10-KPeriod: FY2015

CARNIVAL CORP Annual Report, Year Ended Nov 30, 2015

Filed January 29, 2016For Securities:CCL

Summary

Carnival Corporation & plc's 2015 Form 10-K highlights its position as the world's largest leisure travel company, operating 99 cruise ships across ten brands and serving 47% of global cruise guests. The company emphasizes its vision to deliver exceptional vacation experiences and strong shareholder returns, supported by strategic goals of profitable growth, increased return on invested capital (targeting double-digit returns within 2-3 years), and maintaining a strong balance sheet. Significant investments are being made in data analytics to understand guest decision-making and optimize revenue management and deployment strategies. The company is strategically expanding in high-growth markets like China, leveraging its extensive global infrastructure and brand portfolio. Carnival Corporation & plc is also investing in new, larger, and more fuel-efficient ships, with 17 new vessels scheduled for delivery between 2016 and 2020. Sustainability remains a core principle, with clear goals set for reducing environmental impact and enhancing safety and security across operations. The company's financial strategy includes returning free cash flows to shareholders through dividends and share buybacks, having increased its quarterly dividend by 20% in 2015 and repurchasing $276 million of its shares.

Financial Highlights

51 data points
Beta

Revenue

$15.71B

39.9% Gross Margin

Net Income

$1.76B

11.2% Net Margin

EPS (Diluted)

$2.26

Total Assets

$39.24B

Cash & Equivalents

$1.40B

Free Cash Flow

$2.25B

Financial Statements
Beta
Revenue$15.71B
Cost of Revenue$9.45B
Gross Profit$6.27B
SG&A Expenses$2.07B
Operating Expenses$13.14B
Operating Income$2.57B
Interest Expense$217.00M
Net Income$1.76B
EPS (Basic)$2.26
EPS (Diluted)$2.26
Shares Outstanding (Basic)777.00M
Shares Outstanding (Diluted)779.00M

Key Highlights

  • 1Carnival Corporation & plc is the world's largest cruise operator with 99 ships across 10 brands, serving 47% of global cruise guests.
  • 2The company aims for double-digit return on invested capital within 2-3 years, supported by revenue growth and cost optimization initiatives.
  • 3Significant investment in new ships (17 scheduled by 2020) focused on size, efficiency, and enhanced guest amenities.
  • 4Strategic focus on expanding in the high-growth Chinese market, leveraging extensive local experience and infrastructure investment.
  • 5Commitment to sustainability with specific goals for environmental impact reduction (e.g., CO2e emissions, water usage) by 2020.
  • 6Active capital return to shareholders, including a 20% increase in quarterly dividend and substantial share repurchases ($276 million in 2015).
  • 7Utilizing data analytics and a state-of-the-art revenue management system to optimize pricing, inventory, and guest experiences.

Frequently Asked Questions

Carnival Corporation & plc's strategy for profitable growth centers on creating additional demand for its brands, leading to higher revenue yields through measured capacity growth. This is supported by enhancing cruise products and services, optimizing cost structures, and leveraging data analytics to understand guest behavior and personalize offerings. The company also focuses on efficient global deployment and robust revenue management systems.

Sustainability is a core principle for Carnival Corporation & plc. The company has set specific 2020 sustainability goals aimed at reducing its environmental footprint, including targets for decreasing CO2e emissions, improving air quality, increasing wastewater purification, and reducing waste. They are investing in technologies like Exhaust Gas Cleaning Systems (EGCS) and exploring alternative fuels such as LNG for new ships.

Carnival Corporation & plc is committed to returning free cash flows to shareholders. In 2015, they increased their quarterly dividend by 20% and repurchased $276 million of their shares. The company also has ongoing share repurchase programs authorized by its board.

Key risks identified include potential impacts from incidents like ship accidents or disease outbreaks, adverse economic conditions affecting travel demand, increasing environmental and safety regulations, competition from both cruise lines and land-based vacation providers, fluctuations in fuel prices, and challenges in implementing shipbuilding programs. Geopolitical events and currency exchange rate fluctuations are also noted as potential risks.