Royal Caribbean Cruise Lines 2012 Annual Report Download - page 42

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38
PART II
ITEM 7. MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
CAUTIONARY NOTE CONCERNING FORWARD-
LOOKING STATEMENTS
The discussion under this caption “Management’s
Discussion and Analysis of Financial Condition and
Results of Operations” and elsewhere in this document,
including, for example, under the “Risk Factors” and
“Business” captions, includes “forward-looking state-
ments” within the meaning of the Private Securities
Litigation Reform Act of 1995. All statements other
than statements of historical fact, including statements
regarding guidance (including our expectations for
the first quarter and full year of 2013 set forth under
the heading “Outlook” below), business and industry
prospects or future results of operations or financial
position, made in this Annual Report on Form 10-K are
forward-looking. Words such as “anticipate,” “believe,”
“could,” “estimate,” “expect,” “goal,” “intend,” “may,”
“plan,” “project,” “seek,” “should,” “will,” and similar
expressions are intended to further identify any of
these forward-looking statements. Forward-looking
statements reflect management’s current expectations
but they are based on judgments and are inherently
uncertain. Furthermore, they are subject to risks,
uncertainties and other factors, that could cause our
actual results, performance or achievements to differ
materially from the future results, performance or
achievements expressed or implied in those forward-
looking statements. Examples of these risks, uncer-
tainties and other factors include, but are not limited
to, the following:
• the impact of the worldwide economic and geopolit
ical environment or other conditions on the demand
for cruises;
• the impact of the worldwide economic environment
on our ability to generate cash flows from operations,
satisfy the financial covenants required by our credit
facilities, or obtain new borrowings from the credit
or capital markets;
• the impact of disruptions in the global financial mar-
kets on the ability of our counterparties and others
to perform their obligations to us including those
associated with our loan agreements and derivative
contracts;
• negative incidents concerning the Company and the
cruise vacation industry, or adverse publicity, includ-
ing those involving the health, safety and security
of guests, accidents, unusual weather conditions or
natural disasters or disruptions;
• our ability to appropriately balance our cost man-
agement strategy with our goal of satisfying guest
expectations;
• failure to keep pace with developments in technology
which could impair our operations or competitive
position;
• the uncertainties of conducting business globally
and our ability to realize the intended benefits of
our investments in new markets;
• changes in operating and financing costs, including
changes in foreign exchange rates, interest rates, fuel,
food, payroll, airfare, insurance and security costs;
• vacation industry competition and industry over
capacity in certain markets;
• the cost of or changes in tax, environmental, labor,
health, safety, security and other laws and regulations
affecting our business;
• pending or threatened litigation, enforcement actions,
fines or penalties;
• emergency ship repairs, including the related lost
revenue;
• the impact of ship construction, repair or refurbish-
ment delays, ship cancellations or ship construction
price increases brought about by construction
faults, mechanical problems or financial difficulties
encountered by shipyards or their subcontractors;
• the global political climate, fears of terrorist and
pirate attacks, armed conflict, the unavailability or
cost of air service and the resulting concerns over
safety and security aspects of traveling;
• the spread of contagious diseases;
• disruptions to our shoreside business related to
actual or threatened natural disasters, information
systems failure or similar events;
• our ability to differentiate our products;
• our ability to manage our business activities that
involve our co-investment with third parties;
• our inability to adequately incentivize our travel
agents or changes and/or disruptions to the travel
agency industry;
• the loss of key personnel, strained employee rela-
tions and/or our inability to retain or recruit quali-
fied personnel;