764762--3/16/2007--LONGS_DRUG_STORES

related topics

{cost, operation, labor}

{regulation, government, change}

{product, liability, claim}

{condition, economic, financial}

{customer, product, revenue}

{product, market, service}

{personnel, key, retain}

{financial, litigation, operation}

{loan, real, estate}

{acquisition, growth, future}

{regulation, change, law}

If we are unable to successfully execute our strategic initiatives and business development efforts and the related organizational changes, our future productivity and profitability may be adversely affected. If our efforts to increase self-distribution are not successful, our retail drug store sales and profitability could be adversely affected. If our prescription drug plans do not generate the anticipated revenues or profitability, our financial results could be adversely affected. If RxAmerica does not become fully licensed as a risk bearing entity, our ability to offer prescription drug plans will be adversely affected. Changes in economic conditions could adversely affect consumer buying practices and reduce our revenues and profitability. The retail drug store and pharmacy benefit services industries are highly competitive and further increases in competition could adversely affect us. Reductions in third-party, including government, reimbursement levels for prescription drugs continue to reduce our gross margins on pharmacy sales and could have a significant effect on our retail drug store sales and gross profits. Changes in industry pricing benchmarks could adversely affect our financial performance. The significant investments we are making in our stores may not increase our retail drug store sales and profitability, which could adversely affect our results of operations, financial condition and cash flows. Our ability to grow our business may be constrained by our inability to find suitable new store locations at acceptable prices or by the expiration of our current leases. If the net costs associated with our planned store closures are substantially higher than anticipated, our results of operations and cash flows could be adversely affected. If our insurance-related costs increase significantly, our financial position and results of operations could be adversely affected. We are substantially dependent on a single supplier of pharmaceutical products to sell products to us on satisfactory terms. A disruption in our relationship with this supplier could have a material adverse effect on our business. Our ability to attract and retain pharmacy personnel and develop alternate fill sources is important to the continued success of our business. We are subject to governmental regulations, procedures and requirements. Our noncompliance with, or a significant change in, these regulations could have a material adverse effect on us. Should a product liability issue arise, inadequate insurance coverage against such risks or inability to maintain such insurance may result in a material adverse effect on our business. Our geographic concentration in the western United States presents certain risks that could adversely affect us. The availability of pharmacy drugs is subject to governmental regulations. We are subject to certain legal proceedings that may adversely affect our financial condition and results of operation.

Full 10-K form ▸

764762--3/16/2007--LONGS_DRUG_STORES_CORP