Carnival (CCL)

4Q and Full Year Highlights

- 4Q net revenue yields in constant dollars decreased 2.1% compared to the
prior year, which was better than the company's September guidance, down 3 to 4%
- 4Q net cruise costs excluding fuel per available lower berth day ("ALBD")
increased 6.5% in constant dollars driven by higher advertising spend, and was higher
than September guidance, up 3.5 to 4.5%
- 4Q non-GAAP earnings per share (diluted) of $0.04, compared to $0.14 for the
prior year
- Full year non-GAAP earnings per share (diluted) of $1.58, compared to $1.94
for the prior year

Outlook

- At this time, cumulative advance bookings for 2014 are behind the prior
year at prices in line with prior year levels
- Net revenue yields on a constant dollar basis for full year 2014 expected to
be down slightly compared to the prior year
- Net cruise costs excluding fuel per ALBD for full year 2014 expected to be
slightly higher than prior year on a constant dollar basis
- Full year 2014 non-GAAP earnings per share (diluted) expected to be in the
range of $1.40 to $1.80, compared to $1.58 for 2013
- 1Q 2014 non-GAAP losses per share (diluted) expected to be in the range of
$(0.07) to $(0.11), compared to non-GAAP earnings per share of $0.09 in 1Q 2013

President and Chief Executive Officer Arnold Donald commenting on these results:

"Accelerated progress in Carnival Cruise Lines' brand recovery had a positive impact
on fourth quarter results. A steady stream of innovative product initiatives, the launch
of a nationwide marketing campaign and travel agent outreach program, as well as an
industry-leading vacation guarantee fueled the brand's improvement."

"Even in a challenging year, our company continued to produce strong cash from
operations approaching $3 billion, funding our capital commitments and returning value to
shareholders through regular dividend distributions of $775 million and share repurchases
of $100 million."

"We are catching up on booking volumes and gaining momentum as we enter 2014. We
believe the compelling value we have in the marketplace will continue to stimulate strong
demand leading to a solid wave period. We continue to expect revenue yields to turn
positive in the second half of 2014 compared to the prior year."

"With over 100 ships and more than 10 million guests we have a scale advantage that
cannot be replicated in this industry. We are aggressively seeking opportunities to
leverage that scale to drive top line improvement and gain cost efficiencies. To support
that effort, we have realigned our leadership team and processes to achieve greater
collaboration and cooperation. We have heightened our focus on the guest experience and
further exceeding guest expectations. As 2014 progresses, we will commence a number of
strategic initiatives designed to fuel our earnings power, drive cash flow and improve
return on invested capital over time."

2Q Highlights

- 2Q revenues were $3.5b, in line with the prior year
- 2Q net revenue yields in constant dollars decreased 1.9%
- Excluding fuel, constant dollar net cruise costs per available lower berth day
("ALBD") increased 8.8% primarily due to timing of dry-dock expenses, vessel repair
costs and non-recurring items which benefitted the prior year
- 2Q fuel consumption per ALBD decreased 5.7% compared to the prior year
- 2Q Non-GAAP (diluted) earnings per share of $0.09, compared to $0.20 for the
prior year
- 2Q U.S. GAAP (diluted) earnings per share of $0.05 included net unrealized
losses on fuel derivatives of $31m

2013 Outlook

- At this time, cumulative advance bookings for the remainder of 2013 are
behind the prior year at prices below the prior year levels
- Net revenue yields on a constant and current dollar basis for FY 2013 are
expected to be down 2 to 3% compared to the prior year, in line with May guidance
- Excluding fuel, net cruise costs per ALBD for FY 2013 are expected to be
higher by 3.5 to 4.5% on a constant and current dollar basis
- FY 2013 non-GAAP earnings per share (diluted) expected to be in the range of
$1.45 to $1.65, compared to $1.88 for 2012
- 3Q 2013 non-GAAP earnings per share (diluted) expected to be in the range of
$1.25 to $1.33, compared to $1.53 in 3Q 2012

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

"Our 90,000 global team members are dedicated to delivering an outstanding vacation experience to 10 million guests each year. The level of quality, variety and innovation available throughout our fleet has never been greater and our guests are reaping the benefits of truly exceptional vacation values. We are working to more broadly communicate that message through stepped up consumer and trade marketing efforts, as well as strengthened engagement of our travel agent partners. We believe these initiatives,
combined with slower supply growth, will lead to increased yields."

"In addition, we remain focused on reducing our fuel dependence. By year end, we will achieve a 23 percent cumulative reduction in fuel consumption since 2005 and expect our research and development efforts in fuel saving technologies to continue to bear fruit. We have strengthened our management teams in maritime and technical ship operations and product delivery, as well as marketing and communications. We expect the combination of these efforts will drive improved return on invested capital over time."

Dividend

4Q and Full Year Highlights

* 4Q net revenue yields in constant dollars decreased 4.5% compared to the prior year,
which was better than the company's September guidance, down 5 to 6%
* 4Q net cruise costs, excluding fuel, per available lower berth day ("ALBD") decreased
0.9% in constant dollar, less than September guidance, down 2 to 3%
* 4Q non-GAAP earnings per share (diluted) of $0.13, compared to $0.28 for the prior year
* Full year non-GAAP earnings per share (diluted) of $1.88, compared to $2.42 for the
prior year
* Unfavorable changes in fuel prices and currency exchange rates reduced full year 2012
earnings by $300 million or $0.39 per share, compared to the prior year.

2013 Outlook

* Since September, booking volumes for the first three quarters, including Costa, are
running in line with the strong volumes experienced last year at slightly lower prices
* At this time, cumulative advance bookings for 2013 continue to be behind the prior year
at slightly lower prices
* Net revenue yields on a constant dollar basis for full year 2013 expected to be up 1 to
2%
* Net cruise costs excluding fuel per ALBD for full year 2013 expected to be up 1 to 2%
on a constant dollar basis
* Full year 2013 non-GAAP earnings per share (diluted) expected to be in the range of
$2.20 to $2.40, compared to $1.88 for 2012
* 1Q 2013 non-GAAP earnings per share (diluted) expected to be in the range of $0.03 to
$0.07, compared to $0.02 in 1Q 2012

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

"As a result of the Costa Concordia tragedy in January, the past year has been the most challenging in our company's history. However, through the significant efforts of our brand management teams, we were able to maintain full year 2012 net revenue yields (excluding Costa)
in line with the prior year. In addition, we drove down net cruise costs, excluding fuel,
slightly and fuel consumption by four percent."

"Cash from operations of $3.0 billion was more than sufficient to fund $1.8 billion in net capital investments and positioned the company with excess free cash flow to return to shareholders. Our regular quarterly dividend of $0.25 per share, combined with our recently announced special year-end dividend of $0.50 per share, will result in $1.2 billion of dividend distributions to our shareholders. Additionally, since the start of the fiscal year we purchased 3.5 million of the company's shares in the open market at a cost of $120 million."

"We remain well positioned for a recovery in 2013 and beyond evidenced by the demonstrated resilience of our global portfolio of cruise brands, as consumers continue to capitalize on cruising's superior value versus land-based vacation alternatives. We continue to focus on a measured growth strategy through the introduction of two to three new ships per year and the development of emerging cruise markets in Asia."

"Based on 2013 guidance, we estimate that cash from operations will reach $3.3 billion for the year while our capital commitments will be just $2.0 billion. As a result, we anticipate significant free cash flow in 2013, which we intend to continue to return to shareholders."

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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."