7032--12/15/2008--ARAMARK

related topics

{customer, product, revenue}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{stock, price, operating}

{cost, contract, operation}

{condition, economic, financial}

{competitive, industry, competition}

{regulation, government, change}

{operation, international, foreign}

{personnel, key, retain}

{cost, operation, labor}

{acquisition, growth, future}

{financial, litigation, operation}

Risks related to our business Unfavorable economic conditions and increased operating costs could adversely affect our results of operations and financial condition. Our business may suffer if we are unable to hire and retain sufficient qualified personnel or if labor costs increase. Our expansion strategy involves risks. If we fail to comply with requirements imposed by applicable law or other governmental regulations, we could become subject to lawsuits, investigations and other liabilities and restrictions on our operations that could significantly and adversely affect our business. Changes in or new interpretations of the governmental regulatory framework may affect our contract terms and may reduce our sales or profits. Further unionization of our workforce may increase our costs. Our international business results are influenced by currency fluctuations and other risks that could have an effect on our results of operations and financial condition. Our failure to retain our current clients and renew our existing client contracts could adversely affect our business. We may be adversely affected if customers reduce their outsourcing or use of preferred vendors. Our operations are seasonal and quarter to quarter comparisons may not be a good indicator of our performance. Environmental regulations may subject us to significant liability and limit our ability to grow. Our Sponsors can strongly influence us and may have conflicts of interest with us or you in the future. Competition in our industry could adversely affect our results of operations. Sales of sports, entertainment and recreational services would be adversely affected by a decline in attendance at client facilities or by a reduction or cessation of events. The pricing and cancellation terms of our food and support services contracts may constrain our ability to recover costs and to make a profit on our contracts. Our business is contract intensive and may lead to client disputes. Claims of illness or injury associated with the service of food and beverage to the public could adversely affect us. In fiscal 2008, one distributor provided approximately 54% of our food and non-food products in the United States and Canada, and if our relationship or their business were to be disrupted, we could experience disruptions to our operations and cost structure in such countries. Governmental regulations relating to food and beverages may subject us to significant liability. Competition in the uniform rental industry could adversely affect our results of operations. Economic and business conditions affecting our customer base and our operating costs could negatively impact our sales and operating results. Risks associated with the suppliers from whom our products are sourced could adversely affect our results of operations. Risks related to our indebtedness Our leverage could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, expose us to interest rate risk to the extent of our variable rate debt and prevent us from meeting our obligations. If our financial performance were to deteriorate, we may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful. Our debt agreements contain restrictions that limit our flexibility in operating our business.

Full 10-K form ▸

7032--12/15/2008--ARAMARK_CORP