EX-99.1 2 d68425_ex99-1.txt CONSOLIDATED STATEMENTS OF OPERATIONS Exhibit 99.1 ******************************************************************************** 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.