REG-Carnival PLC: Carnival Corporation 4Q 2024 Earnings
20/12/2024 14:30
CARNIVAL CORPORATION & PLC OUTPERFORMS FOURTH QUARTER GUIDANCE, REPORTS RECORD
FULL YEAR OPERATING RESULTS AND EXPECTS 20 PERCENT EARNINGS GROWTH IN 2025
Expects to hit 2026 SEA Change EBITDA target one year early
MIAMI, Dec. 20, 2024 /PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE:
CCL; NYSE: CUK) announced financial results for the fourth quarter and full
year 2024 and provided an outlook for the first quarter and full year 2025.
Key Highlights
* Full year revenues hit an all-time high of $25 billion, over 15 percent
higher than the prior year, with continued strength in demand.
* Full year net income of $1.9 billion; adjusted net income1 of $1.9 billion
outperforms September guidance by over $130 million.
* Record full year adjusted EBITDA1 of $6.1 billion, over 40 percent higher
than the prior year.
* Record full year operating income of $3.6 billion, over 80 percent higher
than the prior year.
* Adjusted return on invested capital1 ("ROIC") of 11 percent.
* Record fourth quarter revenues of $5.9 billion, 10 percent higher than prior
year, delivering record adjusted EBITDA.
* Cumulative advanced booked position for full year 2025 is at an all-time
high for both price (in constant currency) and occupancy.
* Adjusted EBITDA per available lower berth1 ("ALBD") for 2025 expected to be
the highest in almost two decades, achieving 2026 SEA Change target one year
in advance.
"This has been an incredibly strong finish to a record year. Revenues hit an
all-time high driven by a strong demand environment that we elevated
throughout the year, enabling us to outperform our initial 2024 guidance by
$700 million and deliver nearly $2 billion more to the bottom line, year over
year," commented Carnival Corporation & plc's Chief Executive Officer Josh
Weinstein. "The progress was broad based as we drove strong pricing in 2024 as
compared to 2023 across our major cruise lines and trades."
"We are delivering long-term value for our shareholders through improved
operational execution across our brands, essentially on a same ship basis. We
ended 2024 with adjusted ROIC of 11 percent, comfortably above our cost of
capital. In fact, with one year down, we're already over 80 percent of the way
toward achieving our 2026 SEA Change EBITDA and adjusted ROIC targets,"
Weinstein continued.
According to Weinstein, there is even more in store to continue the momentum
as the company is actively working on an enhanced destination strategy to
provide guests with yet another reason to take a cruise vacation offered
exclusively by Carnival Corporation & plc's portfolio of cruise lines. The
company is also working to increase awareness and consideration for cruise
travel globally.
"2025 is shaping up to be another banner year, with yield growth expected to
far outpace historical growth rates and again exceed unit cost growth, thanks
to the efforts of our amazing team members. They have delivered a step-change
improvement in 2024 which sets us up for a fantastic 2025 and beyond, while
delivering unforgettable happiness to over 13.5 million guests last year,"
Weinstein noted.
Fourth Quarter 2024 Results
* Net income was $303 million, or $0.23 diluted EPS, versus a net loss of $48
million in 2023. Adjusted net income of $186 million, or $0.14 adjusted EPS1,
outperformed September guidance by $126 million, driven by higher ticket
prices, higher onboard spending and improved costs.
* Record fourth quarter adjusted EBITDA of $1.2 billion was 29 percent higher
than 2023 and outperformed September guidance by $80 million.
* Record fourth quarter revenues of $5.9 billion, exceeded 2023 levels by 10
percent. * Gross margin yields exceeded 2023 levels by 20 percent. Record net
yields1 (in constant currency) exceeded 2023 levels by 6.7 percent and were
better than September guidance.
* Gross margin per diems were 19 percent higher than 2023. Record net per
diems1 (in constant currency) were 5.3 percent higher than 2023 with both
ticket prices and onboard spending up.
* Cruise costs per ALBD increased 4.1 percent compared to 2023. Adjusted
cruise costs excluding fuel per ALBD1 (in constant currency) increased 7.4
percent compared to 2023 and were better than September guidance.
* Total customer deposits reached a fourth quarter record of $6.8 billion,
surpassing the previous fourth quarter record of $6.4 billion (as of November
30, 2023), reflecting growth in both ticket prices and pre-cruise onboard
sales.
1 See "Non-GAAP Financial Measures" at the end of this release for additional information.
Bookings
Even with less inventory available, booking volumes taken during the fourth
quarter of 2024 for 2025 were higher than the prior year for a strong 2024,
despite the traditionally slower period around the election. Booking volumes
taken during the fourth quarter for 2026 continued to break records,
reflecting sustained demand even for further out sailings.
"Our brands effectively capitalized on their ongoing strength in demand,
achieving higher prices (in constant currency) than last year and reinforcing
our record-breaking booked position. In fact, with nearly two-thirds of 2025
already booked, we are expecting another year of strong yield improvement,
outpacing historical growth rates and on top of two back-to-back years of
mid-to-high single digit per diem growth. This validates the success of our
demand generation efforts on our optimized portfolio," Weinstein noted.
The cumulative advanced booked position for full year 2025 is at an all-time
high for both price (in constant currency) and occupancy. Price (in constant
currency) and occupancy are higher than 2024 for all four quarters of 2025.
2025 Outlook
For the full year 2025, the company expects:
* Net yields (in constant currency) approximately 4.2 percent higher than
record 2024 levels based on continued strength in demand.
* Adjusted cruise costs excluding fuel per ALBD (in constant currency) up
approximately 3.7 percent compared to 2024, in part due to higher dry-dock
days, higher advertising expense and operating costs for the company's new
exclusive destination, Celebration Key.
* Adjusted net income of approximately $2.3 billion, over 20 percent higher
than 2024.
* Adjusted EBITDA of approximately $6.6 billion, up approximately $500 million
compared to 2024. Adjusted EBITDA per ALBD to reach its 2026 SEA Change target
one year in advance.
* Adjusted ROIC of approximately 11.7 percent.
See "Guidance" and "Reconciliation of Forecasted Data" for additional
information on the company's 2025 outlook.
Financing and Capital Activity
"With the benefit of well managed near term maturity towers and improved
leverage metrics, we expect to opportunistically capitalize on improved
interest rates while proactively managing our maturity towers for 2027 and
beyond. In 2025, interest expense is currently expected to be over $200
million lower than 2024 and over $500 million lower compared to 2023,"
commented Carnival Corporation & plc's Chief Financial Officer David
Bernstein.
"We are laser focused on continuing our efforts to further reduce interest
expense and rebuilding an investment grade balance sheet. Just this year, we
achieved a 4.3x net debt to adjusted EBITDA1 ratio, nearly a two and a half
turn improvement from 2023, positioning us three-fourths of the way to our
initial leverage target," Bernstein added.
During 2024, the company made debt prepayments of $3.3 billion, bringing its
total prepayments to $7.3 billion since the beginning of 2023. In addition,
the company has reduced its debt balance by over $8 billion from its peak in
January 2023, ending the year with $27.5 billion of debt. As of November 30,
2024, the company's debt maturities for full year 2025 and 2026 are $1.5
billion and $2.7 billion.
During the quarter, the company obtained three new export credit facilities,
bringing its total committed financings related to ship deliveries to $7.8
billion, continuing its strategy to finance its newbuild program at
preferential interest rates.
1 See "Non-GAAP Financial Measures" at the end of this release for additional information
Sustainability
The company continues to achieve meaningful progress towards its
sustainability goals. In 2024, the company:
* Reduced its absolute greenhouse gas ("GHG") emissions from ship fuel by
approximately 11 percent as compared to its peak year of 2011, despite
capacity growth of nearly 37 percent over the same period.
* Reached 85 percent of its GHG emission intensity goal, on track to achieve
more than a 20 percent reduction by the end of 2026 compared to 2019, a goal
that was previously pulled forward by four years.
* Now leads the industry with ten LNG powered ships and nearly 20 percent of
its fleet capacity, following the delivery of Sun Princess.
* Continued to have the most ships in the industry capable of plugging into
shore power and now more than two-thirds of its ships are equipped with shore
power capability.
* Delivered 44 percent reduction in food waste per person relative to its 2019
baseline, surpassing its interim goal one year ahead of schedule and
approaching its 2030 goal to reduce food waste by 50 percent.
Other Recent Highlights
* Sun Princess, Princess Cruises' newest ship, recognized as the Best Mega
Cruise Ship in the United States by Condé Nast Traveler's 2024 Readers'
Choice Awards (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4329450-1&h=4161825827&u=https%3A%2F%2Fwww.carnivalcorp.com%2Fnews-releases%2Fnews-release-details%2Fprincess-cruises-recognized-conde-nast-travelers-2024-readers&a=here)).
* Carnival Cruise Line earned top honors in multiple categories of the 2024
Travel Weekly Readers' Choice Awards, including Best Short Itinerary for the
third consecutive year, Best Domestic Cruise Line for the ninth consecutive
year and Best Travel Advisor Loyalty Program (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4329450-1&h=1007429881&u=https%3A%2F%2Fwww.carnival-news.com%2F2024%2F12%2F12%2Ftravel-weekly-readers-choose-carnival-for-best-travel-advisor-loyalty-program-for-first-time-and-best-domestic-cruise-line-for-ninth-consecutive-year&a=here)).
* Seabourn was honored with a total of 45 travel awards and accolades in 2024
(learn more here
(https://c212.net/c/link/?t=0&l=en&o=4329450-1&h=1840761404&u=https%3A%2F%2Fwww.carnivalcorp.com%2Fnews-releases%2Fnews-release-details%2Fseabourn-honored-45-travel-awards-2024&a=here)),
including Condé Nast Traveler's 2024 Readers' Choice Awards as the Best
Small-Ship Cruise Line and Best Expedition Cruise Line (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4329450-1&h=481532275&u=https%3A%2F%2Fwww.seabourn.com%2Fen%2Fus%2Fnews%2Fpress-release%2F2024-Press-Releases%2Foctober%2Fseabourn-best-small-ship-and-expedition-cruise-line-2024&a=here)).
* Princess Cruises launched its new global advertising campaign bringing back
the magic of "The Love Boat," featuring Hannah Waddingham of Ted Lasso fame
(learn more here
(https://c212.net/c/link/?t=0&l=en&o=4329450-1&h=809718883&u=https%3A%2F%2Fwww.carnivalcorp.com%2Fnews-releases%2Fnews-release-details%2Faward-winning-actress-hannah-waddingham-brings-magic-love-boat&a=here)).
Princess Cruises reported record-breaking bookings for the Black Friday
through Cyber Monday weekend period, 32 percent higher than the same period in
2023 (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4329450-1&h=265149254&u=https%3A%2F%2Fwww.carnivalcorp.com%2Fnews-releases%2Fnews-release-details%2Fprincess-cruises-reports-record-breaking-black-friday-through&a=here)).
* Half Moon Cay, the award-winning exclusive island in The Bahamas known for
its naturally beautiful beaches and crystal-clear waters, renamed to
'RelaxAway, Half Moon Cay' in support of its enhancements and the experience
guests can expect when immersed in this tropical paradise (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4329450-1&h=2244097200&u=https%3A%2F%2Fwww.carnivalcorp.com%2Fnews-releases%2Fnews-release-details%2Faward-winning-private-island-cruise-destination-renamed&a=here)).
* P&O Cruises (UK) announced it will be the headline sponsor of the Pride of
Britain Awards in 2025, the biggest show of its kind on British television
(learn more here
(https://c212.net/c/link/?t=0&l=en&o=4329450-1&h=3940311746&u=https%3A%2F%2Fwww.carnivalcorp.com%2Fnews-releases%2Fnews-release-details%2Fpo-cruises-begins-new-journey-pride-britain-awards-2025&a=here)).
* Cunard was named Walpole's British Luxury Brand of the Year, reinforcing its
position as a leader in luxury travel (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4329450-1&h=2422669221&u=https%3A%2F%2Fwww.carnivalcorp.com%2Fnews-releases%2Fnews-release-details%2Fcunard-crowned-walpoles-british-luxury-brand-year&a=here)).
* Recognized as one of: * The Top 250 Best-Managed Companies in 2024 by the
Wall Street Journal (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4329450-1&h=1671171773&u=https%3A%2F%2Fwww.carnivalcorp.com%2Fnews-releases%2Fnews-release-details%2Fcarnival-corporation-named-among-best-managed-companies-2024&a=here)).
* The World's Top Companies for Women in 2024 by Forbes (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4329450-1&h=1579517041&u=https%3A%2F%2Fwww.carnivalcorp.com%2Fnews-releases%2Fnews-release-details%2Fcarnival-corporation-named-among-worlds-top-companies-women&a=here)).
* Europe's Diversity Leaders in 2025 by Financial Times (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4329450-1&h=3384581992&u=https%3A%2F%2Fwww.carnivalcorp.com%2Fnews-releases%2Fnews-release-details%2Fcarnival-corporation-named-one-europes-diversity-leaders-2025&a=here)).
Guidance
(See "Reconciliation of Forecasted Data")
1Q 2025 Full Year 2025
Year over year change Current Constant Current Constant
Dollars Currency Dollars Currency
Net yields Approx. 3.5% Approx. 4.6% Approx. 3.2% Approx. 4.2%
Adjusted cruise costs excluding fuel per ALBD Approx. 2.4% Approx. 3.4% Approx. 2.7% Approx. 3.7%
2025
1Q 2Q 3Q 4Q Full Year
ALBDs (in millions) (a) 23.6 24.3 24.6 23.9 96.3
Capacity growth compared to prior year 2.5 % 3.4 % (2.5) % (0.0) % 0.8 %
(a) See "Notes to Statistical Information"
1Q 2025 Full Year 2025
Fuel consumption in metric tons (in millions) 0.7 2.9
Fuel cost per metric ton consumed (excluding European Union Allowance ("EUA")) $ 616 $ 617
Fuel expense (including EUA expense) (in billions) $ 0.45 $ 1.89
Depreciation and amortization (in billions) $ 0.66 $ 2.77
Interest expense, net of capitalized interest and interest income (in billions) $ 0.38 $ 1.50
Adjusted EBITDA (in billions) Approx. $1.04 Approx. $6.6
Adjusted net income (in millions) Approx. $1 Approx. $2,305
Adjusted earnings per share - diluted (a) Approx. $0.00 Approx. $1.70
Weighted-average shares outstanding - basic 1,309 1,312
Adjusted weighted-average shares outstanding - diluted (a) 1,316 1,402
(a) Diluted adjusted earnings per share includes the add-back of dilutive interest expense related to the company's convertible notes of $71 million for full year 2025. The add-back expense is antidilutive to the first quarter of 2025 calculation and accordingly has been excluded.
Currencies (USD to 1) 1Q 2025 Full Year 2025
AUD $ 0.64 $ 0.64
CAD $ 0.70 $ 0.70
EUR $ 1.05 $ 1.05
GBP $ 1.26 $ 1.26
Sensitivities (impact to adjusted net income (loss) in millions) 1Q 2025 Full Year 2025
1% change in net yields $ 39 $ 190
1% change in adjusted cruise costs excluding fuel per ALBD $ 26 $ 109
10% change in fuel cost per metric ton (excluding EUA) $ 45 $ 178
100 basis point change in variable rate debt (including derivatives) — $ 48
1% change in currency exchange rates $ 4 $ 25
Capital Expenditures
For full year 2025, newbuild capital expenditures are $1.1 billion and
non-newbuild capital expenditures are $2.5 billion. These future capital
expenditures will fluctuate with foreign currency movements relative to the
U.S. Dollar. In addition, these figures do not include potential stage
payments for ship orders that the company may place in the future.
Conference Call
The company has scheduled a conference call with analysts at 10:00 a.m. EST
(3:00 p.m. GMT) today to discuss its earnings release. This call can be
listened to live, and additional information including the company's earnings
presentation and debt maturities schedule, can be obtained via Carnival
Corporation & plc's website
at www.carnivalcorp.com and www.carnivalplc.com .
Carnival Corporation & plc is the largest global cruise company, and among the
largest leisure travel companies, with a portfolio of world-class cruise lines
– AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America
Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and
Seabourn.
Additional information can be found
on www.carnivalcorp.com, www.aida.de, www.carnival.com, www.costacruise.com, www.cunard.com, www.hollandamerica.com, www.pocruises.com.au, www.pocruises.com, www.princess.com and www.seabourn.com.
For more information on Carnival Corporation's industry-leading sustainability
initiatives, visit www.carnivalsustainability.com.
Cautionary Note Concerning Factors That May Affect Future Results
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, operations, outlooks, plans, goals, reputation, cash flows, liquidity
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,
as amended. 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," "aspiration," "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:
• Pricing • Adjusted EBITDA
• Booking levels • Adjusted EBITDA per ALBD
• Occupancy • Adjusted earnings per share
• Interest, tax and fuel expenses • Adjusted free cash flow
• Currency exchange rates • Net debt to adjusted EBITDA
• Goodwill, ship and trademark fair values • Net per diems
• Liquidity and credit ratings • Net yields
• Investment grade leverage metrics • Adjusted cruise costs per ALBD
• Estimates of ship depreciable lives and residual values • Adjusted cruise costs excluding fuel per ALBD
• Adjusted net income (loss) • Adjusted return on invested capital
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. These factors include, but are not limited
to, the following:
* Events and conditions around the world, including geopolitical uncertainty,
war and other military actions, pandemics, inflation, higher fuel prices,
higher interest rates and other general concerns impacting the ability or
desire of people to travel could lead to a decline in demand for cruises as
well as have significant negative impacts on our financial condition and
operations.
* Incidents concerning our ships, guests or the cruise industry may negatively
impact the satisfaction of our guests and crew and lead to reputational
damage.
* Changes in and non-compliance with laws and regulations under which we
operate, such as those relating to health, environment, safety and security,
data privacy and protection, anti-money laundering, anti-corruption, economic
sanctions, trade protection, labor and employment, and tax may be costly and
lead to litigation, enforcement actions, fines, penalties and reputational
damage.
* Factors associated with climate change, including evolving and increasing
regulations, increasing global concern about climate change and the shift in
climate conscious consumerism and stakeholder scrutiny, and increasing
frequency and/or severity of adverse weather conditions could have a material
impact on our business.
* Inability to meet or achieve our targets, goals, aspirations, initiatives,
and our public statements and disclosures regarding them, including those
related to sustainability matters, may expose us to risks that may adversely
impact our business.
* Cybersecurity incidents and data privacy breaches, as well as disruptions
and other damages to our principal offices, information technology operations
and system networks and failure to keep pace with developments in technology
have adversely impacted and may in the future materially adversely impact our
business operations, the satisfaction of our guests and crew and may lead to
fines, penalties and reputational damage.
* The loss of key team members, our inability to recruit or retain qualified
shoreside and shipboard team members and increased labor costs could have an
adverse effect on our business and results of operations.
* Increases in fuel prices, changes in the types of fuel consumed and
availability of fuel supply may adversely impact our scheduled itineraries and
costs.
* We rely on suppliers who are integral to the operations of our businesses.
These suppliers and service providers may be unable to deliver on their
commitments, which could negatively impact our business.
* Fluctuations in foreign currency exchange rates may adversely impact our
financial results.
* Overcapacity and competition in the cruise and land-based vacation industry
may negatively impact our cruise sales, pricing and destination options.
* Inability to implement our shipbuilding programs and ship repairs,
maintenance and refurbishments may adversely impact our business operations
and the satisfaction of our guests.
* We require a significant amount of cash to service our debt and sustain our
operations. Our ability to generate cash depends on many factors, including
those beyond our control, and we may not be able to generate cash required to
service our debt and sustain our operations.
* Our substantial debt could adversely affect our financial health and
operating flexibility.
The ordering of the risk factors set forth above is not intended to reflect
our indication of priority or likelihood. Additionally, many of these risks
and uncertainties are currently, and in the future may continue to be,
amplified by our substantial debt balance incurred during the pause of our
guest cruise operations. There may be additional risks that we consider
immaterial or which are unknown.
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.
Forward-looking and other statements in this document may also address our
sustainability progress, plans, and goals (including climate change- and
environmental-related matters). In addition, historical, current, and
forward-looking sustainability- and climate-related statements may be based on
standards and tools for measuring progress that are still developing, internal
controls and processes that continue to evolve, and assumptions and
predictions that are subject to change in the future and may not be generally
shared.
CARNIVAL CORPORATION & PLC CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) (in millions, except per share data)
Three Months Ended November 30, Twelve Months Ended November 30,
2024 2023 2024 2023
Revenues
Passenger ticket $ 3,854 $ 3,510 $ 16,463 $ 14,067
Onboard and other 2,084 1,886 8,558 7,526
5,938 5,397 25,021 21,593
Operating Expenses
Commissions, transportation and other 721 664 3,232 2,761
Onboard and other 634 590 2,678 2,375
Payroll and related 653 605 2,464 2,373
Fuel 461 555 2,007 2,047
Food 358 335 1,457 1,335
Other operating 1,005 879 3,801 3,426
Cruise and tour operating expenses 3,833 3,629 15,638 14,317
Selling and administrative 886 788 3,252 2,950
Depreciation and amortization 659 596 2,557 2,370
5,378 5,013 21,447 19,637
Operating Income (Loss) 561 384 3,574 1,956
Nonoperating Income (Expense)
Interest income 16 50 93 233
Interest expense, net of capitalized interest (403) (466) (1,755) (2,066)
Debt extinguishment and modification costs (1) 1 (79) (111)
Other income (expense), net 117 (8) 83 (75)
(271) (423) (1,659) (2,018)
Income (Loss) Before Income Taxes 290 (39) 1,915 (62)
Income Tax Benefit (Expense), Net 13 (9) 1 (13)
Net Income (Loss) $ 303 $ (48) $ 1,916 $ (74)
Earnings Per Share
Basic $ 0.23 $ (0.04) $ 1.50 $ (0.06)
Diluted $ 0.23 $ (0.04) $ 1.44 $ (0.06)
Weighted-Average Shares Outstanding - Basic 1,300 1,263 1,274 1,262
Weighted-Average Shares Outstanding - Diluted 1,399 1,263 1,398 1,262
CARNIVAL CORPORATION & PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions, except par values)
November 30,
2024 2023
ASSETS
Current Assets
Cash and cash equivalents $ 1,210 $ 2,415
Trade and other receivables, net 590 556
Inventories 507 528
Prepaid expenses and other 1,070 1,767
Total current assets 3,378 5,266
Property and Equipment, Net 41,795 40,116
Operating Lease Right-of-Use Assets, Net 1,368 1,265
Goodwill 579 579
Other Intangibles 1,163 1,169
Other Assets 775 725
$ 49,057 $ 49,120
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt $ 1,538 $ 2,089
Current portion of operating lease liabilities 163 149
Accounts payable 1,133 1,168
Accrued liabilities and other 2,358 2,003
Customer deposits 6,425 6,072
Total current liabilities 11,617 11,481
Long-Term Debt 25,936 28,483
Long-Term Operating Lease Liabilities 1,239 1,170
Other Long-Term Liabilities 1,012 1,105
Shareholders' Equity
Carnival Corporation common stock, $0.01 par value; 1,960 shares authorized; 1,294 shares 13 12
issued at 2024 and 1,250 shares issued at 2023
Carnival plc ordinary shares, $1.66 par value; 217 shares issued at 2024 and 2023 361 361
Additional paid-in capital 17,155 16,712
Retained earnings 2,101 185
Accumulated other comprehensive income (loss) (1,975) (1,939)
Treasury stock, 130 shares at 2024 and 2023 of Carnival Corporation and 73 shares at 2024 (8,404) (8,449)
and 2023 of Carnival plc, at cost
Total shareholders' equity 9,251 6,882
$ 49,057 $ 49,120
CARNIVAL CORPORATION & PLC OTHER INFORMATION
November 30,
OTHER BALANCE SHEET INFORMATION (in millions) 2024 2023
Liquidity $ 4,155 $ 5,392
Debt (current and long-term) $ 27,475 $ 30,572
Customer deposits (current and long-term) $ 6,779 $ 6,353
Three Months Ended November 30, Twelve Months Ended November 30,
STATISTICAL INFORMATION 2024 2023 2024 2023
Passenger cruise days ("PCDs") (in millions) (a) 24.6 23.6 100.5 91.4
ALBDs (in millions) (b) 23.9 23.2 95.6 91.3
Occupancy percentage (c) 103 % 101 % 105 % 100 %
Passengers carried (in millions) 3.3 3.1 13.5 12.5
Fuel consumption in metric tons (in millions) 0.7 0.7 2.9 2.9
Fuel consumption in metric tons per thousand ALBDs 30.4 31.5 30.9 32.1
Fuel cost per metric ton consumed (excluding EUA) $ 618 $ 759 $ 665 $ 701
Currencies (USD to 1)
AUD $ 0.67 $ 0.64 $ 0.66 $ 0.66
CAD $ 0.73 $ 0.73 $ 0.73 $ 0.74
EUR $ 1.09 $ 1.07 $ 1.09 $ 1.08
GBP $ 1.30 $ 1.23 $ 1.28 $ 1.24
Notes to Statistical Information
(a) PCD represents the number of cruise passengers on a voyage multiplied by the number of revenue-producing ship operating days for that voyage.
(b) 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.
(c) Occupancy, in accordance with cruise industry practice, is calculated using a numerator of PCDs and 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
Three Months Ended November 30, Twelve Months Ended November 30,
(in millions, except per share data) 2024 2023 2024 2023
Net income (loss) $ 303 $ (48) $ 1,916 $ (74)
(Gains) losses on ship sales and impairments (33) (34) (39) (88)
Debt extinguishment and modification costs 1 (1) 79 111
Restructuring expenses 1 3 21 19
Other (86) (10) (86) 33
Adjusted net income (loss) $ 186 $ (90) $ 1,891 $ 1
Interest expense, net of capitalized interest 403 466 1,755 2,066
Interest income (16) (50) (93) (233)
Income tax benefit (expense), net (13) 24 (1) 28
Depreciation and amortization 659 596 2,557 2,370
Adjusted EBITDA $ 1,220 $ 946 $ 6,110 $ 4,231
Earnings per share - diluted (a) $ 0.23 $ (0.04) $ 1.44 $ (0.06)
Adjusted earnings per share - diluted (a) $ 0.14 $ (0.07) $ 1.42 $ 0.00
Adjusted weighted-average shares outstanding - diluted (a) 1,305 1,263 1,398 1,262
(a) Diluted earnings per share for full year 2024 includes the add-back of dilutive interest expense related to the company's convertible notes of $94 million. The company's convertible notes are antidilutive for the fourth quarter of 2024 adjusted earnings per share and therefore are not included in the calculation of diluted adjusted earnings per share.
Three Months Ended November 30, Twelve Months Ended November 30,
(in millions) 2024 2023 2024 2023
Cash from (used in) operations $ 911 $ 915 $ 5,923 $ 4,273
Capital expenditures (Purchases of Property and Equipment) (592) (675) (4,626) (3,284)
Proceeds from export credits 47 — 2,360 1,157
Adjusted free cash flow $ 366 $ 240 $ 3,657 $ 2,146
(See Non-GAAP Financial Measures)
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Gross margin per diems and net per diems were computed by dividing the gross
margin and adjusted gross margin by PCDs. Gross margin yields and net yields
were computed by dividing the gross margin and adjusted gross margin by ALBDs
as follows:
Three Months Ended November 30, Twelve Months Ended November 30,
(in millions, except per diems and yields data) 2024 2024 Constant Currency 2023 2024 2024 Constant Currency 2023
Total revenues $ 5,938 $ 5,397 $ 25,021 $ 21,593
Less: Cruise and tour operating expenses (3,833) (3,629) (15,638) (14,317)
Depreciation and amortization (659) (596) (2,557) (2,370)
Gross margin 1,447 1,172 6,826 4,906
Less: Tour and other revenues (33) (50) (255) (265)
Add: Payroll and related 653 605 2,464 2,373
Fuel 461 555 2,007 2,047
Food 358 335 1,457 1,335
Ship and other impairments — — — —
Other operating 1,005 879 3,801 3,426
Depreciation and amortization 659 596 2,557 2,370
Adjusted gross margin $ 4,550 $ 4,489 $ 4,093 $ 18,857 $ 18,782 $ 16,192
PCDs 24.6 24.6 23.6 100.5 100.5 91.4
Gross margin per diems (per PCD) $ 58.92 $ 49.72 $ 67.90 $ 53.67
% increase (decrease) 19 % 27 %
Net per diems (per PCD) $ 185.33 $ 182.86 $ 173.60 $ 187.57 $ 186.82 $ 177.13
% increase (decrease) 6.8 % 5.3 % 5.9 % 5.5 %
ALBDs 23.9 23.9 23.2 95.6 95.6 91.3
Gross margin yields (per ALBD) $ 60.57 $ 50.47 $ 71.43 $ 53.73
% increase (decrease) 20 % 33 %
Net yields (per ALBD) $ 190.53 $ 187.98 $ 176.20 $ 197.33 $ 196.54 $ 177.34
% increase (decrease) 8.1 % 6.7 % 11 % 11 %
(See Non-GAAP Financial Measures)
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Cruise costs per ALBD, adjusted cruise costs per ALBD and adjusted cruise
costs excluding fuel per ALBD were computed by dividing cruise costs, adjusted
cruise costs and adjusted cruise costs excluding fuel by ALBDs as follows:
Three Months Ended November 30, Twelve Months Ended November 30,
(in millions, except costs per ALBD data) 2024 2024 Constant 2023 2024 2024 Constant 2023
Currency Currency
Cruise and tour operating expenses $ 3,833 $ 3,629 $ 15,638 $ 14,317
Selling and administrative expenses 886 788 3,252 2,950
Less: Tour and other expenses (39) (42) (212) (231)
Cruise costs 4,680 4,375 18,678 17,035
Less: Commissions, transportation and other (721) (664) (3,232) (2,761)
Onboard and other costs (634) (590) (2,678) (2,375)
Gains (losses) on ship sales and impairments 33 34 39 88
Restructuring expenses (1) (3) (21) (19)
Other — — — —
Adjusted cruise costs 3,356 3,329 3,153 12,786 12,750 11,969
Less: Fuel (461) (461) (555) (2,007) (2,007) (2,047)
Adjusted cruise costs excluding fuel $ 2,895 $ 2,868 $ 2,597 $ 10,780 $ 10,743 $ 9,922
ALBDs 23.9 23.9 23.2 95.6 95.6 91.3
Cruise costs per ALBD $ 195.95 $ 188.31 $ 195.45 $ 186.57
% increase (decrease) 4.1 % 4.8 %
Adjusted cruise costs per ALBD $ 140.53 $ 139.38 $ 135.70 $ 133.80 $ 133.42 $ 131.08
% increase (decrease) 3.6 % 2.7 % 2.1 % 1.8 %
Adjusted cruise costs excluding fuel per ALBD $ 121.22 $ 120.08 $ 111.80 $ 112.81 $ 112.42 $ 108.67
% increase (decrease) 8.4 % 7.4 % 3.8 % 3.5 %
(See Non-GAAP Financial Measures)
Non-GAAP Financial Measures
We use non-GAAP financial measures and they are provided along with their most
comparative U.S. GAAP financial measure:
Non-GAAP Measure U.S. GAAP Measure Use Non-GAAP Measure to Assess
• Adjusted net income (loss), • Net income (loss) • Company Performance
adjusted EBITDA and adjusted
EBITDA per ALBD
• Adjusted earnings per share • Earnings per share • Company Performance
• Adjusted free cash flow • Cash from (used in) operations • Impact on Liquidity Level
• Net debt to adjusted EBITDA — • Company Leverage
• Net per diems • Gross margin per diems • Cruise Segments Performance
• Net yields • Gross margin yields • Cruise Segments Performance
• Adjusted cruise costs per ALBD • Gross cruise costs per ALBD • Cruise Segments Performance
and adjusted cruise costs excluding
fuel per ALBD
• Adjusted ROIC — • Company Performance
The presentation of our non-GAAP financial information is not intended to be
considered in isolation from, as a substitute for, or superior to the
financial information prepared in accordance with U.S. GAAP. It is possible
that our non-GAAP financial measures may not be exactly comparable to the
like-kind information presented by other companies, which is a potential risk
associated with using these measures to compare us to other companies.
Adjusted net income (loss) and adjusted earnings per share provide
additional information to us and investors about our future earnings
performance by excluding certain gains, losses and expenses that we believe
are not part of our core operating business and are not an indication of our
future earnings performance. We believe that gains and losses on ship sales,
impairment charges, debt extinguishment and modification costs, restructuring
costs and certain other gains and losses are not part of our core operating
business and are not an indication of our future earnings performance.
Adjusted EBITDA and adjusted EBITDA per ALBD provide additional information
to us and investors about our core operating profitability, including on a per
ALBD basis, by excluding certain gains, losses and expenses that we believe
are not part of our core operating business and are not an indication of our
future earnings performance as well as excluding interest, taxes and
depreciation and amortization. In addition, we believe that the presentation
of adjusted EBITDA provides additional information to us and investors about
our ability to operate our business in compliance with the covenants set forth
in our debt agreements. We define adjusted EBITDA as adjusted net income
(loss) adjusted for (i) interest, (ii) taxes and (iii) depreciation and
amortization. There are material limitations to using adjusted EBITDA.
Adjusted EBITDA does not take into account certain significant items that
directly affect our net income (loss). These limitations are best addressed by
considering the economic effects of the excluded items independently and by
considering adjusted EBITDA in conjunction with net income (loss) as
calculated in accordance with U.S. GAAP.
Adjusted free cash flow provides additional information to us and investors
to assess our ability to repay our debt after making the capital investments
required to support ongoing business operations and value creation as well as
the impact on the company's liquidity level. Adjusted free cash flow
represents net cash provided by operating activities adjusted for capital
expenditures (purchases of property and equipment) and proceeds from export
credits that are provided for related capital expenditures. Adjusted free cash
flow does not represent the residual cash flow available for discretionary
expenditures as it excludes certain mandatory expenditures such as repayment
of maturing debt.
Net debt to adjusted EBITDA provides additional information to us and
investors about our overall leverage. We define net debt to adjusted EBITDA as
total debt less cash and cash equivalents excluding a minimum cash balance
divided by twelve-month adjusted EBITDA.
Net per diems and net yields enable us and investors to measure the
performance of our cruise segments on a per PCD and per ALBD basis. We use
adjusted gross margin rather than gross margin to calculate net per diems and
net yields. We believe that adjusted gross margin is a more meaningful measure
in determining net per diems and net yields than gross margin because it
reflects the cruise revenues earned net of only our most significant variable
costs, which are travel agent commissions, cost of air and other
transportation, certain other costs that are directly associated with onboard
and other revenues and credit and debit card fees.
Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per
ALBD enable us and investors to separate the impact of predictable capacity
or ALBD changes from price and other changes that affect our business. We
believe these non-GAAP measures provide useful information to us and investors
and expanded insight to measure our cost performance. Adjusted cruise costs
per ALBD and adjusted cruise costs excluding fuel per ALBD are the measures we
use to monitor our ability to control our cruise segments' costs rather than
cruise costs per ALBD. We exclude gains and losses on ship sales, impairment
charges, restructuring costs and certain other gains and losses that we
believe are not part of our core operating business as well as excluding our
most significant variable costs, which are travel agent commissions, cost of
air and other transportation, certain other costs that are directly associated
with onboard and other revenues and credit and debit card fees. We exclude
fuel expense to calculate adjusted cruise costs excluding fuel. The price of
fuel, over which we have no control, impacts the comparability of
period-to-period cost performance. The adjustment to exclude fuel provides us
and investors with supplemental information to understand and assess the
company's non-fuel adjusted cruise cost performance. Substantially all of our
adjusted cruise costs excluding fuel are largely fixed, except for the impact
of changing prices once the number of ALBDs has been determined.
Adjusted ROIC provides additional information to us and investors about our
operating performance relative to the capital we have invested in the company.
We define adjusted ROIC as the twelve-month adjusted net income (loss) before
interest expense and interest income divided by the monthly average of debt
plus equity minus construction-in-progress, excess cash, goodwill and
intangibles.
Reconciliation of Forecasted Data
We have not provided a reconciliation of forecasted non-GAAP financial
measures to the most comparable U.S. GAAP financial measures because
preparation of meaningful U.S. GAAP forecasts would require unreasonable
effort. We are unable to predict, without unreasonable effort, the future
movement of foreign exchange rates and fuel prices. We are unable to determine
the future impact of gains and losses on ship sales, impairment charges, debt
extinguishment and modification costs, restructuring costs and certain other
non-core gains and losses.
Constant Currency
Our operations primarily utilize the U.S. dollar, Australian dollar, euro and
sterling as functional currencies to measure results
and financial condition. Functional currencies other than the U.S. dollar
subject us to foreign currency translational risk. Our operations also have
revenues and expenses that are in currencies other than their functional
currency, which subject us to foreign currency transactional risk.
Constant currency reporting removes the impact of changes in exchange rates on
the translation of our operations plus the transactional impact of changes in
exchange rates from revenues and expenses that are denominated in a currency
other than the functional currency.
We report adjusted gross margin, net yields, net per diems, adjusted cruise
costs excluding fuel and adjusted cruise costs excluding fuel per ALBD on a
"constant currency" basis assuming the current periods' currency exchange
rates have remained constant with the prior periods' rates. These metrics
facilitate a comparative view for the changes in our business in an
environment with fluctuating exchange rates.
Examples:
* The translation of our operations with functional currencies other than U.S.
dollar to our U.S. dollar reporting currency results in decreases in reported
U.S. dollar revenues and expenses if the U.S. dollar strengthens against these
foreign currencies and increases in reported U.S. dollar revenues and expenses
if the U.S. dollar weakens against these foreign currencies.
* Our operations have revenue and expense transactions in currencies other
than their functional currency. If their functional currency strengthens
against these other currencies, it reduces the functional currency revenues
and expenses. If the functional currency weakens against these other
currencies, it increases the functional currency revenues and expenses.
CONTACT: MEDIA CONTACT, Jody Venturoni, +1 469 797 6380; INVESTOR RELATIONS
CONTACT: Beth Roberts, +1 305 406 4832
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