1169684--3/19/2008--MOBILE_SERVICES_GROUP

related topics

{debt, indebtedness, cash}

{cost, regulation, environmental}

{acquisition, growth, future}

{condition, economic, financial}

{tax, income, asset}

{personnel, key, retain}

{customer, product, revenue}

{control, financial, internal}

{system, service, information}

{operation, international, foreign}

{stock, price, share}

{product, market, service}

{stock, price, operating}

Risks Relating to Our Business An economic downturn could reduce customer demand for our portable storage products, thereby harming our results of operations. We may fail to realize the anticipated benefits of the merger with Mobile Mini, and the integration process could adversely impact our ongoing operations. Competition could reduce our market share and decrease revenues. Because our customers lease our portable storage products on a month-to-month basis, we could rapidly be adversely affected by an economic downturn. An inability to obtain additional capital for future growth could harm our results of operations and growth. If we are unable to identify and complete acquisitions, our ability to grow our business will be limited and our financial condition and results of operations will be negatively impacted. Fluctuations between the British pound and U.S. dollar could harm our results of operations. As a result of the Acquisition, our ability to apply federal income tax net operating loss carryforwards will be limited. Reductions in supply or increases in costs of obtaining our portable storage products could harm our results of operations. We may face risks resulting from purchasing storage containers that are made primarily in China. Our inability to maintain the quality of our lease fleet could result in the recording of an impairment charge to appropriately reflect the book value of our fleet assets. Our financial performance and operating results may continue to fluctuate. If we cannot effectively manage our growth, our business and results of operations could be harmed. Our future success depends on the continued service of our executive officers and our ability to recruit and retain qualified branch managers. Increases in the cost of fuel may harm our business. Any failure of our management information systems could harm our business and results of operations. We are subject to various environmental laws and regulations. Obligations and liabilities under these laws and regulations could materially harm our business. Compliance with other governmental regulations could increase our operating costs. Changes in zoning laws restricting the use of portable storage products may harm our business. Our internal controls over financial reporting may not be sufficient to ensure timely and reliable external financial reporting. We are owned by Welsh Carson and their interests as equity holders may conflict with yours as a creditor. Risks Relating to our Substantial Indebtedness Our substantial indebtedness could adversely affect our financial condition and prevent us from fulfilling our obligations under the Notes. Despite our current levels of indebtedness, we may incur substantially more debt, which could further exacerbate the risks associated with our substantial indebtedness. Covenants in the New Credit Facility and the indenture governing the Notes restrict our financial and operating flexibility and, if we are unable to comply with these covenants, our lenders may declare due and payable all outstanding loan payments, thereby harming our operations and growth. Because we operate with a significant amount of debt and portions of our indebtedness bear interest at a variable rate, a general increase in interest rates could increase our operating costs, decrease profitability, limit our growth and hinder our ability to pay our outstanding indebtedness. We have substantial interest expense and we may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under such indebtedness, which may not be successful. Our ability to make payments on our Notes is junior to those lenders who have a security interest in our assets. Our Notes are effectively subordinated to the debts and other obligations of our non-guarantor subsidiaries. To service our indebtedness, we require a significant amount of cash. Our ability to generate or otherwise obtain cash depends on many factors beyond our control. We may not have the ability to raise the funds necessary to finance any change of control offer required by the indenture governing our Notes. A guarantee could be voided if it constitutes a fraudulent transfer under U.S. bankruptcy or similar state law, which would prevent the holders of our Notes from relying on that guarantor to satisfy claims.

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1169684--3/19/2008--MOBILE_SERVICES_GROUP_INC