MIAMI – Carnival
Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced adjusted
net income of $301 million, or $0.39 diluted earnings per share, for the first quarter of 2016 compared to adjusted net income for the first quarter of 2015 of $159 million,
or $0.20 diluted earnings per share. For the first quarter of 2016, U.S.
GAAP net income was $142 million, or $0.18 diluted earnings per share, which included unrealized losses on fuel derivatives and other net charges of $159 million. For the first quarter of 2015, U.S. GAAP net income was
$49 million, or $0.06 diluted earnings per
share. Revenues for the first quarter of
2016 were $3.7 billion compared
to $3.5 billion in the prior year.
Carnival Corporation & plc President and Chief Executive
Officer Arnold Donald noted, “Our teams delivered another strong quarter of
operational improvement by creating increased demand for our brands and
leveraging our scale which resulted in revenue yield improvement approaching 6
percent and the near doubling of first quarter adjusted earnings. We thank our
millions of loyal guests and valued travel professional partners around the
globe for their patronage and support.”
Key metrics for the first quarter 2016 compared to first
quarter 2015 were as follows:
·
Net revenue yields (net revenue per available lower berth day or
“ALBD”) increased 5.7 percent in
constant currency, which was better than the company’s
December guidance of up
3.5 to 4.5 percent. Gross revenue yields decreased 0.4 percent
in current dollars due to changes in currency exchange rates.
·
Net cruise costs excluding
fuel per ALBD increased 1.6 percent in constant currency and were lower than
December guidance, up 2.5 to 3.5 percent, due to the timing of expenses between quarters. Gross
cruise costs including fuel per ALBD in current dollars decreased 6.0 percent
due to changes in fuel prices and currency exchange rates.
·
Changes
in fuel prices (including fuel derivatives), net of changes in currency exchange
rates, increased earnings by $0.03 per share.
The company’s Germany-based AIDA brand recently took
delivery of AIDAprima with a wide
array of innovative and remarkable guest experiences. In the coming days,
Holland America’s new flagship Koningsdam
will also be delivered boasting new groundbreaking experiences especially in
entertainment. Other new ship deliveries scheduled for 2016 include Carnival Vista in late April and Seabourn Encore in November. In
addition, P&O Cruises (Australia) recently announced that Pacific Pearl will leave the fleet in April
2017, consistent with the company’s long-term strategy of removing less efficient
ships from its fleet as new capacity is introduced.
Last week marked a historic day for Carnival Corporation
when the company became the first U.S. based cruise operator in more than 50
years to be granted approval from Cuba to sail there. The company’s
newest brand, Fathom, will begin seven-day cruises to Cuba in early May onboard
the 700-passenger Adonia
initially visiting Havana, Cienfuegos and Santiago de Cuba.
2016 Outlook
At this time, cumulative advance bookings for the
remainder of 2016 are well ahead of the prior year at slightly higher prices.
Since January, booking volumes for the remainder of the year are running ahead
of last year’s historically high levels at higher prices.
Donald noted, “Our ongoing guest experience innovations coupled
with our increasingly effective marketing and communication efforts have driven
additional demand for our brands, resulting in a strong booked position. The
lower levels of inventory remaining for sale for the balance of the year,
particularly for our peak summer period, positions our brands well for
continued revenue yield growth and builds confidence in our full year earnings forecast.”
“Additionally, the
underlying strength of our operating performance, leading to sustained earnings
and cash flow growth, has accelerated the return of capital to shareholders
through our stepped up share repurchase program. Since resuming the share
repurchase program, we have bought back approximately 27 million shares returning
$1.3 billion to shareholders in the last six months,” Donald added.
On a constant currency basis, compared to the
prior year, the company continues to expect full year 2016 net revenue yields to
increase approximately 3 percent and net cruise costs excluding fuel per ALBD
for full year 2016 to be up approximately 2 percent.
Based on current booking strength, the company forecasts
full year 2016 adjusted earnings per share to be in the range of $3.20 to $3.40,
compared to December guidance of $3.10 to $3.40 and 2015 adjusted earnings of $2.70
per share.
Second Quarter 2016 Outlook
Second
quarter constant currency net revenue yields are expected to increase 1.5 to 2.5
percent compared to the prior year. Net cruise costs excluding fuel per ALBD
for the second quarter are expected to be up 0.5 to 1.5 percent on a constant
currency basis compared to the prior year.
Based on the above factors, the company
expects adjusted earnings for the second quarter 2016 to be in the range of $0.34
to $0.38 per share compared to 2015 adjusted earnings of $0.25 per share.
Selected Key Forecast Metrics
Full
Year 2016
|
Second Quarter 2016
|
||||||||||||
Year over year change:
|
Current
Dollars
|
Constant Currency
|
Current
Dollars
|
Constant Currency
|
|||||||||
Net revenue yields
|
Up slightly
|
Approx. 3%
|
(0.05) to 0.05 %
|
1.5
to 2.5 %
|
|||||||||
Net cruise costs excl. fuel / ALBD
|
Up slightly
|
Approx. 2%
|
0.0 to 1.0 %
|
0.5 to 1.5 %
|
|||||||||
Full Year 2016
|
Second Quarter 2016
|
|||
Fuel price per metric ton
|
$244
|
$239
|
||
Fuel consumption (metric tons in thousands)
|
3,270
|
815
|
||
Currency: Euro
|
$1.11
to €1
|
$1.11 to €1
|
||
Sterling
|
$1.44 to £1
|
$1.43 to £1
|
||
Australian dollar
|
$0.74 to A$1
|
$0.75 to A$1
|
||
Canadian dollar
|
$0.74 to C$1
|
$0.75 to C$1
|
Conference Call
The company has scheduled a conference call
with analysts at 10:00 a.m. EDT (3:00 p.m. BST) on March 30, 2016, to discuss its 2016 first
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 cruise
company in the world, 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 99 ships totaling
219,000 lower berths with 16 new ships scheduled to be delivered between 2016 and
2020. 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. Additional information can be found on www.carnival.com, www.fathom.org, www.hollandamerica.com,
www.princess.com, www.seabourn.com, www.aida.de, www.costacruise.com, www.cunard.com, www.pocruises.com.au,
and www.pocruises.com
