1024441--4/20/2007--FACTORY_CARD_&_PARTY_OUTLET_CORP

related topics
{acquisition, growth, future}
{stock, price, share}
{product, market, service}
{condition, economic, financial}
{cost, operation, labor}
{system, service, information}
{personnel, key, retain}
{cost, regulation, environmental}
{debt, indebtedness, cash}
{investment, property, distribution}
{stock, price, operating}
{financial, litigation, operation}
{regulation, change, law}
We may not be able to profitably grow our business. We may not be able to effectively execute our long-term growth strategy. A downturn in the economy may affect consumer purchases of discretionary items, which could reduce our sales. Our evaluation of strategic alternatives may negatively impact business operations and our assets. If we are unable to hire additional qualified personnel or retain existing personnel, we may not be able to operate our business successfully. Intense competition in our industry could prevent us from increasing or sustaining our revenues and prevent us from achieving or sustaining profitability. We face competitive threats as a result of consolidation in our industry following Amscan Holdings, Inc. s recent acquisitions of Party City Corporation and Party America. Customers requirements are likely to evolve, and we will not retain customers or attract new customers if we do not anticipate and meet specific customer requirements and changes in merchandising trends. Our business depends on continued good relations with our suppliers. Interruption or obsolescence of our management information systems could have a negative effect on our competitive ability and our business generally. We may need to raise additional capital to fund our operations and support our long-term growth strategy. The seasonal nature of our business could adversely impact our operations. We are substantially leveraged and our financing facility contains covenants that could adversely affect our business. If we do not comply with the numerous laws and regulations that govern our business, our business could be harmed. Higher administrative expenses could adversely affect our business and operations. Our warrants and stock options may have significant dilutive effects on holders of Common Stock. Adverse publicity could adversely affect our business. Our stock price may be volatile and could decline. We do not anticipate paying dividends.

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