4Q and Full Year Highlights
- 4Q net revenue yields in constant dollars decreased 2.1% compared to the
prior year, which was better than the company's September guidance, down 3 to 4%
- 4Q net cruise costs excluding fuel per available lower berth day ("ALBD")
increased 6.5% in constant dollars driven by higher advertising spend, and was higher
than September guidance, up 3.5 to 4.5%
- 4Q non-GAAP earnings per share (diluted) of $0.04, compared to $0.14 for the
prior year
- Full year non-GAAP earnings per share (diluted) of $1.58, compared to $1.94
for the prior year
Outlook
- At this time, cumulative advance bookings for 2014 are behind the prior
year at prices in line with prior year levels
- Net revenue yields on a constant dollar basis for full year 2014 expected to
be down slightly compared to the prior year
- Net cruise costs excluding fuel per ALBD for full year 2014 expected to be
slightly higher than prior year on a constant dollar basis
- Full year 2014 non-GAAP earnings per share (diluted) expected to be in the
range of $1.40 to $1.80, compared to $1.58 for 2013
- 1Q 2014 non-GAAP losses per share (diluted) expected to be in the range of
$(0.07) to $(0.11), compared to non-GAAP earnings per share of $0.09 in 1Q 2013
President and Chief Executive Officer Arnold Donald commenting on these results:
"Accelerated progress in Carnival Cruise Lines' brand recovery had a positive impact
on fourth quarter results. A steady stream of innovative product initiatives, the launch
of a nationwide marketing campaign and travel agent outreach program, as well as an
industry-leading vacation guarantee fueled the brand's improvement."
"Even in a challenging year, our company continued to produce strong cash from
operations approaching $3 billion, funding our capital commitments and returning value to
shareholders through regular dividend distributions of $775 million and share repurchases
of $100 million."
"We are catching up on booking volumes and gaining momentum as we enter 2014. We
believe the compelling value we have in the marketplace will continue to stimulate strong
demand leading to a solid wave period. We continue to expect revenue yields to turn
positive in the second half of 2014 compared to the prior year."
"With over 100 ships and more than 10 million guests we have a scale advantage that
cannot be replicated in this industry. We are aggressively seeking opportunities to
leverage that scale to drive top line improvement and gain cost efficiencies. To support
that effort, we have realigned our leadership team and processes to achieve greater
collaboration and cooperation. We have heightened our focus on the guest experience and
further exceeding guest expectations. As 2014 progresses, we will commence a number of
strategic initiatives designed to fuel our earnings power, drive cash flow and improve
return on invested capital over time."
