Carnival Corporation & plc Reports Second Quarter Earnings
MIAMI, June 22, 2010 /PRNewswire via COMTEX/ --Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) reported net income of $252 million, or $0.32 diluted EPS, on revenues of $3.2 billion for its second quarter ended May 31, 2010. Net income for the second quarter of 2009 was $264 million, or $0.33 diluted EPS, on revenues of $2.9 billion.
Carnival Corporation & plc Chairman and CEO Micky Arison indicated that operating results for the second quarter 2010 exceeded the company's March guidance as a result of better than expected net revenue yields and cost reductions.
Commenting on the second quarter, Arison said, "We were encouraged to see revenue yields turn positive for the first time since late 2008. Improving revenue yields combined with an 8 percent capacity increase and ongoing cost control efforts offset significantly higher fuel prices." Increased fuel prices negatively impacted earnings by $0.20 per share during the quarter.
Key metrics for the second quarter of 2010 compared to the prior year were as follows:
- On a constant dollar basis net revenue yields (net revenue per available lower berth day) increased 2.0 percent for 2Q 2010, which was at the higher end of the company's March guidance, up 1 to 2 percent. Net revenue yields in current dollars increased 2.4 percent due to favorable currency exchange rates. Gross revenue yields increased only 0.4 percent in current dollars driven by lower air transportation revenue.
- Excluding fuel, net cruise cost per available lower berth day ("ALBD") declined 4.9 percent in constant dollars, which was better than March guidance, down 3.5 to 4.5 percent.
- Including fuel, net cruise costs per ALBD increased 4.2 percent on a constant dollar basis (increased 4.9 percent in current dollars). Gross cruise costs per ALBD increased 1.6 percent in current dollars.
- Fuel prices increased 64 percent to $498 per metric ton for 2Q 2010 from $304 per metric ton in 2Q 2009 but was lower than March guidance of $511 per metric ton.
Continuing with its strategic growth initiatives, the company took delivery of two new ships during the second quarter - P&O Cruises' 3,100-passenger Azura and The Yachts of Seabourn's 450-passenger Seabourn Sojourn. In addition, contracts were finalized with Fincantieri for the construction of two Princess Cruises' 3,600-passenger ships for delivery in May 2013 and 2014.
2010 Outlook
Since March, booking volumes for the second half of the year have been running slightly ahead of the prior year at higher prices. At this time, cumulative advance bookings for both quarters are at higher prices (constant dollars) with occupancies for the third quarter in line with the prior year and for the fourth quarter slightly behind last year.
Arison noted, "Considering recent global economic concerns and other world events our advance bookings are holding up reasonably well and remain in line with our expectations. We believe this will lead to earnings growth in both the third and fourth quarters. The summer season, which is our strongest and most important quarter of the year, is shaping up particularly well."
The company continues to expect full year net revenue yields, on a constant dollar basis, to increase 2 to 3 percent, in line with its March guidance. However, currency exchange rates have moved significantly since March guidance was provided. As a result, the company now expects net revenue yields on a current dollar basis to be approximately flat for the full year 2010 compared to 2009.
The company expects net cruise costs excluding fuel per ALBD for the full year 2010 to be down 2.5 to 3.5 percent on a constant dollar basis which is slightly better than its March guidance. Since March guidance, unfavorable changes in currency exchange rates have reduced earnings by $97 million. This has essentially been offset by a $41 million benefit from a decline in the spot price for fuel and lower forecasted costs for the remainder of the year.
Consequently, the company continues to forecast full year 2010 fully diluted earnings per share to be in the range of $2.25 to $2.35, compared to 2009 earnings of $2.24 per share. Based on the current spot price for fuel, fuel costs for all of 2010 are expected to increase $440 million compared to 2009, costing an additional $0.55 per share.
Third Quarter 2010
Third quarter constant dollar net revenue yields are expected to increase 5 to 6 percent (flat to up 1 percent on a current dollar basis) compared to the prior year. Net cruise costs excluding fuel per ALBD for the third quarter are expected to be 1 to 2 percent higher on a constant dollar basis (down 2 to 3 percent on a current dollar basis). Fuel costs for the third quarter are expected to increase $74 million compared to the prior year, costing an additional $0.09 per share.
Based on the above factors and using current fuel prices and currency exchange rates, the company expects earnings for the third quarter of 2010 to be in the range of $1.43 to $1.47 per share, compared to $1.33 per share in 2009.
During the second half of the year two new ships will debut in Europe- Holland America Line's 2,106-passenger Nieuw Amsterdam, and Cunard Line's 2,092-passenger Queen Elizabeth- furthering the company's strategy to expand its global presence. These vessels will be the fifth and sixth ships the company will introduce in 2010.
Selected Key Forecast Metrics
-----------------------------
Full Year 2010
Current Constant
Dollars Dollars
Change in:
Net revenue yields (0.5) to 0.5% 2.0 to 3.0%
Net cruise cost / ALBD 1.0 to 2.0% 2.5 to 3.5%
Net cruise cost excl. fuel / ALBD (4.0) to (5.0)% (2.5) to (3.5)%
Third Quarter 2010
Current Constant
Dollars Dollars
Change in:
Net revenue yields 0.0 to 1.0% 5.0 to 6.0%
Net cruise cost / ALBD 1.0 to 2.0% 4.5 to 5.5%
Net cruise cost excl. fuel / ALBD (2.0) to (3.0)% 1.0 to 2.0%
Full Year 2010 Third Quarter 2010
Fuel price/metric ton $495 $493
Fuel consumption (metric tons in
thousands) 3,344 843
Currency
Euro $1.29 to EUR1 $1.24 to EUR1
Sterling $1.51 to BPS1 $1.48 to BPS1
The company has scheduled a conference call with analysts at 10:00 a.m. EDT (3:00 p.m. BST) today to discuss its 2010 second quarter earnings. This call can be listened to live, and additional information can be obtained, via Carnival Corporation & plc's Web site at www.carnivalcorp.com and www.carnivalplc.com.
Carnival Corporation & plc is the largest cruise vacation group in the world, with a portfolio of cruise brands in North America, Europe and Australia, comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, The Yachts of Seabourn, AIDA Cruises, Costa Cruises, Cunard Line, Ibero Cruises, Ocean Village, P&O Cruises and P&O Cruises Australia.
Together, these brands operate 96 ships totaling more than 187,000 lower berths with 11 new ships scheduled to be delivered between now and May 2014. Carnival Corporation & plc also operates Holland America Princess Alaska Tours, the leading tour company in Alaska and the Canadian Yukon. Traded on both the New York and London Stock Exchanges, Carnival Corporation & plc is the only group in the world to be included in both the S&P 500 and the FTSE 100 indices.
Cautionary Note Concerning Factors That May Affect Future Results
Some of the statements, estimates or projections contained in this earnings release are "forward-looking statements" that involve risks, uncertainties and assumptions with respect to Carnival Corporation & plc, including some statements concerning future results, outlooks, plans, goals and other events which have not yet occurred. These statements are intended to qualify for the safe harbors from liability provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We have tried, whenever possible, to identify these statements by using words like "will," "may," "could," "should," "would," "believe," "expect," "anticipate," "forecast," "future," "intend," "plan," "estimate" and similar expressions of future intent or the negative of such terms. Because forward-looking statements involve risks and uncertainties, there are many factors that could cause Carnival Corporation & plc's actual results, performance or achievements to differ materially from those expressed or implied in this earnings release. Forward-looking statements include those statements which may impact, among other things, the forecasting of Carnival Corporation & plc's earnings per share, net revenue yields, booking levels, pricing, occupancy, operating, financing and tax costs, fuel expenses, costs per available lower berth day, estimates of ship depreciable lives and residual values, liquidity, goodwill and trademark fair values and outlook. These factors include, but are not limited to, the following: general economic and business conditions, including fuel price increases, high unemployment rates, and declines in the securities, real estate and other markets, and perceptions of these conditions, may adversely impact the levels of Carnival Corporation & plc's potential vacationers' discretionary income and net worth and this group's confidence in their country's economy; fluctuations in foreign currency exchange rates, particularly the movement of the U.S. dollar against the euro, sterling and the Australian and Canadian dollars; the international political climate, armed conflicts, terrorist and pirate attacks and threats thereof, and other world events affecting the safety and security of travel; competition from and overcapacity in both the cruise ship and land-based vacation industries; lack of acceptance of new itineraries, products and services by Carnival Corporation & plc's guests; changing consumer preferences; Carnival Corporation & plc's ability to attract and retain qualified shipboard crew and maintain good relations with employee unions; accidents, the spread of contagious diseases and threats thereof, adverse weather conditions or natural disasters, such as hurricanes, earthquakes and volcanic ash, and other incidents (including, but not limited to, ship fires and machinery and equipment failures or improper operation thereof), which could cause, among other things, individual or multiple port closures, injury, death, damage to property and equipment, oil spills, alteration of cruise itineraries or cancellation of a cruise or series of cruises or tours; adverse publicity concerning the cruise industry in general, or Carnival Corporation & plc in particular, including any adverse impact that cruising may have on the marine environment; changes in and compliance with laws and regulations relating to the protection of disabled persons, employment, environmental, health, safety, security, tax and other regulatory regimes under which Carnival Corporation & plc operate; increases in global fuel demand and pricing, fuel supply disruptions and other events impacting on Carnival Corporation & plc's fuel and other expenses, liquidity and credit ratings; increases in Carnival Corporation & plc's future fuel expenses from implementing approved International Maritime Organization regulations, which require the use of higher priced low sulfur fuels in certain cruising areas, including the U.S. and Canadian Emissions Control Area, which will change the specification and increase the price of fuel that ships will be required to use within these areas; changes in financing and operating costs, including changes in interest rates and food, payroll and security costs; the ability of Carnival Corporation & plc to implement its shipbuilding programs and ship maintenance, repairs and refurbishments, including ordering additional ships for its cruise brands from shipyards, on terms that are favorable or consistent with Carnival Corporation & plc's expectations; the continued strength of Carnival Corporation & plc's cruise brands and its ability to implement its brand strategies; additional risks associated with Carnival Corporation & plc's international operations not generally applicable to its U.S. operations; the pace of development in geographic regions in which Carnival Corporation & plc tries to expand its business; whether Carnival Corporation & plc's future operating cash flow will be sufficient to fund future obligations and whether it will be able to obtain financing, if necessary, in sufficient amounts and on terms that are favorable or consistent with its expectations; Carnival Corporation & plc counterparties' ability to perform; continuing financial viability of Carnival Corporation & plc's travel agent distribution system, air service providers and other key vendors and reductions in the availability of and increases in the pricing for the services and products provided by these vendors; Carnival Corporation & plc's decisions to self-insure against various risks or its inability to obtain insurance for certain risks at reasonable rates; disruptions and other damages to Carnival Corporation & plc's information technology networks and operations; lack of continuing availability of attractive, convenient and safe port destinations; and risks associated with the dual listed company structure. Forward-looking statements should not be relied upon as a prediction of actual results. Subject to any continuing obligations under applicable law or any relevant listing rules, Carnival Corporation & plc expressly disclaim any obligation to disseminate, after the date of this release, any updates or revisions to any such forward-looking statements to reflect any change in expectations or events, conditions or circumstances on which any such statements are based.
CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
May 31,
-------
2010 2009
---- ----
(in millions, except per share data)
Revenues
Cruise
Passenger tickets $2,427 $2,242
Onboard and other 737 673
Tour and other 31 33
--- ---
3,195 2,948
----- -----
Costs and Expenses
Operating
Cruise
Commissions, transportation
and other 440 440
Onboard and other 106 110
Payroll and related 383 366
Fuel 416 243
Food 212 203
Other ship operating 504 488
Tour and other 32 35
--- ---
Total 2,093 1,885
Selling and administrative 404 393
Depreciation and amortization 349 317
--- ---
2,846 2,595
----- -----
Operating Income 349 353
--- ---
Nonoperating (Expense) Income
Interest income 3 2
Interest expense, net of
capitalized interest (99) (90)
Other (expense) income, net (2) 5
--- ---
(98) (83)
--- ---
Income Before Income Taxes 251 270
Income Tax Benefit (Expense), Net 1 (6)
--- ---
Net Income $252 $264
==== ====
Earnings Per Share
Basic $0.32 $0.34
===== =====
Diluted $0.32 $0.33
===== =====
Dividends Declared Per Share $0.10
=====
Weighted-Average Shares Outstanding - Basic 788 787
=== ===
Weighted-Average Shares Outstanding - Diluted 806 804
=== ===
Six Months Ended
May 31,
-------
2010 2009
---- ----
(in millions, except per share data)
Revenues
Cruise
Passenger tickets $4,785 $4,461
Onboard and other 1,466 1,307
Tour and other 39 44
--- ---
6,290 5,812
----- -----
Costs and Expenses
Operating
Cruise
Commissions, transportation
and other 937 954
Onboard and other 219 214
Payroll and related 774 718
Fuel 813 451
Food 424 401
Other ship operating 978 946
Tour and other 47 51
--- ---
Total 4,192 3,735
Selling and administrative 800 785
Depreciation and amortization 694 628
--- ---
5,686 5,148
----- -----
Operating Income 604 664
--- ---
Nonoperating (Expense) Income
Interest income 7 6
Interest expense, net of
capitalized interest (195) (186)
Other (expense) income, net (5) 24
--- ---
(193) (156)
---- ----
Income Before Income Taxes 411 508
Income Tax Benefit (Expense), Net 16 16
--- ---
Net Income $427 $524
==== ====
Earnings Per Share
Basic $0.54 $0.67
===== =====
Diluted $0.54 $0.66
===== =====
Dividends Declared Per Share $0.20
=====
Weighted-Average Shares Outstanding - Basic 788 787
=== ===
Weighted-Average Shares Outstanding - Diluted 806 804
=== ===
CARNIVAL CORPORATION & PLC
CONSOLIDATED BALANCE SHEETS
May 31, November 30,
2010 2009
---- ----
(in millions, except par
values)
ASSETS
Current Assets
Cash and cash equivalents $594 $538
Trade and other receivables, net 455 362
Inventories 297 320
Prepaid expenses and other 240 298
--- ---
Total current assets 1,586 1,518
----- -----
Property and Equipment, Net 29,317 29,870
Goodwill 3,214 3,451
Trademarks 1,289 1,346
Other Assets 623 650
--- ---
$36,029 $36,835
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings $808 $135
Current portion of long-term debt 676 815
Convertible debt subject to current
debt option 595
Accounts payable 548 568
Accrued liabilities and other 928 874
Customer deposits 3,208 2,575
----- -----
Total current liabilities 6,763 4,967
----- -----
Long-Term Debt 7,681 9,097
Other Long-Term Liabilities and
Deferred Income 721 732
Shareholders' Equity
Common stock of Carnival Corporation;
$0.01 par value; 1,960 shares
authorized; 645 shares at 2010 and
644 shares at 2009 issued 6 6
Ordinary shares of Carnival plc; $1.66
par value; 214 shares at 2010 and 213
shares at 2009 issued 355 354
Additional paid-in capital 8,059 7,920
Retained earnings 15,830 15,561
Accumulated other comprehensive (loss)
income (1,029) 462
Treasury stock; 32 shares at 2010 and
24 shares at 2009 of Carnival
Corporation and 38 shares at 2010 and
46 shares at 2009 of Carnival plc, at
cost (2,357) (2,264)
------ ------
Total shareholders' equity 20,864 22,039
------ ------
$36,029 $36,835
======= =======
CARNIVAL CORPORATION & PLC
SELECTED INFORMATION
Three Months Ended Six Months Ended
May 31, May 31,
------- -------
2010 2009 2010 2009
---- ---- ---- ----
(in millions, except statistical
information)
STATISTICAL
INFORMATION
Passengers
carried (in
thousands) 2,222 2,029 4,271 3,898
Occupancy
percentage 103.8% 103.3% 103.7% 103.6%
Fuel
consumption
(metric tons
in thousands) 835 799 1,635 1,552
Fuel cost per
metric ton (a) $498 $304 $497 $291
Currency
U.S. dollar to
EUR1 $1.32 $1.33 $1.36 $1.33
U.S. dollar to
BPS1 $1.50 $1.48 $1.55 $1.47
CASH FLOW
INFORMATION
Cash from
operations $1,398 $1,136 $1,794 $1,441
Capital
expenditures $999 $1,650 $2,168 $1,956
Dividends paid $79 $79 $314
SEGMENT
INFORMATION
Revenues
Cruise $3,164 $2,915 $6,251 $5,768
Tour and other 45 48 54 61
Intersegment
elimination (14) (15) (15) (17)
--- --- --- ---
$3,195 $2,948 $6,290 $5,812
====== ====== ====== ======
Operating
expenses
Cruise $2,061 $1,850 $4,145 $3,684
Tour and other 46 50 62 68
Intersegment
elimination (14) (15) (15) (17)
--- --- --- ---
$2,093 $1,885 $4,192 $3,735
====== ====== ====== ======
Selling and
administrative
expenses
Cruise $396 $386 $785 $770
Tour and other 8 7 15 15
--- --- --- ---
$404 $393 $800 $785
==== ==== ==== ====
Depreciation and
amortization
Cruise $339 $308 $676 $610
Tour and other 10 9 18 18
--- --- --- ---
$349 $317 $694 $628
==== ==== ==== ====
Operating
income (loss)
Cruise $368 $371 $645 $704
Tour and other (19) (18) (41) (40)
--- --- --- ---
$349 $353 $604 $664
==== ==== ==== ====
(a) Fuel cost per metric ton is calculated by dividing the cost of
fuel by the number of metric tons consumed.
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES
Gross and net revenue yields were computed by dividing the gross or
net revenues, without rounding, by ALBDs as follows:
Three Months Ended
May 31,
-------
2010 2009
---- ----
(in millions, except ALBDs and yields)
Cruise revenues
Passenger tickets $2,427 $2,242
Onboard and other 737 673
--- ---
Gross cruise revenues 3,164 2,915
Less cruise costs
Commissions, transportation
and other (440) (440)
Onboard and other (106) (110)
---- ----
Net cruise revenues (a) $2,618 $2,365
====== ======
ALBDs (b) 16,575,242 15,329,812
========== ==========
Gross revenue yields (a) $190.90 $190.19
======= =======
Net revenue yields (a) $157.97 $154.24
======= =======
Six Months Ended
May 31,
-------
2010 2009
---- ----
(in millions, except ALBDs and yields)
Cruise revenues
Passenger tickets $4,785 $4,461
Onboard and other 1,466 1,307
----- -----
Gross cruise revenues 6,251 5,768
Less cruise costs
Commissions, transportation
and other (937) (954)
Onboard and other (219) (214)
---- ----
Net cruise revenues (a) $5,095 $4,600
====== ======
ALBDs (b) 32,465,324 29,822,062
========== ==========
Gross revenue yields (a) $192.53 $193.42
======= =======
Net revenue yields (a) $156.91 $154.25
======= =======
Gross and net cruise costs per ALBD were computed by dividing the
gross or net cruise costs, without rounding, by ALBDs as follows:
Three Months Ended
May 31,
-------
2010 2009
---- ----
(in millions, except ALBDs and costs per ALBD)
Cruise operating expenses $2,061 $1,850
Cruise selling and
administrative expenses 396 386
--- ---
Gross cruise costs 2,457 2,236
Less cruise costs included
in net cruise revenues
Commissions, transportation
and other (440) (440)
Onboard and other (106) (110)
---- ----
Net cruise costs (a) $1,911 $1,686
====== ======
ALBDs (b) 16,575,242 15,329,812
========== ==========
Gross cruise costs per ALBD (a) $148.22 $145.90
======= =======
Net cruise costs per ALBD (a) $115.29 $109.95
======= =======
Six Months Ended
May 31,
-------
2010 2009
---- ----
(in millions, except ALBDs and costs per ALBD)
Cruise operating expenses $4,145 $3,684
Cruise selling and
administrative expenses 785 770
--- ---
Gross cruise costs included 4,930 4,454
Less cruise costs
in net cruise revenues
Commissions, transportation
and other (937) (954)
Onboard and other (219) (214)
---- ----
Net cruise costs (a) $3,774 $3,286
====== ======
ALBDs (b) 32,465,324 29,822,062
========== ==========
Gross cruise costs per ALBD (a) $151.87 $149.36
======= =======
Net cruise costs per ALBD (a) $116.25 $110.18
======= =======
NOTES TO NON-GAAP FINANCIAL MEASURES
We use net cruise revenues per ALBD ("net revenue yields") and net
cruise costs per ALBD as significant non-GAAP financial measures
of our cruise segment financial performance. These measures
enable us to separate the impact of predictable capacity changes
from the more unpredictable rate changes that affect our business.
We believe these non-GAAP measures provide a better gauge to
measure our revenue and cost performance instead of the standard
U.S. GAAP-based financial measures. There are no specific rules
for determining our non-GAAP financial measures and, accordingly,
it is possible that they may not be exactly comparable to the
like-kind information presented by other cruise companies, which
is a potential risk associated with using these measures to
(a) compare us to other cruise companies.
Net revenue yields are commonly used in the cruise industry to measure
a company's cruise segment revenue performance and for revenue
management purposes. We use "net cruise revenues" rather than "gross
cruise revenues" to calculate net revenue yields. We believe that
net cruise revenues is a more meaningful measure in determining
revenue yield than gross cruise revenues because it reflects the
cruise revenues earned net of our most significant variable costs,
which are travel agent commissions, cost of air transportation and
certain other variable direct costs associated with onboard and other
revenues. Substantially all of our remaining cruise costs are
largely fixed, except for the impact of changing prices, once our
ship capacity levels have been determined.
Net cruise costs per ALBD is the most significant measure we use to
monitor our ability to control our cruise segment costs rather than
gross cruise costs per ALBD. We exclude the same variable costs that
are included in the calculation of net cruise revenues to calculate
net cruise costs to avoid duplicating these variable costs in these
two non-GAAP financial measures.
We have not provided estimates of future gross revenue yields or
future gross cruise costs per ALBD because the reconciliations of
forecasted net cruise revenues to forecasted gross cruise revenues or
forecasted net cruise costs to forecasted cruise operating expenses
would require us to forecast, with reasonable accuracy, the amount of
air and other transportation costs that our forecasted cruise
passengers would elect to purchase from us (the "air/sea mix").
Since the forecasting of future air/sea mix involves several
significant variables that are relatively difficult to forecast and
the revenues from the sale of air and other transportation
approximate the costs of providing that transportation, management
focuses primarily on forecasts of net cruise revenues and costs
rather than gross cruise revenues and costs. This does not impact,
in any material respect, our ability to forecast our future results,
as any variation in the air/sea mix has no material impact on our
forecasted net cruise revenues or forecasted net cruise costs. As
such, management does not believe that this reconciling information
would be meaningful.
In addition, because a significant portion of our operations utilize
the euro or sterling to measure their results and financial
condition, the translation of those operations to our U.S. dollar
reporting currency results in decreases in reported U.S. dollar
revenues and expenses if the U.S. dollar strengthens against these
foreign currencies and increases in reported U.S. dollar revenues and
expenses if the U.S. dollar weakens against these foreign currencies.
Accordingly, we also monitor and report our two non-GAAP financial
measures assuming the 2010 periods' currency exchange rates have
remained constant with the 2009 periods' rates, or on a "constant
dollar basis," in order to remove the impact of changes in exchange
rates on our non-U.S. dollar cruise operations. We believe that this
is a useful measure since it facilitates a comparative view of the
growth of our business in a fluctuating currency exchange rate
environment.
On a constant dollar basis, net cruise revenues and net cruise costs
would be $2.6 billion and $1.9 billion for the three months ended May
31, 2010 and $5.0 billion and $3.7 billion for the six months ended
May 31, 2010, respectively. On a constant dollar basis, gross cruise
revenues and gross cruise costs would be $3.1 billion and $2.4
billion for the three months ended May 31, 2010 and $6.1 billion and
$4.8 billion for the six months ended May 31, 2010, respectively. In
addition, our non-U.S. dollar cruise operations' depreciation and
net interest expense were impacted by the changes in exchange rates
for the three and six months ended May 31, 2010, compared to the
prior year's comparable period.
ALBDs is a standard measure of passenger capacity for the period,
which we use to perform rate and capacity variance analyses to
determine the main non-capacity driven factors that cause our
cruise revenues and expenses to vary. ALBDs assume that each cabin
we offer for sale accommodates two passengers and is computed by
multiplying passenger capacity by revenue-producing ship
(b) operating days in the period.
SOURCE Carnival Corporation
