MIAMI (March 28, 2017) - Carnival Corporation & plc
(NYSE/LSE: CCL; NYSE: CUK) announced U.S. GAAP net income of $352 million, or
$0.48 diluted EPS, for the first quarter of 2017 compared to U.S. GAAP net
income for the first quarter of 2016 of $142 million, or $0.18 diluted EPS.
First quarter 2017 adjusted net income of $279 million, or $0.38 adjusted EPS,
compared to adjusted net income of $301 million, or $0.39 adjusted EPS, for the
first quarter of 2016. Adjusted net income excludes unrealized gains and losses
on fuel derivatives and other net charges, totaling $73 million in gains for
the first quarter 2017 and $159 million of losses for the first quarter 2016.
Revenues for the first quarter of 2017 of $3.8 billion were higher than the
$3.7 billion in the prior year.
Carnival Corporation & plc President and Chief
Executive Officer Arnold Donald noted, “We are off to a good start delivering
another quarter of operational improvement on top of a very strong first
quarter last year. Our performance was driven by
increased demand, particularly for our core Caribbean itineraries, leading to
higher year-over-year ticket prices which enabled us to overcome the
significant negative impact of both fuel and currency to exceed the high end of
our guidance range.”
Key information for the first quarter 2017 compared to
the prior year:
•
Gross revenue yields (revenue
per available lower berth day or “ALBD”) increased 0.1 percent.In constant
currency, net revenue yields increased 3.8 percent for 1Q 2017, better than
December guidance of up 1.5 to 2.5 percent.
•
Gross cruise costs including
fuel per ALBD increased 2.9 percent. In constant currency, net cruise costs
excluding fuel per ALBD increased 3.2 percent, compared to December guidance of
up 1.5 to 2.5 percent, due to the timing of certain expenses.
•
Changes in fuel prices
(including realized fuel derivatives) and currency exchange rates decreased
earnings by $0.13 per share.
Highlights
during the first quarter included the January announcement at the Consumer
Electronics Show in Las Vegas, Nevada of a potential breakthrough guest
experience innovation the Ocean Platform -- featuring Ocean Medallion. The
experience will debut on Princess Cruises’ Regal
Princess in November 2017 followed by additional Princess ships in 2018.
Fleet
enhancement milestones included the official debut of Seabourn Cruises’ newest
ship, Seabourn Encore, with its
naming ceremony in Singapore. International recording artist and world's
best-selling soprano Sarah Brightman presided over the naming ceremony as
godmother of the stunning new 600-guest ship. Additionally, the
company signed a memorandum of agreement with Italian
shipbuilder Fincantieri to build two new cruise ships. The first is
designated for Holland America Line to be delivered in 2021 with the second
for Princess Cruises in 2022.
Also during the quarter,
following the Corporation’s historic sailings from the U.S. to Cuba through its
Fathom brand, Carnival Cruise Line received approval to begin operating cruises
to Cuba. Carnival Paradise will be
the largest cruise ship to sail to Cuba from the U.S. when it begins calling in
Havana in June 2017.
At this time,
cumulative advance bookings for the remainder of 2017 are well ahead of the
prior year at considerably higher prices. During the quarter, both booking
volumes and pricing for the remainder of 2017 have been running ahead of last
year.
Donald
commented, “Wave season, our peak booking period, was strong leaving us well
positioned with bookings at considerably higher prices and with less inventory
remaining for sale in 2017 compared to the prior year, resulting in increased
earnings guidance. We are clearly benefiting from our efforts to increase
cruise consideration through guest experience innovations, creative marketing,
and public relations programs. We are reaching consumers through multiple touch
points and laying the foundation for continued earnings improvement and
sustained double digit returns on invested capital.”
The company
expects full year 2017 net revenue yields in constant currency to be up
approximately 3 percent compared to the prior year, better than December
guidance of up approximately 2.5 percent. The company continues to expect full
year net cruise costs excluding fuel per ALBD in constant currency to be up
approximately 1 percent compared to 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 $0.35 per share.
Taking the above factors into consideration, the company expects
full year 2017 adjusted earnings per share to be in the range of $3.50 to $3.70
compared to December guidance of $3.30 to $3.60 and 2016 adjusted earnings per
share of $3.45.
Second quarter constant currency
net revenue yields are expected to be up approximately 2.5 to 3.5 percent
compared to the prior year. Net cruise costs excluding fuel per ALBD in
constant currency for the second 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 currency exchange rates
compared to the prior year are expected to decrease earnings by $0.12 per
share. Based on the above factors, the company expects adjusted earnings per
share for the second quarter 2017 to be in the range of $0.43 to $0.47 versus
2016 adjusted earnings per share of $0.49.
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Full Year 2017
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Second 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 1.5%
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Approx 3.0%
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0.5 to 1.5%
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2.5 to 3.5%
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Net cruise costs excl. fuel / ALBD
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Approx flat
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Approx 1.0%
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(0.5) to 0.5%
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1.5 to 2.5%
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Full Year 2017
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Second Quarter 2017
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Fuel price per metric ton
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$362
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$359
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Fuel consumption (metric tons in
thousands)
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3,310
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840
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Currency: Euro
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$1.07 to €1
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$1.08 to €1
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Sterling
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$1.25 to £1
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$1.25 to £1
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Australian dollar
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$0.76 to A$1
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$0.76 to A$1
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Three
Months Ended
February 28/29, |
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2017
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2016
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Net income (in millions)
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$
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352
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$
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142
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Adjusted net income (in millions)
(a)
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$
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279
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$
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301
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Earnings per share-diluted
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$
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0.48
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$
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0.18
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Adjusted earnings per share-diluted (a)
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$
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0.38
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$
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0.39
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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.
The company has scheduled a conference call with
analysts at 10:00 a.m. EDT (3:00 p.m. BST) today to discuss its 2017 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 among the
largest, most profitable and financially strong leisure travel companies 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 102 ships visiting over
700 ports around the world and totaling 226,000 lower berths with 19 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.
