1216018--3/24/2006--BRICKMAN_GROUP

related topics

{debt, indebtedness, cash}

{cost, regulation, environmental}

{operation, natural, condition}

{cost, operation, labor}

{stock, price, operating}

{system, service, information}

{acquisition, growth, future}

{competitive, industry, competition}

{regulation, change, law}

{personnel, key, retain}

{condition, economic, financial}

{control, financial, internal}

Our business can be adversely affected by numerous risks. You should carefully consider the risk factors detailed below in conjunction with the other information contained in this report. Our business, financial condition, operating results, cash flows and/or future prospects could be materially and adversely affected by any of the following risks. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business operations. Our substantial indebtedness could adversely affect our financial condition. Despite current indebtedness levels, we may still be able to incur substantially more debt. This could further exacerbate the risks described above. The indenture for our senior subordinated notes, our senior credit facility and our recapitalization agreement restrict our ability to engage in some business and financial transactions. We may face increased labor costs due to inability to re-employ seasonal employees or obtain the H-2B visas necessary to hire foreign workers. Our landscape maintenance customers may terminate our services at any time. We have grown rapidly for more than ten years and may not be able to identify, acquire or manage profitably additional businesses or to integrate successfully any already acquired businesses. The markets in which we compete are highly competitive and we may lose bids for landscape contracts to large competitors that have greater resources than we have or to small owner-operated companies that have lower overhead cost structures than we have. Government regulation and laws relating to the employment of immigrants, workplace health and safety, the application of fertilizers, herbicides, pesticides and other chemicals, noise and air pollution and water management could increase our legal and regulatory expenses. A substantial portion of our field personnel are immigrants and any changes to, or violations of, immigration and labor laws could have a material adverse effect on us. Due to the seasonality of business and variations in weather conditions, our revenue and operating results may vary from quarter to quarter. Increases in fuel prices and other sources of inflation can impact our results of operations. The loss of the services of any member of our senior management team could adversely affect our business. Some of the equipment that our employees use is dangerous, and an increase in accidents resulting from the use of equipment could negatively affect our results of operations and financial condition. Our results of operations from our design/build services are subject to cyclical fluctuations. Our business is labor intensive and unionization or work stoppages would have an adverse effect on us. Difficulties with the implementation of internal systems may affect our financial performance. Compliance with regulation of corporate governance and public disclosure will result in additional expenses. The Brickman Family controls and CIVC has significant influence over our company, and their interests may conflict with the interests of the holders of our indebtedness.

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1216018--3/24/2006--BRICKMAN_GROUP_LTD