10-KPeriod: FY2012

CARNIVAL CORP Annual Report, Year Ended Nov 30, 2012

Filed January 29, 2013For Securities:CCL

Summary

Carnival Corporation & plc, a global leader in the cruise industry, reported its fiscal year results ending November 30, 2012. The company operates a dual-listed company (DLC) structure with Carnival Corporation incorporated in Panama and Carnival plc in England and Wales. With a fleet of 100 ships across 10 brands, Carnival is the largest cruise company and a major player in the leisure travel sector, emphasizing a multi-brand strategy to cater to diverse consumer preferences. The company highlighted its commitment to safety, environmental protection, and compliance with regulations, alongside its primary financial goals of profitable growth and maintaining a strong balance sheet. Carnival Corporation & plc is strategically expanding its fleet with nine new ships scheduled to enter service between March 2013 and March 2016, projecting a capacity growth rate of 4% compounded annually through 2016. A significant focus is placed on increasing onboard revenues and exploring growth opportunities in emerging markets, particularly Asia.

Financial Highlights

49 data points
Beta

Net Income

$1.30B

EPS (Diluted)

$1.67

Total Assets

$39.16B

Cash & Equivalents

$465.00M

Free Cash Flow

$667.00M

Financial Statements
Beta
Cost of Revenue$10.32B
SG&A Expenses$1.72B
Operating Expenses$13.74B
Operating Income$1.64B
Interest Expense$336.00M
Net Income$1.30B
EPS (Basic)$1.67
EPS (Diluted)$1.67
Shares Outstanding (Basic)778.00M
Shares Outstanding (Diluted)779.00M

Key Highlights

  • 1Carnival Corporation & plc operates as the world's largest cruise company with a fleet of 100 ships and a portfolio of 10 well-known brands, serving major vacation markets globally.
  • 2The company's strategy focuses on a multi-brand approach, exceptional guest experiences, and providing outstanding value to capture a larger share of consumer vacation spending.
  • 3A significant newbuilding program is underway, with nine ships scheduled to join the fleet between March 2013 and March 2016, projected to increase passenger capacity by 4% annually through 2016.
  • 4Carnival emphasizes health, safety, and security as paramount, particularly following the Costa Concordia incident, and has implemented comprehensive audits and procedural improvements.
  • 5The company is actively pursuing growth in emerging markets, with a strategic focus on expanding its presence in Asia.
  • 6Revenues from passengers sourced outside the U.S. have grown to 54% in 2012, indicating increasing global appeal and diversification.
  • 7Carnival is committed to returning free cash flow to shareholders through dividends and share buybacks, with a special dividend declared in the current fiscal year.

Frequently Asked Questions

Carnival Corporation & plc operates under a Dual Listed Company (DLC) structure, where Carnival Corporation (Panama) and Carnival plc (England and Wales) maintain separate legal identities but combine their businesses through contracts and organizational provisions. They share a single senior executive management team and identical Boards of Directors, operating as a single economic enterprise with separate stock exchange listings.

Carnival's core strategies include leveraging its multi-brand portfolio to deliver exceptional vacation experiences at outstanding value, investing in new and efficient ships to expand capacity, focusing on increasing onboard revenues, and strategically growing its presence in emerging markets, particularly in Asia. The company also aims to maintain a strong balance sheet while returning free cash flow to shareholders through dividends and share buybacks.

The Costa Concordia incident in January 2012 led to a comprehensive audit and review of safety and emergency response procedures across all ten brands. Carnival has implemented significant improvements to bridge operations, quality assurance, training, and management systems. While substantially all ship removal and claims costs are expected to be covered by insurance, the company is also focused on rebuilding Costa Cruises' reputation through initiatives like the 'Real Costa' advertising campaign.

Carnival is undertaking a measured approach to fleet expansion, with nine new ships scheduled for delivery between March 2013 and March 2016. The company plans to introduce an average of two to three new ships annually, some of which will replace older, less efficient vessels. This program is expected to result in a compounded annual capacity growth rate of 4% through 2016, with a strategic timing of newbuild introductions to balance supply and demand, particularly in established markets.