Carnival Corporation (NYSE:CCL) Q3 2019 Earnings Conference Call - Final Transcript

Sep 26, 2019 • 10:00 am ET

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Carnival Corporation (NYSE:CCL) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Arnold W. Donald

Good morning to everyone, and welcome to our Third Quarter 2019 Earnings Conference Call. I'm Arnold Donald, President and CEO of Carnival Corporation & plc. Today I'm joined by our Chairman, Micky Arison as well as David Bernstein, our Chief Financial Officer; and Beth Roberts, Senior Vice President, Investor Relations. Thank you all for joining us this morning.

Before I begin, please note that some of our remarks on this call will be forward-looking. Therefore, I must refer you to the cautionary statement in today's press release. As you know our Company has been closely tied to the Bahamas for many decades and I'd like to extend our deepest concern for those affected by Hurricane Dorian. Some of whom were our employees and business partners. As a native of New Orleans, my family and I live through a number of hurricanes, I can only imagine the hardships in the wake of this type of storm.

Now, we've already made meaningful contributions to the rebuilding efforts in the Bahamas, which were matched by the generosity of the Micky and Madeleine Arison Family Foundation. Our ships provided critically important supplies directly to the region very quickly, as did our partnership with Tropical Shipping to collect and deliver needed supplies to the National Emergency Management Agency in the Bahamas. In fact, our entire industry has risen up at this time of need for our friends and partners in the Bahamas.

Two of our private destinations in the region Half Moon Cays and Princess Cays, both very popular destinations for our guests, thankfully sustained minimal damage and we're up and running very quickly. Our joint venture Grand Bahama Shipyard although in the direct path is also up and running with Bahamian residents back at work and providing much needed economic contribution to the recovery of the island. As part of the recovery and rebuilding process, we remain fully committed to our two major new developments. Our exciting Grand Bahama Island development and a second development on Half Moon Cay. Now we will continue our support in the coming months and we have no doubt that the spirit of the Bahamian people will overcome and rebuild to be stronger and more resilient than ever.

Now turning to our financial results. We delivered third quarter adjusted earnings per share of $2.63. That's higher than the midpoint of June guidance by $0.11 per share and $0.27 per share higher than last year's record results. For the full year, we are adjusting the midpoint of our adjusted earnings guidance by $0.05 and narrowing the guidance range from $4.25 to $4.35 to $4.23 to $4.27, primarily due to an $0.08 drag from fuel and currency. Lower unit cost driven largely by our ongoing efforts to leverage our scale, more than offset voice disruptions which in part contributed to lower revenue yields than anticipated in our prior fourth quarter guidance. David will take you through our guidance in greater detail.

Now I'd like to thank our 150,000 employees who go above