Carnival Cruises 2015 Annual Report Download - page 70

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Key Performance Non-GAAP Financial Indicators
Net cruise revenues increased by $447 million, or 3.6%, to $12.9 billion in 2014 from $12.4 billion in 2013.
This increase in net cruise revenues was caused by:
– $330 million – 2.7% capacity increase in ALBDs;
– $92 million – 2014 net foreign currency translational impact and
– $24 million – slight increase in constant dollar net revenue yields.
The increase in net revenue yields on a constant dollar basis was caused by a 3.4% increase in net onboard and
other revenue yields, partially offset by a slight decrease in net passenger ticket revenue yields.
The 3.4% increase in net onboard and other revenue yields resulted from a 3.7% increase from our North
America brands and a 2.8% increase from our EAA brands, which included increases in primarily all the net
onboard revenue categories. The slight decrease in net passenger ticket revenue yields was driven by our North
America brands’ promotional pricing environment in the Caribbean resulting from the large increase in cruise
industry capacity, partially offset by improvements at our continental European brands.
Gross cruise revenues increased by $423 million, or 2.8%, to $15.7 billion in 2014 from $15.2 billion in 2013 for
largely the same reasons as discussed above.
Net cruise costs excluding fuel increased by $290 million, or 4.1%, to $7.4 billion in 2014 from $7.1 billion in
2013.
This increase was caused by:
– $190 million – 2.7% capacity increase in ALBDs;
– $51 million – a slight increase in constant dollar net cruise costs excluding fuel per ALBD and
– $49 million – 2014 net foreign currency translational impact.
Fuel costs decreased by $175 million, or 7.9%, to $2.0 billion in 2014 from $2.2 billion in 2013.
This decrease was caused by:
– $126 million – lower fuel prices and
– $107 million – lower fuel consumption per ALBD.
These decreases were partially offset by our 2.7% capacity increase in ALBDs, which accounted for $59 million.
Gross cruise costs decreased slightly by $65 million to $12.3 billion in 2014 from $12.4 billion in 2013 for
principally the same reasons as discussed above.
Liquidity, Financial Condition and Capital Resources
Our primary financial goals are to profitably grow our cruise business and increase our ROIC, reaching double
digit returns in the next two to three years, while maintaining a strong balance sheet. Our ability to generate
significant operating cash flows allows us to internally fund our capital investments. We are committed to
returning free cash flows to our shareholders in the form of dividends and/or share buybacks. In addition, we are
committed to maintaining our strong investment grade credit ratings. Other objectives of our capital structure
policy are to maintain a sufficient level of liquidity with our available cash and cash equivalents and committed
financings for immediate and future liquidity needs, and a reasonable debt maturity profile that is spread out over
a number of years.
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