Carnival Corporation & plc announced financial results for the full year and fourth quarter ended November 30, 2019 and provided an outlook for the full year and first quarter 2020.
Key Highlights Full Year 2019
• U.S. GAAP net income of $3.0 billion, or $4.32 diluted EPS, for the full year 2019, compared to U.S. GAAP net income for the full year 2018 of $3.2 billion, or $4.44 diluted EPS.
• Record full year 2019 adjusted net income of $3.0 billion, or $4.40 adjusted EPS, compared to adjusted net income of $3.0 billion, or $4.26 adjusted EPS, for the full year 2018.
• Adjusted net income excludes net charges of $52 million for the full year 2019 and net gains of $123 million for the full year 2018.
• Record total revenues for the full year 2019 were $20.8 billion, higher than $18.9 billion for the full year 2018. Gross cruise revenues of $20.4 billion, higher than $18.6 billion for the prior year. In constant currency, net cruise revenues of $16.0 billion, higher than $15.4 billion for the prior year, an increase of 4.0 percent. Fourth Quarter 2019
• U.S. GAAP net income of $423 million, or $0.61 diluted EPS, for the fourth quarter of 2019, compared to U.S. GAAP net income for the fourth quarter of 2018 of $494 million, or $0.71 diluted EPS.
• Fourth quarter 2019 adjusted net income of $427 million, or $0.62 adjusted EPS, compared to adjusted net income of $492 million, or $0.70 adjusted EPS, for the fourth quarter of 2018.
• Adjusted net income excludes net charges of $5 million for the fourth quarter of 2019 and net gains of $2 million for the fourth quarter of 2018.
• Record total revenues for the fourth quarter of 2019 were $4.8 billion, higher than $4.5 billion for the fourth quarter of 2018. Gross cruise revenues of $4.7 billion for the fourth quarter of 2019, higher than $4.4 billion for the fourth quarter of 2018.
In constant currency, net cruise revenues of $3.7 billion compared to $3.7 billion for the fourth quarter of 2018, an increase of 0.5 percent.
Fourth Quarter 2019 Results
Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted, “Exceeding our fourth quarter guidance enabled us to have strong full year earnings per share and another year of record adjusted earnings. We overcame a high number of unusual events compounded by a significant downturn in leisure travel demand for our large source markets in Continental Europe. In that environment, to achieve record revenues and adjusted earnings is an accomplishment for any consumer company, a credit to our 150,000 team members and demonstrates the robustness of our business model.”
Key financial information for the fourth quarter of 2019 compared to the fourth quarter of 2018:
• Gross revenue yields (revenue per available lower berth day or “ALBD”) increased 4.0 percent. In constant currency, net revenue yields decreased 1.8 percent, better than September guidance of down 2.0 to 3.0 percent.
• Gross cruise costs including fuel per ALBD increased 6.9 percent. In constant currency, net cruise costs excluding fuel per ALBD increased 2.6 percent, better than September guidance of up 4.0 to 5.0 percent, due to cost improvements realized during the quarter and timing of expenses between quarters.
• Changes in fuel prices and currency exchange rates increased earnings by $0.11 per share.
Highlights during the fourth quarter:
– Princess Cruises’ Sky Princess and Carnival Cruise Line’s Carnival Panorama were both delivered in October 2019.
– P&O Cruises (Australia) entered into an agreement to sell Pacific Dawn and Pacific Aria, which will both leave the fleet in 2021.
– The company was honored with the Skift Design Award for Best Cruise Experience for its OceanCompass™, within the Princess MedallionClass Experience.
– Seabourn received 14 top travel awards and distinctions from highly regarded magazines including: TIME, Cruise International, American Airlines Celebrated Living and Travel Weekly (U.S.).
– The company began construction of the cruise industry’s first cruise terminal in Japan, located at the port of Sasebo.
– The company’s CSMART Academy was recognized for excellence in maritime safety training by SAFETY4SEA for a second consecutive year.
– The company’s efforts in corporate governance and in social and environmental responsibility were recognized by Newsweek Magazine and included in their list of America’s Most Responsible Companies.
Other highlights include the delivery of Costa Smeralda, the second of the 11 ordered LNG ships. In addition, the company continues to lead the industry in the development of environmentally friendly fuel solutions and carbon emissions reduction. AIDA announced it will be the world’s first cruise company to test the use of fuel cells, which will be powered by hydrogen derived from methanol and enable the power supply onboard. This is in addition to its recently announced innovation, the first lithium-ion battery storage system ever to be deployed on a cruise ship, AIDAperla. The company has also formalized a collaborative partnership with The Bahamas to fund and support flood damage repairs and basic restoration efforts at Rand Memorial Hospital, the primary hospital in Freeport, Grand Bahama Island. This partnership builds on the company’s previously announced financial aid, supply donations and other relief efforts aiding the recovery from Hurricane Dorian. The company also remains fully committed to its new developments on Grand Bahama Island and Half Moon Cay