1327012--3/31/2008--Equity_Media_Holdings

related topics

{capital, credit, financial}

{acquisition, growth, future}

{control, financial, internal}

{condition, economic, financial}

{debt, indebtedness, cash}

{cost, contract, operation}

{personnel, key, retain}

{interest, director, officer}

{operation, international, foreign}

Risk Factors That May Affect Future Results The Company has a history of losses and there can be no assurance that the Company will become or remain profitable or that losses will not continue to occur. The Company must obtain additional sources of capital in the near term to fund its operations. The Company is currently in default under its existing credit facilities and has negotiated with the lenders thereunder to agree to forbear on exercising any remedies available to them while the Company seeks alternative sources of funding. We incur and may continue to incur losses on newly acquired or built stations without an immediate return on our investment. The loss of the services of our senior management team or a significant number of our employees may negatively affect our business. We depend on our network affiliation relationship with Univision for maintaining our existing Spanish- business. We expect the competition for and the prices of syndicated programming will continue to increase and we may not be able to acquire desired syndicated programming on acceptable terms or at all. Our planned expansion of Retro Television Network may not materialize as we anticipate. Increasing competition in the broadcast television industry and its programming alternatives may adversely affect us. New technologies may have a material adverse effect on our results of operations. The loss of major advertisers, a reduction in their advertising expenditures, a decrease in advertising rates or a change in economic conditions may materially harm our business. Our revenues are affected by seasonal trends causing additional cash flow concerns during the slower seasons. Failure to observe governmental rules and regulations governing the granting, renewal, transfer and assignment of licenses and our inability to conclusively anticipate timing and approval actions could negatively impact our business. Changes in FCC regulations regarding media ownership limits have increased the uncertainty surrounding the competitive position of our stations in the markets we serve and may adversely affect our ability to buy new television stations or sell existing television stations. The restrictions on foreign ownership may limit foreign investment in us or our ability to successfully sell our business. Failure to observe rules and policies regarding the content of programming may adversely affect our business. Because our television stations rely on must carry rights to obtain cable carriage, new laws or regulations that eliminate or limit the scope of these rights or failures could significantly reduce our ability to obtain cable carriage and therefore reduce our revenues. Our use of local marketing agreements and joint sales agreements may result in uncertainty regarding scheduled programming and/or revenue from the sale of advertising. The industry-wide mandatory conversion to digital television has required us, and will continue to require us, to make significant capital expenditures without assurance that we will remain competitive with other developing technologies. If direct broadcast satellite companies do not carry the stations that we own and operate or provide services to, we could lose audience share and revenue. Our substantial indebtedness may negatively impact our ability to implement our business plan. Failure of the Company s internal control over financial reporting could harm our business and financial results. An existing lawsuit against the Company and the members of the Company s board of directors could distract the Company from their operational responsibilities.

Full 10-K form ▸

1327012--3/31/2008--Equity_Media_Holdings_CORP