Carnival Corp & plc First Quarter Earnings
Carnival Corporation & Plc Reports Full Details of First
Quarter Earnings
Carnival Corporation & plc today reports full details of earnings for the
first quarter ended February 28, 2011. The earnings of Carnival Corporation
and Carnival plc have been consolidated, and this statement includes
consolidated results on a U.S. GAAP basis.
1Q Highlights
- 1Q revenues increased by $241m to $3.4b versus $3.2b in the
prior year, due to increased capacity and improved European ticket
prices
- 1Q net revenue yields in constant dollars increased 2.0% (up 0.9%
in current dollars) compared to the prior year, which was in line with
December guidance
- Excluding fuel and the gain on a ship sale in 1Q 2010, constant
dollar net cruise costs per available lower berth day ("ALBD") were in
line with the prior year and better than December guidance
- Fuel prices increased 9% to $543 per metric ton for 1Q 2011
versus $497 per metric ton in 1Q 2010
- 1Q EPS (diluted) of $0.19, compared to $0.22 for the prior year.
1Q 2010 included the favorable impact of $0.10 per share from unusual
items
2011 Outlook
- Since the start of the calendar year, booking volumes and prices for
the remaining three quarters are running higher than the prior year
- Net revenue yields for FY 2011 are expected to increase 2.5 to
3.5% in constant dollars (4.5 to 5.5% in current dollars), compared to
3.0 to 4.0% in December guidance due to itinerary changes in the Middle
East and North Africa
- Net cruise costs excluding fuel per ALBD for FY 2011 are expected
to be flat to up slightly on a constant dollar basis compared to the
prior year
- Forecasted fuel costs for FY 2011 are expected to cost an additional
$0.45 per share partially offset by a $0.09 benefit from currency,
compared to December guidance
- FY 2011 EPS (diluted) expected to be in the range of $2.55 to
$2.65, compared to $2.47 for 2010 and the December guidance range of
$2.90 to $3.10
- 2Q EPS (diluted) expected to be in the range of $0.20 to $0.24
compared to $0.32 in 2Q 2010 due to the drag on earnings from higher
fuel prices
Chairman and Chief Executive Officer Micky Arison commenting on these
results:
"Net revenue yields increased 2 percent (constant dollars) driven by a
significant improvement in ticket prices for our European brands. We remained
focused on managing costs and reducing fuel consumption. All of which more
than offset rising fuel prices during the quarter."
"Despite the uncertain world events that have unfolded during our peak
booking period, we have experienced a solid wave season. Ticket prices for
the peak summer season remain particularly strong. The convenience and
affordability of a cruise vacation continues to gain recognition as consumers
discover the unrivaled experience cruising offers. As a result, long-term
fundamentals for our business remain attractive in an environment where
consumers increasingly value the importance of taking their holidays."
Analyst conference call
The company has scheduled a conference call with analysts at 2:00 p.m.
GMT (10:00 a.m. EDT) today to discuss its 2011 first quarter 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
Carnival Corporation & plc is the largest cruise vacation group in the
world, with a portfolio of cruise brands in North America, Europe, Australia
and Asia, comprised of Carnival Cruise Lines, Holland America Line, Princess
Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, P&O
Cruises (UK) and P&O Cruises (Australia).
Together, these brands operate 98 ships totaling more than 191,000 lower
berths with 10 new ships scheduled to be delivered between March 2011 and May
2014. Carnival Corporation & plc also operates Holland America Princess
Alaska Tours, the leading tour company 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.
CONTACT: Media Contact: Tim Gallagher, 001 305 599 2600, ext. 16000;
Investor Relations Contact: Beth Roberts, 001 305 406 4832
Carnival Corporation & plc Reports Full Details of First
Quarter Earnings
MIAMI, March 22, 2011 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE:
CUK) reported net income of $152 million, or $0.19 diluted EPS, on revenues
of $3.4 billion for its first quarter ended February 28, 2011. Net income for
the first quarter 2010 was $175 million, or $0.22 diluted EPS, on revenues of
$3.2 billion. The first quarter 2010 included the favorable impact of $0.10
per share from unusual items.
Carnival Corporation & plc Chairman and CEO Micky Arison indicated that
earnings in the first quarter 2011 were at the high end of the company's
December guidance due to lower than expected unit costs which offset higher
than expected fuel prices.
Commenting on the first quarter, Arison said, "Net revenue yields
increased 2 percent (constant dollars) driven by a significant improvement in
ticket prices for our European brands. We remained focused on managing costs
and reducing fuel consumption. All of which more than offset rising fuel
prices during the quarter."
Key metrics for the first quarter 2011 compared to the prior year were as
follows:
- On a constant dollar basis net revenue yields (net revenue per
available lower berth day) increased 2.0 percent for 1Q 2011, which
was in line with December guidance. Gross revenue yields increased 2.4
percent in current dollars.
- Net cruise costs, excluding fuel and the 1Q 2010 $44 million gain
on the sale of P&O Cruises (UK)'s Artemis, per available lower berth
day ("ALBD") were in line with the prior year in constant dollars, and
were better than the December guidance of flat to up 1 percent. Gross
cruise costs per ALBD in current dollars increased 4.4 percent.
- Fuel prices increased 9 percent to $543 per metric ton for 1Q
2011 from $497 per metric ton in 1Q 2010 and were higher than the
December guidance of $526 per metric ton.
During the first quarter, the company announced an increase in its
regular quarterly dividend to $0.25 per share from $0.10 per share,
signifying continuing confidence in the company's future earnings potential.
2011 Outlook
Since the start of the calendar year, booking volumes and prices for the
remaining three quarters are running higher than the prior year. At this
point in time, cumulative advance bookings for the remainder of the year are
at higher prices with slightly lower occupancies versus last year.
Arison noted, "Despite the uncertain world events that have unfolded
during our peak booking period, we have experienced a solid wave season.
Ticket prices for the peak summer season remain particularly strong. The
convenience and affordability of a cruise vacation continues to gain
recognition as consumers discover the unrivaled experience cruising offers.
As a result, long-term fundamentals for our business remain attractive in an
environment where consumers increasingly value the importance of taking their
holidays."
The company expects full year net revenue yields, on a constant dollar
basis, to increase 2.5 to 3.5 percent compared to 3 to 4 percent in its
December guidance. As previously announced, the change in yield guidance of
approximately $44 million, or $0.05 per share, results from the itinerary
changes in the Middle East and North Africa necessitated by the political
unrest in that region. The company expects net revenue yields on a current
dollar basis to increase 4.5 to 5.5 percent for the full year 2011 compared
to 2010.
The company expects net cruise costs, excluding fuel, per ALBD for the
full year 2011 to be flat to up slightly on a constant dollar basis compared
to flat in its December guidance due to increasing inflation expectations.
Slightly lower expectations in other cost categories are expected to offset
the slightly higher net cruise costs guidance.
As previously announced, fuel prices have increased significantly since
we provided December guidance. Based on current spot prices for fuel, fuel
costs are now expected to increase $355 million for the full year 2011
compared to December guidance, costing an additional $0.45 per share.
However, the weakening of the U.S. dollar since December guidance is expected
to benefit earnings by $75 million, or $0.09 per share.
Taking all the above factors into consideration, the company now
forecasts full year 2011 fully diluted earnings per share to be in the range
of $2.55 to $2.65, compared to its December guidance range of $2.90 to $3.10
and full year 2010 of $2.47. This guidance is slightly better than the update
provided on March 11, due to the change in spot prices for fuel and currency.
Second Quarter 2011
Second quarter constant dollar net revenue yields are expected to
increase in the 1.5 to 2.5 percent range (4.5 to 5.5 percent on a current
dollar basis) compared to the prior year. Net cruise costs excluding fuel per
ALBD for the second quarter are expected to be 2.0 to 3.0 percent higher on a
constant dollar basis. Fuel costs for the second quarter are expected to
increase $140 million compared to the prior year, costing an additional $0.18
per share.
Based on current fuel prices and currency exchange rates, the company
expects fully diluted earnings for the second quarter 2011 to be in the range
of $0.20 to $0.24 per share, down from $0.32 per share in 2010 due to the
drag on earnings from the higher fuel prices.
During the second quarter two new ships will debut in Europe, AIDA
Cruises' 2,194-passenger AIDAsol and Carnival Cruise Lines' 3,690-passenger
Carnival Magic, furthering the company's strategy to expand its global
presence.
Selected Key Forecast Metrics
Full Year 2011 Second Quarter 2011
Current Constant Current Constant
Dollars Dollars Dollars Dollars
Change in:
Net revenue
yields 4.5 to 5.5% 2.5 to 3.5% 4.5 to 5.5% 1.5 to 2.5%
Net cruise cost
excluding
fuel/ALBD 2.0 to 3.0% 0.0 to 1.0% 5.0 to 6.0% 2.0 to 3.0%
Full Year 2011 Second Quarter 2011
Fuel price per
metric ton $631 $659
Fuel consumption
(metric tons in
thousands) 3,440 875
Currency
Euro $1.39 to euro 1 $1.40 to euro 1
Sterling $1.61 to 1 pound Sterling $1.61 to 1 pound Sterling
The company has scheduled a conference call with analysts at 10:00 a.m.
EDT (2:00 p.m. GMT) today to discuss its 2011 first quarter 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, Australia
and Asia, comprised of Carnival Cruise Lines, Holland America Line, Princess
Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, P&O
Cruises (UK) and P&O Cruises (Australia).
Together, these brands operate 98 ships totaling more than 191,000 lower
berths with 10 new ships scheduled to be delivered between March 2011 and May
2014. Carnival Corporation & plc also operates Holland America Princess
Alaska Tours, the leading tour company 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, estimates or projections 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, outlooks, plans, goals
and other events which have not yet occurred. These statements are intended
to qualify for the safe harbors from liability provided by Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. We have tried, whenever possible, to identify these statements by using
words like "will," "may," "could," "should," "would," "believe," "expect,"
"anticipate," "forecast," "future," "intend," "plan," "estimate" and similar
expressions of future intent or the negative of such terms. 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, among other things, the forecasting of Carnival
Corporation & plc's earnings per share, net revenue yields, booking levels,
pricing, occupancy, operating, financing and tax costs, fuel expenses, costs
per available lower berth day, estimates of ship depreciable lives and
residual values, liquidity, goodwill and trademark fair values and outlook.
These factors include, but are not limited to, the following: general
economic and business conditions; fluctuations in foreign currency exchange
rates; the international political climate, armed conflicts, terrorist and
pirate attacks, vessel seizures, and threats thereof, and other world events
affecting the safety and security of travel; competition from and
overcapacity in the cruise ship or land-based vacation industries; accidents,
the spread of contagious diseases and threats thereof, adverse weather
conditions or natural disasters and other incidents affecting the health,
safety, security and satisfaction of guests and crew; adverse publicity
concerning the cruise industry in general, or Carnival Corporation & plc in
particular, including any adverse impact that cruising may have on the marine
environment; changes in and compliance with laws and regulations relating to
the protection of persons with disabilities, employment, environment, health,
safety, security, tax and other regulations under which Carnival Corporation
& plc operates; economic, market and political factors that are beyond
Carnival Corporation & plc's control, which could increase its operating,
financing and other costs; the ability of Carnival Corporation & plc to
implement its shipbuilding programs and ship repairs, maintenance and
refurbishments on terms that are favorable or consistent with its
expectations; increases in Carnival Corporation & plc's repairs and
maintenance expenses and refurbishment costs as its fleet ages; the continued
strength of Carnival Corporation & plc's cruise brands and its ability to
implement its brand strategies; Carnival Corporation & plc's international
operations are subject to additional risks not generally applicable to its
U.S. operations; geographic regions in which Carnival Corporation & plc tries
to expand its business may be slow to develop and ultimately not develop how
it expects; whether Carnival Corporation & plc's future operating cash flow
will be sufficient to fund future obligations and whether it will be able to
obtain financing, if necessary, in sufficient amounts and on terms that are
favorable or consistent with its expectations; Carnival Corporation & plc
counterparties' abilities to perform; continuing financial viability of
Carnival Corporation & plc's travel agent distribution system, air service
providers and other key vendors in its supply chain and reductions in the
availability of, and increases in the pricing for, the services and products
provided by these vendors; Carnival Corporation & plc's decisions to
self-insure against various risks or its inability to obtain insurance for
certain risks at reasonable rates; disruptions and other damages to Carnival
Corporation & plc's information technology and other networks and operations
and breaches in data security; loss of key personnel or Carnival Corporation
& plc's ability to recruit or retain qualified personnel; union disputes and
other employee relation issues; lack of continuing availability of
attractive, convenient and safe port destinations; and risks associated with
the dual listed company arrangement. 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,
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 INCOME
(UNAUDITED)
(in millions, except per share data)
Three Months Ended
February 28,
------------
Revenues 2011 2010
---- ----
Cruise
Passenger tickets $2,652 $2,441 (a)
Onboard and other 757 729 (b)
Tour and other 10 8
--- ---
3,419 3,178
----- -----
Costs and Expenses
Operating
Cruise
Commissions,
transportation and
other 664 581 (a)
Onboard and other 120 113
Payroll and related 411 391
Fuel 450 397
Food 231 212
Other ship operating 510 474 (c)
Tour and other 9 14
--- ---
Total 2,395 2,182
Selling and
administrative 422 396
Depreciation and
amortization 367 345
--- ---
3,184 2,923
----- -----
Operating Income 235 255
--- ---
Nonoperating
(Expense) Income
Interest income 2 4
Interest expense, net
of capitalized
interest (86) (96)
Other income
(expense), net 6 (3)
--- ---
(78) (95)
--- ---
Income Before Income
Taxes 157 160
Income Tax (Expense)
Benefit, Net (5) 15 (d)
--- ---
Net Income $152 $175
==== ====
Earnings Per Share
Basic $0.19 $0.22
===== =====
Diluted $0.19 $0.22
===== =====
Dividends Declared
Per Share $0.25 $0.10
===== =====
Weighted-Average Shares
Outstanding - Basic 790 787
=== ===
Weighted-Average Shares
Outstanding - Diluted 794 805
=== ===
(a) During the fourth quarter of 2010, we changed the classification
of our port costs that vary with guest head counts to a gross
presentation from a net presentation, which resulted in an increase
in both passenger ticket revenues and commissions, transportation
and other costs. The amount reclassified and now included on a gross
basis in passenger ticket revenues and commissions, transportation
and other costs was $83 million for the three months ended February
28, 2010.
(b) Includes $19 million from minimum guarantees and a litigation
settlement.
(c) Includes a $44 million gain recognized from the 2009 sale of P&O
Cruises (UK)'s Artemis.
(d) Includes an $18 million Italian investment incentive income tax
benefit.
CARNIVAL CORPORATION & PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except par values)
February November
28, 30,
2011 2010
---- ----
ASSETS
Current Assets
Cash and cash equivalents $465 $429
Trade and other receivables, net 308 248
Inventories 343 320
Prepaid expenses and other 249 247
--- ---
Total current assets 1,365 1,244
----- -----
Property and Equipment, Net 31,225 30,967
Goodwill 3,373 3,320
Other Intangibles 1,335 1,320
Other Assets 667 639
--- ---
$37,965 $37,490
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings $679 $740
Current portion of long-term debt 811 613
Accounts payable 516 503
Accrued liabilities and other 1,121 1,094
Customer deposits 2,882 2,805
----- -----
Total current liabilities 6,009 5,755
----- -----
Long-Term Debt 7,815 8,011
Other Long-Term Liabilities and
Deferred Income 706 693
Shareholders' Equity
Common stock of Carnival Corporation,
$0.01 par value; 6 6
1,960 shares authorized; 647 shares at
2011 and
646 shares at 2010 issued
Ordinary shares of Carnival plc, $1.66
par value; 215 357 355
shares at 2011 and 214 shares at 2010
issued
Additional paid-in capital 8,148 8,094
Retained earnings 17,178 17,224
Accumulated other comprehensive income
(loss) 141 (254)
Treasury stock, 39 shares at 2011 and
2010 of Carnival (2,395) (2,394)
Corporation and 31 shares at 2011 and
2010 of ------ ------
Carnival plc, at cost
Total shareholders' equity 23,435 23,031
------ ------
$37,965 $37,490
======= =======
CARNIVAL CORPORATION & PLC
OTHER INFORMATION
Three Months
Ended
February 28,
------------
2011 2010
---- ----
STATISTICAL INFORMATION
Passengers carried (in
thousands) 2,185 2,049
Occupancy percentage 105.0% 103.5%
Fuel consumption (metric tons
in thousands) 828 800
Fuel cost per metric ton (a) $543 $497
Currencies
U.S. dollar to euro 1 $1.34 $1.42
U.S. dollar to 1 pound
Sterling $1.58 $1.60
U.S. dollar to Australian
dollar $1.00 $0.90
CASH FLOW INFORMATION (in
millions)
Cash from operations $412 $396
Capital expenditures $172 $1,169
Dividends paid $79
(a) Fuel cost per metric ton is calculated by
dividing the cost of fuel by the number of metric
tons consumed.
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES
Consolidated gross and net revenue yields were computed by dividing
the gross and net cruise revenues, without rounding, by ALBDs
as follows (dollars in millions, except yields) (a):
Three Months Ended February 28,
-------------------------------
2011
Constant
2011 Dollar 2010
---- ------ ----
Passenger ticket revenues $2,652 $2,688 $2,441
Onboard and other revenues 757 763 729
--- --- ---
Gross cruise revenues 3,409 3,451 3,170
----- ----- -----
Less cruise costs
Commissions, transportation
and other (664) (679) (581)
Onboard and other (120) (121) (113)
---- ---- ----
(784) (800) (694)
---- ---- ----
Net passenger ticket revenues 1,988 2,009 1,860
Net onboard and other
revenues 637 642 616
--- --- ---
Net cruise revenues $2,625 $2,651 $2,476
====== ====== ======
ALBDs (b) 16,686,710 16,686,710 15,890,082
========== ========== ==========
Gross revenue yields $204.30 $206.79 $199.48
% increase vs. 2010 2.4% 3.7%
Net revenue yields $157.28 $158.87 $155.81
% increase vs. 2010 0.9% 2.0%
Net passenger ticket revenue
yields $119.11 $120.41 $117.07
% increase vs. 2010 1.7% 2.9%
Net onboard and other revenue
yields $38.17 $38.46 $38.74
% decrease vs. 2010 (1.5)% (0.7)%
------------------- ----- -----
Consolidated gross and net cruise costs and net cruise costs excluding
fuel per ALBD were computed by dividing the gross and net cruise costs and
net cruise costs excluding fuel, without rounding, by ALBDs as follows
(dollars in millions, except costs per ALBD) (a):
Three Months Ended February 28,
-------------------------------
2011
Constant
2011 Dollar 2010
---- ------ ----
Cruise operating
expenses $2,386 $2,414 $2,168
Cruise selling and
administrative
expenses (c) 416 420 389
--- --- ---
Gross cruise costs 2,802 2,834 2,557
Less cruise costs
included in net
cruise revenues
Commissions,
transportation and
other (664) (679) (581)
Onboard and other (120) (121) (113)
---- ---- ----
Net cruise costs 2,018 2,034 1,863
Less fuel (450) (450) (397)
---- ---- ----
Net cruise costs
excluding fuel $1,568 $1,584 $1,466
====== ====== ======
ALBDs (b) 16,686,710 16,686,710 15,890,082
========== ========== ==========
Gross cruise costs
per ALBD $167.92 $169.81 $160.92
% increase vs.
2010 4.4% 5.5%
Net cruise costs
per ALBD $120.90 $121.89 $117.25
% increase vs. 2010 3.1% 4.0%
Net cruise costs
excluding fuel
per ALBD $93.95 $94.94 $92.25
% increase vs. 2010 1.9% 2.9%
------------------- --- ---
NOTES TO NON GAAP FINANCIAL MEASURES
(a) We use net cruise revenues per ALBD ("net revenue yields"), net
cruise costs per ALBD and net cruise costs excluding fuel per ALBD as
significant non-GAAP financial measures of our cruise segment financial
performance. These measures enable us to separate the impact of predictable
capacity changes from the more unpredictable rate changes that affect our
business. We believe these non-GAAP measures provide an expanded insight to
measure our revenue and cost performance in addition to the standard U.S.
GAAP-based financial measures.
Net revenue yields are commonly used in the cruise industry to measure a
company's cruise segment revenue performance and for revenue management
purposes. We use "net cruise revenues" rather than "gross cruise revenues" to
calculate net revenue yields. 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 net of 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 card fees. Substantially all of our remaining
cruise costs are largely fixed, except for the impact of changing prices,
once our ship capacity levels have been determined.
Net passenger ticket revenues reflect gross cruise revenues, net of (1)
onboard and other revenues, (2) commissions, transportation and other costs
and (3) onboard and other cruise costs. Net onboard and other revenues
reflect gross cruise revenues, net of (1) passenger ticket revenues, (2)
commissions, transportation and other costs and (3) onboard and other cruise
costs. Net passenger ticket revenue yields and net onboard and other revenue
yields are computed by dividing net passenger ticket revenues and net onboard
and other revenues by ALBDs.
Net cruise costs per ALBD and net cruise costs excluding fuel per ALBD
are the most significant measures we use to monitor our ability to control
our cruise segment costs rather than gross cruise costs per ALBD. We exclude
the same variable costs that are included in the calculation of net cruise
revenues to calculate net cruise costs with and without fuel to avoid
duplicating these variable costs in our non-GAAP financial measures.
We have not provided estimates of future gross revenue yields or future
gross cruise costs per ALBD because the quantitative reconciliations of
forecasted gross cruise revenues to forecasted net cruise revenues or
forecasted gross cruise costs to forecasted net cruise costs would include a
significant amount of uncertainty in projecting the costs deducted to arrive
at this measure. As such, management does not believe that this reconciling
information would be meaningful.
In addition, because our Europe, Australia & Asia cruise brands utilize
the euro, sterling and Australian dollar to measure their results and
financial condition, the translation of those operations 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. Accordingly, we also monitor and
report our non-GAAP financial measures assuming the 2011 period currency
exchange rates have remained constant with the 2010 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 since it facilitates a comparative view of the growth of our
business in a fluctuating currency exchange rate environment.
There are no specific rules for determining our non-GAAP current and
constant dollar financial measures and, accordingly, it is possible that they
may not be exactly comparable to the like-kind information presented by other
cruise companies, which is a potential risk associated with using these
measures to compare us to other cruise companies.
(b) ALBDs is a standard measure of passenger capacity for the period,
which we use to perform rate and capacity variance 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) For the three months ended February 28, 2011 and 2010, selling and
administrative expenses were $422 million and $396 million, respectively. For
the three months ended February 28, 2011 and 2010, selling and administrative
expenses were comprised of cruise selling and administrative expenses of $416
million and $389 million and Tour and Other selling and administrative
expenses of $6 million and $7 million, respectively.
SOURCE Carnival plc
CONTACT: MEDIA, Tim Gallagher, +1-305-599-2600, ext. 16000, or INVESTOR
RELATIONS, Beth Roberts, +1-305-406-4832
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