REG-Carnival PLC: Carnival Corp & plc Fourth Quarter Results <Origin Href="QuoteRef">CCL.L</Origin>
19/12/2017 14:20
CARNIVAL CORPORATION & PLC REPORTS FULL YEAR
AND FOURTH QUARTER EARNINGS
Record full year revenues of $17.5 billion, up $1.1 billion
Carnival Corporation & plc today reported its results for the fourth quarter
ended November 30, 2017. The results of Carnival Corporation and Carnival plc
have been consolidated and include results on a U.S. GAAP and adjusted basis.
4Q and Full Year Highlights
*
FY 2017 U.S. GAAP net income of $2.6 billion, or $3.59 diluted EPS, compared
to $2.8 billion, or $3.72 diluted EPS for the prior year
*
FY 2017 adjusted net income of $2.8 billion, or $3.82 EPS, was higher than
adjusted net income of $2.6 billion, or $3.45 EPS for the prior year (adjusted
net income excludes unrealized gains on fuel derivatives and other net charges
of $224 million and previously reported ships, trademark, and goodwill
impairments of $387 million for FY 2017, and unrealized gains on fuel
derivatives of $236 million and other net charges of $37 million for FY 2016)
*
4Q net revenue yields in constant currency increased 4.2% compared to prior
year, better than September guidance of up 1.5 to 2.5%
*
4Q net cruise costs excluding fuel per available lower berth day (“ALBD”)
in constant currency increased 6.1% compared to prior year, in line with
September guidance of up 6.0 to 7.0%
*
4Q U.S. GAAP net income of $546 million, or $0.76 diluted EPS, compared to
$609 million, or $0.83 diluted EPS for the prior year
*
4Q adjusted 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)
*
Voyage disruptions due to hurricanes reduced fourth quarter earnings by
approximately $0.11 per share
Outlook
*
At this time, cumulative advance bookings for full year 2018 are ahead of the
prior year at higher prices
*
FY 2018 net revenue yields in constant currency are expected to be up
approximately 2.5% compared to the prior year
*
FY 2018 net cruise costs excluding fuel per ALBD in constant currency are
expected to be up approximately 1.0 % compared to the prior year
*
FY 2018 adjusted EPS is expected to be in the range of $4.00 to $4.30,
compared to FY 2017 adjusted EPS of $3.82
*
1Q 2018 adjusted EPS is expected to be in the range of $0.37 to $0.41,
compared to $0.38 in 1Q 2017
President and Chief Executive Officer Arnold Donald commenting on these
results:
“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.”
“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.”
“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.”
Conference Call
The company has scheduled a conference call with analysts at 10:00 a.m. EST
(3:00 p.m. BST) today to discuss its 2017 fourth quarter and full year
results. This call can be listened to live, and additional information can be
obtained, via Carnival Corporation & plc’s website at www.carnivalcorp.com
and www.carnivalplc.com.
Carnival Corporation & plc is the world’s largest leisure travel company and
among the most profitable and financially strong in the cruise and vacation
industries, with a portfolio of 10 dynamic brands that include nine of the
world’s leading cruise lines. With operations in North America, Europe,
Australia and Asia, its portfolio features Carnival Cruise Line, Holland
America Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard,
P&O Cruises (Australia) and P&O Cruises (UK), as well as Fathom, the
corporation’s immersion and enrichment experience brand.
Together, the corporation’s cruise lines operate 103 ships with 232,000
lower berths visiting over 700 ports around the world, with 18 new ships
scheduled to be delivered between 2018 and 2022. Carnival Corporation & plc
also operates Holland America Princess Alaska Tours, the leading tour company
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.
In 2017, Fast Company recognized Carnival Corporation as being among the
“Top 10 Most Innovative Companies” in both the design and travel
categories. Fast Company specifically recognized Carnival Corporation for its
work in developing Ocean Medallion™, a high-tech wearable device that
enables the world’s first interactive guest experience platform capable of
transforming vacation travel into a highly personalized and elevated level of
customized service.
Additional information can be found on www.carnival.com,
www.hollandamerica.com, www.princess.com, www.seabourn.com, www.aida.de,
www.costacruise.com, www.cunard.com, www.pocruises.com.au, www.pocruises.com,
and www.fathom.org.
Carnival Corporation & plc Reports Full Year And Fourth Quarter Earnings
Record full year revenues of $17.5 billion, up $1.1 billion
MIAMI, Dec. 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 Medallion(™), PlayOcean(™) a mobile gaming portfolio,
OceanView(™), which is the world's first digital streaming travel channel
for land and sea, and MedallionNet(™), 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.
2018 Outlook
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 2018 Outlook
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.
Selected Key Forecast Metrics
Full Year 2018 First Quarter 2018
Year over year change: 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%
Full Year 2018 First Quarter 2018
Fuel cost per metric ton consumed $442 $420
Fuel consumption (metric tons in thousands) 3,315 820
Currencies (USD to 1)
AUD $0.76 $0.76
CAD $0.78 $0.78
EUR $1.18 $1.18
GBP $1.34 $1.34
RMB $0.15 $0.15
Three Months Ended November 30, Twelve Months Ended November 30,
2017 2016 2017 2016
Net income (in millions) $ 546 $ 609 $ 2,606 $ 2,779
Adjusted net income (in millions) (a) $ 452 $ 491 $ 2,770 $ 2,580
Earnings per share-diluted $ 0.76 $ 0.83 $ 3.59 $ 3.72
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.
Conference Call
The company has scheduled a conference call with analysts at 10:00 a.m. EST
(3:00 p.m. BST) today to discuss its 2017 fourth quarter and full year
results. This call can be listened to live, and additional information can be
obtained, via Carnival Corporation & plc's website at
www.carnivalcorp.com and www.carnivalplc.com.
Carnival Corporation & plc is the world's largest leisure travel company and
among the most profitable and financially strong in the cruise and vacation
industries, with a portfolio of 10 dynamic brands that include nine of the
world's leading cruise lines. With operations in North
America, Europe, Australia and Asia, its portfolio features Carnival
Cruise Line, Holland America Line, Princess Cruises, Seabourn, AIDA
Cruises, Costa Cruises, Cunard, P&O Cruises (Australia) and P&O
Cruises (UK), as well as Fathom, the corporation's immersion and enrichment
experience brand.
Together, the corporation's cruise lines operate 103 ships with 232,000 lower
berths visiting over 700 ports around the world, with 18 new ships scheduled
to be delivered between 2018 and 2022. Carnival Corporation & plc also
operates Holland America Princess Alaska Tours, the leading tour company 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.
In 2017, Fast Company recognized Carnival Corporation as being among the "Top
10 Most Innovative Companies" in both the design and travel categories. Fast
Company specifically recognized Carnival Corporation for its work in
developing Ocean Medallion™, a high-tech wearable device that enables the
world's first interactive guest experience platform capable of transforming
vacation travel into a highly personalized and elevated level of customized
service.
Additional information can be found on www.carnival.com,
www.hollandamerica.com, www.princess.com, www.seabourn.com, www.aida.de,
www.costacruise.com, www.cunard.com, www.pocruises.com.au, www.pocruises.com,
and www.fathom.org.
Cautionary Note Concerning Factors That May Affect Future Results
Carnival Corporation and Carnival plc and their respective subsidiaries are
referred to collectively in this document as "Carnival Corporation & plc,"
"our," "us" and "we." Some of the statements, estimates or projections
contained in this document are "forward-looking statements" that involve
risks, uncertainties and assumptions with respect to us, including some
statements concerning future results, outlooks, plans, goals and other events
which have not yet occurred. These statements are intended to qualify for the
safe harbors from liability provided by Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. All statements
other than statements of historical facts are statements that could be deemed
forward-looking. These statements are based on current expectations,
estimates, forecasts and projections about our business and the industry in
which we operate and the beliefs and assumptions of our management. We have
tried, whenever possible, to identify these statements by using words like
"will," "may," "could," "should," "would," "believe," "depends," "expect,"
"goal," "anticipate," "forecast," "project," "future," "intend," "plan,"
"estimate," "target," "indicate," "outlook," and similar expressions of future
intent or the negative of such terms.
Forward-looking statements include those statements that relate to our outlook
and financial position including, but not limited to, statements regarding:
• Net revenue yields • Net cruise costs, excluding fuel per available lower berth day
• Booking levels • Estimates of ship depreciable lives and residual values
• Pricing and occupancy • Goodwill, ship and trademark fair values
• Interest, tax and fuel expenses • Liquidity
• Currency exchange rates • Adjusted earnings per share
Because forward-looking statements involve risks and uncertainties, there are
many factors that could cause our actual results, performance or achievements
to differ materially from those expressed or implied by our forward-looking
statements. This note contains important cautionary statements of the known
factors that we consider could materially affect the accuracy of our
forward-looking statements and adversely affect our business, results of
operations and financial position. It is not possible to predict or identify
all such risks. There may be additional risks that we consider immaterial or
which are unknown. These factors include, but are not limited to, the
following:
*
The demand for cruises may decline due to adverse world events impacting the
ability or desire of people to travel, including conditions affecting the
safety and security of travel, government, regulations and requirements, and
negative economic conditions
*
Incidents, such as ship incidents, security incidents, the spread of
contagious diseases and threats thereof, adverse weather conditions or other
natural disasters and the related adverse publicity affecting our reputation
and the health, safety, security and satisfaction of guests and crew
*
Changes in and compliance with laws and regulations relating to environment,
health, safety, security, data privacy and protection, tax and anti-corruption
under which we operate may lead to litigations, enforcement actions, fines, or
penalties
*
Disruptions and other damages to our information technology and other networks
and operations, breaches in data security, lapses in data privacy, and failure
to keep pace with developments in technology
*
Ability to recruit, develop and retain qualified shipboard personnel who live
on ships away from home for extended periods of time
*
Increases in fuel prices and availability of fuel supply
*
Fluctuations in foreign currency exchange rates
*
Overcapacity and competition in the cruise ship and land-based vacation
industry
*
Continuing financial viability of our travel agent distribution system, air
service providers and other key vendors in our supply chain, as well as
reductions in the availability of, and increases in the prices for, the
services and products provided by these vendors
*
Inability to implement our shipbuilding programs and ship repairs, maintenance
and refurbishments on terms that are favorable or consistent with our
expectations, as well as increases to our repairs and maintenance expenses and
refurbishment costs as our fleet ages
*
Geographic regions in which we try to expand our business may be slow to
develop and ultimately not develop how we expect
The ordering of the risk factors set forth above is not intended to reflect
our indication of priority or likelihood.
Forward-looking statements should not be relied upon as a prediction of actual
results. Subject to any continuing obligations under applicable law or any
relevant stock exchange rules, we expressly disclaim any obligation to
disseminate, after the date of this document, any updates or revisions to any
such forward-looking statements to reflect any change in expectations or
events, conditions or circumstances on which any such statements are based.
CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in millions, except per share data)
Three Months Ended Twelve Months Ended
November 30, November 30,
2017 2016 2017 2016
Revenues
Cruise
Passenger ticket $ 3,131 $ 2,873 $ 12,944 $ 12,090
Onboard and other 1,093 1,021 4,330 4,068
Tour and other 35 41 236 231
4,259 3,935 17,510 16,389
Operating Costs and Expenses
Cruise
Commissions, transportation and other 578 517 2,359 2,240
Onboard and other 149 141 587 553
Payroll and related 555 505 2,107 1,993
Fuel 330 267 1,244 915
Food 257 250 1,031 1,005
Other ship operating (a) 718 611 3,010 2,525
Tour and other 31 28 163 152
2,617 2,319 10,501 9,383
Selling and administrative 616 584 2,265 2,197
Depreciation and amortization 477 435 1,846 1,738
Goodwill and trademark impairment — — 89 —
3,710 3,338 14,701 13,318
Operating Income 548 597 2,809 3,071
Nonoperating Income (Expense)
Interest income 2 2 9 6
Interest expense, net of capitalized interest (48) (55) (198) (223)
Gains (losses) on fuel derivatives, net (b) 54 55 35 (47)
Other income, net 3 14 11 21
12 16 (143) (243)
Income Before Income Taxes 560 613 2,666 2,828
Income Tax Expense, Net (14) (4) (60) (49)
Net Income $ 546 $ 609 $ 2,606 $ 2,779
Earnings Per Share
Basic $ 0.76 $ 0.84 $ 3.61 $ 3.73
Diluted $ 0.76 $ 0.83 $ 3.59 $ 3.72
Dividends Declared Per Share $ 0.45 $ 0.35 $ 1.60 $ 1.35
Weighted-Average Shares Outstanding - Basic 720 727 723 745
Weighted-Average Shares Outstanding - Diluted 722 729 725 747
(a) Includes $304 million of ship impairment charges in the twelve months ended November 30, 2017.
(b) During the three months ended November 30, 2017 and 2016, our gains (losses) on fuel derivatives, net include net unrealized gains of $93 million and $115 million and realized (losses) of $(39) million and $(60) million, respectively. During the twelve months ended November 30, 2017 and 2016, our gains (losses) on fuel derivatives, net include net unrealized gains of $227 million and $236 million and realized (losses) of $(192) million and $(283) million, respectively.
CARNIVAL CORPORATION & PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except par values)
November 30,
2017 2016
ASSETS
Current Assets
Cash and cash equivalents $ 395 $ 603
Trade and other receivables, net 312 298
Inventories 387 322
Prepaid expenses and other 502 466
Total current assets 1,596 1,689
Property and Equipment, Net 34,430 32,429
Goodwill 2,967 2,910
Other Intangibles 1,200 1,275
Other Assets 585 578 (a)
$ 40,778 $ 38,881
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings $ 485 $ 457
Current portion of long-term debt 1,717 640
Accounts payable 762 713
Accrued liabilities and other 1,877 1,740
Customer deposits 3,958 3,522
Total current liabilities 8,800 7,072
Long-Term Debt 6,993 8,302 (a)
Other Long-Term Liabilities 769 910
Shareholders' Equity
Common stock of Carnival Corporation, $0.01 par value; 1,960 shares authorized; 655 shares at 2017 and 654 shares at 2016 issued 7 7
Ordinary shares of Carnival plc, $1.66 par value; 217 shares at 2017 and 2016 issued 358 358
Additional paid-in capital 8,690 8,632
Retained earnings 23,292 21,843
Accumulated other comprehensive loss (1,782) (2,454)
Treasury stock, 122 shares at 2017 and 118 shares at 2016 of Carnival Corporation and 32 shares at 2017 and 27 shares at 2016 of Carnival plc, at cost (6,349) (5,789)
Total shareholders' equity 24,216 22,597
$ 40,778 $ 38,881
(a) On December 1, 2016, we adopted the Financial Accounting Standards Board's Interest - Imputation of Interest and reclassified $55 million from Other Assets to Long-Term Debt on our November 30, 2016 Consolidated Balance Sheet.
CARNIVAL CORPORATION & PLC
OTHER INFORMATION
Three Months Ended Twelve Months Ended
November 30, November 30,
2017 2016 2017 2016
STATISTICAL INFORMATION
ALBDs (in thousands) (a) 20,762 20,447 82,303 80,002
Occupancy percentage (b) 103.6 % 103.8 % 105.9 % 105.9 %
Passengers carried (in thousands) 3,010 2,920 12,130 11,520
Fuel consumption in metric tons (in thousands) 823 816 3,286 3,233
Fuel consumption in metric tons per thousand ALBDs 39.7 39.9 39.9 40.4
Fuel cost per metric ton consumed $ 400 $ 327 $ 378 $ 283
Currencies (USD to 1)
AUD $ 0.78 $ 0.76 $ 0.77 $ 0.74
CAD $ 0.80 $ 0.75 $ 0.77 $ 0.75
EUR $ 1.18 $ 1.10 $ 1.12 $ 1.11
GBP $ 1.32 $ 1.26 $ 1.28 $ 1.37
RMB $ 0.15 $ 0.15 $ 0.15 $ 0.15
CASH FLOW INFORMATION (in millions)
Cash from operations $ 1,024 $ 1,024 $ 5,322 $ 5,134
Capital expenditures $ 648 $ 646 $ 2,944 $ 3,062
Dividends paid $ 290 $ 256 $ 1,087 $ 977
Notes to Statistical Information
(a) ALBD is a standard measure of passenger capacity for the period that we use to approximate rate and capacity variances, based on consistently applied formulas that we use to perform analyses to determine the main non-capacity driven factors that cause our cruise revenues and expenses to vary. ALBDs assume that each cabin we offer for sale accommodates two passengers and is computed by multiplying passenger capacity by revenue-producing ship operating days in the period.
(b) In accordance with cruise industry practice, occupancy is calculated using a denominator of ALBDs, which assumes two passengers per cabin even though some cabins can accommodate three or more passengers. Percentages in excess of 100% indicate that on average more than two passengers occupied some cabins.
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES
Consolidated gross and net revenue yields were computed by dividing the gross and net cruise revenues by ALBDs as follows (dollars in millions, except yields) (a):
Three Months Ended November 30, Twelve Months Ended November 30,
2017 2017 2016 2017 2017 2016
Constant Constant
Dollar Dollar
Passenger ticket revenues $ 3,131 $ 3,056 $ 2,873 $ 12,944 $ 12,998 $ 12,090
Onboard and other revenues 1,093 1,075 1,021 4,330 4,338 4,068
Gross cruise revenues 4,224 4,131 3,894 17,274 17,336 16,158
Less cruise costs
Commissions, transportation and other (578) (562) (517) (2,359) (2,371) (2,240)
Onboard and other (149) (147) (141) (587) (589) (553)
(727) (709) (658) (2,946) (2,960) (2,793)
Net passenger ticket revenues 2,553 2,494 2,356 10,585 10,627 9,850
Net onboard and other revenues 944 928 880 3,744 3,749 3,515
Net cruise revenues $ 3,497 $ 3,422 $ 3,236 $ 14,329 $ 14,376 $ 13,365
ALBDs 20,761,913 20,761,913 20,446,708 82,302,887 82,302,887 80,002,092
Gross revenue yields $ 203.42 $ 198.97 $ 190.42 $ 209.88 $ 210.63 $ 201.97
% increase 6.8 % 4.5 % 3.9 % 4.3 %
Net revenue yields $ 168.42 $ 164.83 $ 158.21 $ 174.10 $ 174.67 $ 167.06
% increase 6.5 % 4.2 % 4.2 % 4.6 %
Net passenger ticket revenue $ 122.96 $ 120.09 $ 115.18 $ 128.62 $ 129.12 $ 123.11
yields
% increase 6.8 % 4.3 % 4.5 % 4.9 %
Net onboard and other revenue $ 45.46 $ 44.74 $ 43.03 $ 45.48 $ 45.55 $ 43.95
yields
% increase 5.6 % 4.0 % 3.5 % 3.6 %
Three Months Ended November 30, Twelve Months Ended November 30,
2017 2017 2016 2017 2017 2016
Constant Constant
Currency Currency
Net passenger ticket revenues $ 2,553 $ 2,491 $ 2,356 $ 10,585 $ 10,632 $ 9,850
Net onboard and other revenues 944 930 880 3,744 3,741 3,515
Net cruise revenues $ 3,497 $ 3,421 $ 3,236 $ 14,329 $ 14,373 $ 13,365
ALBDs 20,761,913 20,761,913 20,446,708 82,302,887 82,302,887 80,002,092
Net revenue yields $ 168.42 $ 164.80 $ 158.21 $ 174.10 $ 174.63 $ 167.06
% increase 6.5 % 4.2 % 4.2 % 4.5 %
Net passenger ticket revenue $ 122.96 $ 120.00 $ 115.18 $ 128.62 $ 129.18 $ 123.11
yields
% increase 6.8 % 4.2 % 4.5 % 4.9 %
Net onboard and other revenue $ 45.46 $ 44.81 $ 43.03 $ 45.48 $ 45.45 $ 43.95
yields
% increase 5.6 % 4.1 % 3.5 % 3.4 %
(See Notes to Non-GAAP Financial Measures.)
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Consolidated gross and net cruise costs and net cruise costs excluding fuel per ALBD were computed by dividing the gross and net cruise costs and net cruise costs excluding fuel by ALBDs as follows (dollars in millions, except costs per ALBD) (a):
Three Months Ended November 30, Twelve Months Ended November 30,
2017 2017 2016 2017 2017 2016
Constant Constant
Dollar Dollar
Cruise operating expenses $ 2,587 $ 2,535 $ 2,291 $ 10,338 $ 10,372 $ 9,231
Cruise selling and administrative expenses 613 601 582 2,250 2,259 2,188
Gross cruise costs 3,200 3,136 2,873 12,588 12,631 11,419
Less cruise costs included above
Commissions, transportation and other (578) (562) (517) (2,359) (2,371) (2,240)
Onboard and other (149) (147) (141) (587) (589) (553)
Gains (losses) on ship sales and impairments (c) 1 1 — (298) (288) 2
Restructuring expenses (c) — — — (3) (3) (2)
Other (c) — — (1) — — (41)
Net cruise costs 2,474 2,428 2,214 9,341 9,380 8,585
Less fuel (330) (330) (267) (1,244) (1,244) (915)
Net cruise costs excluding fuel $ 2,144 $ 2,098 $ 1,947 $ 8,097 $ 8,136 $ 7,670
ALBDs 20,761,913 20,761,913 20,446,708 82,302,887 82,302,887 80,002,092
Gross cruise costs per ALBD $ 154.07
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