Carnival Cruises 2012 Annual Report Download - page 108

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Table of Contents
Non-GAAP diluted earnings per share was computed as follows (in millions, except per share data):
Years Ended November 30,
2012 2011 2010
Net income – diluted
U.S. GAAP net income $1,298 $1,912 $1,989(a)
Ibero goodwill and trademark impairment charges 173 - -
Unrealized gains on fuel derivatives, net (6) (1) -
Non-GAAP net income $1,465 $1,911 $1,989(a)
Weighted-average shares outstanding – diluted 779 789 805
Earnings per share – diluted
U.S. GAAP earnings per share $1.67 $2.42 $2.47
Ibero goodwill and trademark impairment charges 0.22 - -
Unrealized gains on fuel derivatives, net (0.01) - -
Non-GAAP earnings per share $ 1.88 $2.42 $2.47
(a) For 2010, diluted net income included an add-back of interest expense on dilutive convertible notes.
Net cruise revenues decreased $227 million, or 1.8%, to $12.3 billion in 2012 from $12.5 billion in 2011. This was caused by a 2.5% decrease in constant
dollar net revenue yields, which accounted for $321 million, and the net currency impact, which accounted for $267 million, partially offset by our 2.9%
capacity increase in ALBDs, which accounted for $361 million. The 2.5% decrease in net revenue yields on a constant dollar basis was comprised of a 3.9%
decrease in net passenger ticket revenue yields, partially offset by a 2.4% increase in net onboard and other revenue yields. The 3.9% decrease in net passenger
ticket revenue yields was principally due to our EAA brands with a 7.6% yield decrease, which was affected by the direct and indirect consequences of the
ship incident and the challenging economic environment in Europe. The 2.4% increase in net onboard and other revenue yields was primarily due to higher
onboard spending by guests from our North America brands, partially offset by lower yields from certain of our EAA brands, driven by lower occupancy,
principally at Costa. Gross cruise revenues decreased $344 million, or 2.2%, to $15.2 billion in 2012 from $15.5 billion in 2011 for largely the same reasons
as discussed above.
Net cruise costs excluding fuel of $6.6 billion in 2012 were flat compared to 2011. Our 2.9% capacity increase in ALBDs, which accounted for $190
million, was offset by the net currency impact, which accounted for $135 million, and a slight decrease in constant dollar net cruise costs excluding fuel per
ALBD, which accounted for $38 million.
Fuel costs increased $188 million, or 8.6%, to $2.4 billion in 2012 from $2.2 billion in 2011. This was caused by higher fuel prices, which accounted for
$214 million, and a 2.9% capacity increase in ALBDs, which accounted for $63 million, partially offset by lower fuel consumption per ALBD, which
accounted for $89 million.
Gross cruise costs increased $88 million, or 0.7% to $11.9 billion in 2012 from $11.8 billion in 2011 for principally the same reasons as discussed above.
2011 Compared to 2010
Revenues
Consolidated
Cruise passenger ticket revenues made up 77% of our 2011 total revenues. Cruise passenger ticket revenues increased by $1.1 billion, or 9.7%, to $12.2
billion in 2011 from $11.1 billion in 2010. This increase was substantially due to our 5.1% capacity increase in ALBDs, which accounted for $571 million,
a weaker U.S. dollar against the euro, sterling and Australian dollar (referred to as “the currency impact”), which accounted for $257 million, an overall
continuing recovery in cruise ticket pricing, which accounted for $155 million, and a slight increase in occupancy percentage, which accounted for $63
million. Our 2011 cruise passenger ticket pricing increase was affected by the close-in deployment changes resulting from the geo-political events in the Middle
East and North Africa (“MENA”), and to a lesser extent, the earthquake and resulting nuclear disaster in Japan as well as the European debt crisis (see “Key
Performance Non-GAAP Financial Indicators”).
The remaining 23% of 2011 total revenues were substantially all comprised of onboard and other cruise revenues, which increased by $253 million, or 8.1%,
to $3.4 billion in 2011 from $3.1 billion in 2010. This increase was principally driven by our 5.1% capacity increase in ALBDs, which accounted for $160
million, and the currency impact, which accounted for $58 million. Onboard and other revenues included concession revenues of $1.1 billion in 2011 and
$958 million in 2010.
F-38