Exhibit 99.1
------------------Press Release, dated December 16, 2004------------------
FOR IMMEDIATE RELEASE
CARNIVAL CORPORATION & PLC REPORTS FOURTH QUARTER AND FULL YEAR EARNINGS
MIAMI (December 16, 2004) - Carnival Corporation & plc (NYSE/LSE: CCL;
NYSE: CUK) reported net income of $294 million, or $0.36 diluted EPS, on
revenues of $2.24 billion for its fourth quarter ended November 30, 2004. Net
income for the fourth quarter of 2003 was $205 million, or $0.26 diluted EPS, on
revenues of $1.82 billion. As previously announced, earnings per share for the
2004 fourth quarter were reduced by approximately $0.04 per share as a result of
disruptions to cruises caused by the unprecedented level of hurricane activity
this fall.
Net income for the year ended November 30, 2004 was $1.85 billion ($2.24
diluted EPS) on revenues of $9.73 billion, compared to pro forma net income of
$1.21 billion ($1.49 diluted EPS) on pro forma revenues of $7.60 billion for the
same period in 2003. Reported net income and diluted EPS for the twelve months
ended November 30, 2003 were $1.19 billion and $1.63, respectively.
For the fourth quarter of 2004, the company elected to retroactively early
adopt a new accounting pronouncement that requires the company to treat all of
its contingently convertible notes as outstanding for its diluted earnings per
share computations. Accordingly, the company has decreased its previously
reported and pro forma full year 2003 diluted earnings per share by $0.03. Also,
as a result of this change, the company's full year 2004 diluted earnings per
share is $0.02 less than previously expected.
Net revenue yields (net revenue per available lower berth day) for the
fourth quarter of 2004 increased 10.1 percent compared to net revenue yields in
the prior year, primarily due to higher cruise ticket prices and onboard
revenues and, to a lesser extent, the weak U.S. dollar relative to the euro and
sterling. Net revenue yields as measured on a local currency basis ("constant
dollar basis") increased 7.5 percent over the same period last year. Gross
revenue yields increased 10.3 percent.
For the 2004 year, net revenue yields increased 9.8 percent (gross revenue
yields increased 9.7 percent), the largest single increase in the company's
history.
Net cruise costs per available lower berth day ("ALBD") for the fourth
quarter of 2004 were up 9.1 percent compared to costs for the same period last
year. On a constant dollar basis, net cruise costs per ALBD increased 6.5
percent from the same period last year primarily due to
significantly higher fuel costs, costs associated with the Cunard reorganization
and costs related to the hurricanes. Gross cruise costs per ALBD increased 9.6
percent compared to the prior year.
Carnival Corporation & plc Chairman and CEO Micky Arison said that he was
pleased with the company's performance during the quarter. "Despite an unusually
severe Atlantic hurricane season that disrupted several cruises and adversely
impacted earnings, we still turned in an excellent fourth quarter to help propel
us to the best year in the history of the company. We also laid the groundwork
for future expansion over the next five years, ordering ships for several
different brands operating in all the major regions of the global marketplace,
positioning the company well for continued growth," he said.
During the 2004 fourth quarter, the company ordered six new ships, which
are expected to be delivered between 2007 and 2009. The newbuilds include two
68,500-ton ships for AIDA Cruises in Germany, a 110,000-ton "Conquest-class"
ship for Carnival Cruise Lines, and a 116,000-ton "Caribbean Princess-class"
ship for Princess Cruises, as well as a 110,000-ton and a 116,000-ton vessel,
which are likely to operate under the company's European brands.
Even with these future capital commitments, because of the expected strong
cash flow in coming years, during the 2004 fourth quarter the company's board of
directors authorized the repurchase of up to $1 billion of Carnival Corporation
and Carnival plc shares and increased its quarterly dividend by 20 percent to
$0.15 per share.
Also during the fourth quarter, Costa Cruises took delivery of the
2,702-passenger Costa Magica, which is one of the largest European passenger
vessels. The Costa Magica began operating a series of European cruises this
winter out of Italy.
Arison pointed out that including the introduction of the Carnival Valor,
currently underway, the company has introduced a record eight new cruise ships
over the last twelve months. Among the ship introductions in the last year was
Cunard Line's 150,000-ton Queen Mary 2, the largest and most widely recognized
passenger vessel ever constructed. The other ships introduced include Princess
Cruises' 2,674-passenger Diamond Princess and Sapphire Princess, and
3,100-passenger Caribbean Princess; Carnival Cruise Lines' 2,124-passenger
Carnival Miracle; Holland America Line's 1,848-passenger Westerdam; and the
Costa Magica.
"In the first full year since the historic merger of Carnival Corporation
and P&O Princess, the performance of the new combined company has been superb,"
Arison said. "I want to acknowledge and thank our 70,000 employees, both
shipboard and shoreside, for their fine performance and contribution to this
record year, characterized by record revenues, yield increases, net income and
earnings per share. After three extremely challenging years, 2004 has emerged as
the best in the history of the company and is a testament to the resilience of
the cruise industry and the continuing appeal of cruise vacations," he said.
2005 Outlook
Looking forward to 2005, Arison said the company was very optimistic about
its prospects next year. "The strength of our 2005 advance bookings, combined
with the continued strength in overall leisure travel, builds confidence that
2005 will be another very good year," Arison noted. "We are entering 2005 with a
significant head start over 2004. Even with an expected nine percent capacity
increase in 2005, we have less inventory to sell now than at this time last
year. Also, the booking curve has lengthened substantially from where it was
last year at this time, which provides the opportunity to execute our pricing
strategies to maximize revenue yields," he added.
For the year 2005, advance booking levels are significantly ahead of the
prior year's levels on a capacity adjusted basis, with pricing slightly higher
than last year. Assuming a continuing strong demand for travel, the company
expects that net revenue yields for 2005 will increase approximately 3 to 5
percent (2 to 4 percent on a constant dollar basis), compared to last year. Net
cruise costs per ALBD for 2005 are expected to be flat to up 2 percent (down 1
percent to up 1 percent on a constant dollar basis), compared to 2004. Based on
current internal forecasts, the company is comfortable with estimates of $2.70
per share, including the additional dilution from the new accounting
pronouncement relating to the computation of earnings per share for convertible
notes. The company's guidance is based on flat fuel pricing compared to 2004,
which is in line with the forward curve for bunker fuel, and an exchange rate of
$1.30 to the euro and $1.86 to the sterling.
For the first quarter of 2005, the company expects net revenue yields to
increase 5 to 7 percent (4 to 6 percent on a constant dollar basis) compared to
last year. Net cruise costs per ALBD are expected to be flat to up 1 percent,
(flat to down 1 percent on a constant dollar basis) compared to last year. Based
on these estimates, the company expects diluted earnings per share for the first
quarter of 2005 to be in the range of $0.38 to $0.40.
The company has two more ships scheduled for delivery in fiscal 2005 - P&O
Cruises' 1,968-passenger Arcadia in April 2005 and Carnival Valor's sister ship,
the 2,974-passenger Carnival Liberty, in July 2005.
Carnival has scheduled a conference call with analysts at 10 a.m. EST
(15.00 London time) today to discuss its 2004 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 sites at www.carnivalcorp.com and
www.carnivalplc.com.
Carnival Corporation & plc is the largest cruise vacation group in the
world, with a portfolio of 12 cruise brands in North America, Europe and
Australia, comprised of Carnival Cruise Lines, Holland America Line, Princess
Cruises, Seabourn Cruise Line, Windstar Cruises,
AIDA Cruises, Costa Cruises, Cunard Line, Ocean Village, P&O Cruises, Swan
Hellenic, and P&O Cruises Australia.
Together, these brands operate 77 ships totaling more than 132,000 lower
berths with 12 new ships scheduled for delivery between April 2005 and April
2009. Carnival Corporation & plc also operates the leading tour companies in
Alaska and the Canadian Yukon, Holland America Tours and Princess Tours. 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,
plans, outlook, 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. You can find many, but not all, of these statements by
looking for words like "will," "may," "believes," "expects," "anticipates,"
"forecast," "future," "intends," "plans," and "estimates" and for 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 tax 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: risks associated with the DLC structure,
including the uncertainty of its tax status; general economic and business
conditions, which may impact levels of disposable income of consumers and the
net revenue yields for cruise brands of Carnival Corporation & plc; conditions
in the cruise and land-based vacation industries, including competition from
other cruise ship operators and providers of other vacation alternatives and
increases in capacity offered by cruise ship and land-based vacation
alternatives; risks associated with operating internationally; the international
political and economic climate, armed conflicts, terrorist attacks and threats
thereof, availability of air service, other world events and adverse publicity,
and their impact on the demand for cruises; accidents and other incidents
affecting the health, safety, security and vacation satisfaction of passengers;
the ability of Carnival Corporation & plc to implement its shipbuilding programs
and brand strategies and to continue to expand its business worldwide; the
ability of Carnival Corporation & plc to attract and retain qualified shipboard
crew and maintain good relations with employee unions; the ability to obtain
financing on terms that are favorable or consistent with Carnival Corporation &
plc's expectations; the impact of changes in operating and financing costs,
including changes in foreign currency and interest rates and fuel, food,
payroll, insurance and security costs; changes in the tax, environmental,
health, safety, security and other regulatory regimes under which Carnival
Corporation & plc operates; continued availability of attractive port
destinations; the ability to successfully implement cost improvement plans and
to integrate business acquisitions; continuing financial viability of Carnival
Corporation & plc's travel agent distribution system and air service providers;
and unusual weather patterns or natural disasters.
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 disclaims 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.
MEDIA CONTACTS INVESTOR RELATIONS CONTACT
US US/UK
Carnival Corporation & plc Carnival Corporation & plc
Tim Gallagher Beth Roberts
1 305 599 2600, ext. 16000 1 305 406 4832
UK
Brunswick Group
Sarah Tovey
44 (0) 20 7404 5959
2004 Fourth Quarter Earnings
CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended November 30, Twelve Months Ended November 30,
------------------------------- --------------------------------
Reported Reported Reported Pro Forma Reported
-------- -------- -------- --------- --------
2004(1) 2003(1)(3) 2004(1) 2003(2)(3) 2003(1)(3)
---- ---- ---- ---- ----
(in millions, except per share data)
Revenues
Cruise
Passenger tickets $ 1,694 $ 1,368 $ 7,357 $ 5,732 $ 5,039
Onboard and other 516 417 2,070 1,600 1,420
Other 33 32 300 264 259
------- ------- ------- ------- -------
2,243 1,817 9,727 7,596 6,718
------- ------- ------- ------- -------
Costs and Expenses
Operating
Cruise
Commissions, transportation
and other 345 274 1,572 1,227 1,021
Onboard and other 89 74 359 279 229
Payroll and related 265 224 1,003 841 744
Food 138 117 550 447 393
Other ship operating 478 373 1,763 1,428 1,237
Other 27 27 210 198 190
------- ------- ------- ------- -------
Total 1,342 1,089 5,457 4,420 3,814
Selling and administrative 341 286 1,285 1,103 936
Depreciation and amortization 213 168 812 653 585
------- ------- ------- ------- -------
1,896 1,543 7,554 6,176 5,335
------- ------- ------- ------- -------
Operating Income 347 274 2,173 1,420 1,383
------- ------- ------- ------- -------
Nonoperating (Expense) Income
Interest income 5 7 17 29 27
Interest expense, net of capitalized
interest (72) (67) (284) (225) (195)
Other income (expense), net 4 (5) 11 8
------- ------- ------- ------- -------
(63) (60) (272) (185) (160)
------- ------- ------- ------- -------
Income Before Income Taxes 284 214 1,901 1,235 1,223
Income Tax Benefit (Expense), Net 10 (9) (47) (25) (29)
------- ------- ------- ------- -------
Net Income $ 294 $ 205 $ 1,854 $ 1,210 $ 1,194
======= ======= ======= ======= =======
Earnings Per Share
Basic $ 0.37 $ 0.26 $ 2.31 $ 1.52 $ 1.66
======= ======= ======= ======= =======
Diluted $ 0.36 $ 0.26 $ 2.24 $ 1.49(4) $ 1.63(4)
======= ======= ======= ======= =======
Dividends Per Share $ 0.15 $ 0.125 $ 0.525 $ 0.44 $ 0.44
======= ======= ======= ======= =======
Weighted-Average Shares
Outstanding - Basic 803.8 798.1 802.3 796.5 717.7
======= ======= ======= ======= =======
Weighted-Average Shares
Outstanding - Diluted 852.5 817.2 850.5 839.4 759.2
======= ======= ======= ======= =======
(1) The reported results for the 2004 three and twelve months and the 2003
three months included Carnival Corporation and Carnival plc for the entire
periods. The 2003 twelve month reported results only included Carnival plc
since April 17, 2003, the date when the dual listed company ("DLC")
transaction was completed.
(2) See note (1) to the Carnival Corporation & plc "Reported and Pro Forma
GAAP Reconciling Information."
(3) Reclassifications have been made to certain 2003 amounts to conform to the
current period presentation.
(4) The 2003 twelve month diluted earnings per share have been restated and
reduced by $0.03 to reflect the change in how the company treats
convertible debt with contingent conversion features in its earnings per
share computations in accordance with Emerging Issues Task Force Statement
04-08.
2004 Fourth Quarter Earnings
CARNIVAL CORPORATION & PLC
SELECTED STATISTICAL AND SEGMENT INFORMATION
Three Months Ended November 30, Twelve Months Ended November 30,
------------------------------- --------------------------------
Reported Reported Reported Pro Forma Reported
-------- -------- -------- --------- --------
2004(1) 2003(1)(3) 2004(1) 2003(2)(3) 2003(1)(3)
---- ---- ---- ---- ----
(in millions, except statistical information)
STATISTICAL INFORMATION
Passengers carried 1,543,853 1,366,073 6,306,168 5,422,456 5,037,553
Available lower berth days(4) 11,141,844 9,929,108 44,009,061 37,554,709 33,309,785
Occupancy percentage 102.5% 101.1% 104.5% 102.6% 103.4%
SEGMENT INFORMATION
Revenues
Cruise $ 2,210 $ 1,785 $ 9,427 $ 7,332 $ 6,459
Other 43 42 398 350 345
Intersegment elimination (10) (10) (98) (86) (86)
------------ ----------- ------------ ------------ ------------
$ 2,243 $ 1,817 $ 9,727 $ 7,596 $ 6,718
============ =========== ============ ============ ============
Operating expenses
Cruise $ 1,315 $ 1,062 $ 5,247 $ 4,222 $ 3,624
Other 37 37 308 284 276
Intersegment elimination (10) (10) (98) (86) (86)
------------ ----------- ------------ ------------ ------------
$ 1,342 $ 1,089 $ 5,457 $ 4,420 $ 3,814
============ =========== ============ ============ ============
Selling and administrative expenses
Cruise $ 329 $ 274 $ 1,231 $ 1,054 $ 896
Other 12 12 54 49 40
------------ ----------- ------------ ------------ ------------
$ 341 $ 286 $ 1,285 $ 1,103 $ 936
============ =========== ============ ============ ============
Operating income (loss)
Cruise $ 358 $ 286 $ 2,158 $ 1,422 $ 1,371
Other (11) (12) 15 (2) 12
------------ ----------- ------------ ------------ ------------
$ 347 $ 274 $ 2,173 $ 1,420 $ 1,383
============ =========== ============ ============ ============
(1) The reported information for the 2004 three and twelve months and the 2003
three months included Carnival Corporation and Carnival plc for the entire
periods. The 2003 twelve month reported results only included Carnival plc
since April 17, 2003.
(2) See note (1) to the Carnival Corporation & plc "Reported and Pro Forma
GAAP Reconciling Information."
(3) Reclassifications have been made to certain 2003 amounts to conform to the
current period presentation.
(4) Available lower berth days ("ALBDs") is the total passenger capacity for
the period, assuming two passengers per cabin, that we offer for sale,
which is computed by multiplying passenger capacity by revenue-producing
ship operating days in the period.
2004 Fourth Quarter Earnings
CARNIVAL CORPORATION & PLC
REPORTED AND PRO FORMA GAAP RECONCILING INFORMATION
We use net revenue yields to measure our cruise segment revenue performance.
Gross and net revenue yields were computed by dividing the gross or net cruise
revenues, without rounding, by ALBDs as follows:
Three Months Ended November 30, Twelve Months Ended November 30,
------------------------------- --------------------------------
Reported Reported Reported Pro Forma Reported
-------- -------- -------- --------- --------
2004 2003 2004 2003(1) 2003
---- ---- ---- ---- ----
(in millions, except ALBDs and yields)
Cruise revenues
Passenger tickets $ 1,694 $ 1,368 $ 7,357 $ 5,732 $ 5,039
Onboard and other 516 417 2,070 1,600 1,420
------------ ----------- ------------ ------------ ------------
Gross cruise revenues 2,210 1,785 9,427 7,332 6,459
Less cruise costs
Commissions, transportation and other (345) (274) (1,572) (1,227) (1,021)
Onboard and other (89) (74) (359) (279) (229)
------------ ----------- ------------ ------------ ------------
Net cruise revenues $ 1,776 $ 1,437 $ 7,496 $ 5,826 $ 5,209
============ =========== ============ ============ ============
ALBDs 11,141,844 9,929,108 44,009,061 37,554,709 33,309,785
============ =========== ============ ============ ============
Gross revenue yields (2) $ 198.28 $ 179.77 $ 214.21 $ 195.23 $ 193.91
============ =========== ============ ============ ============
Net revenue yields (2) $ 159.31 $ 144.72 $ 170.32 $ 155.11 $ 156.38
============ =========== ============ ============ ============
We use net cruise costs per ALBD to monitor our ability to control our cruise
segment costs. 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 November 30, Twelve Months Ended November 30,
------------------------------- --------------------------------
Reported Reported Reported Pro Forma Reported
2004 2003 2004 2003(1) 2003
---- ---- ---- ---- ----
(in millions, except ALBDs and costs per ALBD)
Cruise operating expenses $ 1,315 $ 1,062 $ 5,247 $ 4,222 $ 3,624
Cruise selling and administrative expenses 329 274 1,231 1,054 896
------------ ----------- ------------ ------------ ------------
Gross cruise costs 1,644 1,336 6,478 5,276 4,520
Less cruise costs included in net cruise
revenues
Commissions, transportation and other (345) (274) (1,572) (1,227) (1,021)
Onboard and other (89) (74) (359) (279) (229)
------------ ----------- ------------ ------------ ------------
Net cruise costs $ 1,210 $ 988 $ 4,547 $ 3,770 $ 3,270
============ =========== ============ ============ ============
ALBDs 11,141,844 9,929,108 44,009,061 37,554,709 33,309,785
============ =========== ============ ============ ============
Gross cruise costs per ALBD (2) $ 147.44 $ 134.48 $ 147.20 $ 140.50 $ 135.69
============ =========== ============ ============ ============
Net cruise costs per ALBD (2) $ 108.47 $ 99.43 $ 103.31 $ 100.38 $ 98.16
============ =========== ============ ============ ============
2004 Fourth Quarter Earnings
NOTES TO REPORTED AND PRO FORMA GAAP RECONCILING INFORMATION
(1) The pro forma information gives pro forma effect to the DLC transaction
between Carnival Corporation and Carnival plc, which was completed on
April 17, 2003, as if the DLC transaction had occurred on December 1,
2002. Management has prepared the pro forma information based upon the
companies' reported financial information and, accordingly, the above
information should be read in conjunction with the companies' financial
statements, as well as pro forma information included in the companies'
joint Current Report on Form 8-K filed on March 5, 2004.
The DLC transaction has been accounted for as an acquisition of Carnival
plc by Carnival Corporation, using the purchase method of accounting. The
Carnival plc accounting policies have been conformed to Carnival
Corporation's policies. Carnival plc's reporting period has been changed
to the Carnival Corporation reporting period and the pro forma information
covers the same periods of time for both companies.
The pro forma information has not been adjusted to reflect any net
transaction benefits from the DLC transaction. In addition, it excludes
$51 million for the year ended November 30, 2003 of nonrecurring DLC
transaction costs, which were expensed by Carnival plc prior to April 17,
2003. The exclusion of these nonrecurring costs is consistent with the
requirements of Article 11 of Regulation S-X. The 2003 pro forma
information was computed by adding Carnival plc's 2003 results, adjusted
for acquisition adjustments (reductions of $16 million of depreciation
expense and $3 million of interest expense for the year ended November 30,
2003) to the 2003 Carnival Corporation reported results. Finally, the pro
forma information does not purport to represent what the results of
operations actually could have been if the DLC transaction had occurred on
December 1, 2002 or what those results will be for any future periods.
(2) In the cruise industry, most companies, including Carnival Corporation &
plc, generally consider net cruise revenues, which is used in the
computation of net revenue yields, to be a commonly used indicator of
revenue performance rather than gross cruise revenues. Also, net cruise
costs, which is used in the computation of net cruise costs per ALBD, is
considered to be the most significant measure used to monitor our ability
to control costs rather than gross cruise costs.
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.
###