103341--3/31/2006--QUAKER_FABRIC_CORP

related topics

{customer, product, revenue}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{product, market, service}

{interest, director, officer}

{cost, operation, labor}

{tax, income, asset}

{stock, price, share}

{condition, economic, financial}

{product, liability, claim}

{provision, law, control}

{loss, insurance, financial}

{system, service, information}

{cost, contract, operation}

We may breach one or more of the financial covenants in our 2005 Credit Agreement. We need to carefully manage our cash. Our cash resources and our ability to borrow under our 2005 Credit Agreement may not be adequate to fund our operations. We may not be able to pay off or refinance the debt obligations that fall due in fiscal 2006 through 2010. Our restructuring efforts are creating short-term costs that may not be offset by increased efficiencies. Our sales have been declining, and we have reported operating losses in each of the six consecutive fiscal quarters ended December 31, 2005. We may not be able to restore the Company to profitability. We may not be able to effectively manage the outsourcing arrangements we are putting in place with non-U.S. fabric manufacturers. Our increased reliance on offshore fabric sourcing arrangements could adversely affect our ability to service customers which could result in a decrease in our sales. Asset write-offs required in connection with the execution of our restructuring plan are likely to result in a decrease in earnings. Further loss of market share due to competition would result in further decreases in sales and earnings. Our revenues could continue to be adversely affected by low-cost imported merchandise. Failure to anticipate or respond to changes in consumer tastes and fashion trends in a timely manner could result in a decrease in future sales and earnings. Quaker is very dependent on a limited number of raw material suppliers. We are importing some critical raw materials from foreign suppliers. Any increase in energy costs is likely to erode our margins. A significant portion of our annual revenues comes from foreign sales. Business failures of large customers could result in a decrease in the Company s future sales and earnings. Our bad debt experience may differ materially from our estimates. An economic downturn could result in a decrease in the Company s sales and earnings. We are very dependent on our computer systems. A successful product liability claim brought against the Company in excess of available insurance coverage would result in a decrease in earnings and any claim or product recall that results in significant adverse publicity against the Company may result in a decrease in sales and earnings. We must comply with a number of governmental regulations applicable to our business operations. Our operations are subject to numerous environmental laws and regulations. Certain anti-takeover provisions and preferred stock could result in a decrease in a potential acquirer s valuation of the Company s common stock. The price of a share of the Company s common stock could fall below the level required by the Company s listing agreement with the NASDAQ Stock Market. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

Full 10-K form ▸

103341--3/31/2006--QUAKER_FABRIC_CORP_/DE/