1276827--3/1/2006--INFRASOURCE_SERVICES

related topics

{cost, contract, operation}

{regulation, government, change}

{condition, economic, financial}

{capital, credit, financial}

{customer, product, revenue}

{cost, operation, labor}

{cost, regulation, environmental}

{system, service, information}

{control, financial, internal}

{personnel, key, retain}

{acquisition, growth, future}

{tax, income, asset}

{stock, price, operating}

{stock, price, share}

Our ability to obtain new contracts and the timing of the award and performance of any such contracts may result in unpredictable fluctuations in our cash flow and profitability. Demand for our services is cyclical and vulnerable to downturns in the industries we serve, which may result in extended periods of low demand for our services. Our participation in fixed-price contracts could result in contract losses, which could reduce our profitability. Our use of percentage-of-completion accounting could result in a reduction or elimination of previously reported profits. We derive a significant portion of our revenue from a small group of customers. The loss of one or more of these customers could negatively impact our revenues. Our inability to hire or retain key personnel could disrupt our business. Skilled labor shortages and increased labor costs could negatively affect our ability to compete for new projects. The Energy Act may fail to spur the anticipated increased investment in electric infrastructure, which could slow our growth. Seasonal and other variations, including severe weather conditions, may cause significant fluctuations in our cash flows and profitability, which may cause the market price of our common stock to fall in certain periods. Our backlog may not be realized or may not result in profits. Our customers often have no obligation to assign work to us and many of our contracts may be terminated on short notice. Project delays or cancellations may result in additional costs to us, reductions in revenues or the payment of liquidated damages. Provisions of our credit facility restrict our business operations and may restrict our access to sufficient funding, including letters of credit, to finance desired growth. We are subject to acquisition risks. If we are not successful in integrating companies that we acquire or have acquired, we may not achieve the expected benefits and our profitability could suffer. In addition, the cost of evaluating and pursuing acquisitions may not result in a corresponding benefit. We cannot be certain of the future effectiveness of our internal controls over financial reporting or the impact thereof on our operations or the market price of our common stock. We are evaluating the implementation of a company-wide Enterprise Resource Planning system which could disrupt our day-to-day operations temporarily. A significant portion of our business depends on our ability to obtain surety bonds. We may be unable to compete for or work on certain projects if we are not able to obtain the necessary surety bonds. Higher fuel prices and material costs may increase our cost of doing business, and we may not be able to pass those added costs to our customers. We are subject to the risks associated with being a government contractor. Our projects are subject to numerous hazards. If we do not maintain an adequate safety record, we may be ineligible to bid on certain projects, could be terminated from existing projects and could have difficulty procuring adequate insurance. Our unionized workforce could cause interruptions in our provision of services. In addition, we contribute to multiemployer plans that could result in liabilities to us if these plans are terminated or we withdraw. If Congress or the FCC changes the law or regulations that provide subsidies for telecommunications services to schools, libraries and certain health-care facilities, demand for some of our telecommunications services could decrease substantially. Furthermore, additional regulation of our telecommunications services could reduce the profitability of those services. Newly adopted accounting regulations require us to expense stock options, which could cause our stock price to decline. Our principal stockholders may exercise control over the Company.

Full 10-K form ▸

1276827--3/1/2006--INFRASOURCE_SERVICES_INC