To Whom It May Concern:
We received this information from Carnival Corporation & Plc and thought it
would be of interest to this newsgroup as well.
Happy sailing,
John Sisker, SHIP-TO-SHORE CRUISE AGENCY
(714) 536-3850 or toll free at (800) 724-6644 & (Agency No. 714.536.3850)
www.shiptoshorecruise.com
Carnival Corporation & Plc Reports Fourth Quarter Results and Record Full
Year Earnings
Carnival Corporation & plc today reports fourth quarter results and record
full year earnings for the period ended November 30, 2007. The earnings of
Carnival Corporation and Carnival plc have been consolidated, and this
statement includes consolidated results on a U.S. GAAP basis.
Q4 and Full Year Highlights -- Q4 revenues increased by $315m or 11.2% to
$3.1bn versus $2.8bn in the prior year, driven by a 7.5% increase in cruise
capacity and higher cruise revenue yields -- Q4 net revenue yields increased
4.9% compared to the prior year (up 1.1% on a constant dollar basis) -- Q4
net income (profit after tax) decreased by $58m or 13.9% to $358m (Q4 2006:
net income of $416m) due to significantly higher fuel costs -- Q4 earnings
per share (diluted) decreased by $0.07 to $0.44 (Q4 2006: earnings per share
(diluted) of $0.51) -- Full year earnings per share (diluted) increased by
$0.18 to a record $2.95 (2006: earnings per share (diluted) of $2.77) 2008
Outlook -- Net revenue yields for 2008 are expected to increase 4.5 to 5.5%
(up 3 to 4% on a constant dollar basis), compared to last year -- Net cruise
costs per available lower berth day for 2008 are expected to increase 5.5 to
6.5% (up 4 to 5 % on a constant dollar basis), compared to 2007 -- Net
cruise costs excluding fuel for 2008 are expected to be flat to down
slightly on a constant dollar basis -- Based on the forward curve, higher
fuel prices are expected to reduce 2008 earnings by $0.50 per share --
Despite significant increases in fuel prices, 2008 earnings per share
(diluted) expected to be in the range of $3.10 to $3.30, compared to $2.95
in 2007 -- Q1 earnings per share (diluted) expected to be in the range of
$0.29 to $0.31 versus $0.35 in Q1 2007
Chairman and Chief Executive Officer Micky Arison commenting on these
results:
"Our brands enjoyed strong yield growth in our fourth quarter as the
continued recovery of Caribbean business led to higher yields for our North
American brands while our European brands were bolstered by the stronger
Euro and Sterling. However, continually rising fuel costs and the expected
higher dry-dock costs held back our fourth quarter performance," Arison
said.
Commenting on the full year results Arison noted, "Our European brands
enjoyed another record year absorbing substantial new capacity and driving
significant improvement in unit operating profit. Although operating
performance for our North American brands was hampered by pricing pressure
in the Caribbean early in the year, demand for Caribbean cruises
strengthened considerably as the year progressed and we expect this trend to
continue into 2008. Despite the continuing increases in fuel costs
throughout the year, we still managed a six percent improvement in earnings
over 2006."
Commenting on 2008 Arison noted, "Net revenue yields for our North American
brands are seeing continued improvement based primarily on stronger pricing
in the Caribbean. Our European brands are also performing well absorbing
significant new capacity and continuing to benefit from the strong Euro and
Sterling."
"While our North American brands will grow capacity at a moderate rate of
three percent, our European brands will increase capacity by 22 percent next
year, including the full year operation of our new Spanish cruise line,
Ibero Cruises. As we grow our European brands, we will be able to achieve
economies of scale which will have a favorable impact on our unit costs and
profitability," he added.
Carnival Corporation & Plc Reports Fourth Quarter Results and Record Full
Year Earnings
MIAMI, Dec. 20 -- Carnival Corporation & plc reported net income for its
fourth quarter ended November 30, 2007 of $358 million, or $0 .44 diluted
EPS, compared to net income of $416 million, or $0.51 diluted EPS, for the
fourth quarter 2006. Revenues for the fourth quarter 2007 increased to $3.1
billion from $2.8 billion for the fourth quarter 2006.
The company reported record net income for the full year ended November 30,
2007 of $2.4 billion, or $2.95 diluted EPS, compared to net income of $2.3
billion, or $2.77 diluted EPS, for the prior year. Revenues for the full
year 2007 increased to $13.0 billion from $11.8 billion for the prior year.
Carnival Corporation & plc Chairman and CEO Micky Arison said that fourth
quarter results came in at the high end of the company's guidance as
stronger pricing on close-in bookings was partially offset by higher than
expected fuel costs.
"Our brands enjoyed strong yield growth in our fourth quarter as the
continued recovery of Caribbean business led to higher yields for our North
American brands while our European brands were bolstered by the stronger
Euro and Sterling. However, continually rising fuel costs and the expected
higher dry-dock costs held back our fourth quarter performance," Arison
said.
Commenting on the full year results Arison noted, "Our European brands
enjoyed another record year absorbing substantial new capacity and driving
significant improvement in unit operating profit. Although operating
performance for our North American brands was hampered by pricing pressure
in the Caribbean early in the year, demand for Caribbean cruises
strengthened considerably as the year progressed and we expect this trend to
continue into 2008. Despite the continuing increases in fuel costs
throughout the year, we still managed a six percent improvement in earnings
over 2006."
Key metrics for the fourth quarter of 2007 were as follows: -- Net revenue
yields (net revenue per available lower berth day) for Q4 2007 increased 4.9
percent (1.1 percent on a constant dollar basis) compared to the prior year.
Gross revenue yields increased 4.4 percent compared to the prior year. --
Excluding fuel, net cruise cost per available lower berth day ("ALBD") for
Q4 2007 increased 4.2 percent on a constant dollar basis compared to the
prior year primarily due to the timing of dry-dock expenses and certain
other expenses. -- Including fuel, net cruise costs per ALBD increased 12.4
percent (up 8.4 percent on a constant dollar basis) compared to the prior
year. Gross cruise costs per ALBD increased 9.7 percent compared to the
prior year. -- Fuel price increased 37 percent to $433 per metric ton for Q4
2007 compared to $315 per metric ton in the prior year, and was $9 million
higher than the company's previous guidance of $421 per metric ton. New
Initiatives
During the fourth quarter, the company took delivery of one new ship, the
90,000-ton Queen Victoria marking the first time ever that Cunard has had
three Queens in service. Last week, Cunard held a spectacular naming
ceremony in Southampton, England to welcome Queen Victoria before setting
off on her maiden voyage to Northern Europe. All three Queens will unite for
the first and only time in a historic event to take place in New York Harbor
on January 13, 2008.
Since the fourth quarter began, the company has ordered six new ships, five
for its European brands and one for its North American brands. The company
placed orders for two 114,200-ton cruise ships for Costa Cruises to be
delivered in 2011 and 2012, and two 71,000-ton cruise ships for its AIDA
Cruises brand scheduled to enter service in 2011 and 2012. The company
announced the construction of Queen Elizabeth, a 92,000-ton vessel for its
Cunard brand to enter service in 2010. It also exercised the option for a
32,000-ton ship for The Yachts of Seabourn to enter service in 2011.
The company also recently announced a significant increase in its presence
in Asia. Encouraged by recent favorable trends, Costa will redeploy a second
larger vessel to Asia beginning March 2009, more than doubling its capacity
in the region.
2008 Outlook
Capacity for 2008 will increase by nine percent, primarily driven by five
new ship deliveries to five of the company's brands during the year.
Advance bookings for the first half of 2008 are well ahead of last year in
terms of both occupancy and pricing, on a cumulative basis. Advance bookings
for the second half of 2008 are also shaping up in a similar fashion to the
first half of the year, although it is still early in the booking process.
"Net revenue yields for our North American brands are seeing continued
improvement based primarily on stronger pricing in the Caribbean. Our
European brands are also performing well absorbing significant new capacity
and continuing to benefit from the strong Euro and Sterling," Arison noted.
"While our North American brands will grow capacity at a moderate rate of
three percent, our European brands will increase capacity by 22 percent next
year, including the full year operation of our new Spanish cruise line,
Ibero Cruises. As we grow our European brands, we will be able to achieve
economies of scale which will have a favorable impact on our unit costs and
profitability," he added.
For the full year 2008, the company expects a 4.5 to 5.5 percent improvement
in net revenue yields assuming current Euro and Sterling exchange rates. On
a constant dollar basis, net revenue yields are expected to increase 3 to 4
percent. Net cruise costs excluding fuel for the full year 2008 are expected
to be flat to down slightly on a constant dollar basis. However, based on
the forward curve higher fuel prices for full year 2008 are forecasted to
increase fuel expense by $409 million compared to 2007 which will reduce
earnings by $0.50 per share. Despite the significant increase in fuel prices
the company expects full year 2008 earnings per share to be in the range of
$3.10 to $3.30 versus the $2.95 recorded in full year 2007.
First Quarter 2008
For the first quarter of 2008, net revenue yields are expected to increase
6.5 to 7.5 percent (4 to 5 percent on a constant dollar basis) driven by the
improvement in Caribbean pricing and the company's high seasonal exposure to
Caribbean deployment. Net cruise costs excluding fuel for the first quarter
2008 are expected to increase approximately 2 percent on a constant dollar
basis due to the timing of dry-dock and other expenses. Based on the forward
curve, higher fuel prices for the first quarter 2008 are expected to
increase fuel expense by $146 million compared to 2007 which will reduce
earnings by $0.18 per share. As a result, the company expects earnings for
the first quarter of 2008 to be in the range of $0.29 to $0.31 per share,
down from $0.35 per share in 2007.
Selected Key Forecast Metrics: ------------------------------ Full Year 2008
First Quarter 2008 Current Constant Current Constant Dollars Dollars Dollars
Dollars Change in: Net revenue yields 4.5 to 5.5% 3.0 to 4.0% 6.5 to 7.5%
4.0 to 5.0% Net cruise cost per ALBD 5.5 to 6.5% 4.0 to 5.0% 12.5 to 13.5%
10.0 to 11.0% Full Year 2008 First Quarter 2008 Fuel price per metric ton
$486 $484 Fuel consumption (metric tons in thousands) 3,270 798 Currency
Euro $1.44 to 1 euro $1.44 to 1 euro Sterling $2.02 to 1 pound $2.02 to 1
pound
The company has scheduled a conference call with analysts at 10:00 a.m. EST
(15.00 London time) today to discuss its 2007 fourth quarter and full year
earnings. This call can be listened to live, and additional information can
be obtained, via Carnival Corporation & plc's Web site at
www.carnivalcorp.com and www.carnivalplc.com.
Carnival Corporation & plc is the largest cruise vacation group in the
world, with a portfolio of cruise brands in North America, Europe and
Australia, comprised of Carnival Cruise Lines, Holland America Line,
Princess Cruises, The Yachts of Seabourn, AIDA Cruises, Costa Cruises,
Cunard Line, Ibero Cruises, Ocean Village, P&O Cruises and P&O Cruises
Australia.
Together, these brands operate 85 ships totaling more than 158,000 lower
berths with 22 new ships scheduled to enter service between April 2008 and
May 2012. Carnival Corporation & plc also operates Holland America Tours and
Princess Tours, the leading tour companies in Alaska and the Canadian Yukon.
Traded on both the New York and London Stock Exchanges, Carnival Corporation
& plc is the only group in the world to be included in both the S&P 500 and
the FTSE 100 indices.
Cautionary note concerning factors that may affect future results Some of
the statements contained in this earnings release are "forward-looking
statements" that involve risks, uncertainties and assumptions with respect
to Carnival Corporation & plc, including some statements concerning future
results, outlook, plans, goals and other events which have not yet occurred.
These statements are intended to qualify for the safe harbors from liability
provided by Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. We have tried, whenever possible, to
identify these statements by using words like "will," "may," "believe,"
"expect," "anticipate," "forecast," "future," "intend," "plan," and
"estimate" and similar expressions. Because forward-looking statements
involve risks and uncertainties, there are many factors that could cause
Carnival Corporation & plc's actual results, performance or achievements to
differ materially from those expressed or implied in this earnings release.
Forward-looking statements include those statements which may impact the
forecasting of earnings per share, net revenue yields, booking levels,
pricing, occupancy, operating, financing and/or tax costs, fuel costs, costs
per available lower berth day, estimates of ship depreciable lives and
residual values, outlook or business prospects. These factors include, but
are not limited to, the following: general economic and business conditions
that may adversely impact the levels of Carnival Corporation & plc's
potential vacationers' discretionary income and this group's confidence in
the U.S. and other economies and, consequently reduce Carnival Corporation &
plc's cruise brands' net revenue yields; the international political
climate, armed conflicts, terrorist attacks and threats thereof,
availability and pricing of air service and other world events, and their
impact on the demand for cruises; conditions in the cruise and land-based
vacation industries, including competition from other cruise ship operators
and providers of other vacation alternatives and over capacity offered by
cruise ship and land-based vacation alternatives; accidents, adverse weather
conditions or natural disasters, such as hurricanes and earthquakes and
other incidents (including machinery and equipment failures or improper
operation thereof) which could cause the alteration of itineraries or
cancellation of a cruise or series of cruises, and the impact of the spread
of contagious diseases, affecting the health, safety, security and/or
vacation satisfaction of passengers; adverse publicity concerning the cruise
industry in general, or Carnival Corporation & plc in particular, could
impact the demand for Carnival Corporation & plc's cruises; lack of
acceptance of new itineraries, products and services by Carnival Corporation
& plc's guests; changing consumer preferences, which may, among other
things, adversely impact the demand for cruises; the impact of changes in
and compliance with laws and regulations relating to environmental, health,
safety, security, tax and other regulatory regimes under which Carnival
Corporation & plc operate, including the implementation of U.S. regulations
requiring U.S. citizens to obtain passports for sea travel to or from
additional foreign destinations; the impact of changes in operating and
financing costs, including changes in foreign currency exchange rates and
interest rates and fuel, food, insurance, payroll and security costs; the
ability of Carnival Corporation & plc to implement its shipbuilding
programs, including purchasing ships for our North American cruise brands
from European shipyards on terms that are favorable or consistent with
Carnival Corporation & plc's expectations; Carnival Corporation & plc's
ability to implement its brand strategies and to continue to operate and
expand its business internationally; Carnival Corporation & plc's future
operating cash flow may not be sufficient to fund future obligations and
Carnival Corporation & plc may not be able to obtain financing, if
necessary, on terms that are favorable or consistent with its expectations;
Carnival Corporation & plc's ability to attract and retain qualified
shipboard crew and maintain good relations with employee unions; continuing
financial viability of Carnival Corporation & plc's travel agent
distribution system and air service providers; the impact of Carnival
Corporation & plc self-insuring against various risks and its inability to
obtain insurance for certain risks at reasonable rates; disruptions and
other impairments to Carnival Corporation & plc's information technology
networks; lack of continued availability of attractive port destinations;
risks associated with the DLC structure, including the uncertainty of its
tax status; the impact of pending or threatened litigation; and Carnival
Corporation & plc's ability to successfully implement cost reduction plans.
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 listing rules, Carnival Corporation & plc expressly disclaim
any obligation to disseminate, after the date of this release, any updates
or revisions to any such forward-looking statements to reflect any change in
expectations or events, conditions or circumstances on which any such
statements are based.
CARNIVAL CORPORATION & PLC CONSOLIDATED STATEMENTS OF OPERATIONS Three
Months Ended, Twelve Months Ended, November 30, November
30, ------------------- -------------------- 2007 2006 2007
2006 ------ ------ ------ ------ (in millions, except per share data)
Revenues Cruise Passenger tickets $2,355 $2,079 $9,792 $8,903 Onboard and
other 726 666 2,846 2,514 Other 43 64 395 422 ------ ------ ------ ------
3,124 2,809 13,033 11,839 ------ ------ ------ ------ Costs and Expenses
Operating Cruise Commissions, transportation and other 448 398 1,941 1,749
Onboard and other 129 127 495 453 Payroll and related 360 304 1,336 (1)
1,158 Fuel 334 228 1,096 935 Food 191 165 747 644 Other ship operating 488
403 1,717 1,538 Other 35 55 296 314 ------ ------ ------ ------ Total 1,985
1,680 7,628 6,791 Selling and administrative 426 392 1,579 1,447
Depreciation and amortization 290 261 1,101 988 ------ ------ ------ ------
2,701 2,333 10,308 9,226 ------ ------ ------ ------ Operating Income 423
476 2,725 2,613 ------ ------ ------ ------ Nonoperating (Expense) Income
Interest income 20 8 67 25 Interest expense, net of capitalized interest
(94) (80) (367) (312) Other (expense) income, net (1) 9 (1)
(8) ------ ------ ------ ------ (75) (63) (301)
(295) ------ ------ ------ ------ Income Before Income Taxes 348 413 2,424
2,318 Income Tax Benefit (Expense), Net 10 3 (16)
(39) ------ ------ ------ ------ Net Income $358 $416 $2,408 $2,279 ======
====== ====== ====== Earnings Per Share Basic $0.45 $0.53 $3.04 $2.85 ======
====== ====== ====== Diluted $0.44 $0.51 $2.95 $2.77 ====== ====== ======
====== Dividends Per Share $0.40 $0.275 $1.375 $1.025 ====== ====== ======
====== Weighted-Average Shares Outstanding - Basic 790 793 793 801 ======
====== ====== ====== Weighted-Average Shares Outstanding - Diluted 825 828
828 836 ====== ====== ====== ====== (1) Includes a $20 million expense
related to the British Merchant Navy Officers Pension Fund contribution.
CARNIVAL CORPORATION & PLC CONSOLIDATED BALANCE SHEETS November
30, ----------------------- 2007 2006 -------- -------- (in millions, except
par values) ASSETS Current Assets Cash and cash equivalents $943 $1,163
Trade and other receivables, net 436 280 Inventories 331 263 Prepaid
expenses and other 266 289 -------- -------- Total current assets 1,976
1,995 -------- -------- Property and Equipment, Net 26,639 23,458 Goodwill
3,610 3,313 Trademarks 1,393 1,321 Other Assets 563 465 -------- --------
$34,181 $30,552 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities Short-term borrowings $115 $438 Current portion of
long-term debt 1,028 1,054 Convertible debt subject to current put options
1,396 Accounts payable 561 438 Accrued liabilities and other 1,353 1,149
Customer deposits 2,807 2,336 -------- -------- Total current liabilities
7,260 5,415 ------- ------- Long-Term Debt 6,313 6,355 Other Long-Term
Liabilities and Deferred Income 645 572 Shareholders' Equity Common stock of
Carnival Corporation; $0.01 par value; 1,960 shares authorized; 643 shares
at 2007 and 641 shares at 2006 issued 6 6 Ordinary shares of Carnival plc;
$1.66 par value; 226 shares authorized; 213 shares at 2007 and 2006 issued
354 354 Additional paid-in capital 7,599 7,479 Retained earnings 12,921
11,600 Accumulated other comprehensive income 1,296 661 Treasury stock; 19
shares at 2007 and 18 shares at 2006 of Carnival Corporation and 50 shares
at 2007 and 42 shares at 2006 of Carnival plc, at cost (2,213)
(1,890) -------- -------- Total shareholders' equity 19,963
18,210 -------- -------- $34,181 $30,552 ======== ======== CARNIVAL
CORPORATION & PLC SELECTED INFORMATION Three Months Ended, Twelve Months
Ended, November 30, November 30, ------------------- --------------------
2007 2006 2007 2006 ------ ------ ------ ------ (in millions, except
statistical information) STATISTICAL INFORMATION Passengers carried (in
thousands) 1,888 1,748 7,672 7,008 (1) Occupancy percentage 103.2% 103.4%
105.6% 106.0% (2) Fuel cost per metric ton (3) $433 $315 $361 $334 CASH FLOW
INFORMATION Cash from operations $857 $805 $4,069 $3,633 Capital
expenditures $936 $298 $3,312 $2,480 Dividends paid $277 $198 $ 990 $803
SEGMENT INFORMATION Revenues Cruise $3,081 $2,745 $12,638 $11,417 Other 85
83 553 533 Intersegment elimination (42) (19) (158)
(111) ------ ------ ------ ------ $3,124 $2,809 $13,033 $11,839 ======
====== ====== ====== Operating expenses Cruise $1,950 $1,625 $7,332 $6,477
Other 77 74 454 425 Intersegment elimination (42) (19) (158)
(111) ------ ------ ------ ------ $1,985 $1,680 $7,628 $6,791 ====== ======
====== ====== Selling and administrative expenses Cruise $418 $383 $1,547
$1,405 Other 8 9 32 42 ------ ------ ------ ------ $426 $392 $1,579 $1,447
====== ====== ====== ====== Depreciation and amortization Cruise $280 $252
$1,065 $954 Other 10 9 36 34 ------ ------ ------ ------ $290 $261 $1,101
$988 ====== ====== ====== ====== Operating income (loss) Cruise $433 $485
$2,694 $2,581 Other (10) (9) 31 32 ------ ------ ------ ------ $423 $476
$2,725 $2,613 ====== ====== ====== ====== (1) Passengers carried in first
quarter of 2006 does not include any passengers for the three ships
chartered to the Military Sealift Command in connection with the Hurricane
Katrina relief efforts. (2) Occupancy percentage in first quarter of 2006
includes the three ships chartered to the Military Sealift Command at 100%
occupancy. (3) Fuel cost per metric ton is calculated by dividing the cost
of our fuel by the number of metric tons consumed. CARNIVAL CORPORATION &
PLC NON-GAAP FINANCIAL MEASURES
Gross and net revenue yields were computed by dividing the gross or net
revenues, without rounding, by ALBDs as follows:
Three Months Ended, Twelve Months Ended, November 30, November
30, ------------------- -------------------- 2007 2006 2007
2006 ------ ------ ------ ------ (in millions, except ALBDs and yields)
Cruise revenues Passenger tickets $2,355 $2,079 $9,792 $8,903 Onboard and
other 726 666 2,846 2,514 ---------- ---------- ---------- ---------- Gross
cruise revenues 3,081 2,745 12,638 11,417 Less cruise costs Commissions,
transportation and other (448) (398) (1,941) (1,749) Onboard and other (129)
(127) (495) (453) ---------- ---------- ---------- ---------- Net cruise
revenues (1) $2,504 $2,220 $10,202 $9,215 ========== ========== ==========
========== ALBDs (2) 13,794,846 12,828,609 54,132,927 49,945,184 ==========
========== ========== ========== Gross revenue yields (1) $223.42 $213.96
$233.47 $228.58 ========== ========== ========== ========== Net revenue
yields (1) $181.61 $173.09 $188.48 $184.50 ========== ========== ==========
==========
Gross and net cruise costs per ALBD were computed by dividing the gross or
net cruise costs, without rounding, by ALBDs as follows:
Three Months Ended, Twelve Months Ended, November 30, November
30, ------------------- -------------------- 2007 2006 2007
2006 ------ ------ ------ ------ (in millions, except ALBDs and costs per
ALBD) Cruise operating expenses $1,950 $1,625 $7,332 $6,477 Cruise selling
and administrative expenses 418 383 1,547
1,405 ---------- ---------- ---------- ---------- Gross cruise costs 2,368
2,008 8,879 7,882 Less cruise costs included in net cruise revenues
Commissions, transportation and other (448) (398) (1,941) (1,749) Onboard
and other (129) (127) (495)
(453) ---------- ---------- ---------- ---------- Net cruise costs (1)
$1,791 $1,483 $6,443 $5,680 ========== ========== ========== ==========
ALBDs (2) 13,794,846 12,828,609 54,132,927 49,945,184 ========== ==========
========== ========== Gross cruise costs per ALBD (1) $171.69 $156.44
$164.02 $157.81 ========== ========== ========== ========== Net cruise costs
per ALBD (1) $129.88 $115.57 $119.03 $113.73 ========== ==========
========== ==========
NOTES TO NON-GAAP FINANCIAL MEASURES (1) We use net cruise revenues per ALBD
("net revenue yields") and net cruise costs per ALBD as significant non-GAAP
financial measures of our cruise segment financial performance. We believe
that net revenue yields are commonly used in the cruise industry to measure
a company's cruise segment revenue performance. This measure is also used
for revenue management purposes. In calculating net revenue yields, we use
"net cruise revenues" rather than "gross cruise revenues." We believe that
net cruise revenues is a more meaningful measure in determining revenue
yield than gross cruise revenues because it reflects the cruise revenues
earned by us net of our most significant variable costs, which are travel
agent commissions, cost of air transportation and certain other variable
direct costs associated with onboard and other revenues. Substantially all
of our remaining cruise costs are largely fixed once our ship capacity
levels have been determined, except for the impact of changing prices. Net
cruise costs per ALBD is the most significant measure we use to monitor our
ability to control our cruise segment costs rather than gross cruise costs
per ALBD. In calculating net cruise costs, we exclude the same variable
costs that are included in the calculation of net cruise revenues. This is
done to avoid duplicating these variable costs in these two non-GAAP
financial measures. We have not provided estimates of future gross revenue
yields or future gross cruise costs per ALBD because the reconciliations of
forecasted net cruise revenues to forecasted gross cruise revenues or
forecasted net cruise costs to forecasted cruise operating expenses would
require us to forecast, with reasonable accuracy, the amount of air and
other transportation costs that our forecasted cruise passengers would elect
to purchase from us (the "air/sea mix"). Since the forecasting of future
air/sea mix involves several significant variables that are relatively
difficult to forecast and the revenues from the sale of air and other
transportation approximate the costs of providing that transportation,
management focuses primarily on forecasts of net cruise revenues and costs
rather than gross cruise revenues and costs. This does not impact, in any
material respect, our ability to forecast our future results, as any
variation in the air/sea mix has no material impact on our forecasted net
cruise revenues or forecasted net cruise costs. As such, management does not
believe that this reconciling information would be meaningful. In addition,
because a significant portion of Carnival Corporation & plc's operations
utilize the Euro or Sterling to measure their results and financial
condition, the translation of those operations to our U.S. dollar reporting
currency results in increases in reported U.S. dollar revenues and expenses
if the U.S. dollar weakens against these foreign currencies, and decreases
in reported U.S. dollar revenues and expenses if the U.S. dollar strengthens
against these foreign currencies. Accordingly, we also monitor these two
non-GAAP financial measures assuming the current period currency exchange
rates have remained constant with the prior year's comparable period rates,
or on a "constant dollar basis," in order to remove the impact of changes in
exchange rates on our non-U.S. dollar cruise operations. We believe that
this is a useful measure indicating the actual growth of our operations in a
fluctuating currency exchange rate environment. On a constant dollar basis,
net cruise revenues and net cruise costs would be $2.41 billion and $1.73
billion for the three months ended November 30, 2007 and $9.92 billion and
$6.26 billion for the twelve months ended November 30, 2007, respectively.
On a constant dollar basis, gross cruise revenues and gross cruise costs
would be $2.97 billion and $2.28 billion for the three months ended November
30, 2007 and $12.27 billion and $8.62 billion for the twelve months ended
November 30, 2007, respectively. In addition, our non-U.S. dollar cruise
operations' depreciation and net interest expense were impacted by the
changes in exchange rates for the three and twelve months ended November 30,
2007, compared to the prior year's comparable periods. (2) Available lower
berth days ("ALBDs") is a standard measure of passenger capacity for the
period. It assumes that each cabin we offer for sale accommodates two
passengers. ALBDs are computed by multiplying passenger capacity by
revenue-producing ship operating days in the period.
SOURCE Carnival Plc
-0- 12/20/2007
/CONTACT: Media, US, Tim Gallagher of Carnival Corporation & plc,
+001-305-599-2600, ext. 16000; or UK, Sophie Fitton or Sophie Brand, both of
Brunswick Group, 44 (0) 20 7404 5959; or Investor Relations, US and UK, Beth
Roberts of Carnival Corporation & plc, +001-305-406-4832/
/Web site: http://www.carnivalcorp.com
http://www.carnivalplc.com/
(CCL CUK)
CARNIVAL PLC
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