1367396--2/26/2010--SUPERMEDIA

related topics

{investment, property, distribution}

{system, service, information}

{personnel, key, retain}

{product, market, service}

{debt, indebtedness, cash}

{cost, operation, labor}

{stock, price, share}

{provision, law, control}

{property, intellectual, protect}

{financial, litigation, operation}

{interest, director, officer}

{condition, economic, financial}

{cost, regulation, environmental}

{loss, insurance, financial}

{acquisition, growth, future}

{tax, income, asset}

{stock, price, operating}

{competitive, industry, competition}

{capital, credit, financial}

Risks Related to Our Emergence From Bankruptcy Our actual financial results may vary significantly from the projections filed with the Bankruptcy Court. Because our consolidated financial statements reflect fresh start accounting adjustments made upon emergence from bankruptcy, and because of the effects of the transactions that became effective pursuant to the Amended Plan, financial information in our future financial statements will not be comparable to our financial information from prior periods. Our business could suffer from the loss of key personnel after the emergence from bankruptcy. We may be subject to claims that were not discharged in the Chapter 11 cases, which could have a material adverse effect on our results of operations and cash flow. Risks Related to Our Business and our Financial Condition Since we have renegotiated higher interest rates in exchange for the reduction of our total outstanding debt, our interest expense will increase relative to the amount of outstanding debt. Circumstances may arise whereby the Company may become overleveraged, which could have significant negative consequences. Our substantial indebtedness could adversely affect our business, financial condition and results of operations and prevent us from fulfilling our obligations under the terms of our indebtedness. There can be no assurance that our capital resources will be sufficient to enable us to achieve operating profitability. The terms of our indebtedness impose restrictions on us that may affect our ability to successfully operate our business. Our revenue has declined and may continue to decline. We face widespread competition from other print directory publishers and other traditional and new media. This competition may reduce our market share or materially adversely affect our financial performance. A continued decline in the use of print yellow pages directories will adversely affect take off the ing our business. Increased competition in local telephone markets could reduce the benefits of using Further transfers of local exchange assets by Verizon could reduce the benefit of using the Verizon brand name. Our business, financial condition and results of operations would be adversely affected by a prolonged economic downturn and certain other external events. If we fail to anticipate or respond effectively to changes in technology and consumer preferences, our competitive position could be harmed. Our reliance on small- and medium-sized businesses exposes us to increased credit Our dependence on third party providers for printing, publishing and distribution services could Increases in the price or decreases in the availability of paper could materially adversely affect our costs of operations. Our sales of advertising to national accounts are dependent upon third parties that We have agreements with several major Internet search engines and portals. The termination of one or more of these agreements could adversely affect our business. Increased regulation regarding information technology could lead to increased costs. A portion of our employees are union-represented. Our business could be adversely affected by future labor negotiations and our ability to maintain good relations with our unionized employees. Loss of key personnel or our inability to attract and retain highly qualified individuals in the businesses in which we operate could materially adversely affect Turnover among media consultants could materially adversely affect our business. The loss of important intellectual property rights could adversely affect our results of operations and future prospects. Our reliance on technology could have a material adverse effect on our business. Legislative initiatives directed at limiting or restricting the distribution of our print directories or shifting the costs and responsibilities of waste management related to our print directories could adversely affect our business. Legal actions could have a material adverse effect on our operating results or Limitations on our use of the Verizon brand could adversely affect our business and The loss of any of our key agreements with Verizon could have a material adverse Regulatory obligations requiring incumbent local exchange carriers to publish white pages directories in its incumbent markets may change over time, which may increase our future operating costs. Our inability to enforce the non-competition agreement with Verizon may impair the Risks Related to Our Common Stock and Holders of Senior Secured Term Loans There is limited history of trading of our common stock and market pricing of our common stock could be volatile. Our common stock could be subject to future dilution and, as a result, could decline in value. Dividends are not expected to be paid with respect to our common stock for the foreseeable future. Anti-takeover provisions in our certificate of incorporation and bylaws, the terms of our spin-off from Verizon and certain provisions of Delaware law could delay or prevent a change of control that you may favor.

Full 10-K form ▸

1367396--2/26/2010--SUPERMEDIA_INC.