REG-Carnival PLC: Carnival Corp & plc Third Quarter Results <Origin Href="QuoteRef">CCL.L</Origin> - Part 1
22/09/2015 14:20
Carnival Corporation & plc Reports Third Quarter Earnings Which Marks The
Company's Strongest Quarterly Non-GAAP Performance On Record
Carnival Corporation & plc today reported its results for the third quarter
ended August 31, 2015. The results of Carnival Corporation and Carnival plc
have been consolidated and include results on a U.S. GAAP and non-U.S. GAAP
basis.
3Q Highlights
* 3Q net revenue yields in constant dollars increased 4.3% compared to the
prior year, better than June guidance of up 2 to 3%
* 3Q net cruise costs excluding fuel per available lower berth day ("ALBD")
in constant dollars increased 1.0% compared to the prior year, better than
June guidance of up 2 to 3% due to the timing of certain expenses
* 3Q non-GAAP earnings per share (diluted) of $1.75, compared to $1.58 for
the prior year
* 3Q U.S. GAAP earnings per share (diluted) of $1.56, included unrealized
losses on fuel derivatives of $137M, compared to $1.60 for the prior year
Outlook
* At this time, cumulative advance bookings for the first half of 2016 are
well ahead of last year at lower constant dollar prices
* FY 2015 net revenue yields on a constant currency basis are expected to be
up approximately 4% compared to the prior year versus previous guidance of
up 3 to 4% (up approximately 3% in constant dollars)
* FY 2015 net cruise costs excluding fuel per ALBD on a constant currency
basis are expected to be up approximately 3.5% compared to the prior year
(up approximately 3% in constant dollars)
* FY 2015 non-GAAP earnings per share (diluted) are expected to be in the
range of $2.56 to $2.60, better than both the June guidance range of $2.35
to $2.50 and $1.93 per share for 2014
* 4Q 2015 non-GAAP earnings per share (diluted) are expected to be in the
range of $0.36 to $0.40, compared to $0.27 for 4Q 2014
President and Chief Executive Officer Arnold Donald commenting on these
results:
"Our third quarter non-GAAP performance was the strongest of any quarter on
record with earnings $0.17 per share higher than the prior year despite a
slight drag from the net impact of fuel prices and currency. Non-GAAP earnings
for the quarter were also $0.17 higher than the mid-point of prior guidance.
Net revenue yields improved 5 percent (constant currency) from the prior year
benefiting from strong demand which led to higher occupancy levels, increased
ticket prices and increased onboard spending. Clearly our ongoing investments
in the guest experience, combined with our global marketing and public
relations efforts along with our initiatives to leverage our scale are having a
positive impact."
"In 2015, we are on track to achieve a nearly 35 percent earnings improvement
and we are accelerating progress toward achieving double digit return on
invested capital in the next three to four years. Our improved performance has
driven even stronger operating cash, which is expected to exceed $4 billion
this year. We remain committed to further enhancing shareholder returns as
demonstrated by our recent 20 percent increase in quarterly dividends."
"Looking forward to 2016, we have driven a significant lengthening of the
booking curve and have less inventory remaining for the first half of 2016 than
at this time last year, which bodes well for continued year-over-year revenue
yield improvement. Although we already have a solid base of business for next
year, we are working hard to maintain the momentum through our ongoing
initiatives to create additional demand."
MEDIA CONTACT INVESTOR RELATIONS CONTACT
Roger Frizzell Beth Roberts
001 305 406 7862 001 305 406 4832
Conference Call
The company has scheduled a conference call with analysts at 3:00 p.m. BST (10:
00 a.m. EDT) today to discuss its 2015 third quarter results. This call can be
listened to live, and additional information can be obtained, via Carnival
Corporation & plc's Web site at http://www.carnivalcorp.com/ and http://
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, Holland America Line, Princess Cruises,
Seabourn, AIDA Cruises, Costa Cruises, Cunard, P&O Cruises (Australia), P&O
Cruises (UK) and Fathom.
Together, these brands will operate 100 ships in 2015 totaling 219,000 lower
berths with 17 new ships scheduled to be delivered between 2016 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 http://www.carnival.com/, http://
www.hollandamerica.com/, http://www.princess.com/, http://www.seabourn.com/,
http://www.aida.de/, http://www.costacruise.com/, http://www.cunard.com/, http:
//www.pocruises.com.au/, http://www.pocruises.com/ and http://www.fathom.org/.
Carnival Corporation & plc Reports Third Quarter Earnings Which Marks The
Company's Strongest Quarterly Non-GAAP Performance On Record
MIAMI, Sept. 22, 2015 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK)
announced non-GAAP net income of $1.4 billion, or $1.75 diluted EPS for the
third quarter of 2015 compared to non-GAAP net income for the third quarter of
2014 of $1.2 billion, or $1.58 diluted EPS. For the third quarter of 2015, U.S.
GAAP net income, which included unrealized losses on fuel derivatives of $137
million, was $1.2 billion, or $1.56 diluted EPS down slightly from the prior
year. For the third quarter of 2014, U.S. GAAP net income, which included net
unrealized gains on fuel derivatives of $15 million, was $1.2 billion, or $1.60
diluted EPS. Revenues for the third quarter of 2015 were $4.9 billion, in line
with the prior year.
Carnival Corporation & plc President and Chief Executive Officer Arnold Donald
noted, "Our third quarter non-GAAP performance was the strongest of any quarter
on record with earnings $0.17 per share higher than the prior year despite a
slight drag from the net impact of fuel prices and currency. Non-GAAP earnings
for the quarter were also $0.17 higher than the mid-point of prior guidance.
Net revenue yields improved 5 percent (constant currency) from the prior year
benefiting from strong demand which led to higher occupancy levels, increased
ticket prices and increased onboard spending. Clearly our ongoing investments
in the guest experience, combined with our global marketing and public
relations efforts along with our initiatives to leverage our scale are having a
positive impact."
Key metrics for the third quarter 2015 compared to the prior year were as
follows:
* On a constant dollar basis, net revenue yields (net revenue per available
lower berth day or "ALBD") increased 4.3 percent for 3Q 2015, better than
June guidance of up 2 to 3 percent. Gross revenue yields decreased 2.1
percent in current dollars.
* Net cruise costs excluding fuel per ALBD increased 1.0 percent in constant
dollars, better than June guidance of up 2 to 3 percent due to the timing
of certain expenses. Gross cruise costs including fuel per ALBD in current
dollars decreased 9 percent.
* Fuel prices declined 33 percent to $439 per metric ton for 3Q 2015 from
$650 per metric ton in 3Q 2014 and were less than June guidance of $492 per
metric ton.
* Fuel consumption per ALBD decreased 2 percent in 3Q 2015 compared to the
prior year.
Other highlights during the third quarter included Princess Cruises'
announcement that the Golden Princess will begin sailing out of Tianjin, China
on a seasonal basis starting in 2016, which totals six Carnival Corporation
vessels based in China, the largest capacity commitment from any cruise
company. Additionally, it was announced in July that two vessels in the
four-ship newbuild contract with Meyer Werft shipyard will be earmarked for
Costa Cruises and will be the largest ships ever built based on guest capacity.
Like the two previously announced AIDA Cruises ships that will also be
constructed by Meyer Werft, the Costa ships will be powered at sea by Liquefied
Natural Gas, the world's cleanest burning fossil fuel. Last week, Carnival
Corporation announced its new sustainability goals, which include a further
reduction in CO2 emissions of 25 percent by 2020 from the company's 2005
baseline, along with a fleetwide reduction in shipboard waste generation and
improved water usage.
Outlook
Based on the strength in third quarter net revenue yields and current booking
trends, the company has increased its expectations for full year 2015 net
revenue yields. The company now expects revenue yields to be up approximately 4
percent compared to the prior year versus previous guidance of up 3 to 4
percent on a constant currency basis, which excludes translational and
transactional currency impacts (up approximately 3 percent on a constant dollar
basis). The company continues to expect full year 2015 net cruise costs
excluding fuel per ALBD to be up approximately 3.5 percent compared to the
prior year on a constant currency basis (up approximately 3 percent on a
constant dollar basis).
Taking the above factors into consideration, the company has increased its full
year 2015 non-GAAP diluted earnings per share guidance to be in the range of
$2.56 to $2.60, better than both the June guidance range of $2.35 to $2.50 and
2014 non-GAAP diluted earnings of $1.93 per share.
Donald stated, "In 2015, we are on track to achieve a nearly 35 percent
earnings improvement and we are accelerating progress toward achieving double
digit return on invested capital in the next three to four years. Our improved
performance has driven even stronger operating cash, which is expected to
exceed $4 billion this year. We remain committed to further enhancing
shareholder returns as demonstrated by our recent 20 percent increase in
quarterly dividends."
During the last quarter, fleetwide booking volumes for the first half of 2016
were running nearly 20 percent higher than the prior year relative to a
capacity increase of less than 3 percent, at lower constant dollar prices. At
this time, cumulative advance bookings for the first half of 2016 are well
ahead of last year at lower constant dollar prices.
Donald added, "Looking forward to 2016, we have driven a significant
lengthening of the booking curve and have less inventory remaining for the
first half of 2016 than at this time last year, which bodes well for continued
year-over-year revenue yield improvement. Although we already have a solid base
of business for next year, we are working hard to maintain the momentum through
our ongoing initiatives to create additional demand."
Fourth Quarter 2015 Outlook
Fourth quarter constant currency net revenue yields are expected to be up
approximately 3 percent compared to the prior year (up approximately 1 percent
in constant dollars). Net cruise costs excluding fuel per ALBD for the fourth
quarter are expected to be higher by approximately 3 percent on a constant
currency basis compared to the prior year (up approximately 2 percent in
constant dollars).
Based on the above factors, the company expects non-GAAP diluted earnings for
the fourth quarter 2015 to be in the range of $0.36 to $0.40 per share versus
2014 non-GAAP earnings of $0.27 per share.
Selected Key Forecast Metrics
Full Year 2015 Fourth Quarter 2015
Year over year change: Current Constant Current Constant
Dollars Dollars Dollars Dollars
Net revenue yields (2)% 3% (2.5) to (3.5)% 0.5 to 1.5%
Net cruise costs excl. fuel (2)% 3% (1.5) to (2.5)% 1.5 to 2.5%
/ ALBD
Full Year 2015 Fourth Quarter 2015
Fuel price per metric ton $405 $366
Fuel consumption (metric tons in 3,190 810
thousands)
Currency: Euro $1.12 to €1 $1.12 to €1
Sterling $1.54 to £1 $1.54 to £1
Australian dollar $0.76 to A$1 $0.70 to A$1
Canadian dollar $0.79 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) today to discuss its 2015 third quarter results. This call can be
listened to live, and additional information can be obtained, via Carnival
Corporation & plc's Web site at http://www.carnivalcorp.com/ and http://
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, Holland America Line, Princess Cruises,
Seabourn, AIDA Cruises, Costa Cruises, Cunard, P&O Cruises (Australia), P&O
Cruises (UK) and Fathom.
Together, these brands will operate 100 ships in 2015 totaling 219,000 lower
berths with 17 new ships scheduled to be delivered between 2016 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 http://www.carnival.com/, http://
www.hollandamerica.com/, http://www.princess.com/, http://www.seabourn.com/,
http://www.aida.de/, http://www.costacruise.com/, http://www.cunard.com/, http:
//www.pocruises.com.au/, http://www.pocruises.com/ and http://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 release as "Carnival Corporation & plc,"
"our," "us" and "we." Some of the statements, estimates or projections
contained in this release 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" and similar expressions of future intent or the negative
of such terms.
Forward-looking statements include those statements that may impact, among
other things, the forecasting of our non-GAAP earnings per share; net revenue
yields; booking levels; pricing; occupancy; operating, financing and tax costs,
including fuel expenses; net cruise costs per available lower berth day;
estimates of ship depreciable lives and residual values; liquidity; goodwill,
ship and trademark fair values and outlook. 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 in this release. 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:
* general economic and business conditions;
* increases in fuel prices;
* incidents, the spread of contagious diseases and threats thereof, adverse
weather conditions or other natural disasters and other incidents affecting
the health, safety, security and satisfaction of guests and crew;
* the international political climate, armed conflicts, terrorist and pirate
attacks, vessel seizures, and threats thereof, and other world events
affecting the safety and security of travel;
* negative publicity concerning the cruise industry in general or us in
particular, including any adverse environmental impacts of cruising;
* geographic regions in which we try to expand our business may be slow to
develop and ultimately not develop how we expect;
* economic, market and political factors that are beyond our control, which
could increase our operating, financing and other costs;
* changes in and compliance with laws and regulations relating to the
protection of persons with disabilities, employment, environment, health,
safety, security, tax and other regulations under which we operate;
* our inability to implement our shipbuilding programs and ship repairs,
maintenance and refurbishments on terms that are favorable or consistent
with our expectations;
* increases to our repairs and maintenance expenses and refurbishment costs
as our fleet ages;
* lack of continuing availability of attractive, convenient and safe port
destinations on terms that are favorable or consistent with our
expectations;
* continuing financial viability of our travel agent distribution system, air
service providers and other key vendors in our supply chain and reductions
in the availability of, and increases in the prices for, the services and
products provided by these vendors;
* disruptions and other damages to our information technology and other
networks and operations, and breaches in data security;
* failure to keep pace with developments in technology;
* competition from and overcapacity in the cruise ship and land-based
vacation industry;
* loss of key personnel or our ability to recruit or retain qualified
personnel;
* union disputes and other employee relationship issues;
* disruptions in the global financial markets or other events that may
negatively affect the ability of our counterparties and others to perform
their obligations to us;
* the continued strength of our cruise brands and our ability to implement
our strategies;
* additional risks to our international operations not generally applicable
to our U.S. operations;
* our decisions to self-insure against various risks or our inability to
obtain insurance for certain risks at reasonable rates;
* litigation, enforcement actions, fines or penalties;
* fluctuations in foreign currency exchange rates;
* whether our future operating cash flow will be sufficient to fund future
obligations and whether we will be able to obtain financing, if necessary,
in sufficient amounts and on terms that are favorable or consistent with
our expectations;
* risks associated with our dual listed company arrangement;
* uncertainties of a foreign legal system as Carnival Corporation and
Carnival plc are not U.S. corporations and
* the ability of a small group of shareholders to effectively control the
outcome of shareholder voting.
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 release, 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 Nine Months Ended
August 31, August 31,
2015 2014 2015 2014
Revenues
Cruise
Passenger tickets $ 3,631 $ 3,719 $ $
8,891 9,144
Onboard and other 1,102 1,084 2,918 2,839
Tour and other 150 144 194 182
4,883 4,947 12,003 12,165
Operating Costs and Expenses
Cruise
Commissions, transportation and other 603 638 1,671 1,779
Onboard and other 170 165 395 392
Payroll and related 453 485 1,388 1,450
Fuel 345 518 996 1,569
Food 255 265 737 761
Other ship operating 582 605 (a) 1,913 1,842 (a)
Tour and other 82 84 129 130
2,490 2,760 7,229 7,923
Selling and administrative 484 481 1,504 1,507
Depreciation and amortization 399 414 1,206 1,229 (a)
3,373 3,655 9,939 10,659
Operating Income 1,510 1,292 2,064 1,506
Nonoperating (Expense) Income
Interest income 2 2 6 6
Interest expense, net of capitalized interest (53) (69) (167) (213)
(Losses) gains on fuel derivatives, net (b) (197) 15 (378) 10
Other (expense) income, net (12) 1 3 12
(260) (51) (536) (185)
Income Before Income Taxes 1,250 1,241 1,528 1,321
Income Tax Expense, Net (34) - (41) (2)
Net Income $ 1,216 $ 1,241 $ $
1,487 1,319
Earnings Per Share
Basic $ 1.56 $ 1.60 $ 1.91 $ 1.70
Diluted $ 1.56 $ 1.60 $ 1.91 $ 1.70
Non-GAAP Earnings Per Share-Diluted (c) $ 1.75 $ 1.58 $ 2.20 $ 1.67
Dividends Declared Per Share $ 0.30 $ 0.25 $ 0.80 $ 0.75
Weighted-Average Shares Outstanding - Basic 778 776 778 776
Weighted-Average Shares Outstanding - Diluted 781 778 781 778
(a) In the first quarter of 2015, we revised and corrected the accounting for
one of our brands' marine and technical spare parts in order to
consistently expense them fleetwide. Had we not revised, this accounting
may have resulted in material inconsistencies to our financial statements
in the future. Accordingly, we will revise other previously reported
results in future filings. This revision increased our three and nine
months ended August 31, 2014 other ship operating expenses by $6 million
and $17 million, respectively. This revision also increased our nine months
ended August 31, 2014 depreciation expense by $2 million.
(b) During the three months ended August 31, 2015 and 2014, our losses on fuel
derivatives, net include net unrealized (losses) gains of $(137) million
and $15 million and realized (losses) gains of $(60) million and $1
million, respectively. During the nine months ended August 31, 2015 and
2014, our losses on fuel derivatives, net include net unrealized (losses)
gains of $(215) million and $8 million and realized (losses) gains of $
(163) million and $2 million, respectively.
(c) See the U.S. GAAP net income to non-GAAP net income reconciliations in the
Non-GAAP Financial Measures included herein.
CARNIVAL CORPORATION & PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except par values)
August 31, November 30,
2015 2014
ASSETS
Current Assets
Cash and cash equivalents $ 539 $ 331
Trade and other receivables, net 328 332
Insurance recoverables 124 154
Inventories 305 349
Prepaid expenses and other 321 322
Total current assets 1,617 1,488
Property and Equipment, Net 32,232 32,819
Goodwill 3,052 3,127
Other Intangibles 1,247 1,270
Other Assets 649 744
$ 38,797 $ 39,448
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings $ 38 $ 666
Current portion of long-term debt 1,218 1,059
Accounts payable 578 626
Claims reserve 252 262
Accrued liabilities and other 1,349 1,276
Customer deposits 3,314 3,032
Total current liabilities 6,749 6,921
Long-Term Debt 6,604 7,363
Other Long-Term Liabilities 1,091 960
Shareholders' Equity
Common stock of Carnival Corporation, $0.01 par value; 1,960 shares
authorized; 653 shares at 2015 and 652 shares at 2014 issued 7 7
Ordinary shares of Carnival plc, $1.66 par value; 216 shares at 2015
and 2014 issued 358 358
Additional paid-in capital 8,505 8,384
Retained earnings 20,023 19,158
Accumulated other comprehensive loss (1,378) (616)
Treasury stock, 62 shares at 2015 and 59 shares at 2014 of Carnival Corporation
and 29 shares at 2015 and 32 shares at 2014 of Carnival plc, at cost (3,162) (3,087)
Total shareholders' equity 24,353 24,204
$ 38,797 $ 39,448
CARNIVAL CORPORATION & PLC
OTHER INFORMATION
Three Months Ended Nine Months
Ended
August 31, August 31,
2015 2014 2015 2014
STATISTICAL INFORMATION
ALBDs (in thousands) (a) 19,795 19,671 57,686 56,830
Occupancy percentage (b) 110.9% 109.1% 105.6% 104.8%
Passengers carried (in thousands) 3,068 2,983 8,138 7,943
Fuel consumption in metric tons (in 786 797 2,379 2,400
thousands)
Fuel consumption in metric tons per ALBD 0.040 0.041 0.041 0.042
Fuel cost per metric ton consumed $ 439 $ 650 $ 418 $ 654
Currencies
U.S. dollar to Euro $ 1.11 $ 1.35 $ 1.13 $ 1.36
U.S. dollar to Sterling $ 1.56 $ 1.69 $ 1.54 $ 1.67
U.S. dollar to Australian dollar $ 0.75 $ 0.94 $ 0.78 $ 0.92
U.S. dollar to Canadian dollar $ 0.78 $ 0.93 $ 0.80 $ 0.92
CASH FLOW INFORMATION
Cash from operations $ 1,281 $ 1,120 $ 3,567 $ 2,793
Capital expenditures $ 324 $ 348 $ 1,704 $ 1,677
Dividends paid $ 195 $ 194 $ 584 $ 582
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) (b):
Three Months Ended August 31, Nine Months Ended August 31,
2015 2015 2014 2015 2015 2014
Constant Constant
Dollar Dollar
Passenger ticket revenues $ 3,631 $ 3,869 $ 3,719 $ 8,891 $ 9,478 $ 9,144
Onboard and other 1,102 1,154 1,084 2,918 3,051 2,839
revenues
Gross cruise revenues 4,733 5,023 4,803 11,809 12,529 11,983
Less cruise costs
Commissions, (603) (646) (638) (1,671) (1,808) (1,779)
transportation and other
Onboard and other (170) (177) (165) (395) (413) (392)
(773) (823) (803) (2,066) (2,221) (2,171)
Net passenger ticket 3,028 3,223 3,081 7,220 7,670 7,365
revenues
Net onboard and other 932 977 919 2,523 2,638 2,447
revenues
Net cruise revenues $ 3,960 $ 4,200 $ 4,000 $ 9,743 $ 10,308 $ 9,812
ALBDs 19,794,882 19,794,882 19,671,265 57,685,594 57,685,594 56,829,605
Gross revenue yields $ 239.10 $ 253.73 $ 244.14 $ 204.72 $ 217.20 $ 210.85
% (decrease) increase vs. (2.1)% 3.9% (2.9)% 3.0%
2014
Net revenue yields $ 200.04 $ 212.17 $ 203.35 $ 168.91 $ 178.69 $ 172.65
% (decrease) increase vs. (1.6)% 4.3% (2.2)% 3.5%
2014
Net passenger ticket $ 152.96 $ 162.81 $ 156.62 $ 125.17 $ 132.96 $ 129.60
revenue yields
% (decrease) increase vs. (2.3)% 4.0% (3.4)% 2.6%
2014
Net onboard and other $ 47.09 $ 49.36 $ 46.74 $ 43.74 $ 45.73 $ 43.05
revenue yields
% increase vs. 2014 0.8% 5.6% 1.6% 6.2%
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) (b):
Three Months Ended August 31, Nine Months Ended August 31,
2015 2015 2014 2015 2015 2014
Constant Constant
Dollar Dollar
Cruise operating expenses $ 2,408 $ 2,536 $ 2,676 $ 7,100 $ 7,487 $ 7,793
Cruise selling and administrative expenses 482 511 479 1,497 1,584 1,501
Gross cruise costs 2,890 3,047 3,155 8,597 9,071 9,294
Less cruise costs included above
Commissions, transportation and other (603) (646) (638) (1,671) (1,808) (1,779)
Onboard and other (170) (177) (165) (395) (413) (392)
Restructuring expenses (14) (17) - (21) (26) -
Gains on ship sales and ship impairment, 2 2 - 6 6 15
net
Net cruise costs 2,105 2,209 2,352 6,516 6,830 7,138
Less fuel (345) (345) (518) (996) (996) (1,569)
Net cruise costs excluding fuel $ 1,760 $ 1,864 $ 1,834 $ 5,520 $ 5,834 $ 5,569
ALBDs 19,794,882 19,794,882 19,671,265 57,685,594 57,685,594 56,829,605
Gross cruise costs per ALBD $ 145.95 $ 153.92 $ 160.38 $ 149.03 $ 157.26 $ 163.53
% decrease vs. 2014 (9.0)% (4.0)% (8.9)% (3.8)%
Net cruise costs per ALBD $ 106.28 $ 111.60 $ 119.59 $ 112.96 $ 118.41 $ 125.59
% decrease vs. 2014 (11.1)% (6.7)% (10.1)% (5.7)%
Net cruise costs excluding fuel per ALBD $ 88.84 $ 94.16 $ 93.23 $ 95.70 $ 101.15 $ 97.98
% (decrease) increase vs. 2014 (4.7)% 1.0% (2.3)% 3.2%
(See next page for Notes to Non-GAAP Financial Measures.)
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Non-GAAP fully diluted earnings per share was computed as follows (in millions,
except per share data) (b):
Three Months Ended Nine Months Ended
August 31, August 31,
2015 2014 2015 2014
Net income - diluted
U.S. GAAP net income $ 1,216 $ 1,241 $ 1,487 $ 1,319
Restructuring expenses (c) 14 - 21 -
Gains on ship sales and ship impairment, net (c) (2) - (6) (15)
Unrealized losses (gains) on fuel derivatives, net 137 (15) 215 (8)
(d)
Non-GAAP net income $ 1,365 $ 1,226 $ 1,717 $ 1,296
Weighted-average shares outstanding - diluted 781 778 781 778
Earnings per share - diluted
U.S. GAAP earnings per share $ 1.56 $ 1.60 $ 1.91 $ 1.70
Restructuring expenses (c) 0.02 - 0.03 -
Gains on ship sales and ship impairment, net (c) - - (0.01) (0.02)
Unrealized losses (gains) on fuel derivatives, net 0.17 (0.02) 0.27 (0.01)
(d)
Non-GAAP earnings per share $ 1.75 $ 1.58 $ 2.20 $ 1.67
Notes to Non-GAAP Financial Measures
(a) We use net cruise revenues per ALBD ("net revenue yields"), net cruise
costs per ALBD and net cruise costs excluding fuel per ALBD as significant
non-GAAP financial measures of our cruise segments' financial
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