SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 17, 2004
Carnival Corporation Carnival plc
(Exact name of registrant (Exact name of registrant
as specified in its charter) as specified in its charter)
Republic of Panama England and Wales
(State or other jurisdiction (State or other jurisdiction
of incorporation) of incorporation)
1-9610 1-15136
(Commission File No.) (Commission File No.)
59-1562976 None
(I.R.S. Employer (I.R.S. Employer
Identification No.) Identification No.)
3655 N.W. 87th Avenue Carnival House, 5 Gainsford Street,
Miami, Florida 33178-2428 London SE1 2NE, United Kingdom
(Address of principal executive (Address of principal executive
offices) offices)
(zip code) (zip code)
(305) 599-2600 011 44 20 7940 5381
(Registrant's telephone number, (Registrant's telephone number,
including area code) including area code)
None None
(Former name and former address, (Former name and former address,
if changed since last report) if changed since last report)
Item 12. Results of Operations and Financial Condition.
On June 17, 2004 Carnival Corporation & plc issued a press release
entitled "Carnival Corporation & plc Reports Record Second Quarter
Earnings and Six Months Earnings," which is set forth below.
All the information contained in this Item 12 is being furnished
solely for informational purposes and Carnival Corporation and Carnival
plc do not intend for any of this information to be incorporated by
reference into filings under the Securities Act of 1933 or the Securities
Exchange Act of 1934.
----------------Press Release, dated June 17, 2004------------------------
FOR IMMEDIATE RELEASE
CARNIVAL CORPORATION & PLC REPORTS RECORD SECOND QUARTER AND
SIX MONTHS EARNINGS
MIAMI (June 17, 2004) -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE:
CUK) reported record net income of $332 million, or $0.41 diluted EPS, on
revenues of $2.3 billion for its second quarter ended May 31, 2004 compared to
pro forma net income of $124 million, or $0.16 diluted EPS, on pro forma
revenues of $1.6 billion for the same quarter in 2003. Reported diluted earnings
per share for the second quarter of 2003 were $0.19. Both the pro forma and
reported 2003 earnings per share were reduced by $0.02 due to litigation and
other charges associated with the dual listed company ("DLC") transaction.
Net income for the six months ended May 31, 2004 was $535 million, or
$0.66 diluted EPS, on revenues of $4.2 billion, compared to pro forma net income
of $272 million, or $0.34 diluted EPS, on pro forma revenues of $3.3 billion for
the same period in 2003. Reported diluted earnings per share for the six months
ended May 31, 2003 were $0.40.
Carnival Corporation and P&O Princess plc entered into a DLC structure on
April 17, 2003, which effectively made Carnival Corporation and P&O Princess plc
a single economic entity ("Carnival Corporation & plc" or the "company"). Also
on that date, P&O Princess plc changed its name to Carnival plc. For reporting
purposes, Carnival Corporation has accounted for the DLC transaction as an
acquisition of Carnival plc as of April 17, 2003.
The company's reported results for the second quarter of 2003 include only
six weeks of the results of Carnival plc. Consequently, the company believes
that the most meaningful comparison of financial results and revenue and cost
metrics is to the comparable 2003 pro forma results and metrics, which reflect
the operations of both Carnival Corporation and Carnival plc as if the companies
had been consolidated throughout 2003. The company has also presented these
metrics on a gross and as reported basis.
Pro Forma Comparisons
Net revenue yields (net revenue per available lower berth day) for
the second quarter of 2004 increased 13.2 percent compared to pro
forma net revenue yields in the prior year, primarily due to higher
net revenue per diems and occupancy levels and, to a lesser extent,
the weak U.S. dollar relative to the euro and sterling. Net revenue
yields as measured on a local currency basis ("constant dollar
basis") increased 10.6 percent over the same period last year. Gross
revenue yields increased 13.2 percent.
Net cruise costs per available lower berth day ("ALBD") for the
second quarter of 2004 were flat compared to pro forma costs for the
same period last year. This result was achieved despite the impact
of the weak dollar, which has the effect of increasing cruise costs
per ALBD. On a constant dollar basis, net cruise costs per ALBD
declined 2.7 percent from the same period last year due to economies
of scale from our 22 percent capacity increase and synergies from
the DLC transaction. Gross cruise costs per ALBD increased 3.4
percent compared to the prior year.
Reported Comparisons
Net revenue yields increased 13.8 percent (16.5 percent gross) for
the second quarter of 2004 compared to the same quarter of 2003
primarily due to the same reasons as the pro forma comparisons. Net
cruise costs per ALBD increased 4.3 percent (10.2 percent gross)
compared to the second quarter of 2003 primarily because of the
impact of the weak U.S. dollar and higher operating costs of the
Carnival plc brands.
"This has been a remarkable quarter," said Micky Arison, Carnival
Corporation & plc Chairman and CEO. "Even with a 22 percent capacity growth, we
achieved a 13 percent improvement in revenue yields. This, along with the
synergies we realized from the P&O Princess combination, contributed to earnings
more than doubling during the second quarter compared to last year's comparable
quarter," he added.
"This quarter also marks the first anniversary of the merger with P&O
Princess and we're very pleased with the progress and performance thus far,"
Arison said. "In addition to a record breaking quarter, we also introduced seven
new ships in just seven months. Despite the ambitious newbuild delivery
schedule, each introduction has been extremely smooth, with all of these ships
enjoying great success in their respective markets."
Three new ships joined the fleet during the second quarter of 2004.
Holland America Line's new 1,848-passenger Westerdam was delivered in April and
launched a series of European cruises. Princess Cruises' 3,114-passenger
Caribbean Princess was also delivered in April and began year-round Caribbean
cruises from Fort Lauderdale, Fla. In addition, the 2,674-passenger Sapphire
Princess was delivered in late May and just entered service last week with an
Alaskan summer program, followed by a series of Pacific cruises beginning in
September.
These vessels joined the four other ships that were introduced in the last
seven months, including the Costa Fortuna in November 2003, Queen Mary 2 in
January 2004, and the Carnival Miracle and Diamond Princess in February 2004.
Comments on Outlook for Remainder of 2004
Looking forward, Arison indicated that he was extremely pleased with the
outlook for the remainder of 2004. Advance booking levels for the second half of
2004 are significantly ahead of last year's levels at this time on a capacity
adjusted basis, with pricing showing continuing strength. "Cruising is an
increasingly popular vacation choice. More customers are booking further in
advance resulting in a notable expansion in the booking curve for the second
half of the year, which is also extending into 2005," Arison explained.
For the full year of 2004, the company currently expects net revenue
yields to increase approximately 6 to 8 percent (4 to 6 percent on a constant
dollar basis), compared to pro forma 2003. Net cruise costs per ALBD for full
year 2004 are expected to be flat to up 2 percent (flat to down 2 percent on a
constant dollar basis), compared to pro forma 2003. Based on these estimates,
and including better than expected second quarter results, and assuming no major
geopolitical events adversely impacting its business, the company expects full
year 2004 earnings per share to be in the range of $2.10 to $2.20 per share,
versus previous guidance of $2.05 to $2.15 per share. The company's current
guidance is based on an exchange rate of $1.19 to the euro and $1.77 to
sterling.
The company expects that net revenue yields for the third quarter of 2004
will increase approximately 6 to 8 percent (4 to 6 percent on a constant dollar
basis), compared to last year's third quarter. Net cruise costs per ALBD in the
third quarter of 2004 are expected to be up 1 to 3 percent (down 1 to up 1
percent on a constant dollar basis), compared to 2003. Based on these estimates,
the company expects earnings per share for the third quarter of 2004 to be in
the range of $1.16 to $1.20.
The company has scheduled a conference call with analysts at 10 a.m. EST
(15.00 London time) today to discuss its 2004 second quarter earnings. This call
can be listened to live and additional information can be obtained via Carnival
Corporation & plc's Web sites at www.carnivalcorp.com and www.carnivalplc.com.
Carnival Corporation & plc is the largest cruise vacation group in the
world, with a portfolio of 12 cruise brands in North America, Europe and
Australia, comprised of Carnival Cruise Lines, Holland America Line, Princess
Cruises, Seabourn Cruise Line, Windstar Cruises, AIDA, Costa Cruises, Cunard
Line, Ocean Village, P&O Cruises, Swan Hellenic, and P&O Cruises Australia.
Together, these brands operate 77 ships totaling more than 128,000 lower
berths with eight new ships scheduled for delivery between November 2004 and
December 2006. Carnival Corporation & plc also operates the leading tour
companies in Alaska and the Canadian Yukon, Holland America Tours and Princess
Tours. 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 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,
plans, outlook, goals and other events which have not yet occurred. You can find
many, but not all, of these statements by looking for words like "will," "may,"
"believes," "expects," "anticipates," "forecast," "future," "intends," "plans,"
and "estimates" and for similar expressions. 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 the
forecasting of earnings per share, net revenue yields, booking levels, pricing,
occupancy, operating, financing and tax costs, costs per available lower berth
day, estimates of ship depreciable lives and residual values, outlook or
business prospects. These factors include, but are not limited to, the
following: achievement of expected benefits from the DLC transaction; risks
associated with the DLC structure; risks associated with the uncertainty of the
tax status of the DLC structure; general economic and business conditions, which
may impact levels of disposable income of consumers and the net revenue yields
for cruise brands of Carnival Corporation & plc; conditions in the cruise and
land-based vacation industries, including competition from other cruise ship
operators and providers of other vacation alternatives and increases in capacity
offered by cruise ship and land-based vacation alternatives; risks associated
with operating internationally; the international political and economic
climate, armed conflicts, terrorist attacks and threats thereof, including the
risk of attack at the 2004 Summer Olympics in Athens, Greece, for which Carnival
Corporation & plc has chartered four of its ships to third parties, availability
of air service, other world events and adverse publicity, and their impact on
the demand for cruises; accidents and other incidents affecting the health,
safety, security and vacation satisfaction of passengers; the ability of
Carnival Corporation & plc to implement its shipbuilding programs and brand
strategies and to continue to expand its business worldwide; the ability of
Carnival Corporation & plc to attract and retain qualified shipboard crew and
maintain good relations with employee unions; the ability to obtain financing on
terms that are favorable or consistent with Carnival Corporation & plc's
expectations; the impact of changes in operating and financing costs, including
changes in foreign currency and interest rates and fuel, food, insurance and
security costs; changes in the tax, environmental, health, safety, security and
other regulatory regimes under which Carnival Corporation & plc operates;
continued availability of attractive port destinations; the ability to
successfully implement cost improvement plans and to integrate business
acquisitions; continuing financial viability of Carnival Corporation & plc's
travel agent distribution system; and weather patterns or natural disasters.
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 disclaims 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.
MEDIA CONTACTS INVESTOR RELATIONS CONTACTS
US US/UK
Carnival Corporation & plc Carnival Corporation & plc
Tim Gallagher Beth Roberts
1 305 599 2600, ext. 16000 1 305 406 4832
UK UK
Brunswick Bronwen Griffiths
Sophie Fitton/Sarah Tovey 44 (0) 23 8052 5231
44 (0) 20 7404 5959
2004 Second Quarter Earnings -
CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended May 31, Six Months Ended May 31,
-------------------------- ------------------------
Reported(1) Pro Forma(2)(3) Reported(1)(3) Reported(1) Pro Forma(2)(3) Reported(1)(3)
----------- --------------- -------------- ----------- --------------- --------------
2004 2003 2003 2004 2003 2003
---- ---- ---- ---- ---- ----
(in millions, except per share data)
Revenues
Cruise
Passenger tickets $ 1,691 $ 1,239 $ 1,008 $ 3,218 $ 2,501 $ 1,808
Onboard and other 529 364 305 976 716 536
Other 36 31 29 45 39 33
------- ------- ------- ------- ------- -------
2,256 1,634 1,342 4,239 3,256 2,377
------- ------- ------- ------- ------- -------
Costs and Expenses
Operating
Cruise
Commissions, transportation
and other 376 280 212 760 592 386
Onboard and other 97 61 44 178 123 72
Payroll and related 249 207 172 486 398 302
Food 137 105 88 264 211 158
Other ship operating 437 351 283 817 687 496
Other 33 31 28 43 41 33
------- ------- ------- ------- ------- -------
Total 1,329 1,035 827 2,548 2,052 1,447
Selling and administrative 322 276 212 638 558 389
Depreciation and amortization 200 156 135 388 307 241
------- ------- ------- ------- ------- -------
1,851 1,467 1,174 3,574 2,917 2,077
------- ------- ------- ------- ------- -------
Operating Income 405 167 168 665 339 300
------- ------- ------- ------- ------- -------
Nonoperating (Expense) Income
Interest income 4 10 9 9 15 13
Interest expense, net of capitalized
Interest (70) (48) (42) (136) (101) (71)
Other (expense) income, net (7) (11)(4) (11)(4) (7) 7(4)(5) 4(4)(5)
------- ------- ------- ------- ------- -------
(73) (49) (44) (134) (79) (54)
------- ------- ------- ------- ------- -------
Income Before Income Taxes 332 118 124 531 260 246
Income Tax Benefit, Net 6 4 4 12 9
------- ------- ------- ------- ------- -------
Net Income $ 332 $ 124 $ 128 $ 535 $ 272 $ 255
======= ======= ======= ======= ======= =======
Earnings Per Share
Basic $ 0.41 $ 0.16 $ 0.19 $ 0.67 $ 0.34 $ 0.40
======= ======= ======= ======= ======= =======
Diluted $ 0.41 $ 0.16 $ 0.19 $ 0.66 $ 0.34 $ 0.40
======= ======= ======= ======= ======= =======
Dividends Per Share $ 0.125 $ 0.105 $ 0.105 $ 0.25 $ 0.21 $ 0.21
======= ======= ======= ======= ======= =======
Weighted-Average Shares
Outstanding - Basic 803 796 689 801 795 638
======= ======= ======= ======= ======= =======
Weighted-Average Shares
Outstanding - Diluted 839 799 690 830 799 639
======= ======= ======= ======= ======= =======
(1) The reported results for 2004 included Carnival Corporation and Carnival
plc and the 2003 reported results only included Carnival plc since April
17, 2003, when the DLC transaction was completed.
(2) See note (a) to the Carnival Corporation & plc "Reported and Pro Forma
GAAP Reconciling Information."
(3) Reclassifications have been made to certain 2003 amounts to conform to the
current period presentation.
(4) Included $16 million of expenses recorded in the three months ended May
31, 2003 related to litigation and other charges associated with the DLC
transaction with P&O Princess plc.
(5) Included $19 million of income from net insurance proceeds, less certain
other nonoperating expenses, recorded in the three months ended February
28, 2003.
2004 Second Quarter Earnings -
CARNIVAL CORPORATION & PLC
SELECTED STATISTICAL AND SEGMENT INFORMATION
Three Months Ended May 31,
--------------------------
Reported Pro Forma Reported
-------- --------- --------
2004 (1) 2003 (2)(3) 2003 (1)(3)
-------- ----------- -----------
(in millions, except statistical information)
STATISTICAL INFORMATION
Passengers carried 1,567,423 1,254,259 1,153,003
Available lower berth days (4) 11,120,445 9,092,025 7,660,571
Occupancy percentage 102.8% 98.2% 98.5%
SEGMENT INFORMATION
Revenues
Cruise $ 2,220 $ 1,603 $ 1,313
Other 43 42 40
Intersegment elimination (7) (11) (11)
------------ ----------- -----------
$ 2,256 $ 1,634 $ 1,342
============ =========== ===========
Operating expenses
Cruise $ 1,296 $ 1,004 $ 799
Other 40 42 39
Intersegment elimination (7) (11) (11)
------------ ----------- -----------
$ 1,329 $ 1,035 $ 827
============ =========== ===========
Selling and administrative expenses
Cruise $ 308 $ 264 $ 203
Other 14 12 9
------------ ----------- -----------
$ 322 $ 276 $ 212
============ =========== ===========
Operating income (loss)
Cruise $ 421 $ 183 $ 178
Other (16) (16) (10)
------------ ----------- -----------
$ 405 $ 167 $ 168
============ =========== ===========
Six Months Ended May 31,
------------------------
Reported Pro Forma Reported
-------- --------- --------
2004 (1) 2003 (2)(3) 2003 (1)(3)
-------- ----------- -----------
(in millions, except statistical information)
STATISTICAL INFORMATION
Passengers carried 2,929,009 2,460,689 2,075,786
Available lower berth days (4) 21,183,100 17,710,254 13,465,330
Occupancy percentage 102.4% 99.3% 100.3%
SEGMENT INFORMATION
Revenues
Cruise $ 4,194 $ 3,217 $ 2,344
Other 54 51 46
Intersegment elimination (9) (12) (13)
------------ ------------ ------------
$ 4,239 $ 3,256 $ 2,377
============ ============ ============
Operating expenses
Cruise $ 2,505 $ 2,011 $ 1,414
Other 52 54 46
Intersegment elimination (9) (13) (13)
------------ ------------ ------------
$ 2,548 $ 2,052 $ 1,447
============ ============ ============
Selling and administrative expenses
Cruise $ 610 $ 533 $ 373
Other 28 25 16
------------ ------------ ------------
$ 638 $ 558 $ 389
============ ============ ============
Operating income (loss)
Cruise $ 702 $ 375 $ 322
Other (37) (36) (22)
------------ ------------ ------------
$ 665 $ 339 $ 300
============ ============ ============
(1) The reported information for 2004 included Carnival Corporation and
Carnival plc and the 2003 reported results only included Carnival plc
since April 17, 2003.
(2) See note (a) to the Carnival Corporation & plc "Reported and Pro Forma
GAAP Reconciling Information."
(3) Reclassifications have been made to certain 2003 amounts to conform to the
current period presentation.
(4) Available lower berth days ("ALBDs") is the total passenger capacity for
the period, assuming two passengers per cabin, that we offer for sale,
which is computed by multiplying passenger capacity by revenue-producing
ship operating days in the period.
2004 Second Quarter Earnings -
CARNIVAL CORPORATION & PLC
REPORTED AND PRO FORMA GAAP RECONCILING INFORMATION
We use net revenue yields to measure our cruise segment revenue performance.
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, Six Months Ended May 31,
-------------------------- ------------------------
Reported Pro Forma Reported Reported Pro Forma Reported
-------- --------- -------- -------- --------- --------
2004 2003 (a) 2003 2004 2003 (a) 2003
---- -------- ---- ---- -------- ----
(in millions, except ALBDs and yields)
Cruise revenues
Passenger tickets $ 1,691 $ 1,239 $ 1,008 $ 3,218 $ 2,501 $ 1,808
Onboard and other 529 364 305 976 716 536
------------ ----------- ----------- ------------ ------------ ------------
Gross cruise revenues 2,220 1,603 1,313 4,194 3,217 2,344
Less cruise costs
Commissions, transportation and other (376) (280) (212) (760) (592) (386)
Onboard and other (97) (61) (44) (178) (123) (72)
------------ ----------- ----------- ------------ ------------ ------------
Net cruise revenues $ 1,747 $ 1,262 $ 1,057 $ 3,256 $ 2,502 $ 1,886
============ =========== =========== ============ ============ ============
ALBDs 11,120,445 9,092,025 7,660,571 21,183,100 17,710,254 13,465,330
============ =========== =========== ============ ============ ============
Gross revenue yields (b) $ 199.62 $ 176.30 $ 171.42 $ 198.02 $ 181.66 $ 174.11
============ =========== =========== ============ ============ ============
Net revenue yields (b) $ 157.06 $ 138.78 $ 137.97 $ 153.74 $ 141.30 $ 140.08
============ =========== =========== ============ ============ ============
We use net cruise costs per ALBD to monitor our ability to control our cruise
segment costs. 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, Six Months Ended May 31,
-------------------------- ------------------------
Reported Pro Forma Reported Reported Pro Forma Reported
-------- --------- -------- -------- --------- --------
2004 2003 (a) 2003 2004 2003 (a) 2003
---- -------- ---- ---- -------- ----
(in millions, except ALBDs and costs per ALBD)
Cruise operating expenses $ 1,296 $ 1,004 $ 799 $ 2,505 $ 2,011 $ 1,414
Cruise selling and administrative expenses 308 264 203 610 533 373
----------- ----------- ----------- ----------- ----------- -----------
Gross cruise costs 1,604 1,268 1,002 3,115 2,544 1,787
Less cruise costs included in net cruise
revenues
Commissions, transportation and other (376) (280) (212) (760) (592) (386)
Onboard and other (97) (61) (44) (178) (123) (72)
----------- ----------- ----------- ----------- ----------- -----------
Net cruise costs $ 1,131 $ 927 $ 746 $ 2,177 $ 1,829 $ 1,329
=========== =========== =========== =========== =========== ===========
ALBDs 11,120,445 9,092,025 7,660,571 21,183,100 17,710,254 13,465,330
=========== =========== =========== =========== =========== ===========
Gross cruise costs per ALBD (b) $ 144.28 $ 139.49 $ 130.98 $ 147.06 $ 143.57 $ 132.64
=========== =========== =========== =========== =========== ===========
Net cruise costs per ALBD (b) $ 101.72 $ 101.97 $ 97.53 $ 102.78 $ 103.20 $ 98.61
=========== =========== =========== =========== =========== ===========
2004 Second Quarter Earnings -
NOTES TO HISTORICAL AND PRO FORMA GAAP RECONCILING INFORMATION
(a) The pro forma information gives pro forma effect to the DLC transaction
between Carnival Corporation and Carnival plc, which was completed on
April 17, 2003, as if the DLC transaction had occurred on December 1,
2002. Management has prepared the pro forma information based upon the
companies' reported financial information and, accordingly, the above
information should be read in conjunction with the companies' financial
statements, as well as pro forma information included in the companies'
joint Current Report on Form 8-K filed on March 5, 2004.
The DLC transaction has been accounted for as an acquisition of Carnival
plc by Carnival Corporation, using the purchase method of accounting. The
Carnival plc accounting policies have been conformed to Carnival
Corporation's policies. Carnival plc's reporting period has been changed
to the Carnival Corporation reporting period and the pro forma information
covers the same periods of time for both companies.
The pro forma information has not been adjusted to reflect any net
transaction benefits from the DLC transaction. In addition, it excludes
$27 million and $51 million for the three and six months ended May 31,
2003, respectively, of nonrecurring DLC transaction costs which were
expensed by Carnival plc prior to April 17, 2003. The exclusion of these
nonrecurring costs is consistent with the requirements of Article 11 of
Regulation S-X. The 2003 pro forma information was computed by adding
Carnival plc's 2003 results, adjusted for acquisition adjustments
(reductions of $4 million and $8 million of depreciation expense and $2
million and $3 million of interest expense for the three and six months
ended May 31, 2003, respectively,) to the 2003 Carnival Corporation
reported results. Finally, the pro forma information does not purport to
represent what the results of operations actually could have been if the
DLC transaction had occurred on December 1, 2002 or what those results
will be for any future periods.
(b) In the cruise industry, most companies, including Carnival Corporation &
plc, generally consider net cruise revenues, which is used in the
computation of net revenue yields, to be a commonly used indicator of
revenue performance rather than gross cruise revenues, and net cruise
costs, which is used in the computation of net cruise costs per ALBD, to
be the most significant measure used to monitor our ability to control
costs rather than gross cruise costs.
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.
------------------End Press Release, dated June 17, 2004------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each
of the registrants has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CARNIVAL CORPORATION CARNIVAL PLC
By: /s/Gerald R. Cahill By: /s/Gerald R. Cahill
------------------- -------------------
Name: Gerald R. Cahill Name: Gerald R. Cahill
Title: Executive Vice President Title: Executive Vice President
and Chief Financial and and Chief Financial and
Accounting Officer Accounting Officer
Date: June 17, 2004 Date: June 17, 2004