderdale,
Tampa, and Charleston. Also during the quarter, Carnival Cruise Line unveiled
the largest, most technologically advanced operations center in the cruise
industry. Carnival Corporation & plc increased its quarterly dividend from
$0.45 to $0.50 and replenished the share repurchase program to $1 billion.
At this time,
cumulative advanced bookings for the next three quarters are in line with the
prior year at higher prices. Since March, booking volumes for the next three
quarters have been running slightly ahead of prior year at prices that are in
line with the prior year.
Donald
added, “Strong operational results coupled with sustained strength in booking
trends have mitigated the unfavorable $0.19 per share impact of fuel and
currency moving against us since our last update. We remain on track to deliver
double digit return on invested capital in 2018. In addition, we have
accelerated returns to shareholders through our recent dividend increase, with
annual dividend distributions now over $1.4 billion and the reauthorization of
up to $1 billion in share repurchases.” The company invested over $375 million
in share repurchases since the beginning of the quarter, bringing the
cumulative total of repurchases to date to over $3.7 billion since late
2015.
Based on
current booking trends, the company now expects full year 2018 net revenue
yields in constant currency to be up approximately 3.0 percent compared to the
prior year, better than March guidance of up approximately 2.5 percent. The
company still expects full year net cruise costs excluding fuel per ALBD in
constant currency compared to the prior year to be up approximately 1.0
percent, in line with March guidance. Changes in fuel prices (including
realized fuel derivatives) and currency exchange rates are expected to decrease
earnings by $0.19 per share compared to March guidance and $0.13 per share
compared to the prior year.
Taking the
above factors into consideration, the company expects full year 2018 adjusted
earnings per share to be in the range of $4.15 to $4.25 compared to 2017
adjusted earnings per share of $3.82.
Third quarter
constant currency net revenue yields are expected to be up approximately 1.5 to
2.5 percent compared to third quarter 2017. Net cruise costs excluding fuel per
ALBD in constant currency for the third quarter are expected to increase by
approximately 3.0 to 4.0 percent compared to third quarter 2017. Changes in
fuel prices (including realized derivatives) and currency exchange rates are
expected to decrease earnings by $0.06 per share compared to the prior year.
Based on the above factors, the company expects adjusted earnings per share for
the third quarter 2018 to be in the range of $2.25 to $2.29 versus 2017
adjusted earnings per share of $2.29.
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Full Year 2018
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Third Quarter 2018
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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 5.0%
|
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Approx 3.0%
|
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2.5 to 3.5%
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1.5 to 2.5%
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Net cruise costs excl. fuel / ALBD
|
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Approx 3.5%
|
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Approx 1.0%
|
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4.0 to 5.0%
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3.0 to 4.0%
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Full Year 2018
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Third Quarter 2018
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Fuel cost per metric ton consumed
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$479
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$525
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Fuel consumption (metric tons in
thousands)
|
3,305
|
|
820
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Currencies (USD to 1)
|
|
|
|
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AUD
|
$0.76
|
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$0.74
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CAD
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$0.77
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$0.75
|
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EUR
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$1.18
|
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$1.16
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GBP
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$1.35
|
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$1.32
|
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RMB
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$0.16
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$0.15
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Three Months Ended
May 31, |
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Six Months Ended
May 31, |
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2018
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2017
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2018
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2017
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Net income (in millions)
|
$
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561
|
|
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$
|
379
|
|
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$
|
951
|
|
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$
|
730
|
|
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Adjusted net income (in millions)
(a)
|
$
|
489
|
|
|
$
|
378
|
|
|
$
|
864
|
|
|
$
|
657
|
|
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Earnings per share-diluted
|
$
|
0.78
|
|
|
$
|
0.52
|
|
|
$
|
1.33
|
|
|
$
|
1.00
|
|
|
Adjusted earnings per share-diluted (a)
|
$
|
0.68
|
|
|
$
|
0.52
|
|
|
$
|
1.21
|
|
|
$
|
0.90
|
|
(a) See the net income to adjusted net income and EPS to
adjusted EPS reconciliations in the Non-GAAP Financial Measures included
herein.
