CARNIVAL CORPORATION & PLC REPORTS RECORD FOURTH QUARTER AND FULL YEAR REVENUES WITH CONTINUED STRONG BOOKINGS AND EARNINGS MOMENTUM
- None.
- None.
Insights
The earnings report from Carnival Corporation & plc indicates a robust recovery with full year revenues reaching an all-time high of $21.6 billion. This is particularly notable given the travel and hospitality industry's recent volatility. The company's adjusted free cash flow of $2.1 billion is a critical metric, reflecting operational efficiency and liquidity, which is key for servicing debt and funding growth initiatives.
The reduction in debt balance by $4.6 billion from its peak in Q1 2023 and the ending liquidity of $5.4 billion position the company for strategic flexibility. The record booking volumes and the anticipation of 30 percent growth in adjusted EBITDA for 2024 suggest strong consumer demand and operational leverage. However, the U.S. GAAP net loss underscores ongoing challenges and the need for continued fiscal management.
Investors should monitor the company's ability to maintain its yield management strategy amidst economic uncertainties and its commitment to debt prepayment which could further strengthen its balance sheet. The 2024 outlook with expected increases in net yields and occupancy levels provides optimism but should be balanced against the risks of cost inflation and potential market headwinds.
The cruise industry, represented by Carnival Corporation & plc, appears to be on a trajectory of recovery. The company's record net per diems and net yields signal robust pricing power and consumer willingness to spend on cruise experiences. The 25 percent increase in total customer deposits compared to the previous record in Q4 2022 is a strong indicator of future revenue potential.
Strategically, the company's focus on yield management and advertising investments has paid dividends in terms of booking volumes and pricing. The European brands' performance is particularly noteworthy as it signifies regional market strength. Looking at the industry, Carnival's performance could be a bellwether for the broader travel and leisure sector's post-pandemic rebound.
Attention should be given to the company's sustainability efforts, such as GHG emission reduction and biofuel pilots, which are increasingly important to consumers and regulators. These initiatives may offer competitive advantages and align with broader ESG (Environmental, Social and Governance) investment trends.
Carnival Corporation & plc's emphasis on sustainability aligns with investor interest in ESG factors. The company's proactive approach to reducing GHG emissions, achieving a 15.5 percent reduction in fuel consumption per ALBD compared to 2019 and exceeding its shore power capability goal ahead of schedule, are commendable milestones that could enhance its ESG profile.
The early achievement of its 2030 GHG emission intensity reduction goal not only reflects operational efficiency but also positions the company favorably in a market increasingly sensitive to climate change impacts. Furthermore, the reduction in food waste and the adoption of biofuels showcase a comprehensive approach to environmental stewardship, potentially attracting ESG-focused investors.
However, it is important to balance these achievements with the overall financial picture. While ESG initiatives can contribute to long-term value creation, their impact on short-term financial performance and investment in these areas should be weighed against other capital allocation priorities.
Tracking ahead of SEA Change targets
Key Highlights
Full Year 2023
- Full year revenues hit an all-time high of
$21.6 billion - Full year cash from operations was
$4.3 billion $2.1 billion U.S. GAAP net loss of$74 million $1 million - The company made debt payments of
$6 billion $4.6 billion $5.4 billion - The company entered 2024 with its best booked position on record, for both price and occupancy
Fourth Quarter 2023
- Record fourth quarter revenues of
$5.4 billion - Booking volumes for the two weeks around Black Friday and Cyber Monday reached an all-time high for that period.
- Total customer deposits reached a fourth quarter record of
$6.4 billion $5.1 billion
"We ended the year on a high note with another record-breaking quarter that exceeded expectations and achieved positive full year adjusted net income. In fact, we consistently outperformed in all four quarters of the year, buoyed by a strengthening demand environment across all our brands," commented Carnival Corporation & plc's Chief Executive Officer Josh Weinstein.
"Net yields for the fourth quarter continued on a positive trajectory, were significantly higher than a very strong 2019 and even higher than we had anticipated, enabling us to overcome four years of high cost inflation to deliver five percent higher per unit EBITDA than 2019 (holding fuel and currency constant)," Weinstein added.
"Thanks to a strong second half of 2023, we are already tracking ahead of our plan to achieve SEA Change, our three-year financial targets calling for the highest adjusted ROIC and adjusted EBITDA per ALBD in nearly two decades. Based on our 2024 guidance, we expect to deliver another big step forward, positioning us more than halfway toward realizing all our 2026 SEA Change targets. With nearly two-thirds of 2024 on the books already, we are well positioned to obtain another year of record revenues and adjusted EBITDA," Weinstein noted.
Fourth Quarter 2023 Results
U.S. GAAP net loss of$48 million $(0.04) $90 million $(0.07) - Adjusted EBITDA of
$946 million - Record fourth quarter revenues of
$5.4 billion - While gross margin yields were down 4.6 percent, net yields (in constant currency) exceeded strong 2019 levels by 7.8 percent.
- Occupancy in the fourth quarter of 2023 was over 101 percent, in line with the company's expectations and historical levels.
- Gross margin per diems were down 2.3 percent compared to 2019, while net per diems (in constant currency) exceeded 2019 levels by over 10 percent and were three percentage points better than the midpoint of the September guidance range.
- Cruise costs per ALBD increased 12 percent as compared to the fourth quarter of 2019. Adjusted cruise costs excluding fuel per ALBD (in constant currency) increased 11 percent compared to the fourth quarter of 2019 and were in line with September guidance (see "Non-GAAP Financial Measures" below).
- Total customer deposits reached a fourth quarter record of
$6.4 billion $5.1 billion
Bookings
"We entered the year with the best booked position we have ever seen, and now have nearly two-thirds of our occupancy already on the books for 2024, at considerably higher prices (in constant currency). We continue to experience strong bookings momentum across the board, with our European brands showing remarkable strength during the quarter with booking volumes running up well into the double digits at considerably higher prices (in constant currency)," Weinstein noted.
Weinstein continued, "Our yield management strategy to base load bookings is clearly working as we pull forward booking volumes on strong pricing. We continue to build on that momentum with our ongoing advertising investments and lead generation efforts, increasing support from our trade partners, and the exceptional guest experiences our team members provide onboard every day, helping to deliver millions of cruising advocates."
Booking volumes during the fourth quarter continued at significantly elevated levels, above both prior year and 2019 comparable periods, while recent booking volumes for the two weeks around Black Friday and Cyber Monday reached an all-time high for that period. Pricing on bookings during the fourth quarter was considerably higher than prior year pricing (in constant currency).
The cumulative advanced booked position is at considerably higher prices (in constant currency) than 2023 levels, with each quarter of 2024 booked above the high end of the historical range.
2024 Outlook
For the full year 2024, the company expects:
- Adjusted EBITDA of approximately
$5.6 billion - Net yields (in constant currency) up approximately 8.5 percent compared to 2023, with full year occupancy returning to historical levels and nicely higher net per diems (in constant currency) reflecting continued strength in pricing and onboard spending
- Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 4.5 percent compared to 2023
For the first quarter of 2024, the company expects:
- Adjusted EBITDA of approximately
$0.8 billion - Net yields (in constant currency) up approximately 16.5 percent compared to the first quarter of 2023 with occupancy returning to historical levels as the company closes the remaining occupancy gap in the first half of the year
- Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 9.5 percent compared to the first quarter of 2023 primarily due to higher occupancy levels, the timing of advertising investments and dry-dock related expenses compared to the prior year
See "Guidance" and "Reconciliation of Forecasted Data" for additional information on the company's 2024 outlook.
Financing and Capital Activity
"During 2023, we made debt payments of
"And looking forward, we will continue to evaluate refinancing opportunities and opportunistically prepay additional debt. Furthermore, we expect durable revenue growth to drive increases in adjusted free cash flow in 2024 and beyond, which will be the primary driver for paying down our debt balances on our path back to investment grade," Bernstein added.
During 2023, the company generated cash from operations of
During the fourth quarter of 2023, the company reduced its debt by another
Sustainability
The company continues to work aggressively towards its greenhouse gases ("GHG") emission reduction goals and ambitions through innovative projects aligned with its four-part emission reduction strategy: fleet optimization; energy efficiency; itinerary efficiency; and new technologies & alternative fuels. In 2023, the company:
- Reduced its absolute GHG emissions by over 10 percent as compared to its peak year of 2011, despite capacity growth of 30 percent over the same period.
- Achieved a 15.5 percent reduction in fuel consumption per ALBD compared to 2019 and expects another four percent reduction in fuel consumption per ALBD for full year 2024 compared to 2023.
- Now expects to achieve its 2030 GHG emission intensity reduction goal four years early, targeting more than a 20 percent reduction in emission intensity by the end of 2026 compared to 2019.
- Surpassed its 2030 goal to achieve shore power capability for 60 percent of its fleet, seven years ahead of schedule; now, 64 percent of the company's fleet has the capability to connect to shore power.
- Successfully piloted the use of biofuels as a replacement for fossil fuel on one additional ship, bringing its cumulative completed biofuel pilots to three ships.
- Delivered 38 percent reduction in food waste per person relative to its 2019 baseline, nearing its interim goal to reduce food waste by 40 percent per person by 2025, and on pace toward its 2030 goal of a 50 percent reduction.
Other Recent Highlights
- Carnival Corporation's brands launched advertising campaigns with Costa Cruises focusing on moments where guests are left speechless, P&O Cruises (
UK ) highlighting the unique experiences of a cruise holiday, AIDA Cruises inviting guests to experience oneself, and Holland America Line continuing its "Time of Your Life" campaign. - Carnival Corporation was named one of the World's Top Female-Friendly Companies and one of the World's Best Employers of 2023 by Forbes, both for the third consecutive year.
- Carnival Cruise Line took delivery of Carnival Jubilee, offering an exciting mix of new entertainment, dining and fun to one of the line's most popular homeports,
Galveston, Texas . - Carnival Cruise Line announced hundreds of sailings to its new destination on Grand Bahama Island "Celebration Key" with 18 different ships departing from nine different homeports.
Guidance
(See "Reconciliation of Forecasted Data")
1Q 2024 | Full Year 2024 | |||||||
Year over year change | Current | Constant | Current | Constant | ||||
Net yields | Approx. | Approx. | Approx. | Approx. | ||||
Adjusted cruise costs excluding fuel per ALBD | Approx. | Approx. | Approx. | Approx. | ||||
2024 | ||||||||||
1Q | 2Q | 3Q | 4Q | Full Year | ||||||
ALBDs (in millions) (a) | 23.1 | 23.9 | 25.2 | 24.0 | 96.2 | |||||
(a) See "Notes to Statistical Information" |
1Q 2024 | Full Year 2024 | ||
Capacity growth compared to prior year | 4.6 % | 5.4 % | |
Fuel consumption in metric tons (in millions) | 0.7 | 3.0 | |
Fuel cost per metric ton consumed (excluding European Union Allowance ("EUA")) | $ 665 | $ 650 | |
EUA cost per metric ton of emissions | $ 75 | $ 75 | |
EUA expense (in millions) | $ 3 | $ 51 | |
Fuel expense (including EUA expense) (in billions) | $ 0.5 | $ 2.0 | |
Depreciation and amortization (in billions) | $ 0.6 | $ 2.6 | |
Interest expense, net of capitalized interest and interest income (in billions) | $ 0.45 | $ 1.74 | |
Adjusted EBITDA (in billions) | Approx. | Approx. | |
Adjusted net income (loss) (in billions) | Approx. | Approx. | |
Adjusted earnings per share - diluted (a) | Approx. | Approx. | |
Weighted-average shares outstanding - basic | 1,264 | 1,273 | |
Weighted-average shares outstanding - diluted | 1,264 | 1,398 |
(a) | Diluted adjusted earnings per share for the full year 2024 includes the add-back of dilutive interest expense related to the company's convertible notes of |
Currencies (USD to 1) | 1Q 2024 | Full Year 2024 |
AUD | $ 0.67 | $ 0.67 |
CAD | $ 0.75 | $ 0.75 |
EUR | $ 1.09 | $ 1.09 |
GBP | $ 1.27 | $ 1.27 |
Sensitivities (impact to adjusted net income (loss) in millions) | 1Q 2024 | Full Year 2024 |
$ 34 | $ 171 | |
$ 24 | $ 105 | |
$ 4 | $ 21 | |
$ 49 | $ 191 | |
100 basis point change in variable rate debt (including derivatives) | — | $ 62 |
Capital Expenditures
The company's annual capital expenditure forecast for 2024, is as follows:
(in billions) | 2024 | 2025 | 2026 | ||
Contracted newbuild | $ 2.4 | $ 1.0 | $ — | ||
Non-newbuild | 1.8 | 1.8 | 1.8 | ||
Total (a) | $ 4.2 | $ 2.8 | $ 1.8 |
(a) | Future capital expenditures will fluctuate with foreign currency movements relative to the |
Committed Ship Financings
(in billions) | 2024 | 2025 | |
Future export credit facilities at November 30, 2023 | $ 2.3 | $ 0.7 |
Outstanding Debt Maturities
As of November 30, 2023, the company's outstanding debt maturities are as follows:
(in billions) | 2024 | 2025 | 2026 | ||
First Lien | $ 0.0 | $ 0.9 | $ 0.0 | ||
Second Lien | 0.0 | — | — | ||
Export Credits | 1.2 | 1.2 | 1.2 | ||
Convertible Notes | 0.4 | — | — | ||
All other | 0.4 | 0.2 | 2.0 | ||
Total Principal payments on outstanding debt | $ 2.1 | $ 2.2 | $ 3.2 |
Refer to Financial Information within the Investor Relations section of the corporate website for further details on the company's Debt Maturities: https://www.carnivalcorp.com/financial-information/supplemental-schedules
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 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 (
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 net income (loss) |
• Booking levels | • Adjusted EBITDA |
• Occupancy | • Adjusted earnings per share |
• Interest, tax and fuel expenses | • Adjusted free cash flow |
• Currency exchange rates | • Net per diems |
• Goodwill, ship and trademark fair values | • Net yields |
• Liquidity and credit ratings | • Adjusted cruise costs per ALBD |
• Investment grade leverage metrics | • Adjusted cruise costs excluding fuel per ALBD |
• Estimates of ship depreciable lives and residual values | • 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. 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. These factors include, but are not limited to, the following:
- Events and conditions around the world, including geopolitical uncertainty, war and other military actions, inflation, higher fuel prices, higher interest rates and other general concerns impacting the ability or desire of people to travel have led, and may in the future lead, to a decline in demand for cruises as well as negative impacts to our operating costs and profitability.
- Pandemics have in the past and may in the future have a significant negative impact on our financial condition and operations.
- Incidents concerning our ships, guests or the cruise industry have in the past and may, in the future, 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 have in the past and may, in the future, 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 adversely affect our business.
- Inability to meet or achieve our targets, goals, aspirations, initiatives, and our public statements and disclosures regarding them, including those that are related to sustainability matters, may expose us to risks that may adversely impact our business.
- 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 may lead to 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 supply chain vendors who are integral to the operations of our businesses. These vendors 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.
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 | Twelve Months Ended | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Revenues | |||||||
Passenger ticket | $ 3,510 | $ 2,269 | $ 14,067 | $ 7,022 | |||
Onboard and other | 1,886 | 1,570 | 7,526 | 5,147 | |||
5,397 | 3,839 | 21,593 | 12,168 | ||||
Operating Expenses | |||||||
Commissions, transportation and other | 664 | 489 | 2,761 | 1,630 | |||
Onboard and other | 590 | 468 | 2,375 | 1,528 | |||
Payroll and related | 605 | 580 | 2,373 | 2,181 | |||
Fuel | 555 | 580 | 2,047 | 2,157 | |||
Food | 335 | 277 | 1,335 | 863 | |||
Ship and other impairments | — | 433 | — | 440 | |||
Other operating | 879 | 840 | 3,426 | 2,958 | |||
Cruise and tour operating expenses | 3,629 | 3,665 | 14,317 | 11,757 | |||
Selling and administrative | 788 | 741 | 2,950 | 2,515 | |||
Depreciation and amortization | 596 | 568 | 2,370 | 2,275 | |||
5,013 | 4,974 | 19,637 | 16,547 | ||||
Operating Income (Loss) | 384 | (1,135) | 1,956 | (4,379) | |||
Nonoperating Income (Expense) | |||||||
Interest income | 50 | 40 | 233 | 74 | |||
Interest expense, net of capitalized interest | (466) | (448) | (2,066) | (1,609) | |||
Debt extinguishment and modification costs | 1 | (1) | (111) | (1) | |||
Other income (expense), net | (8) | (57) | (75) | (165) | |||
(423) | (466) | (2,018) | (1,701) | ||||
Income (Loss) Before Income Taxes | (39) | (1,601) | (62) | (6,080) | |||
Income Tax Benefit (Expense), Net | (9) | 3 | (13) | (14) | |||
Net Income (Loss) | $ (48) | $ (1,598) | $ (74) | $ (6,093) | |||
Earnings Per Share | |||||||
Basic | $ (0.04) | $ (1.27) | $ (0.06) | $ (5.16) | |||
Diluted | $ (0.04) | $ (1.27) | $ (0.06) | $ (5.16) | |||
Weighted-Average Shares Outstanding - Basic | 1,263 | 1,259 | 1,262 | 1,180 | |||
Weighted-Average Shares Outstanding - Diluted | 1,263 | 1,259 | 1,262 | 1,180 | |||
CARNIVAL CORPORATION & PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions, except par values) | |||
November 30, | |||
2023 | 2022 | ||
ASSETS | |||
Current Assets | |||
Cash and cash equivalents | $ 2,415 | $ 4,029 | |
Restricted cash | 11 | 1,988 | |
Trade and other receivables, net | 556 | 395 | |
Inventories | 528 | 428 | |
Prepaid expenses and other | 1,757 | 652 | |
Total current assets | 5,266 | 7,492 | |
Property and Equipment, Net | 40,116 | 38,687 | |
Operating Lease Right-of-Use Assets, Net | 1,265 | 1,274 | |
Goodwill | 579 | 579 | |
Other Intangibles | 1,169 | 1,156 | |
Other Assets | 725 | 2,515 | |
$ 49,120 | $ 51,703 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current Liabilities | |||
Short-term borrowings | $ — | $ 200 | |
Current portion of long-term debt | 2,089 | 2,393 | |
Current portion of operating lease liabilities | 149 | 146 | |
Accounts payable | 1,168 | 1,050 | |
Accrued liabilities and other | 2,003 | 1,942 | |
Customer deposits | 6,072 | 4,874 | |
Total current liabilities | 11,481 | 10,605 | |
Long-Term Debt | 28,483 | 31,953 | |
Long-Term Operating Lease Liabilities | 1,170 | 1,189 | |
Other Long-Term Liabilities | 1,105 | 891 | |
Shareholders' Equity | |||
Carnival Corporation common stock, | 12 | 12 | |
Carnival plc ordinary shares, | 361 | 361 | |
Additional paid-in capital | 16,712 | 16,872 | |
Retained earnings | 185 | 269 | |
Accumulated other comprehensive income (loss) | (1,939) | (1,982) | |
Treasury stock, 130 shares at 2023 and 2022 of Carnival Corporation and 73 shares at 2023 and | (8,449) | (8,468) | |
Total shareholders' equity | 6,882 | 7,065 | |
$ 49,120 | $ 51,703 | ||
CARNIVAL CORPORATION & PLC OTHER INFORMATION | |||
November 30, | |||
OTHER BALANCE SHEET INFORMATION (in millions) | 2023 | 2022 | |
Liquidity (a) | $ 5,392 | $ 8,635 | |
Debt (current and long-term) | $ 30,572 | $ 34,546 | |
Customer deposits (current and long-term) | $ 6,353 | $ 5,089 | |
(a) | November 30, 2022 liquidity includes restricted cash from the 2028 Senior Priority Notes which became unrestricted in December 2022. |
Three Months Ended | Twelve Months Ended | ||||||
STATISTICAL INFORMATION | 2023 | 2022 | 2023 | 2022 | |||
Passenger cruise days ("PCDs") (in millions) (a) | 23.6 | 18.3 | 91.4 | 54.6 | |||
ALBDs (in millions) (b) | 23.2 | 21.5 | 91.3 | 72.5 | |||
Occupancy percentage (c) | 101 % | 85 % | 100 % | 75 % | |||
Passengers carried (in millions) | 3.1 | 2.5 | 12.5 | 7.7 | |||
Fuel consumption in metric tons (in millions) | 0.7 | 0.7 | 2.9 | 2.6 | |||
Fuel consumption in metric tons per thousand ALBDs | 31.5 | 33.4 | 32.1 | 36.1 | |||
Fuel cost per metric ton consumed | $ 759 | $ 812 | $ 701 | $ 830 | |||
Currencies (USD to 1) | |||||||
AUD | $ 0.64 | $ 0.66 | $ 0.66 | $ 0.70 | |||
CAD | $ 0.73 | $ 0.74 | $ 0.74 | $ 0.77 | |||
EUR | $ 1.07 | $ 1.00 | $ 1.08 | $ 1.06 | |||
GBP | $ 1.23 | $ 1.15 | $ 1.24 | $ 1.25 | |||
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 | |
CARNIVAL CORPORATION & PLC NON-GAAP FINANCIAL MEASURES | |||||||
Three Months Ended | Twelve Months Ended | ||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||
Net income (loss) | $ (48) | $ (1,598) | $ (74) | $ (6,093) | |||
(Gains) losses on ship sales and impairments | (34) | 431 | (88) | 433 | |||
Debt extinguishment and modification costs | (1) | 1 | 111 | 1 | |||
Restructuring expenses | 3 | 20 | 19 | 22 | |||
Other | (10) | 77 | 33 | 130 | |||
Adjusted net income (loss) | $ (90) | $ (1,068) | $ 1 | $ (5,508) | |||
Interest expense, net of capitalized interest | 466 | 448 | 2,066 | 1,609 | |||
Interest income | (50) | (40) | (233) | (74) | |||
Income tax benefit (expense), net | 24 | (3) | 28 | 14 | |||
Depreciation and amortization | 596 | 568 | 2,370 | 2,275 | |||
Adjusted EBITDA | $ 946 | $ (96) | $ 4,231 | $ (1,684) | |||
Three Months Ended | Twelve Months Ended | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Earnings per share - diluted (a) | $ (0.04) | $ (1.27) | $ (0.06) | $ (5.16) | |||
(Gains) losses on ship sales and impairments | (0.03) | 0.34 | (0.07) | 0.37 | |||
Debt extinguishment and modification costs | — | — | 0.09 | — | |||
Restructuring expenses | — | 0.02 | 0.01 | 0.02 | |||
Other | (0.01) | 0.06 | 0.03 | 0.11 | |||
Adjusted earnings per share - diluted (a) | $ (0.07) | $ (0.85) | $ 0.00 | $ (4.67) | |||
Weighted-average shares outstanding - diluted (in millions) | 1,263 | 1,259 | 1,262 | 1,180 | |||
(a) | For the fourth quarter and full year 2023, the company's convertible notes are antidilutive and therefore are not included in diluted weighted-average shares outstanding. |
Three Months Ended | Twelve Months Ended | ||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||
Cash from (used in) operations | $ 915 | $ (117) | $ 4,273 | $ (1,670) | |||
Capital expenditures (Purchases of Property and Equipment) | (675) | (1,181) | (3,284) | (4,940) | |||
Proceeds from export credits | — | 799 | 1,157 | 3,142 | |||
Adjusted free cash flow | $ 240 | $ (499) | $ 2,146 | $ (3,468) | |||
(See Non-GAAP Financial Measures) |
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Data in the below table is compared against 2019 as it is the most recent year of full operations due to the pause and resumption of guest cruise operations.
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 | Twelve Months Ended November | ||||||||||
(in millions, except per diems and yields data) | 2023 | 2023 Constant Currency | 2019 | 2023 | 2023 Constant Currency | 2019 | |||||
Total revenues | $ 5,397 | $ 4,781 | $ 20,825 | ||||||||
Less: Cruise and tour operating expenses | (3,629) | (3,077) | (14,317) | (12,909) | |||||||
Depreciation and amortization | (596) | (554) | (2,370) | (2,160) | |||||||
Gross margin | 1,172 | 1,151 | 4,906 | 5,755 | |||||||
Less: Tour and other revenues | (50) | (91) | (265) | (390) | |||||||
Add: Payroll and related | 605 | 578 | 2,373 | 2,249 | |||||||
Fuel | 555 | 358 | 2,047 | 1,562 | |||||||
Food | 335 | 262 | 1,335 | 1,083 | |||||||
Ship and other impairments | — | — | — | — | |||||||
Other operating | 879 | 802 | 3,426 | 3,193 | |||||||
Depreciation and amortization | 596 | 554 | 2,370 | 2,160 | |||||||
Adjusted gross margin | $ 4,093 | $ 4,162 | $ 3,614 | $ 16,449 | $ 15,613 | ||||||
PCDs | 23.6 | 23.6 | 22.6 | 91.4 | 91.4 | 93.4 | |||||
Gross margin per diems (per PCD) | $ 49.72 | $ 50.89 | $ 53.67 | $ 61.62 | |||||||
Net per diems (per PCD) | $ 176.52 | $ 159.79 | $ 179.94 | $ 167.17 | |||||||
ALBDs | 23.2 | 23.2 | 21.8 | 91.3 | 91.3 | 87.4 | |||||
Gross margin yields (per ALBD) | $ 50.47 | $ 52.92 | $ 53.73 | $ 65.83 | |||||||
Net yields (per ALBD) | $ 179.16 | $ 166.16 | $ 180.15 | $ 178.59 | |||||||
(See Non-GAAP Financial Measures) | |||||||||||
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Data in the below table is compared against 2019 as it is the most recent year of full operations due to the pause and resumption of guest cruise operations.
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 | Twelve Months Ended November | |||||||||||
(in millions, except costs per ALBD data) | 2023 | 2023 Constant | 2019 | 2023 | 2023 Constant | 2019 | ||||||
Cruise and tour operating expenses | $ 3,629 | $ 3,077 | $ 12,909 | |||||||||
Selling and administrative expenses | 788 | 667 | 2,950 | 2,480 | ||||||||
Less: Tour and other expenses | (42) | (76) | (231) | (296) | ||||||||
Cruise costs | 4,375 | 3,667 | 17,035 | 15,093 | ||||||||
Less: Commissions, transportation and other | (664) | (595) | (2,761) | (2,720) | ||||||||
Onboard and other costs | (590) | (481) | (2,375) | (2,101) | ||||||||
Gains (losses) on ship sales and | 34 | 5 | 88 | 16 | ||||||||
Restructuring expenses | (3) | (10) | (19) | (10) | ||||||||
Other | — | — | — | (43) | ||||||||
Adjusted cruise costs | 3,153 | 3,196 | 2,586 | 11,969 | 12,130 | 10,234 | ||||||
Less: Fuel | (555) | (555) | (358) | (2,047) | (2,047) | (1,562) | ||||||
Adjusted cruise costs excluding fuel | $ 2,597 | $ 2,641 | $ 2,228 | $ 9,922 | $ 8,672 | |||||||
ALBDs | 23.2 | 23.2 | 21.8 | 91.3 | 91.3 | 87.4 | ||||||
Cruise costs per ALBD | $ 168.58 | |||||||||||
% increase (decrease) vs 2019 | 12 % | 8.1 % | ||||||||||
Adjusted cruise costs per ALBD | $ 118.89 | |||||||||||
% increase (decrease) vs 2019 | 14 % | 16 % | 12 % | 13 % | ||||||||
Adjusted cruise costs excluding fuel per | $ 102.44 | $ 99.20 | ||||||||||
% increase (decrease) vs 2019 | 9.1 % | 11 % | 9.5 % | 11 % | ||||||||
(See Non-GAAP Financial Measures) | ||||||||||||
Non-GAAP Financial Measures
We use non-GAAP financial measures and they are provided along with their most comparative
Non-GAAP Measure | Use Non-GAAP Measure to Assess | |||
• Adjusted net income (loss) and adjusted EBITDA | • Net income (loss) | • Company Performance | ||
• Adjusted earnings per share | • Earnings per share | • Company Performance | ||
• Adjusted free cash flow | • Cash from (used in) operations | • Impact on Liquidity Level | ||
• Net per diems | • Gross margin per diems | • Cruise Segments Performance | ||
• Net yields | • Gross margin yields | • Cruise Segments Performance | ||
• Adjusted cruise costs per ALBD and | • Gross cruise costs per ALBD | • Cruise Segments Performance | ||
• Adjusted return on invested capital ("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
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 provides additional information to us and investors about our core operating profitability 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
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 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
Constant Currency
Our operations primarily utilize the
and financial condition. Functional currencies other than the
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 per diems, adjusted cruise costs excluding fuel and adjusted cruise costs excluding fuel per ALBD on a "constant currency" basis assuming the 2023 periods' currency exchange rates have remained constant with the 2019 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 ourU.S. dollar reporting currency results in decreases in reportedU.S. dollar revenues and expenses if theU.S. dollar strengthens against these foreign currencies and increases in reportedU.S. dollar revenues and expenses if theU.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.
View original content:https://www.prnewswire.com/news-releases/carnival-corporation--plc-reports-record-fourth-quarter-and-full-year-revenues-with-continued-strong-bookings-and-earnings-momentum-302020638.html
SOURCE Carnival Corporation & plc
FAQ
What are the ticker symbols for Carnival Corporation & plc?
What were the company's full year 2023 revenues?
What was the company's net loss for the full year 2023?
What is the outlook for adjusted EBITDA in 2024?
What is the company's strategy for emission reduction?
