1420566--3/3/2009--Pinnacle_Foods_Finance

related topics

{cost, regulation, environmental}

{customer, product, revenue}

{cost, operation, labor}

{product, market, service}

{tax, income, asset}

{stock, price, operating}

{capital, credit, financial}

{product, liability, claim}

{property, intellectual, protect}

{personnel, key, retain}

{cost, contract, operation}

{competitive, industry, competition}

The Deterioration of the Credit and Capital Markets May Adversely Affect our Access to Sources of Funding. We Face Risks Associated With Certain Pension Obligations. We face significant competition in our industry. For most of our products, we are primarily a single source manufacturing system where a significant disruption in a facility could affect our business, financial condition and/or results of operations. We are vulnerable to fluctuations in the price and supply of food ingredients, packaging materials and freight. If we lose one or more of our major customers, or if any of our major customers experience significant business interruption, our results of operations and our ability to service our indebtedness could be adversely affected. Termination of our material licenses would have a material adverse effect on our business. We may not be able to achieve all of our expected cost savings. Loss of any of our current co-packing arrangements could decrease our sales and earnings and put us at a competitive disadvantage. We may be subject to product liability claims should the consumption of any of our products cause injury, illness or death. Due to the seasonality of the business, our revenue and operating results may vary quarter to quarter. If we fail to successfully integrate any future acquisitions into our operations, our operating costs could increase and our operating margins, operating results and profitability may decrease. Sales of our products are subject to changing consumer preferences, and our success depends upon our ability to predict, identify and interpret changes in consumer preferences and develop and offer new products rapidly enough to meet those changes. Our financial well-being could be jeopardized by unforeseen changes in our employees collective bargaining agreements or shifts in union policy. We are subject to laws and regulations relating to protection of the environment, worker health and workplace safety. Costs to comply with these laws and regulations, or claims with respect to environmental, health and safety matters, could have a significant negative impact on our business. Our operations are subject to FDA and USDA governmental regulation, and there is no assurance that we will be in compliance with all regulations. Higher energy costs and other factors affecting the cost of producing, transporting and distributing our products could adversely affect our financial results. The consolidation trend among our customer base could adversely affect our profitability. We have a significant amount of goodwill and intangible assets on our consolidated balance sheet that is subject to impairment based upon future adverse changes in our business and the overall economic environment. Litigation regarding our trademarks and any other proprietary rights may have a significant, negative impact on our business. If we are unable to retain our key management personnel, our future performance may be impaired and our financial condition could suffer as a result. We may not be able to utilize all of our net operating loss carryforwards. Blackstone controls Pinnacle and may have conflicts of interest with us or you in the future.

Full 10-K form ▸

1420566--3/3/2009--Pinnacle_Foods_Finance_LLC