Exhibit 99.1
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CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in millions, except per share data)
Three Months Ended
--------------------------------------------------------
February 28, May 31, August 31, November 30,
2006 2005 2005 2005 2005
---- ---- ---- ---- ----
Revenues
Cruise
Passenger tickets $1,910 $1,843 $1,903 $2,700 $1,953
Onboard and other 539 544 566 656 572
Other 14 11 47 251 48
------ ------ ------ ------ ------
2,463 2,398 2,516 3,607 2,573
------ ------ ------ ------ ------
Costs and Expenses
Operating
Cruise
Commissions, transportation
and other 408 423 380 475 367
Onboard and other 97 97 96 118 101
Payroll and related 272 269 278 297 278
Food 152 153 151 160 149
Fuel 214 133 169 189 216
Other ship operating 357 330 374 359 402
Other 16 13 40 162 39
------ ----- ----- ------ ------
Total 1,516 1,418 1,488 1,760 1,552
Selling and administrative 366 336 342 300 357
Depreciation and amortization 232 222 224 226 230
------ ----- ----- ------ ------
2,114 1,976 2,054 2,286 2,139
------ ----- ----- ------ ------
Operating Income 349 422 462 1,321 434
------ ----- ------ ------ ------
Nonoperating (Expense) Income
Interest income 7 3 6 10 10
Interest expense, net of
capitalized interest (76) (86) (82) (82) (80)
Other (expense) income, net (15) 6 2 (23) 2
------ ----- ------ ------ ------
(84) (77) (74) (95) (68)
------ ----- ------ ------ ------
Income Before Income Taxes 265 345 388 1,226 366
Income Tax (Expense) Benefit, Net (14) 3 (45) (30)
------ ----- ------ ------ ------
Net Income $ 251 $ 348 $ 388 $1,181 $ 336
====== ===== ====== ====== ======
Earnings Per Share
Basic $ 0.31 $0.43 $ 0.48 $ 1.46 $ 0.42
====== ===== ====== ====== ======
Diluted $ 0.31 $0.42 $ 0.47 $ 1.40 $ 0.41
====== ===== ====== ====== ======
Dividends Per Share $ 0.25 $0.15 $ 0.20 $ 0.20 $ 0.25
====== ===== ====== ====== ======
See accompanying note.
CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in millions, except per share data)
Six Months Ended Nine Months Ended Year Ended
May 31, August 31, November 30,
2005 2005 2005
---- ---- ----
Revenues
Cruise
Passenger tickets $3,746 $6,446 $ 8,399
Onboard and other 1,110 1,766 2,338
Other 58 309 357
------ ------ -------
4,914 8,521 11,094
------ ------ -------
Costs and Expenses
Operating
Cruise
Commissions, transportation
and other 803 1,278 1,645
Onboard and other 193 311 412
Payroll and related 547 844 1,122
Food 304 464 613
Fuel 302 491 707
Other ship operating 704 1,063 1,465
Other 53 215 254
------ ------- -------
Total 2,906 4,666 6,218
Selling and administrative 678 978 1,335
Depreciation and amortization 446 672 902
------ ------ -------
4,030 6,316 8,455
------ ------ -------
Operating Income 884 2,205 2,639
------ ------ -------
Nonoperating (Expense) Income
Interest income 9 19 29
Interest expense, net of
capitalized interest (168) (250) (330)
Other income (expense), net 8 (15) (13)
------ ------ -------
(151) (246) (314)
------ ------ -------
Income Before Income Taxes 733 1,959 2,325
Income Tax Benefit (Expense), Net 3 (42) (72)
------ ------ -------
Net Income $ 736 $1,917 $ 2,253
====== ====== =======
Earnings Per Share
Basic $ 0.92 $ 2.38 $ 2.80
====== ====== ======
Diluted $ 0.89 $ 2.29 $ 2.70
====== ====== ======
Dividends Per Share $ 0.35 $ 0.55 $ 0.80
====== ====== ======
See accompanying note.
CARNIVAL CORPORATION & PLC
NOTE TO CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Change in Dry-dock Policy
During the second quarter of fiscal 2006 Carnival Corporation & plc
changed its method of accounting for dry-dock costs from the deferral method
under which we amortized our deferred dry-dock costs over the estimated period
of benefit between dry-docks, to the direct expense method, under which we
expense all dry-dock costs as incurred. Dry-dock amortization expense is
included in other ship operating expenses in the accompanying Consolidated
Statements of Operations. The effect of applying this change retroactively is as
follows (in millions):
Three Months Ended
-------------------------------------------------------
February 28,
------------ May 31, August 31, November 30,
2006 2005 2005 2005 2005
---- ---- ---- ---- ----
Net income as previously
reported $280 $345 $408 $1,151 $353
(Decrease) increase to
previously reported net
income (29) 3 (20) 30 (17)
---- ---- ---- ------ ----
Net income $251 $348 $388 $1,181 $336
==== ==== ==== ====== ====
Six Months Ended Nine Months Ended Year Ended
May 31, 2005 August 31, 2005 November 30, 2005
------------ --------------- -----------------
Net income as previously
reported $ 753 $1,904 $2,257
(Decrease) increase to
previously reported net
income (17) 13 (4)
----- ------ ------
Net income $ 736 $1,917 $2,253
===== ====== ======
CARNIVAL CORPORATION & PLC
SEGMENT INFORMATION
(UNAUDITED)
(in millions)
Three Months Ended
--------------------------------------------------------
February 28,
----------- May 31, August 31, November 30,
2006 2005 2005 2005 2005
---- ---- ---- ---- ----
Revenues
Cruise $2,449 $2,387 $2,469 $3,356 $2,525
Other 16 12 60 329 60
Intersegment elimination (2) (1) (13) (78) (12)
------ ------ ------ ------ ------
$2,463 $2,398 $2,516 $3,607 $2,573
====== ====== ====== ====== ======
Operating expenses
Cruise $1,500 $1,405 $1,448 $1,598 $1,513
Other 18 14 53 240 51
Intersegment elimination (2) (1) (13) (78) (12)
------ ------ ------ ------ ------
$1,516 $1,418 $1,488 $1,760 $1,552
====== ====== ====== ====== ======
Selling and administrative expenses
Cruise $ 355 $ 327 $ 327 $ 289 $ 346
Other 11 9 15 11 11
------ ------ ------ ------ ------
$ 366 $ 336 $ 342 $ 300 $ 357
====== ====== ====== ====== ======
Depreciation and Amortization
Cruise $ 224 $ 215 $ 217 $ 219 $ 222
Other 8 7 7 7 8
------ ------ ------ ------ ------
$ 232 $ 222 $ 224 $ 226 $ 230
====== ====== ====== ====== ======
Operating income (loss)
Cruise $ 370 $ 440 $ 477 $1,250 $ 444
Other (21) (18) (15) 71 (10)
------ ------ ------ ------ ------
$ 349 $ 422 $ 462 $1,321 $ 434
====== ====== ====== ====== ======
Six Months Ended Nine Months Ended Year Ended
May 31, August 31, November 30,
2005 2005 2005
---- ---- ----
Revenues
Cruise $4,856 $8,212 $10,737
Other 72 401 461
Intersegment elimination (14) (92) (104)
------ ------ -------
$4,914 $8,521 $11,094
====== ====== =======
Operating expenses
Cruise $2,853 $4,451 $ 5,964
Other 67 307 358
Intersegment elimination (14) (92) (104)
------ ------ -------
$2,906 $4,666 $ 6,218
====== ====== =======
Selling and administrative expenses
Cruise $ 654 $ 943 $ 1,289
Other 24 35 46
------ ------ -------
$ 678 $ 978 $ 1,335
====== ====== =======
Depreciation and Amortization
Cruise $ 432 $ 651 $ 873
Other 14 21 29
------ ------ -------
$ 446 $ 672 $ 902
====== ====== =======
Operating income (loss)
Cruise $ 917 $2,167 $ 2,611
Other (33) 38 28
------ ------ -------
$ 884 $2,205 $ 2,639
====== ====== =======
Non-GAAP Financial Measures
Gross and net revenue yields were computed by dividing the gross or net
revenues, without rounding, by available lower berth days ("ALBDs") as follows:
Three Months Ended
-----------------------------------------------------------------------------------------
February 28,
------------ May 31, August 31, November 30,
2006 2005 2005 2005 2005
---- ---- ---- ---- ----
(in millions, except ALBDs and yields)
Cruise revenues
Passenger tickets $ 1,910 $ 1,843 $ 1,903 $ 2,700 $ 1,953
Onboard and other 539 544 566 656 572
------------ ------------ ------------ ------------ ------------
Gross cruise revenues 2,449 2,387 2,469 3,356 2,525
Less cruise costs
Commissions, transportation
and other (408) (423) (380) (475) (367)
Onboard and other (97) (97) (96) (118) (101)
------------ ------------ ------------ ------------ ------------
Net cruise revenues $ 1,944 $ 1,867 $ 1,993 $ 2,763 $ 2,057
============ ============ ============ ============ ============
ALBDs 11,936,438 11,586,444 11,711,830 12,297,220 12,159,133
============ ============ ============ ============ ============
Gross revenue yields $ 205.15 $ 206.08 $ 210.79 $ 272.90 $ 207.64
============ ============ ============ ============ ============
Net revenue yields $ 162.81 $ 161.20 $ 170.11 $ 224.72 $ 169.15
============ ============ ============ ============ ============
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
-----------------------------------------------------------------------------------------
February 28,
------------ May 31, August 31, November 30,
2006 2005 2005 2005 2005
---- ---- ---- ---- ----
(in millions, except ALBDs and costs per ALBD)
Cruise operating expenses $ 1,500 $ 1,405 $ 1,448 $ 1,598 $ 1,513
Cruise selling and administrative
expenses 355 327 327 289 346
------------ ------------ ------------ ------------ ------------
Gross cruise costs 1,855 1,732 1,775 1,887 1,859
Less cruise costs included in
net cruise revenues
Commissions, transportation
and other (408) (423) (380) (475) (367)
Onboard and other (97) (97) (96) (118) (101)
------------ ------------ ------------ ------------ ------------
Net cruise costs $ 1,350 $ 1,212 $ 1,299 $ 1,294 $ 1,391
============ ============ ============ ============ ============
ALBDs 11,936,438 11,586,444 11,711,830 12,297,220 12,159,133
============ ============ ============ ============ ============
Gross cruise costs per ALBD $ 155.42 $ 149.44 $ 151.56 $ 153.49 $ 152.92
============ ============ ============ ============ ============
Net cruise costs per ALBD $ 113.08 $ 104.55 $ 110.87 $ 105.31 $ 114.43
============ ============ ============ ============ ============
Non-GAAP Financial Measures
Gross and net revenue yields were computed by dividing the gross or net
revenues, without rounding, by ALBDs as follows:
Six Months Ended Nine Months Ended Year Ended
May 31, August 31, November 30,
2005 2005 2005
---- ---- ----
(in millions, except ALBDs and yields)
Cruise revenues
Passenger tickets $ 3,746 $ 6,446 $ 8,399
Onboard and other 1,110 1,766 2,338
------------ ------------ ------------
Gross cruise revenues 4,856 8,212 10,737
Less cruise costs
Commissions, transportation
and other (803) (1,278) (1,645)
Onboard and other (193) (311) (412)
------------ ------------ ------------
Net cruise revenues $ 3,860 $ 6,623 $ 8,680
============ ============ ============
ALBDs 23,298,274 35,595,494 47,754,627
============ ============ ============
Gross revenue yields $ 208.45 $ 230.72 $ 224.84
============ ============ ============
Net revenue yields $ 165.68 $ 186.07 $ 181.77
============ ============ ============
Gross and net cruise costs per ALBD were computed by dividing the gross or
net cruise costs, without rounding, by ALBDs as follows:
Six Months Ended Nine Months Ended Year Ended
May 31, August 31, November 30,
2005 2005 2005
---- ---- ----
(in millions, except ALBDs and costs per ALBD)
Cruise operating expenses $ 2,853 $ 4,451 $ 5,964
Cruise selling and administrative
expenses 654 943 1,289
------------ ------------ ------------
Gross cruise costs 3,507 5,394 7,253
Less cruise costs included in
net cruise revenues
Commissions, transportation
and other (803) (1,278) (1,645)
Onboard and other (193) (311) (412)
------------ ------------ ------------
Net cruise costs $ 2,511 $ 3,805 $ 5,196
============ ============ ============
ALBDs 23,298,274 35,595,494 47,754,627
============ ============ ============
Gross cruise costs per ALBD $ 150.50 $ 151.54 $ 151.89
============ ============ ============
Net cruise costs per ALBD $ 107.73 $ 106.89 $ 108.81
============ ============ ============
NOTE TO NON-GAAP FINANCIAL MEASURES
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 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.