1095996--3/30/2009--WILLIAM_LYON

related topics

{condition, economic, financial}

{debt, indebtedness, cash}

{cost, contract, operation}

{gas, price, oil}

{personnel, key, retain}

{product, liability, claim}

{cost, operation, labor}

{investment, property, distribution}

{competitive, industry, competition}

{loss, insurance, financial}

{cost, regulation, environmental}

Adverse changes in general economic conditions could reduce the demand for homes and, as a result, could negatively impact the Company s results of operations. Revenues and margins may continue to decrease, and results of operations may be adversely affected, as a result of declines in demand for housing and other changes in economic and business conditions. Recent disruptions in the financial markets could adversely affect demand for the Company s products or access to capital The Company s level of indebtedness could adversely affect its financial condition and prevent it from fulfilling its obligations. Interest rates and the unavailability of mortgage financing can adversely affect demand for housing. Financial condition and results of operations may be adversely affected by any decrease in the value of land inventory, as well as by the associated carrying costs. Increases in the Company s cancellation rate could have a negative impact on the Company s home gross margins and home sales revenue. The Company may be unable to maintain compliance with the financial covenants contained in credit facilities. Difficulty in obtaining sufficient capital could result in increased costs and delays in completion of projects. If land is not available at reasonable prices, the Company s homes sales revenue and results of operations could be negatively impacted and/or the Company could be required to scale back the Company s operations in a given market. Adverse weather and geological conditions may increase costs, cause project delays and reduce consumer demand for housing, all of which would adversely affect the Company s results of operations and prospects. The Company s business is geographically concentrated, and sales, results of operations, financial condition and business would be negatively impacted by a decline in regional economies. The Company may not be able to compete effectively against competitors in the homebuilding industry. The Company s operating results are variable. The Company s success depends on key executive officers and personnel. Construction defect, soil subsidence and other building-related claims may be asserted against the Company, and the Company may be subject to liability for such claims. Governmental laws and regulations may increase the Company s expenses, limit the number of homes that the Company can build or delay completion of projects. The Company is subject to environmental laws and regulations, which may increase costs, limit the areas in which the Company can build homes and delay completion of projects. Utility shortages or price increases could have an adverse impact on operations. The Company s business and results of operations are dependent on the availability and skill of subcontractors. Increased insurance costs and reduced insurance coverages may affect the Company s results of operations and increase the potential exposure to liability. The Company is the general partner in partnership joint ventures and may be liable for joint venture obligations. The Company s senior notes are unsecured, and effectively subordinated to other secured indebtedness The guarantees of the Company s senior notes by the Company s subsidiaries may be avoidable as fraudulent transfers and any new guarantees may be avoidable as preferences. The indentures for the senior notes impose significant operating and financial restrictions, which may prevent the Company from capitalizing on business opportunities and taking some corporate actions. The Company may not be able to satisfy its obligations upon a change of control. Supply and labor shortages and other risks could increase costs and delay completion. The Company is subject to changes in the demand for construction projects. The timing and funding of contracts and other factors could lead to unpredictable operating results.

Full 10-K form ▸

1095996--3/30/2009--WILLIAM_LYON_HOMES