REG-Carnival PLC: Non-Cash Impairment Charges

CarnivalAnnouncement

29/07/2020 18:00

July 29, 2020 

CARNIVAL CORPORATION & PLC ANNOUNCES NON-CASH IMPAIRMENT CHARGES  

Carnival Corporation & plc is disclosing non-cash impairment charges on
Form 8-K with the U.S. Securities and Exchange Commission (“SEC”). 
*
Schedule A contains Carnival Corporation & plc’s announcement
of non-cash impairment charges. 

The Directors consider that within the Carnival Corporation and Carnival plc
dual listed company arrangement, the most appropriate presentation of Carnival
plc's results and financial position is by reference to the Carnival
Corporation & plc U.S. GAAP consolidated financial statements. 

MEDIA
CONTACT                                                                                                                                                                        INVESTOR
RELATIONS CONTACT 

Roger Frizzell                                
                                                                                                                                                 Beth
Roberts 

001 305 406
7862                                                                 
 
                                                                                                        001
305 406 4832 

The Form 8-K is available for viewing on the SEC website
at www.sec.gov under Carnival Corporation or Carnival plc or the Carnival
Corporation & plc website at www.carnivalcorp.com or www.carnivalplc.com. 

Carnival Corporation &?plc is one of the world’s largest leisure travel
companies with a portfolio of nine of the world’s leading cruise lines. With
operations in?North America,?Australia, Europe?and Asia, its portfolio
features – Carnival Cruise Line, Princess Cruises, Holland America Line,?P&O
Cruises?(Australia), Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises?(UK)
and Cunard. 

Additional information can be found on www.carnivalcorp.com,
www.carnivalsustainability.com, www.carnival.com, www.princess.com,
www.hollandamerica.com, www.pocruises.com.au, www.seabourn.com,
www.costacruise.com, www.aida.de, www.pocruises.com and www.cunard.com. 

SCHEDULE A 

In connection with Carnival Corporation & plc’s (the
“Company,” “we,” and “our”) actions to maximize liquidity, we
previously announced, on July 10, 2020, plans to remove nine ships from our
fleet in the next 90 days.  The plans for the disposal of these ships are in
addition to the sale of four ships, which were announced prior to fiscal
2020. We have made a decision to remove a further two ships from our fleet. 
These decisions are intended to align the fleet with the expected phased
restart of guest cruise operations while also generating cost savings. 

On July 23, 2020, senior management of the Company evaluated these two ships
for impairment and concluded their carrying values are no longer recoverable
when compared to their estimated remaining future cash flows. Consequently,
and in combination with other ships and notes receivables with recoverability
impacted by the current environment, we expect to record non-cash impairment
charges during the third quarter of 2020. Although the actual amount of the
charges has not yet been finalized, we expect the aggregate impairment charge
to be in the range of $600 million to $650 million. We do not expect these
impairments to result in any material future cash expenditures. We plan to
continue to evaluate other options to maximize our liquidity and best position
our fleet for future operations.  

Cautionary Note Concerning Factors That May Affect Future Results  

Carnival Corporation and Carnival plc and their respective subsidiaries
are referred to collectively in this Current Report on Form 8-K, including
the Exhibits hereto (collectively, 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, 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.
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                                              * Estimates of ship depreciable lives and residual values                                                  
 * Booking levels                                                  * Goodwill, ship and trademark fair values                                                                 
 * Pricing and occupancy                                           * Liquidity                                                                                                
 * Interest, tax and fuel expenses                                 * Adjusted earnings per share                                                                              
 * Currency exchange rates                                         * Impact of the COVID-19 coronavirus global pandemic on our financial condition and results of operations  
 * Net cruise costs, excluding fuel per available lower berth day  

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. Additionally, many of these risks and uncertainties
are currently amplified by and will continue to be amplified by, or in the
future may be amplified by, the COVID-19 outbreak. 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:  
*
COVID-19 has had, and is expected to continue to have, a significant impact on
our financial condition and operations, which impacts our ability to obtain
acceptable financing to fund resulting reductions in cash from operations. The
current, and uncertain future, impact of the COVID-19 outbreak, including its
effect on the ability or desire of people to travel (including on cruises), is
expected to continue to impact our results, operations, outlooks, plans,
goals, growth, reputation, litigation, cash flows, liquidity, and stock
price 
*
As a result of the COVID-19 outbreak, we have paused our guest cruise
operations, and if we are unable to re-commence normal operations in the
near-term, we may be out of compliance with a maintenance covenant in certain
of our debt facilities as of May 31, 2021 
*
World events impacting the ability or desire of people to travel may lead to a
decline in demand for cruises   
*
Incidents concerning our ships, guests or the cruise vacation industry as well
as adverse weather conditions and other natural disasters may 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-corruption, economic sanctions, trade
protection and tax may lead to litigation, enforcement actions, fines,
penalties, and reputational damage  
*
Breaches in data security and lapses in data privacy 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
may adversely impact our business operations, the satisfaction of our guests
and crew and lead to reputational damage     
*
Ability to recruit, develop and retain qualified shipboard personnel who live
away from home for extended periods of time may adversely impact our business
operations, guest services and satisfaction  
*
Increases in fuel prices, changes in the types of fuel consumed and
availability of fuel supply may adversely impact our scheduled itineraries and
costs   
*
Fluctuations in foreign currency exchange rates may adversely impact our
financial results  
*
Overcapacity and competition in the cruise and land-based vacation industry
may lead to a decline in our cruise sales, pricing and destination
options   
*
Geographic regions in which we try to expand our business may be slow to
develop or ultimately not develop how we expect   
*
Inability to implement our shipbuilding programs and ship repairs, maintenance
and refurbishments may adversely impact our business operations and the
satisfaction of our guests  

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.  



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