Carnival Cruises 2013 Annual Report Download - page 93

Table of Contents
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 2013 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. All statements other than statements of historical facts are statements that could be deemed forward-looking statements. These
statements are based on current expectations, estimates, forecasts and projections about the business in which we operate and the beliefs and assumptions of
our management. We have tried, whenever possible, to identify these statements by using words like “will,” “may,” “could,” “should,” “would,” “believe,”
“depends,” “expect,” “goal,” “anticipate,” “forecast,” “project,” “future,” “intend,” “plan,” “estimate,” “target,” “indicate” and similar expressions of future
intent or the negative of such terms.
Forward-looking statements include those statements that may impact, among other things, the forecasting of our non-GAAP earnings per share; net revenue
yields; booking levels; pricing; occupancy; operating, financing and tax costs, including fuel expenses; net cruise costs per available lower berth day;
estimates of ship depreciable lives and residual values; liquidity; goodwill and trademark fair values and outlook. 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 2013 Annual Report. These factors include, but are not limited to, the following:
• general economic and business conditions;
• increases in fuel prices;
• incidents, the spread of contagious diseases and threats thereof, adverse weather conditions or other natural disasters and other incidents affecting the
health, safety, security and satisfaction of guests and crew;
• the international political climate, armed conflicts, terrorist and pirate attacks, vessel seizures, and threats thereof, and other world events affecting the
safety and security of travel;
• negative publicity concerning the cruise business in general or us in particular, including any adverse environmental impacts of cruising;
• litigation, enforcement actions, fines or penalties;
• economic, market and political factors that are beyond our control, which could increase our operating, financing and other costs;
• changes in and compliance with laws and regulations relating to the protection of persons with disabilities, employment, environment, health, safety,
security, tax and other regulations under which we operate;
• our inability to implement our shipbuilding programs and ship repairs, maintenance and refurbishments on terms that are favorable or consistent with
our expectations;
• increases to our repairs and maintenance expenses and refurbishment costs as our fleet ages;
• lack of continuing availability of attractive, convenient and safe port destinations on terms that are favorable or consistent with our expectations;
• continuing financial viability of our travel agent distribution system, air service providers and other key vendors in our supply chain and reductions in
the availability of, and increases in the pricing for, the services and products provided by these vendors;
• disruptions and other damages to our information technology and other networks and operations, and breaches in data security;
• failure to keep pace with developments in technology;
• competition from and overcapacity in the cruise ship and land-based vacation industry;
• loss of key personnel or our ability to recruit or retain qualified personnel;
• union disputes and other employee relation issues;
• disruptions in the global financial markets or other events may negatively affect the ability of our counterparties and others to perform their obligations
to us;
• the continued strength of our cruise brands and our ability to implement our brand strategies;
• our international operations are subject to additional risks not generally applicable to our U.S. operations;
• geographic regions in which we try to expand our business may be slow to develop and ultimately not develop how we expect;
• our decisions to self-insure against various risks or our inability to obtain insurance for certain risks at reasonable rates;
• fluctuations in foreign currency exchange rates;
• 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;
• risks associated with the DLC arrangement and
• uncertainties of a foreign legal system as Carnival Corporation and Carnival plc are not U.S. corporations.
Forward-looking statements should not be relied upon as a prediction of actual results. Subject to any continuing obligations under applicable law or any
relevant stock exchange rules, we expressly disclaim any obligation to disseminate, after the date of this 2013 Annual Report, any updates or revisions to any
such forward-looking statements to reflect any change in expectations or events, conditions or circumstances on which any such statements are based.
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