1117414--1/29/2007--PBSJ_CORP

related topics

{stock, price, share}

{financial, litigation, operation}

{competitive, industry, competition}

{cost, contract, operation}

{customer, product, revenue}

{regulation, government, change}

{condition, economic, financial}

{personnel, key, retain}

{control, financial, internal}

{debt, indebtedness, cash}

{interest, director, officer}

Certain Risks Related to Our Marketplace and Our Operations We are involved in litigation, legal proceedings and governmental investigations, which could have a material adverse effect on our profitability and financial position. Unpredictable downturns in the financial markets, and reduced federal, state and local government budget spending could cause our revenues to fluctuate and adversely affect our revenue and operating results. We operate in a highly competitive market. If we are unable to offer competitive services, our business may be adversely affected. Pending or future governmental audits could result in findings which require downward adjustments of our revenue; and, under certain circumstances, could cause us to incur significant liabilities or restrict our business activities. We derive a significant portion of our engineering fees from a few clients, and the loss of these clients could have a material adverse impact on our financial performance. Our backlog is subject to cancellation and unexpected adjustments, which could have a negative impact on future earnings. If we are unable to accurately estimate the revenues, costs, time and resources on our contractual commitments, we may incur a lower profit or loss on the contract. If we are unable to retain and recruit highly qualified personnel to fulfill our contractual obligations, our business may be adversely affected. Failure to meet the covenants of our existing revolving credit facility could result in the loss of use of our available line of credit. If the material weaknesses in our internal control over financial reporting identified below are not remediated or we otherwise fail to maintain effective internal control over financial reporting, future material misstatements in our financial statements could result, which would result in additional restatements, impact our ability to timely file our financial statements, or cause us to improperly calculate our overhead rate for our government contracts. We may be negatively impacted as a result of litigation or other proceedings relating to past political contributions by us and certain of our employees. Certain Risks Related to Owning Our Stock Because no public market exists for our stock, the ability of our shareholders to sell their common stock is limited. The ability of shareholders to sell or transfer their common stock is restricted. Because we do not intend to pay dividends, our shareholders will benefit from an investment in our common stock only if our stock price appreciates. The value of our stock may be negatively impacted by current and future governmental agency investigations.

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