CVS 2003 Annual Report Download - page 27

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CAUTIONARY STATEMENT CONCERNING
FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 (the
“Reform Act”) provides a safe harbor for forward-looking
statements made by or on behalf of CVS Corporation.
The Company and its representatives may, from time to
time, make written or verbal forward-looking statements,
including statements contained in the Company’s filings
with the Securities and Exchange Commission and in its
reports to stockholders. Generally, the inclusion of the
words “believe,” “expect,” “intend,” “estimate,” “project,”
“anticipate,” “will” and similar expressions identify
statements that constitute forward-looking statements.
All statements addressing operating performance of CVS
Corporation or any subsidiary, events or developments
that the Company expects or anticipates will occur in
the future, including statements relating to sales growth,
earnings or earnings per common share growth, free
cash flow, debt rating, inventory levels, inventory turn
and loss rates, store development, relocations and new
market entries, as well as statements expressing optimism
or pessimism about future operating results or events,
are forward-looking statements within the meaning of
the Reform Act. The forward-looking statements are
and will be based upon management’s then-current views
and assumptions regarding future events and operating
performance, and are applicable only as of the dates of
such statements. The Company undertakes no obligation to
update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.
By their nature, all forward-looking statements involve risks
and uncertainties. Actual results may differ materially from
those contemplated by the forward-looking statements for
a number of reasons, including, but not limited to:
—The continued efforts of health maintenance
organizations, managed care organizations, pharmacy
benefit management companies, governmental entities
and other third party payors to reduce prescription drug
costs and pharmacy reimbursement rates;
—The growth of mail order pharmacies and changes
to pharmacy benefit plans requiring maintenance
medications to be filled exclusively through mail
order pharmacies;
—Increased competition from other drugstore chains,
supermarkets, discount retailers, membership clubs,
and internet companies as well as changes in consumer
preferences or loyalties;
—The frequency and rate of introduction of successful
new prescription drugs;
—Our ability to generate sufficient cash flows to support
capital expansion and general operating activities;
—Interest rate fluctuations and changes in capital market
conditions or other events affecting our ability to obtain
necessary financing on favorable terms;
—Our ability to identify, implement and successfully
manage and finance strategic expansion opportunities
including entering new markets, acquisitions and
joint ventures;
—Our ability to establish effective advertising, marketing
and promotional programs (including pricing strategies
and price reduction programs implemented in response
to competitive pressures and/or to drive demand);
—Our ability to continue to secure suitable new store
locations under acceptable lease terms;
—Our ability to attract, hire and retain suitable
pharmacists and management personnel;
—Our ability to achieve cost efficiencies and other benefits
from various operational initiatives and technological
enhancements;
—Litigation risks as well as changes in laws and
regulations, including changes in accounting standards
and taxation requirements (including tax rate changes,
new tax laws and revised tax law interpretations);
—The creditworthiness of the purchasers of businesses
formerly owned by CVS and whose leases are
guaranteed by CVS;
—Fluctuations in inventory cost, availability and loss levels
and our ability to maintain relationships with suppliers
on favorable terms;
—Our ability to implement successfully and to manage
new computer systems and technologies;
—The strength of the economy in general or in the
markets served by CVS, including changes in consumer
purchasing power and/or spending patterns; and
—Other risks and uncertainties detailed from time to
time in our filings with the Securities and Exchange
Commission.
The foregoing list is not exhaustive. There can be no
assurance that the Company has correctly identified and
appropriately assessed all factors affecting its business.
Additional risks and uncertainties not presently known to
the Company or that it currently believes to be immaterial
also may adversely impact the Company. Should any
risks and uncertainties develop into actual events, these
developments could have material adverse effects on the
Company’s business, financial condition and results of
operations. For these reasons, you are cautioned not to
place undue reliance on the Company’s forward-looking
statements.
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