Carnival Cruises 2008 Annual Report Download - page 86

F-27
Management's Discussion and Analysis of Financial Condition and Results of Operations
Cautionary Note Concerning Factors That May Affect Future Results
Some of the statements, estimates or projections contained in this 2008 Annual Report
are "forward-looking statements" that involve risks, uncertainties and assumptions with
respect to us, including some statements concerning future results, outlooks, plans, goals
and other events which have not yet occurred. These statements are intended to qualify for
the safe harbors from liability provided by Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. We have tried, whenever possible, to
identify these statements by using words like "will," "may," "could," "should," "would,"
"believe," "expect," "anticipate," "forecast," "future," "intend," "plan," "estimate" and
similar expressions of future intent or the negative of such terms.
Because forward-looking statements involve risks and uncertainties, there are many
factors that could cause our actual results, performance or achievements to differ materially
from those expressed or implied in this 2008 Annual Report. Forward-looking statements
include those statements which may impact the forecasting of our earnings per share, net
revenue yields, booking levels, pricing, occupancy, operating, financing and/or tax costs,
fuel costs, costs per available lower berth day ("ALBD"), estimates of ship depreciable lives
and residual values, liquidity, outlook or business prospects. These factors include, but
are not limited to, the following:
• general economic and business conditions, including fuel price increases and declines in
the securities and real estate markets, and perceptions of these conditions may
adversely impact the levels of our potential vacationers' discretionary income and net
worth and this group's confidence in their country's economy;
• fluctuations in foreign currency exchange rates, particularly the strengthening of the
U.S. dollar against the euro and sterling;
• the international political climate, armed conflicts, terrorist and pirate attacks and
threats thereof, and other world events affecting the safety and security of travel;
• conditions in the cruise and land-based vacation industries, including competition from
other cruise ship operators and providers of other vacation alternatives and
overcapacity offered by cruise ship and land-based vacation alternatives;
• accidents, adverse weather conditions or natural disasters, such as hurricanes and
earthquakes and other incidents (including machinery and equipment failures or improper
operation thereof) which could cause injury or death or the alteration of itineraries or
cancellation of a cruise or series of cruises or tours, and the impact of the spread of
contagious diseases;
• adverse publicity concerning the cruise industry in general, or us in particular;
• lack of acceptance of new itineraries, products and services by our guests;
• changing consumer preferences;
• changes in and compliance with laws and regulations relating to environmental, health,
safety, security, tax and other regulatory regimes under which we operate;
• increases in global fuel demand and pricing, fuel supply disruptions and/or other events
on our fuel and other expenses, liquidity and credit ratings;
• increases in our future fuel expenses of implementing recently approved International
Maritime Organization regulations, which require the use of higher priced low sulfur
fuels in certain cruising areas;
• changes in operating and financing costs, including changes in interest rates, food,
insurance, payroll and security costs;
• our ability to implement our shipbuilding programs and ship refurbishments and repairs,
including ordering additional ships for our cruise brands from European shipyards on
terms that are favorable or consistent with our expectations;
• our ability to implement our brand strategies and to continue to operate and expand our
business internationally;
• whether our future operating cash flow will be sufficient to fund future obligations and
whether we will be able to obtain financing, if necessary, in sufficient amounts and on
terms that are favorable or consistent with our expectations;
• our ability to attract and retain qualified shipboard crew and maintain good relations
with employee unions;