Carnival Corp & plc Fourth Quarter Earnings

Carnival Corporation & plc Reports Fourth Quarter and Full Year Earnings

    Carnival Corporation & plc today announced earnings for the fourth quarter and full
year ended November 30, 2011. The earnings of Carnival Corporation and Carnival plc have
been consolidated, and this statement includes consolidated results on a U.S. GAAP basis.

    4Q and Full Year Highlights

    
    - 4Q revenues increased by $199m to $3.7b versus $3.5b in the prior year
    - 4Q net revenue yields in constant dollars increased 1.5% compared to the prior
      year, which was in line with the September guidance, up 1.0 to 2.0%
    - 4Q net cruise costs, excluding fuel, per available lower berth day ("ALBD")
      decreased 1.8% in constant dollar, less than September guidance, down 3.0 to 4.0%
    - Fuel prices increased 39% to $680 per metric ton for 4Q 2011 from $488 per
      metric ton in 4Q 2010, in line with the September guidance of $686 per metric ton
    - 4Q non-GAAP earning per share (diluted) of $0.28, compared to $0.31 for the
      prior year
    - Full year non-GAAP earnings per share (diluted) of $2.42, compared to $2.47
      for the prior year
    - The company recently implemented a fuel derivatives program to mitigate a
      portion of its economic risk attributed to potentially significant fuel price
      increases

    2012 Outlook

    
    - At this time, cumulative advance bookings for 2012 are at slightly higher
      prices with slightly lower occupancies compared to the prior year
    - Net revenue yields on a constant dollar basis for full year 2012 expected to
      be up 1.0 to 2.0%
    - Net cruise costs excluding fuel per ALBD for full year 2012 expected to be in
      line with the prior year on a constant dollar basis
    - Full year 2012 non-GAAP earnings per share (diluted) expected to be in the
      range of $2.55 to $2.85, compared to $2.42 for 2011
    - 1Q 2012 non-GAAP earnings per share (diluted) expected to be in the range of
      $0.06 to $0.10, compared to $0.19 in 1Q 2011


    Chairman and Chief Executive Officer Micky Arison commenting on these results:

    "On the whole, 2011 was an encouraging year for our global portfolio of cruise brands.
Our North American brands performed well, achieving an almost four percent revenue yield
increase, while our European, Australian and Asian brand yields were in line with the
prior year (constant dollars) despite having been significantly impacted by the
geo-political unrest in the Middle East and North Africa. Higher revenue yields partially
offset a 32 percent increase in fuel prices, which reduced earnings by $535 million or
$0.68 per share for the year."

    "Cash from operations of $3.8 billion provided more than ample funding for our $2.7
billion capital investment program and enabled the company to return excess cash to
shareholders. Earlier this year, our quarterly dividend was increased from $0.10 to $0.25
per share resulting in $670 million of dividend distributions. In addition, we purchased
14.8 million of the company's shares in the open market at a cost of $455 million."

    "Our base of business for 2012 is solid and we are experiencing strong booking volumes
leading into wave season, our heaviest booking period which begins in early January.
Despite the uncertain economic environment, we anticipate a continued slow recovery in
yields in 2012 driven by ongoing consumer recognition that our cruises provide an
exceptional value."

    "A wide array of exciting innovations and the continued modernization of our existing
global fleet should drive even greater consumer interest and enthusiasm for our brands. An
example is Carnival Cruise Lines' recently announced Fun Ship 2.0, which is a multi-year
$500 million investment to transform the shipboard experience through exciting
partnerships and new branded spaces. Carnival Liberty, which was recently re-introduced
with several of the new features, has generated exceptional buzz and has been well
received by consumers and travel agents."

    "We remain focused on strategic growth through the addition of two to three new ships
per year and expect to continue to return excess cash to shareholders. Based on the above
guidance, we estimate our cash from operations will approach $4 billion in 2012, while our
capital investment commitment will be $2.6 billion. We expect to generate significant free
cash flow in 2012 and beyond, which should provide further opportunities to return cash to
shareholders."

    MEDIA CONTACT                     INVESTOR RELATIONS CONTACT
    Jennifer de la Cruz               Beth Roberts
    001 305 599 2600, ext. 16000      001 305 406 4832
     
     

    Analyst conference call

    The company has scheduled a conference call with analysts at 3:00 p.m. GMT (10:00 a.m.
EST) today to discuss its 2011 fourth quarter and full year earnings. This call can be
listened to live, and additional information can be obtained, via Carnival Corporation &
plc's Web site at http://www.carnivalcorp.com and http://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, Australia and Asia, comprised of
Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises,
Costa Cruises, Cunard, Ibero Cruises, P&O Cruises (UK) and P&O Cruises (Australia).

    Together, these brands operate 100 ships totaling 199,000 lower berths with 10 new
ships scheduled to be delivered between April 2012 and March 2016. 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.


           CARNIVAL CORPORATION & PLC REPORTS FOURTH QUARTER AND FULL YEAR EARNINGS

    MIAMI, Dec. 20, 2011 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) 
announced non-GAAP net income of $216 million, or $0.28 diluted EPS for the fourth quarter 
of 2011. Reported net income, which includes net unrealized gains on fuel derivatives of 
$1 million, was $217 million, or $0.28 diluted EPS. Net income for the fourth quarter of 
2010 was $248 million, or $0.31 diluted EPS. Revenues for the fourth quarter of 2011 were 
$3.7 billion compared to $3.5 billion for the prior year.

    Non-GAAP net income for the full year 2011 was $1.9 billion, or $2.42 diluted EPS,
compared to net income of $2.0 billion, or $2.47 diluted EPS, for the prior year. Full
year 2011 reported net income was $1.9 billion, or $2.42 diluted EPS. Revenues for the
full year 2011 were $15.8 billion compared to $14.5 billion for the prior year.

    The company recently implemented a fuel derivatives program to mitigate a portion of
its economic risk attributable to potentially significant fuel price increases. The
company believes it is more meaningful to evaluate its earnings performance by excluding
the impact of unrealized gains and losses on its fuel derivatives from non-GAAP net income
and diluted earnings per share until the gains or losses are realized. For further
information on the company's fuel derivatives program see "Fuel Derivatives" below.

    Carnival Corporation & plc Chairman and CEO Micky Arison noted that earnings on a
non-GAAP basis were in line with the company's September guidance for the fourth quarter
of 2011.

    Commenting on 2011 full year results, Arison said, "On the whole, 2011 was an
encouraging year for our global portfolio of cruise brands. Our North American brands
performed well, achieving an almost four percent revenue yield increase, while our
European, Australian and Asian brand yields were in line with the prior year (constant
dollars) despite having been significantly impacted by the geo-political unrest in the
Middle East and North Africa. Higher revenue yields partially offset a 32 percent increase
in fuel prices, which reduced earnings by $535 million or $0.68 per share for the year."

    Arison added, "Cash from operations of $3.8 billion provided more than ample funding
for our $2.7 billion capital investment program and enabled the company to return excess
cash to shareholders. Earlier this year, our quarterly dividend was increased from $0.10
to $0.25 per share resulting in $670 million of dividend distributions. In addition, we
purchased 14.8 million of the company's shares in the open market at a cost of $455
million."

    Key metrics for the fourth quarter 2011 compared to the prior year were as follows:

    
    - On a constant dollar basis net revenue yields (net revenue per available
      lower berth day,"ALBD") increased 1.5 percent for 4Q 2011, which was in 
      line with the company's September guidance, up 1.0 to 2.0 percent. Gross revenue 
      yields increased 0.3 percent in current dollars.
    - Net cruise costs excluding fuel per ALBD decreased 1.8 percent in constant
      dollars, less than the September guidance, down 3.0 to 4.0 percent. Gross cruise 
      costs including fuel per ALBD in current dollars increased 2.6 percent.
    - Fuel prices increased 39 percent to $680 per metric ton for 4Q 2011 from $488
      per metric ton in 4Q 2010 and was in line with the September guidance of $686 per
      metric ton.
    - The company implemented a fuel derivatives program in 4Q 2011, which resulted
      in $1 million of net unrealized gains on its portfolio of fuel derivatives. There 
      were no realized gains or losses on fuel derivatives during 4Q 2011.


    Full Year 2012 Outlook

    At this time, cumulative advance bookings for 2012 are at slightly higher prices with
slightly lower occupancies compared to the prior year. For the last six weeks, booking
volumes for the first three quarters of 2012 are running well ahead of the prior year at
lower prices.

    Looking forward, Arison stated, "Our base of business for 2012 is solid and we are
experiencing strong booking volumes leading into wave season, our heaviest booking period
which begins in early January. Despite the uncertain economic environment, we anticipate a
continued slow recovery in yields in 2012 driven by ongoing consumer recognition that our
cruises provide an exceptional value."

    He added, "A wide array of exciting innovations and the continued modernization of our
existing global fleet should drive even greater consumer interest and enthusiasm for our
brands. An example is Carnival Cruise Lines' recently announced Fun Ship 2.0, which is a
multi-year $500 million investment to transform the shipboard experience through exciting
partnerships and new branded spaces. Carnival Liberty, which was recently re-introduced
with several of the new features, has generated exceptional buzz and has been well
received by consumers and travel agents."

    Based on current booking trends, the company forecasts full year 2012 net revenue
yields, on a constant dollar basis, to be up 1.0 to 2.0 percent. The company expects net
cruise costs excluding fuel per ALBD for the full year 2012 to be in line with the prior
year on a constant dollar basis. At current exchange rates, full year 2012 net income is
expected to be reduced by $135 million or $0.17 per share compared to 2011 due to changes
in currency exchange rates.

    Taking all the above factors into consideration, the company forecasts full year 2012
non-GAAP diluted earnings per share to be in the range of $2.55 to $2.85, compared to 2011
non-GAAP diluted earnings of $2.42 per share.

    Arison added, "We remain focused on strategic growth through the addition of two to
three new ships per year and expect to continue to return excess cash to shareholders.
Based on the above guidance, we estimate our cash from operations will approach $4 billion
in 2012, while our capital investment commitment will be $2.6 billion. We expect to
generate significant free cash flow in 2012 and beyond, which should provide further
opportunities to return cash to shareholders."

    During 2012, the company will introduce three new ships. Costa Fascinosa is scheduled
for delivery in April, while AIDAmar and Carnival Breeze are scheduled for delivery in
May. Recently, P&O Cruises (Australia) sold Pacific Sun which will leave the fleet in July
2012.

    First Quarter 2012 Outlook

    First quarter constant dollar net revenue yields are expected to increase 1.5 to 2.5
percent compared to the prior year. Net cruise costs excluding fuel per ALBD for the first
quarter are expected to be up 3.5 to 4.5 percent on a constant dollar basis compared to
the prior year due primarily to the higher number of dry-dock days and related costs
versus the prior year. Fuel costs for the first quarter are expected to increase $93
million compared to the prior year, costing an additional $0.12 per share.

    Based on the above factors, including the higher fuel prices, the company expects
non-GAAP diluted earnings for the first quarter 2012 to be in the range of $0.06 to $0.10
per share versus 2011 non-GAAP earnings of $0.19 per share.



    Selected Key Forecast Metrics 
    
                          Full Year 2012               First Quarter 2012
    Year over        Current          Constant       Current        Constant
    year change:     Dollars           Dollars       Dollars         Dollars
    Net revenue
    yields       (1.5) to (0.5)%    1.0 to 2.0%    0.5 to 1.5%     1.5 to 2.5%
    Net cruise
    costs
    excl. fuel
    / ALBD       (3.0) to (2.0)%    (0.5) to 0.5%  2.5 to 3.5%     3.5 to 4.5%

    
                                                              
                                             Full Year 2012   First Quarter 2012
    Fuel price per metric ton                          $650                 $652
    Fuel consumption (metric tons in
    thousands)                                        3,470                  860
    Currency: Euro                            $1.30 to EUR1        $1.30 to EUR1
              Sterling                     $1.55 to 1 pound     $1.55 to 1 pound



    Fuel Derivatives

    As noted above, the company recently implemented a fuel derivatives program to
mitigate a portion of its economic risk attributable to potentially significant fuel price
increases. As part of the company's fuel derivatives program, the company will evaluate
various derivative products and strategies.

    To date under this program, the company has bought Brent crude oil ("Brent") call
options and sold Brent put options, collectively referred to as zero cost collars, that
established ceiling and floor Brent prices. During the fourth quarter of 2011, the company
entered into zero cost collars for approximately 10 percent of its estimated fuel
consumption for the second half of fiscal 2012 through fiscal 2015. The company will not
realize any economic gain or loss upon the maturity of these zero cost collars unless the
price of Brent is above the ceiling price or below the floor price.

    The company designed its fuel derivatives program to maximize operational flexibility
by utilizing derivative markets with significant trading liquidity. Although these
derivatives act as economic hedges, hedge accounting is not applied. Accordingly, the
impact of any realized gains and losses on fuel derivatives that mature during each
period, as well as any changes in unrealized gains and losses resulting from
mark-to-market adjustments on our outstanding fuel derivatives, are recorded as a
nonoperating item in the Statements of Income. The company's references to fuel prices and
fuel costs exclude the impact of its fuel derivatives program.

    The company believes it is more meaningful to evaluate its earnings performance by
excluding the impact of unrealized gains and losses on its fuel derivatives from non-GAAP
net income and diluted earnings per share until the gains or losses are realized.

    At November 30, 2011, the company's outstanding fuel derivatives consisted of zero
cost collars on Brent for a portion of the company's estimated fuel exposure as follows:

    
                                                                  
                                                      
                                    Weighted-        Weighted-     Percent of
                   Brent Barrels     average          average     estimated fuel
    Maturities(a) (in thousands)   floor price     ceiling price   consumption
      Q3-Q4 2012      1,044           $75              $135           10%
        2013          2,112           $74              $132           10%
        2014          2,112           $71              $128           10%
        2015          2,160           $71              $125           10%

    (a) Fuel derivatives mature evenly over each quarter within the above periods.

    Conference Call

    The company has scheduled a conference call with analysts at 10:00 a.m. EST (3:00 p.m.
GMT) today to discuss its 2011 fourth quarter and full year earnings. This call can be
listened to live, and additional information can be obtained, via Carnival Corporation &
plc's Web site at http://www.carnivalcorp.com and http://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, Australia and Asia, comprised of
Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises,
Costa Cruises, Cunard, Ibero Cruises, P&O Cruises (UK) and P&O Cruises (Australia).

    Together, these brands operate 100 ships totaling 199,000 lower berths with 10 new
ships scheduled to be delivered between April 2012 and March 2016. 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," "target" 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 that may
impact, among other things, the forecasting of Carnival Corporation & plc's non-GAAP
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; fluctuations in foreign currency exchange rates; the
international political climate, armed conflicts, terrorist and pirate attacks, vessel
seizures, and threats thereof, and other world events affecting the safety and security of
travel; competition from and overcapacity in the cruise ship or land-based vacation
businesses; accidents, the spread of contagious diseases and threats thereof, adverse
weather conditions or natural disasters and other incidents affecting the health, safety,
security and satisfaction of guests and crew; negative publicity concerning the cruise
business in general, or Carnival Corporation & plc in particular, including any adverse
environmental or community impacts of cruising; lack of continuing availability of
attractive, convenient and safe port destinations; changes in and compliance with laws and
regulations relating to the protection of persons with disabilities, employment,
environment, health, safety, security, tax and other regulations under which Carnival
Corporation & plc operates; economic, market and political factors that are beyond
Carnival Corporation & plc's control, which could increase its operating, financing and
other costs, especially its fuel expenditures; volatility in fuel prices; the ability of
Carnival Corporation & plc to implement its shipbuilding programs and ship repairs,
maintenance and refurbishments on terms that are favorable or consistent with its
expectations; increases in Carnival Corporation & plc's repairs and maintenance expenses
and refurbishment costs as its fleet ages; the continued strength of Carnival Corporation
& plc's cruise brands and its ability to implement its brand strategies; Carnival
Corporation & plc's international operations are subject to additional risks not generally
applicable to its U.S. operations; geographic regions in which Carnival Corporation & plc
tries to expand its business may be slow to develop and ultimately not develop how it
expects; 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; the impact of disruptions in the global financial markets or other events
may negatively affect the ability of Carnival Corporation & plc's counterparties and
others to perform their obligations; continuing financial viability of Carnival
Corporation & plc's travel agent distribution system, air service providers and other key
vendors in its supply chain 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 and other networks and operations, and breaches
in data security; loss of key personnel or Carnival Corporation & plc's ability to recruit
or retain qualified personnel; union disputes and other employee relation issues; and
risks associated with the dual listed company arrangement. 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 stock exchange 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 INCOME
                                   (UNAUDITED)
                       (in millions, except per share data)

                                           Three Months          Twelve Months
                                               Ended                 Ended
                                            November 30,          November 30,
                                         2011       2010       2011       2010
    Revenues
    Cruise
    Passenger tickets                 $ 2,821    $ 2,666   $ 12,158   $ 11,084
    Onboard and other                     847        791      3,357      3,104
    Tour and other                         28         40        278        281
                                        3,696      3,497     15,793     14,469
    Costs and Expenses
    Operating
    Cruise
    Commissions,
    transportation and
    other                                 549        561      2,461      2,272
    Onboard and other                     128        124        506        474
    Payroll and
    related                               442        411      1,723      1,611
    Fuel                                  583        413      2,193      1,622
    Food                                  236        222        965        869
    Other ship
    operating                             606        587      2,247      2,032
    Tour and other                         25         38        204        212
    Total                               2,569      2,356     10,299      9,092
    Selling and
    administrative                        434        433      1,717      1,614
    Depreciation and
    amortization                          385        367      1,522      1,416
                                        3,388      3,156     13,538     12,122

     Operating Income                     308        341      2,255      2,347
     
    Nonoperating
    (Expense) Income
    Interest income                         3          2         11         12
    Interest expense,
    net of capitalized
    interest                             (92)       (93)      (365)      (378)
    Gains on fuel
    derivatives, net                        1 (a)      -          1 (a)      -
    Other (expense)
    income, net                          (11)          5         10        (2)
                                         (99)       (86)      (343)      (368)
    Income Before
     Income Taxes                         209        255      1,912      1,979
     
    Income Tax Benefit
    (Expense), Net                          8        (7)          -        (1)
                                                                            
     Net Income                         $ 217      $ 248    $ 1,912    $ 1,978
     
    Earnings Per Share
    Basic                              $ 0.28     $ 0.31     $ 2.43     $ 2.51
     Diluted                           $ 0.28     $ 0.31     $ 2.42     $ 2.47
     
    Non-GAAP Earnings
     Per Share-Diluted                 $ 0.28 (b) $ 0.31     $ 2.42 (b) $ 2.47
     
    Dividends Declared
     Per Share                         $ 0.25     $ 0.10     $ 1.00     $ 0.40
     
    Weighted-Average Shares 
    Outstanding - Basic                   778        789        787        788
    Weighted-Average Shares
    Outstanding - Diluted                 780        801        789        805


    (a) There were no realized gains or losses on fuel derivatives.
    (b) Excludes $1 million of net unrealized gains on fuel derivatives.


    



                           CARNIVAL CORPORATION & PLC
                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)
                        (in millions, except par values)

                                                       November 30,
                                                  2011            2010
    ASSETS
    Current Assets
    Cash and cash equivalents                    $ 450           $ 429
    Trade and other receivables, net               263             248
    Inventories                                    374             320
    Prepaid expenses and other                     225             247
     Total current assets                        1,312           1,244
     
     Property and Equipment, Net                32,054          30,967
     
     Goodwill                                    3,322           3,320
     
     Other Intangibles                           1,330           1,320
     
    Other Assets                                   619             639     
                                              $ 38,637        $ 37,490
    LIABILITIES AND SHAREHOLDERS'
    EQUITY
    Current Liabilities
    Short-term borrowings                        $ 281           $ 740
    Current portion of long-term
    debt                                         1,019             613
    Accounts payable                               576             503
    Accrued liabilities and other                1,123           1,094
    Customer deposits                            3,106           2,805
     Total current liabilities                   6,105           5,755
     
     Long-Term Debt                              8,053           8,011
     
    Other Long-Term Liabilities and
     Deferred Income                               647             693
     
    Shareholders' Equity
    Common stock of Carnival
    Corporation, $0.01 par value;
    1,960 shares authorized; 647
    shares at 2011 and
    646 shares at 2010 issued                        6               6
    Ordinary shares of Carnival plc,
    $1.66 par value; 215
    shares at 2011 and 214 shares at
    2010 issued                                    357             355
    Additional paid-in capital                   8,180           8,094
    Retained earnings                           18,349          17,224
    Accumulated other comprehensive
    loss                                         (209)           (254)
    Treasury stock, 52 shares at
    2011 and 39 shares at 2010
    of Carnival Corporation and 33
    shares at 2011 and
    31 shares at 2010 of Carnival
    plc, at cost                               (2,851)         (2,394)
    Total shareholders' equity                  23,832          23,031
                                                     
                                              $ 38,637        $ 37,490






                           CARNIVAL CORPORATION & PLC
                                OTHER INFORMATION
                                                             
                                      Three Months Ended    Twelve Months Ended
                                         November 30,          November 30,
                                       2011       2010       2011        2010
    STATISTICAL INFORMATION
    Passengers
    carried (in
    thousands)                        2,367      2,259      9,559       9,147
    Occupancy
    percentage (a)                   103.2%     103.8%     106.2%      105.6%
    Fuel
    consumption
    (metric tons
    in thousands)                       858        846      3,395       3,319
    Fuel cost per
    metric tons
    consumed                          $ 680      $ 488      $ 646       $ 489
    Currencies
    U.S. dollar to EUR1              $ 1.37     $ 1.35     $ 1.40      $ 1.33
    U.S. dollar to 1 pound           $ 1.58     $ 1.58     $ 1.60      $ 1.55
    U.S. dollar to Australian
     dollar                          $ 1.02      $ .97     $ 1.03       $ .91
     
    CASH FLOW INFORMATION
    Cash from operations              $ 749      $ 734    $ 3,766     $ 3,818
    Capital expenditures              $ 261      $ 741    $ 2,696     $ 3,579
    Dividends paid                    $ 197       $ 79      $ 671       $ 237


    (a) In accordance with cruise business practice, occupancy is calculated using a
denominator of two passengers per cabin even though some cabins can accommodate three or
more passengers. Percentages in excess of 100% indicate that on average more than two
passengers occupied some cabins.



    
                               CARNIVAL CORPORATION & PLC
                              NON-GAAP FINANCIAL MEASURES


    Consolidated gross and net revenue yields were computed by dividing the
    gross and net cruise revenues, without rounding, by ALBDs as follows
    (dollars in millions, except yields) (a) (b):
     
     

                          Three Months Ended              Twelve Months Ended
                             November 30,                     November 30,
                                    2011                             2011
                                Constant                         Constant
                         2011     Dollar       2010       2011     Dollar       2010
    Passenger
    ticket
    revenues          $ 2,821    $ 2,805    $ 2,666   $ 12,158   $ 11,901   $ 11,084
    Onboard and
    other revenues        847        842        791      3,357      3,299      3,104
    Gross cruise
    revenues            3,668      3,647      3,457     15,515     15,200     14,188
    Less cruise
    costs
    Commissions,
    transportation
    and other           (549)      (547)      (561)    (2,461)    (2,421)    (2,272)
    Onboard and
    other               (128)      (126)      (124)      (506)      (495)      (474)
                        (677)      (673)      (685)    (2,967)    (2,916)    (2,746)

    Net passenger
    ticket
    revenues            2,272      2,258      2,105      9,697      9,480      8,812
    Net onboard
    and other
     revenues             719        716        667      2,851      2,804      2,630
     
    Net cruise
     revenues         $ 2,991    $ 2,974    $ 2,772   $ 12,548   $ 12,284   $ 11,442
     
     ALBDs (c)     17,792,044 17,792,044 16,824,720 69,970,910 69,970,910 66,545,164
     
    Gross revenue
    yields           $ 206.19   $ 205.03   $ 205.48   $ 221.74   $ 217.24   $ 213.21
    % increase
    (decrease) vs.
     2010                0.3%     (0.2)%                  4.0%       1.9%
     
    Net revenue
    yields           $ 168.15   $ 167.17   $ 164.74   $ 179.35   $ 175.56   $ 171.94
    % increase vs.
     2010                2.1%       1.5%                  4.3%       2.1%
     
    Net passenger
    ticket revenue
    yields           $ 127.72   $ 126.93   $ 125.07   $ 138.60   $ 135.49   $ 132.41
    % increase vs.
     2010                2.1%       1.5%                  4.7%       2.3%
     
    Net onboard
    and other
    revenue yields    $ 40.43    $ 40.23    $ 39.67    $ 40.75    $ 40.07    $ 39.52
    % increase vs.
    2010                 1.9%       1.4%                  3.1%       1.4%



    Consolidated gross and net cruise costs and net cruise costs excluding fuel per ALBD
were computed by dividing the gross and net cruise costs and net cruise costs excluding
fuel, without rounding, by ALBDs as follows (dollars in millions, except costs per ALBD)
(a) (b):



    
                        Three Months Ended               Twelve Months Ended
                           November 30,                   November 30,
                                      2011                                2011
                                  Constant                            Constant
                          2011      Dollar        2010        2011      Dollar        2010
    Cruise
    operating
    expenses           $ 2,544     $ 2,535     $ 2,318    $ 10,095     $ 9,952     $ 8,880
    Cruise selling
    and
    administrative
    expenses (d)           433         430         425       1,696       1,666       1,583
    Gross cruise
    costs                2,977       2,965       2,743      11,791      11,618      10,463
    Less cruise
    costs included
    in net
    cruise
    revenues
    Commissions,
    transportation
    and other            (549)       (547)       (561)     (2,461)     (2,421)     (2,272)
    Onboard and
    other                (128)       (126)       (124)       (506)       (495)       (474)
    Net cruise
    costs                2,300       2,292       2,058       8,824       8,702       7,717
    Less fuel            (583)       (583)       (413)     (2,193)     (2,193)     (1,622)
    Net cruise
    costs
    excluding fuel     $ 1,717     $ 1,709     $ 1,645     $ 6,631     $ 6,509     $ 6,095
     
    ALBDs (c)       17,792,044  17,792,044  16,824,720  69,970,910  69,970,910  66,545,164
     
    Gross cruise
    costs per ALBD    $ 167.28    $ 166.66    $ 163.03    $ 168.51    $ 166.05    $ 157.23
    % increase vs.
     2010                 2.6%        2.2%                    7.2%        5.6%
     
    Net cruise
    costs per ALBD    $ 129.24    $ 128.80    $ 122.30    $ 126.11    $ 124.37    $ 115.96
    % increase vs.
     2010                 5.7%        5.3%                    8.8%        7.3%
     
    Net cruise
    costs
    excluding fuel
    per ALBD           $ 96.47     $ 96.03     $ 97.77     $ 94.76     $ 93.02     $ 91.59
    % (decrease)
    increase vs.
    2010                (1.3)%      (1.8)%                    3.5%        1.6%




    Non-GAAP fully diluted earnings per share was computed as follows (in millions, except
    per share data) (b) (e):
     
     
                                    Three Months Ended       Twelve Months Ended
                                        November 30,             November 30,
                                      2011      2010          2011      2010
    Net income - diluted
    U.S. GAAP net income
                                                                                                    
    Unrealized gains on fuel                                                                   
    derivatives, net 
    Non-GAAP net income              $ 217     $ 250       $ 1,912   $ 1,989
                                       (1)         -           (1)         -
                                                                                                   
    Weighted-average shares          $ 216     $ 250       $ 1,911   $ 1,989
    outstanding - diluted
                                       780       801           789       805
    Earnings per share - diluted
    U.S. GAAP earnings per share    $ 0.28    $ 0.31        $ 2.42    $ 2.47
    Unrealized gains on fuel
    derivatives, net                     -         -             -         -
    Non-GAAP earnings per share     $ 0.28    $ 0.31        $ 2.42    $ 2.47



    Notes to Non-GAAP Financial Measures

    (a) We use net cruise revenues per ALBD ("net revenue yields"), net cruise costs per
ALBD and net cruise costs excluding fuel 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 useful information to
investors and expanded insight to measure our revenue and cost performance as a supplement
to our consolidated financial statements.

    Net revenue yields are commonly used in the cruise business 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 and other
transportation, certain other costs that are directly associated with onboard and other
revenues and credit card fees. 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 passenger ticket revenues reflect gross cruise revenues, net of (1) onboard and
other revenues, (2) commissions, transportation and other costs and (3) onboard and other
cruise costs. Net onboard and other revenues reflect gross cruise revenues, net of (1)
passenger ticket revenues, (2) commissions, transportation and other costs and (3) onboard
and other cruise costs. Net passenger ticket revenue yields and net onboard and other
revenue yields are computed by dividing net passenger ticket revenues and net onboard and
other revenues by ALBDs.

    Net cruise costs per ALBD and net cruise costs excluding fuel per ALBD are the most
significant measures 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 with and
without fuel to avoid duplicating these variable costs in our non-GAAP financial measures.

    We have not provided estimates of future gross revenue yields or future gross cruise
costs per ALBD because the quantitative reconciliations of forecasted gross cruise
revenues to forecasted net cruise revenues or forecasted gross cruise costs to forecasted
net cruise costs would include a significant amount of uncertainty in projecting the costs
deducted to arrive at this measure. As such, management does not believe that this
reconciling information would be meaningful.

    In addition, because our Europe, Australia & Asia cruise brands utilize the euro,
sterling and Australian dollar to measure their results and financial condition, the
translation of those operations to our U.S. dollar reporting currency results in increases
in reported U.S. dollar revenues and expenses if the U.S. dollar weakens against these
foreign currencies and decreases in reported U.S. dollar revenues and expenses if the U.S.
dollar strengthens against these foreign currencies. Accordingly, we also monitor and
report these non-GAAP financial measures assuming the 2011 periods' currency exchange
rates have remained constant with the 2010 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 of business trends since it
facilitates a comparative view of the growth of our business in a fluctuating currency
exchange rate environment.

    (b) Our consolidated financial statements are prepared in accordance with generally
accepted accounting principles in the United States ("U.S. GAAP"). The presentation of our
non-GAAP financial information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared in accordance with U.S.
GAAP. There are no specific rules for determining our non-GAAP current and constant dollar
financial measures and, accordingly, they are susceptible to varying calculations, and it
is possible that they may not be exactly comparable to the like-kind information presented
by other companies, which is a potential risk associated with using these measures to
compare us to other companies.

    (c) 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 operating days in the period.

    (d) For the three and twelve months ended November 30, 2011, selling and
administrative expenses were $434 million ($433 million in 2010) and $1.7 billion ($1.6
billion in 2010), respectively. For the three and twelve months ended November 30, 2011,
selling and administrative expenses were comprised of cruise selling and administrative
expenses of $433 million ($425 million in 2010) and $1.7 billion ($1.6 billion in 2010)
and Tour and Other selling and administrative expenses of $1 million ($8 million in 2010)
and $21 million ($31 million in 2010), respectively.

    (e) Under U.S. GAAP, the realized and unrealized gains and losses on fuel derivatives
not qualifying as fuel hedges are immediately recognized in earnings. We believe that
unrealized gains and losses on fuel derivatives are not an indication of our future
earnings performance since they may not ultimately be realized in our future earnings.
Therefore, we believe it is more meaningful for the unrealized gains and losses on fuel
derivatives to be excluded from our earnings per share ("EPS") and, accordingly, we
present a non-GAAP EPS excluding these unrealized gains and losses.

    We have not included in our earnings guidance any estimates of unrealized gains and
losses on fuel derivatives because forecasting these amounts involves a significant amount
of uncertainty and are not an indication of our future earnings performance. Accordingly,
our earnings guidance is presented on a non-GAAP basis only. As a result, we did not
present a reconciliation between forecasted non-GAAP diluted EPS guidance and forecasted
U.S. GAAP diluted EPS guidance, since we do not believe that the reconciliation
information would be meaningful.

    For 2010, diluted net income included an add-back of interest expense on dilutive
convertible notes.

SOURCE Carnival Corporation

    CONTACT: MEDIA CONTACT: Jennifer De La Cruz, [phone], ext. 16000, or INVESTOR
RELATIONS CONTACT: Beth Roberts, [phone]