10-KPeriod: FY2017

CARNIVAL CORP Annual Report, Year Ended Nov 30, 2017

Filed January 29, 2018For Securities:CCL

Summary

Carnival Corporation & plc's 2017 10-K filing highlights its position as the world's largest leisure travel company, operating a diverse portfolio of cruise brands across global markets. The company emphasizes its vision of delivering unmatched vacation experiences and strong shareholder returns through strategic initiatives focused on demand generation, cost optimization, and innovation in ship design. Significant investments in data analytics, a state-of-the-art revenue management system, and new, fuel-efficient vessels are key components of their strategy to enhance profitability and return on invested capital. The company's financial goals prioritize profitable growth and maintaining strong investment-grade credit ratings. Carnival is actively repurchasing shares and increasing dividends, reflecting its commitment to returning value to shareholders. A strong focus on Health, Environment, Safety, Security (HESS) and sustainability is integrated into operations, with ambitious goals set for reducing environmental impact. The company's robust fleet of over 100 ships, coupled with strategic brand management and expansion into developing markets like Asia, positions it for continued leadership in the cruise industry.

Financial Highlights

51 data points
Beta

Revenue

$17.51B

40.0% Gross Margin

Net Income

$2.61B

14.9% Net Margin

EPS (Diluted)

$3.59

Total Assets

$40.78B

Cash & Equivalents

$395.00M

Free Cash Flow

$2.38B

Financial Statements
Beta
Revenue$17.51B
Cost of Revenue$10.50B
Gross Profit$7.01B
SG&A Expenses$2.27B
Operating Expenses$14.70B
Operating Income$2.81B
Interest Expense$198.00M
Net Income$2.61B
EPS (Basic)$3.61
EPS (Diluted)$3.59
Shares Outstanding (Basic)722.00M
Shares Outstanding (Diluted)725.00M

Key Highlights

  • 1Carnival Corporation & plc is the world's largest leisure travel company, operating a global fleet of over 100 cruise ships across multiple brands.
  • 2The company is investing in technology and data analytics to understand customer behavior and drive demand, aiming to grow revenue yields.
  • 3A significant newbuild program is underway, with 18 ships scheduled for delivery between 2018 and 2022, focusing on larger, more fuel-efficient vessels.
  • 4Carnival is committed to returning value to shareholders through increased dividends and substantial share repurchases.
  • 5Health, Environment, Safety, Security (HESS), and sustainability are core operational priorities, with specific goals for reducing environmental impact, including the pioneering use of LNG in new ships.
  • 6The company is expanding its presence in key growth markets, particularly in Asia, with China identified as a significant long-term opportunity.
  • 7Carnival leverages its scale to optimize costs through combined purchasing volumes and integrated back-office functions.

Frequently Asked Questions

Carnival's strategy focuses on profitably growing its cruise business and increasing return on invested capital. This involves creating additional demand for its brands, optimizing its cost structure, and investing in new, innovative, and fuel-efficient ships. They are also leveraging data analytics for customer segmentation and refining revenue management systems. Expansion into developing markets, particularly Asia, is a key growth driver.

Carnival has a strong commitment to HESS and sustainability. They have set ambitious 2020 goals to reduce their environmental footprint, including targets for CO2e emissions, air emissions, wastewater, water use, and waste reduction. A significant initiative is the investment in and use of Liquefied Natural Gas (LNG) for their next-generation cruise ships, making them pioneers in low-carbon fuel usage in the industry. They also have environmental management systems certified under ISO 14001.

Carnival Corporation & plc is committed to returning value to shareholders through a combination of dividends and share repurchases. In 2017, they increased their quarterly dividend and have repurchased a significant number of shares since resuming their stock repurchase program in late 2015. Their ability to generate strong operating cash flow allows them to fund capital investments while managing debt and returning free cash flow to shareholders.

Carnival operates a portfolio of leading global, regional, and national cruise brands, each with a unique identity and tailored product offering. The company aims to preserve these unique identities while leveraging its scale for optimization. They focus on customer segmentation to match guests with the appropriate brands and enhance overall vacation experiences across all offerings, from contemporary to luxury.