1408287--11/6/2008--Zep

related topics

{cost, regulation, environmental}

{cost, operation, labor}

{acquisition, growth, future}

{customer, product, revenue}

{system, service, information}

{financial, litigation, operation}

{personnel, key, retain}

{interest, director, officer}

{control, financial, internal}

{condition, economic, financial}

{debt, indebtedness, cash}

{property, intellectual, protect}

{provision, law, control}

{stock, price, share}

{tax, income, asset}

{operation, international, foreign}

{competitive, industry, competition}

Risks Related to our Business Our results can be adversely affected by fluctuations in the cost or availability of materials used in our manufacturing processes. We face significant competition and may face more significant competition in the future. We may develop unexpected legal contingencies or lose insurance coverage. We are subject to a broad range of environmental, health, and safety laws and regulations in the jurisdictions in which we operate, and we may be exposed to substantial environmental, health, and safety costs and liabilities. We use hazardous materials and chemicals in our manufacturing processes which could result in claims against us. If our products are improperly manufactured, packaged, or labeled or become adulterated, we may need to recall those items and may experience product liability claims if consumers are injured. We rely on a variety of third party service providers for transportation of our products between our facilities and from our facilities to our customers. Disruptions at our most significant facilities could affect our profitability and harm our relationship with significant customers. We may be unable to sustain significant customer relationships. We may not be able to attract and retain sufficiently qualified sales representatives and other personnel. If we are unable to protect our information and telecommunication systems against disruptions or failures, our operations could be disrupted. We may not properly execute, or realize anticipated cost savings or benefits from, our ongoing strategic transformation initiatives, information technology, or other initiatives. We may pursue future growth through strategic acquisitions from which we may not receive the benefits that we anticipate. We are subject to risks related to our operations outside the United States. Our results depend upon the continued vitality of the markets we serve. If we fail to manage our growth effectively, our operating results could be adversely affected. If we are unable to keep and protect our intellectual property rights, our ability to compete may be negatively impacted. Our business could suffer in the event of a work stoppage or increased organized labor activity. We have incurred indebtedness in the normal course of business, which subjects us to various restrictions that could limit our operating flexibility. Access to capital markets necessary to support current operations and future growth plans may not be available. Local, state, and federal governments are placing increasingly stringent regulations on the security of chemical plant locations, the transportation of hazardous chemicals, and the environmental impact of chemical production. The market price for our common stock may be volatile, and you may not be able to sell our stock at a favorable price. Risks Related to our Spin-off from Acuity Brands We have a limited operating history as an independent public company and may be unable to operate as profitably a stand-alone company as we operated as a segment of Acuity Brands. Historical financial information may be of limited relevance. Failure of the spin-off to qualify as a tax-free transaction could result in substantial liability. Certain provisions of our certificate of incorporation, bylaws and rights plan and the tax disaffiliation agreement may discourage takeovers.

Full 10-K form ▸

1408287--11/6/2008--Zep_Inc.