1273931--3/25/2008--MONEYGRAM_INTERNATIONAL

related topics

{system, service, information}

{competitive, industry, competition}

{capital, credit, financial}

{financial, litigation, operation}

{stock, price, share}

{operation, international, foreign}

{provision, law, control}

{personnel, key, retain}

{control, financial, internal}

{product, market, service}

{stock, price, operating}

{property, intellectual, protect}

{condition, economic, financial}

{interest, director, officer}

{acquisition, growth, future}

{cost, operation, labor}

Our recent transaction with the Investors significantly dilutes the interests of the common stockholders and grants other important rights to the Investors. If we lose key customers or are unable to maintain our Global Funds Transfer agent network, our business and results of operations could be adversely affected. We may be unable to operate our Payment Systems segment profitably as a result of our new official check strategy and the realignment of our investment portfolio. Litigation or investigations involving MoneyGram or our agents, which could result in material settlements, fines or penalties, may adversely affect our business, financial condition and results of operations. An inability of our agents or for the Company to maintain adequate banking relationships may adversely affect our financial condition. Loss of key employees could have a material adverse effect on our business, financial condition and results of operations. Failure to maintain sufficient capital could adversely affect our results of operations and financial condition. If we fail to successfully develop and timely introduce new and enhanced products and services or we make substantial investments in an unsuccessful new product or service or infrastructure change, our business, prospects, financial condition and results of operations could be adversely affected. If we are unable to adequately protect the intellectual property rights related to our existing and any new or enhanced products and services, or if we are unable to avoid infringing on the rights of others, our business, prospects, financial condition and results of operations could be adversely affected. We face intense competition, and if we are unable to continue to compete effectively, our business, financial condition and results of operations would be adversely affected. MoneyGram and our agents are subject to a number of risks relating to U.S. and International regulatory requirements which could result in material settlements, fines or penalties or changes in our or their business operations that may adversely affect our business, financial condition and results of operations. We conduct money transfer transactions through agents in some regions that are politically volatile or, in a limited number of cases, are subject to certain OFAC restrictions. We face security risks related to our electronic processing and transmission of confidential customer information. A material breach of security of our systems could adversely affect our business. Our business involves the movement of large sums of money, and, as a result, our business is particularly dependent on our ability to process and settle transactions accurately and on the efficient and uninterrupted operation of our computer network systems and data centers. If we are unable to effectively operate and scale our technology to match our business growth, our business, financial condition and results of operations could be adversely affected. We face credit and fraud risks from our retail agents. An increase in fraudulent activity using our services could lead to reputational damage to our brand and could reduce the use and acceptance of our services. The opening of new retail locations and acquisition or start-up of businesses create risks and may adversely affect our operating results. A material slow down or complete disruption in international migration patterns could adversely affect our business, financial condition and results of operations. There are a number of risks associated with our international sales and operations that could adversely affect our business. Failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business. We have significant overhang of salable convertible preferred stock relative to float. An agreement among the Investors and Wal-Mart could prevent an acquisition of the Company. Our charter documents, our rights plan and Delaware law contain provisions that could delay or prevent an acquisition of the Company, which could inhibit your ability to receive a premium on your investment from a possible sale of the Company. If we cannot meet the New York Stock Exchange continued listing requirements, the NYSE may delist our common stock. We did not timely file with the SEC this Form 10-K for the fiscal year ended December 31, 2007. As a result of this delayed filing, we are currently ineligible to use Form S-3 to register securities with the SEC in capital-raising transactions, which may adversely affect our cost of future capital.

Full 10-K form ▸

1273931--3/25/2008--MONEYGRAM_INTERNATIONAL_INC