10-KPeriod: FY2018

CARNIVAL CORP Annual Report, Year Ended Nov 30, 2018

Filed January 28, 2019For Securities:CCL

Summary

Carnival Corporation & plc, the world's largest leisure travel company, reported its 2018 fiscal year results in this Form 10-K filing. The company operates a diverse portfolio of 104 cruise ships across multiple brands, serving global destinations. Carnival emphasizes its commitment to exceeding guest expectations and delivering strong shareholder returns, underpinned by a strategic focus on health, environment, safety, security (HESS), guest experience, employee development, and stakeholder value. Financially, the company aims for profitable growth and increased return on invested capital. It has been actively returning capital to shareholders through dividends and share repurchases. Carnival is investing in new, larger, and more fuel-efficient ships, with 21 scheduled for delivery through 2025, including a significant expansion into the Asian market, particularly China. The company highlights the favorable characteristics of the cruise industry, including high guest satisfaction, positive demand trends driven by demographics like Baby Boomers and Millennials, and an exceptional value proposition compared to land-based vacations. Carnival is also focused on innovation, particularly in digital guest experiences and fleet modernization, including the adoption of LNG-powered ships.

Financial Statements
Beta
Revenue$18.88B
Cost of Revenue$11.09B
Gross Profit$7.79B
SG&A Expenses$2.45B
Operating Expenses$15.56B
Operating Income$3.33B
Interest Expense$194.00M
Net Income$3.15B
EPS (Basic)$4.45
EPS (Diluted)$4.44
Shares Outstanding (Basic)709.00M
Shares Outstanding (Diluted)710.00M

Key Highlights

  • 1Carnival Corporation & plc is the world's largest cruise and vacation company, operating 104 ships across multiple global brands and serving all major cruise destinations.
  • 2The company is committed to profitable growth, increasing return on invested capital, and maintaining strong credit ratings, with a strategic focus on innovation and fleet modernization.
  • 3Carnival has a robust newbuild program with 21 ships scheduled for delivery through 2025, including a growing number of LNG-powered vessels, enhancing efficiency and environmental performance.
  • 4Significant investment is being made in digital innovation, including the 'Experience Platform' with OceanMedallion™ and xiOTM, to enhance personalized guest experiences.
  • 5The company actively returns capital to shareholders, having increased its quarterly dividend and continuing its stock repurchase program.
  • 6Carnival is strategically expanding its presence in developing markets, particularly in Asia (China), recognizing its significant long-term growth potential.
  • 7The company emphasizes its commitment to Health, Environment, Safety, Security (HESS) and sustainability, with specific 2020 goals to reduce its environmental footprint.

Frequently Asked Questions

Carnival's primary financial goals are to profitably grow its cruise business and increase its return on invested capital, while maintaining strong investment grade credit ratings and a robust balance sheet.

Carnival is investing in new, innovative, purpose-built ships that are larger, more fuel-efficient, and offer an improved mix of guest accommodations and onboard amenities. As of November 30, 2018, 21 cruise ships were scheduled for delivery through 2025, with a notable trend towards LNG-powered vessels to reduce environmental impact.

Carnival is focusing on growing its presence in established markets and increasing penetration in developing markets, with a particular emphasis on Asia, especially China, due to its large and growing middle-class population and government support for the cruise industry.

Carnival is committed to sustainability and has set 2020 goals to reduce its environmental footprint. This includes reducing CO2e emissions, improving air quality, increasing the use of ship-to-shore power, enhancing wastewater treatment, reducing waste, and expanding the use of low-carbon fuels like LNG in its new ships.