MIAMI - Carnival Corporation
& plc (NYSE/LSE: CCL; NYSE: CUK) announced U.S. GAAP net income for the
full year 2016 of $2.8 billion, or $3.72 diluted EPS, compared to $1.8 billion,
or $2.26 diluted EPS, for the prior year. Full year 2016 adjusted net income of
$2.6 billion, or $3.45 adjusted EPS, was higher than adjusted net income of
$2.1 billion, or $2.70 adjusted EPS, for the full year 2015. Adjusted net
income excludes unrealized gains and losses on fuel derivatives and other
items, totaling $199 million in gains for the full year 2016 and $349 million
of losses for the full year 2015. Revenues for the full year 2016 were $16.4
billion, $0.7 billion higher than the $15.7 billion in the prior year.
Carnival Corporation & plc President and Chief
Executive Officer Arnold Donald noted, “We achieved the most profitable year in
our company’s history as well as record fourth quarter earnings. The continued
execution of our core strategy to drive consumer demand in excess of measured
capacity growth, contain costs and leverage our industry-leading scale resulted
in our third consecutive year of significantly higher earnings and return on
invested capital. The delivery of over $5 billion in cash from operations for
our shareholders enabled increased dividend distributions reaching $1 billion
and the investment of over $2.3 billion in the repurchase of Carnival
Corporation stock. This continued strong performance is a credit to the
outstanding contributions of our 120,000 employees worldwide who work every day
to exceed our guests’ expectations and our thousands of travel agent partners
around the globe whose support is crucial to our success.”
Key information for the fourth quarter 2016 compared to
the prior year:
•
U.S. GAAP net income for 4Q
2016 of $609 million, or $0.83 diluted EPS, compared to $270 million, or $0.35
diluted EPS, for the prior year. On an adjusted basis, 4Q 2016 net income of
$491 million, or $0.67 EPS, was higher than net income of $389 million, or
$0.50 EPS, for the prior year. Adjusted net income excludes unrealized gains
and losses on fuel derivatives and other items, totaling $118 million in gains
for the 4Q 2016 and $119 million of losses for 4Q 2015.
•
Gross revenue yields (revenue
per available lower berth day or “ALBD”) increased 1.6 percent.In constant
currency, net revenue yields increased 4.1 percent for 4Q 2016, better than
September guidance of up approximately 3 percent.
•
Gross cruise costs including
fuel per ALBD increased 0.2 percent. In constant currency, net cruise costs
excluding fuel per ALBD increased 1.0 percent, in line with September guidance
of up approximately 1 percent.
•
Changes in fuel prices (including
realized fuel derivative losses) and currency exchange rates decreased earnings
by $0.04 per share versus the prior year.
Highlights during the
fourth quarter included the U.S. debut of Carnival Cruise Line’s Carnival Vista, featuring a concert for
Operation Homefront military families by country music superstar Carrie
Underwood and the ship’s naming ceremony with godmother Deshauna Barber, the
first woman serving in the U.S. military to hold the Miss USA title. Holland
America’s Koningsdam also made its
North American debut in November while Seabourn took delivery of Seabourn Encore, setting new standards
for ultra-luxury cruising.
During the
quarter, Carnival Corporation also signed a memorandum of agreement with Meyer
Werft for three new 180,000-ton cruise ships that will be powered by liquefied
natural gas, the world’s cleanest burning fossil fuel. Two of the ships are for
Carnival Cruise Line and are scheduled for delivery in 2020 and 2022. The third
ship is designated for P&O Cruises (UK) and is scheduled for delivery in
2020. The company also signed an agreement with Shell to begin fueling its
LNG-powered ships, starting with AIDA and Costa ships scheduled to launch in
2019.
Three new original TV series
created by Carnival Corporation began airing on Saturday mornings in October on
ABC, NBC and the CW in the U.S. The shows are designed to showcase all 10
of the company’s cruise brands while highlighting ocean travel as a means to
experience global destinations and learn about the world and other cultures.
At this time, cumulative advance bookings for the first
three quarters of 2017 are well ahead of the prior year at considerably higher
prices. Since September, both booking volumes and prices for the first three
quarters of 2017 have been running well ahead of the prior year.
Donald commented, “We enjoyed strong momentum in booking
patterns throughout 2016 and therefore are in a stronger booked position
entering the new year at higher prices as a result of our ongoing efforts to
increase consideration and demand for our brands.”
Based on
current booking trends, the company expects full year 2017 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 2017 are expected
to increase approximately $200 million (fuel price impact only) compared to the
prior year, net of realized fuel derivatives, reducing earnings by $0.27 per
share. In addition, unfavorable movements in currency exchange rates are
forecasted to reduce earnings by a further $0.16 per share.
Taking the above factors into consideration, the company
expects full year 2017 adjusted earnings per share to be in the range of $3.30
to $3.60, compared to 2016 adjusted earnings per share of $3.45.
Donald added,
“We are anticipating another solid year of operational improvement in 2017.
Despite the unusual and significant impact of fuel and currency working against
us simultaneously, the underlying strength in our fundamental business leaves
us well positioned to achieve sustained double digit return on invested capital
and to create continued value for our shareholders.”
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 2017 are expected to be higher by
approximately 1.5 to 2.5 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 $0.13 per
share. Based on the above factors, the company expects adjusted earnings per
share for the first quarter 2017 to be in the range of $0.31 to $0.35 versus
2016 adjusted earnings per share of $0.39.
|
|
|
Full Year 2017
|
|
First Quarter 2017
|
||||
|
Year over year change:
|
|
Current
Dollars
|
|
Constant
Currency
|
|
Current
Dollars
|
|
Constant
Currency
|
|
Net revenue yields
|
|
Approx flat
|
|
Approx 2.5%
|
|
(1.5) to (0.5)%
|
|
1.5 to 2.5%
|
|
Net cruise costs excl. fuel / ALBD
|
|
Approx (1.5)%
|
|
Approx 1.0%
|
|
(0.5) to 0.5%
|
|
1.5 to 2.5%
|
|
|
Full Year 2017
|
|
First Quarter 2017
|
|
Fuel price per metric ton
|
$374
|
|
$356
|
|
Fuel consumption (metric tons in
thousands)
|
3,290
|
|
820
|
|
Currency: Euro
|
$1.04 to €1
|
|
$1.04 to €1
|
|
Sterling
|
$1.24 to £1
|
|
$1.24 to £1
|
|
Australian dollar
|
$0.73 to A$1
|
|
$0.73 to A$1
|
The company has scheduled a conference call with
analysts at 10:00 a.m. EST (3:00 p.m. BST) today to discuss its 2016 fourth
quarter and full year 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 among the
largest, most profitable and financially strong leisure travel companies in the
world. With a portfolio of 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 102 ships visiting over
700 ports around the world and totaling 226,000 lower berths with 17 new ships
scheduled to be delivered between 2017 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.
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.
