PRESS RELEASE: Carnival Corporation & plc Reports -2-

22nd Jun 2010 14:15

political climate, armed conflicts, terrorist and pirate attacks and threats thereof, and other world events affecting the safety and security of travel; competition from and overcapacity in both the cruise ship and land-based vacation industries; lack of acceptance of new itineraries, products and services by Carnival Corporation & plc's guests; changing consumer preferences; Carnival Corporation & plc's ability to attract and retain qualified shipboard crew and maintain good relations with employee unions; accidents, the spread of contagious diseases and threats thereof, adverse weather conditions or natural disasters, such as hurricanes, earthquakes and volcanic ash, and other incidents (including, but not limited to, ship fires and machinery and equipment failures or improper operation thereof), which could cause, among other things, individual or multiple port closures, injury, death, damage to property and equipment, oil spills, alteration of cruise itineraries or cancellation of a cruise or series of cruises or tours; 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 disabled persons employment, environmental, health, safety, security, tax and other regulatory regimes under which Carnival Corporation & plc operate; increases in global fuel demand and pricing, fuel supply disruptions and other events impacting on Carnival Corporation & plc's fuel and other expenses, liquidity and credit ratings; increases in Carnival Corporation & plc's future fuel expenses from implementing approved International Maritime Organization regulations, which require the use of higher priced low sulfur fuels in certain cruising areas, including the U.S. and Canadian Emissions Control Area, which will change the specification and increase the price of fuel that ships will be required to use within these areas; changes in financing and operating costs, including changes in interest rates and food, payroll and security costs; the ability of Carnival Corporation & plc to implement its shipbuilding programs and ship maintenance, repairs and refurbishments, including ordering additional ships for its cruise brands from shipyards on terms that are favorable or consistent with Carnival Corporation & plc's expectations; the continued strength of Carnival Corporation & plc's cruise brands and its ability to implement its brand strategies; additional risks associated with Carnival Corporation & plc's international operations not generally applicable to its U.S. operations; the pace of development in geographic regions in which Carnival Corporation & plc tries to expand its business; 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' ability to perform; continuing financial viability of Carnival Corporation & plc's travel agent distribution system, air service providers and other key vendors 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 networks and operations; lack of continuing availability of attractive, convenient and safe port destinations; and risks associated with the dual listed company structure. 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 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 OPERATIONS Three Months Ended Six Months Ended May 31, May 31, ---------------------- ------------------ 2010 2009 2010 2009 ---------- ---------- -------- -------- (in millions, except per share data) Revenues Cruise Passenger tickets $ 2,427 $ 2,242 $ 4,785 $ 4,461 Onboard and other 737 673 1,466 1,307 Tour and other 31 33 39 44 ---------- ---------- -------- -------- 3,195 2,948 6,290 5,812 ---------- ---------- -------- -------- Costs and Expenses Operating Cruise Commissions, transportation and other 440 440 937 954 Onboard and other 106 110 219 214 Payroll and related 383 366 774 718 Fuel 416 243 813 451 Food 212 203 424 401 Other ship operating 504 488 978 946 Tour and other 32 35 47 51 ---------- ---------- -------- -------- Total 2,093 1,885 4,192 3,735 Selling and administrative 404 393 800 785 Depreciation and amortization 349 317 694 628 ---------- ---------- -------- -------- 2,846 2,595 5,686 5,148 ---------- ---------- -------- -------- Operating Income 349 353 604 664 ---------- ---------- -------- -------- Nonoperating (Expense) Income Interest income 3 2 7 6 Interest expense, net of capitalized interest (99) (90) (195) (186) Other (expense) income, net (2) 5 (5) 24 ---------- ---------- -------- -------- (98) (83) (193) (156) ---------- ---------- -------- -------- Income Before Income Taxes 251 270 411 508 Income Tax Benefit (Expense), Net 1 (6) 16 16 ---------- ---------- -------- -------- Net Income $ 252 $ 264 $ 427 $ 524 ========== ========== ======== ======== Earnings Per Share Basic $ 0.32 $ 0.34 $ 0.54 $ 0.67 ========== ========== ======== ======== Diluted $ 0.32 $ 0.33 $ 0.54 $ 0.66 ========== ========== ======== ======== Dividends Declared Per Share $ 0.10 $ 0.20 ========== ======== Weighted-Average Shares Outstanding -- Basic 788 787 788 787 ========== ========== ======== ======== Weighted-Average Shares Outstanding -- Diluted 806 804 806 804 ========== ========== ======== ======== CARNIVAL CORPORATION & PLC CONSOLIDATED BALANCE SHEETS May 31, November 30, 2010 2009 ----------------- ---------------- (in millions, except par values) ASSETS Current Assets Cash and cash equivalents $ 594 $ 538 Trade and other receivables, net 455 362 Inventories 297 320 Prepaid expenses and other 240 298 ---------------- ---------------- Total current assets 1,586 1,518 ---------------- ---------------- Property and Equipment, Net 29,317 29,870 Goodwill 3,214 3,451 Trademarks 1,289 1,346 Other Assets 623 650 ---------------- ---------------- $ 36,029 $ 36,835 ================ ================ (MORE TO FOLLOW) Dow Jones Newswires June 22, 2010 09:15 ET (13:15 GMT)