1181232--3/12/2008--SIRVA

related topics

{cost, regulation, environmental}

{debt, indebtedness, cash}

{condition, economic, financial}

{regulation, change, law}

{loan, real, estate}

{financial, litigation, operation}

{personnel, key, retain}

{operation, international, foreign}

{product, market, service}

{interest, director, officer}

{tax, income, asset}

{competitive, industry, competition}

{system, service, information}

{stock, price, share}

{provision, law, control}

{control, financial, internal}

{gas, price, oil}

We filed for reorganization under Chapter 11 of the Bankruptcy Code on February 5, 2008 and are subject to the risks and uncertainties associated with Chapter 11 proceedings. We are subject to litigation and governmental investigations as a result of our operations. Our success depends in part on our strategy of offering a global comprehensive relocation solution to customers. We have had net losses in the last three years, and we may not be profitable in the future. If we do not successfully compete within the highly competitive industries in which we operate, our revenues and profitability could be adversely affected. Competition may force us to lower our prices thereby adversely affecting our revenues and profitability. Our business and financial condition could be adversely affected by future economic downturns and other external events. Our substantial indebtedness may limit our financial and operating activities and may adversely affect our ability to incur additional debt to fund future needs. The agreements governing our debt contain restrictions that could significantly restrict our ability to operate our business. Our Relocation Services business exposes us to the risks of the real estate industry, including risks relating to the purchase, ownership and resale of transferred employees' homes at a loss. Weakening real estate markets can increase the number of homes that our Relocation Services business takes into inventory, resulting in increased costs and lower profitability. We may not be able to recruit and retain a sufficient number of agents, representatives or owner-operators to sustain our moving services business. Actions taken by our agents may harm our brands or reputation, or result in legal actions against us. We are a holding company with no significant independent operations and, therefore, rely on our subsidiaries to make funds available to us. Potential liability associated with accidents in the trucking industry is severe and occurrences are unpredictable. In addition, an increase in liability, property or casualty insurance premiums could cause us to incur significant costs. If we lost one or more of our government licenses or permits or became subject to more onerous government regulations, including the federal safety rules on truck driver work hours and the federal consumer protection regulations governing the moving industry, we could be adversely affected. Any difficulties with our information systems or our information systems providers could delay or disrupt our ability to service our customers and impair our competitiveness. We depend on our highly trained executive officers and employees. Any loss of these employees or any difficulty in hiring equally qualified employees could adversely affect our ability to operate our business. Fuel is a significant cost element in the trucking transportation industry. Fuel prices are currently high and may continue to rise. Fuel prices and the availability of fuel have been subject to volatility in the past. Contingent or future environmental liabilities could cause us to incur significant costs and adversely affect our operations. Our business is highly seasonal, which leads to fluctuations in our operating results and working capital needs. Our owner-operators are currently not considered to be employees by taxing and other regulatory authorities. Should these authorities change their position and consider our owner-operators to be our employees, our costs related to our tax, unemployment compensation and workers' compensation obligations could increase significantly. Our common stock has been delisted from the New York Stock Exchange ("NYSE") and currently is quoted on the Pink Sheets, which may impair the market price and liquidity of our common stock and result in adverse business consequences. Any "ownership change" could limit our ability to utilize our net operating losses carryforwards. Our certificate of incorporation, by-laws and Delaware law may discourage takeovers and business combinations that our stockholders might consider in their best interests. The international scope of our operations may adversely affect our business. We are exposed to currency fluctuations, which may have an adverse effect on us.

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1181232--3/12/2008--SIRVA_INC