1282607--3/26/2009--COLONY_RESORTS_LVH_ACQUISITIONS

related topics

{condition, economic, financial}

{debt, indebtedness, cash}

{operation, natural, condition}

{operation, international, foreign}

{customer, product, revenue}

{loss, insurance, financial}

{personnel, key, retain}

{competitive, industry, competition}

{regulation, change, law}

{stock, price, operating}

{cost, contract, operation}

The Company s business is particularly sensitive to reductions in discretionary consumer spending as a result of downturns in the economy. The Company s business is sensitive to the willingness of its customers to travel. Acts of terrorism and deteriorating economic conditions worldwide could cause severe disruptions in air travel that reduce the number of visitors to our facilities, resulting in a material adverse effect on the Company s financial condition, results of operations or cash flows. Continued weakness and further weakening in global economic conditions may adversely affect consumer and corporate spending and tourism trends, resulting in additional deterioration in our business. The current conditions in the world s financial and credit markets adversely affects prospects of debt refinancing, availability of credit to us and to our customers and the profitability of our business. There has been and will continue to be large additions to the room supply in Las Vegas. Because the Company is dependent upon one property in one market for all of its cash flow, the Company will be subject to greater risks than a gaming company with more operating properties or that operates in more markets. The Company s substantial debt could impair its financial condition, results of operations or cash flows. The terms of the Company s debt instruments may restrict its current and future operations, particularly its ability to finance additional growth, respond to changes or take certain actions. The terms of the Company s debt instruments may hinder its ability or make it more costly to extend the loan agreement. The Company s insurance coverage may not be adequate to cover all possible losses that the Hotel could suffer. In addition, the Company s insurance costs may increase and the Company may not be able to obtain the same insurance coverage in the future. The Company depends on the continued services of key managers and employees. If the Company does not retain its key personnel or attract and retain other highly skilled employees, the Company s business will suffer. The Company faces significant competition in Las Vegas which could materially adversely affect the Company s financial condition, results of operations or cash flows. Some of the Company s competitors have substantially greater resources and access to capital than the Company and several of them are expanding or renovating their facilities. In addition, any significant downturn in the trade show and convention business would significantly and adversely affect the Company s mid-week occupancy rates and business. The loss of the Company s gaming license or the Company s failure to comply with the extensive regulations that govern the Company s operations could have an adverse effect on the Company s financial condition, results of operations or cash flows. The Company extends credit to a large portion of its customers, and it may not be able to collect gaming receivables from its credit players. The Company is controlled by entities that may have conflicts of interest with us. An outbreak of highly infectious disease could adversely affect the number of visitors to Las Vegas and disrupt the Company s operations, resulting in a material adverse effect on the Company s financial condition, results of operations and cash flows.

Full 10-K form ▸

1282607--3/26/2009--COLONY_RESORTS_LVH_ACQUISITIONS_LLC