Amtrak 2013 Annual Report Download - page 18

Download and view the complete annual report

Please find page 18 of the 2013 Amtrak annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 107

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107

Amtrak Annual Report 2013 | 19
Management’s Discussion and Analysis of Financial Condition and Results
of Operations
The following is a discussion of Amtrak’s results of operations and certain changes in its financial
position and liquidity for the periods covered by the Consolidated Financial Statements included in
this Annual Report. This discussion should be read in conjunction with the Consolidated Financial
Statements, the related notes, and other information included in this Annual Report.
FORWARD-LOOKING STATEMENT DISCLOSURE
This Management’s Discussion and Analysis of Financial Condition and Results of Operations
(“MD&A”) contains forward-looking statements that may be identified by the use of words like
“believe,” “expect,” “anticipate,” “project” and similar expressions. Forward-looking statements
reflect management’s good-faith evaluation of information currently available and are subject to a
number of risks and uncertainties, including but not limited to the risks and uncertainties set forth
below:
• If we do not receive sufficient federal government funding, our ability to operate in our
current form may be adversely affected;
• Our business is subject to federal, and to some state and local, laws and regulations;
• Our business is capital intensive and without sufficient capital investment, we may be unable
to maintain and improve current infrastructure and rolling stock;
• Our business is subject to numerous operational risks, such as changes in general economic,
weather, or other conditions, equipment failure, disruption of our supply chain, war, acts of
terrorism, and other catastrophic events which could result in significant disruptions to our
operations, increased expenses or decreased revenues;
• Large portions of our operating costs are driven by prices for diesel fuel and electricity;
spikes in energy costs can greatly affect our ability to fund other programs and projects that
are necessary to achieve our goals;
• Most of our employees are represented by unions, and failure to negotiate reasonable
collective bargaining agreements may result in strikes, work stoppages or substantially higher
ongoing labor costs;
• Catastrophic events could result in liabilities exceeding our insurance coverage; and
• Any decline in the economy that reduces business travel or depresses consumer spending in
the U.S. could have a negative impact on us.
Forward-looking statements are not guarantees of future performance and actual results may differ
materially from those envisaged by such forward-looking statements. Accordingly, readers should
not place undue reliance on any such forward-looking statements. Forward-looking statements
speak only as of the date of this Annual Report. Amtrak does not assume any obligation to update
or revise any forward-looking statement, whether as a result of new information, future events and
developments, or otherwise.
GENERAL BUSINESS DESCRIPTION
Our principal business is to provide rail passenger service in the major intercity travel markets of
the United States. In addition to our core business of intercity passenger railroad operations, we en-
gage in related ancillary businesses that include:
• operating commuter railroads on behalf of various states and transit agencies;
• providing infrastructure access to commuter agencies and freight railroads;