1052045--3/28/2008--SERVICEMASTER

related topics

{debt, indebtedness, cash}

{personnel, key, retain}

{cost, regulation, environmental}

{system, service, information}

{condition, economic, financial}

{regulation, government, change}

{cost, operation, labor}

{regulation, change, law}

{property, intellectual, protect}

{competitive, industry, competition}

{investment, property, distribution}

{financial, litigation, operation}

{loan, real, estate}

We have substantial debt and may incur additional debt, which could adversely affect our financial health and our ability to obtain financing in the future, react to changes in our business and make payments on our debt. Despite our indebtedness levels, we and our subsidiaries may be able to incur substantially more debt, including secured debt. This could further exacerbate the risks associated with our substantial debt. The agreements and instruments governing our debt contain restrictions and limitations that could significantly impact our ability to operate our business. Our ability to generate the significant amount of cash needed to pay interest and principal on our debt and our ability to refinance all or a portion of our debt or obtain additional financing depends on many factors beyond our control. Increases in interest rates would increase the cost of servicing our debt and could reduce our profitability. Weather conditions and seasonality affect the demand for our services and our results of operations. Our markets are highly competitive. Competition could reduce our market share and adversely impact our results of operations. Increases in fuel prices and other operating costs adversely affect our results of operations. Our future success depends on our ability to attract and retain trained workers and third party contractors. We may not successfully implement our business strategies or realize all of our expected cost savings. Changes in general economic conditions, especially as they may affect home re-sales or consumer confidence or spending levels, may adversely affect the demand for our services. Public perceptions that our products and services are not environmentally friendly or safe may adversely affect the demand for our services. Changes in the types or mix of our service offerings could affect our financial performance. Government laws and regulations applicable to our businesses could increase our legal and regulatory expenses and affect our financial performance. The loss of the services of management personnel and other employees as a result of restructuring could adversely affect our financial performance. Our business process outsourcing initiatives may increase our reliance on third-party contractors and expose our business to harm upon the termination or disruption of our third-party contractor relationships. Compliance with our subsidiary's environmental plan and the costs and effects of legal or administrative proceedings could adversely impact our business and financial results. Laws and regulations regarding the use of pesticides and fertilizers and claims of personal injury and property damage involving product liability, as well as other environmental laws and regulations, could result in significant costs that adversely affect our operating results. We may not be able to adequately protect our intellectual property and other proprietary rights that are material to our business. Disruptions or security failures in our information technology systems could create liability for us and/or limit our ability to effectively monitor, operate and control our operations and adversely affect our operating results We are subject to various restrictive covenants that could adversely impact our operations. Future acquisitions and our reorganization efforts could affect our financial performance. We are indirectly owned and controlled by the Equity Sponsors, and their interests as equity holders may conflict with holders of our debt.

Full 10-K form ▸

1052045--3/28/2008--SERVICEMASTER_CO