1282858--6/5/2007--COINMACH_SERVICE

related topics

{stock, price, share}

{debt, indebtedness, cash}

{acquisition, growth, future}

{tax, income, asset}

{investment, property, distribution}

{system, service, information}

{cost, contract, operation}

{competitive, industry, competition}

{capital, credit, financial}

{cost, regulation, environmental}

{provision, law, control}

{personnel, key, retain}

{condition, economic, financial}

{customer, product, revenue}

{cost, operation, labor}

Our business could suffer if we are unsuccessful in negotiating lease renewals. We may not be able to successfully identify attractive tuck-in acquisitions, successfully integrate acquired operations or realize the intended benefits of acquisitions. If our required capital expenditures exceed our projections, we may not have sufficient funding, which could adversely affect our growth, financial condition and results of operations. Reduced occupancy levels could adversely affect us. Our dividend policy may negatively impact our ability to finance our working capital requirements, capital expenditures or operations. Our business could be adversely affected by the loss of one or more of our key personnel. Our industry is highly competitive, which could adversely affect our business. Our business may be adversely affected by compliance obligations and liabilities under environmental laws and regulations. Federal legislation concerning energy and water efficiency standards on commercial clothes washers could require a significant increase in our capital expenditures and consequently reduce our profit margins. Any failure or inadequacy of our information technology infrastructure could harm our business. Our financial results have been and could further be negatively impacted by impairments of goodwill or other intangible assets required by SFAS 142 and the application of future accounting policies or interpretations of existing accounting policies. Any acquisitions we make involve a degree of risk. Risks Relating to Our Securities We have substantial indebtedness which could restrict our ability to pay interest and principal on the 11% Senior Secured Notes and to pay dividends with respect to the shares of the Class A Common Stock and the shares of Class B Common Stock and could adversely affect our financing options and liquidity position. We may be able to incur substantially more indebtedness, which could exacerbate the risks described above. The holders of IDSs and common stock may not receive the level of dividends provided for in the dividend policy that our board of directors adopted or any dividends at all. There is no active trading market for our debt-only securities, which could prevent us from issuing debt-only securities and may limit our ability to obtain future financing. We are a holding company with no direct operations, and therefore our ability to make payments under the 11% Senior Secured Notes or declare and distribute dividends on the Class A Common Stock and Class B Common Stock depends on cash flow from our subsidiaries. Restrictive covenants in our current and future indebtedness could adversely restrict our operating flexibility. Lack of a significant amount of cash could adversely affect our growth, financial condition and results of operations. Voting control of us by Holdings may prevent the holders of IDSs from receiving a premium in the event of a change of control and may create conflicts of interest. We will not be able to deduct interest on the 11% Senior Secured Notes if the 11% Senior Secured Notes are not respected as debt for U.S. federal income tax purposes. The separate public trading markets for IDSs and shares of Class A Common Stock, and the ability to separate and create IDSs, may diminish the value of your investment in IDSs or separately held shares of Class A Common Stock, as the case may be. Future sales or the possibility of future sales of a substantial amount of shares of Class A Common Stock or IDSs may depress the price of IDSs or shares of Class A Common Stock.

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1282858--6/5/2007--COINMACH_SERVICE_CORP