768899--3/7/2006--LABOR_READY

related topics

{personnel, key, retain}

{capital, credit, financial}

{financial, litigation, operation}

{debt, indebtedness, cash}

{loss, insurance, financial}

{acquisition, growth, future}

{condition, economic, financial}

{cost, contract, operation}

{system, service, information}

{cost, operation, labor}

{gas, price, oil}

{competitive, industry, competition}

{cost, regulation, environmental}

{operation, international, foreign}

Competition for customers in our industry is intense, and if we are not able to effectively compete, our financial results could be harmed and the price of our securities could decline. If we are not able to obtain insurance on commercially reasonable terms, our financial condition or results of operations could suffer. We expect that the amount of collateral that we are required to post to support our workers compensation obligations will increase, which will reduce the capital we have available to grow and support our operations. Our reserves for workers compensation claims and other liabilities and our allowance for doubtful accounts may be inadequate, and we may incur additional charges if the actual amounts exceed the estimated amounts. Some insurance companies with which we have previously done business are in financial distress, and one has been relieved of its insurance obligations to us. If our insurers do not fulfill their obligations, we could experience significant losses. We may be exposed to employment-related claims and costs that could harm our business, financial condition or results of operations. A significant portion of our revenue is derived from operations in a limited number of markets. Recessions in these markets have harmed and could continue to harm our operations. Any significant economic downturn or increase in interest rates could result in our clients using fewer temporary employees, which could harm our business or cause the price of our securities to decline. Establishment and expansion of our international operations will burden our resources and may fail to generate a substantial increase in revenue. We are continually subject to the risk of new regulation, which could harm our business. The cost of compliance with government regulations is significant and could harm our operating results. Our operations expose us to the risk of litigation, which we try to manage but could lead to significant potential liability. Our business depends extensively on recruiting and retaining qualified branch managers. If we are not able to attract a sufficient number of qualified branch managers, our future growth and financial performance may suffer. Our credit facilities require that we meet certain levels of financial performance. In the event we fail either to meet these requirements or have them waived, we may be subject to penalties and we could be forced to seek additional financing. Our acquisitions or acquisition efforts may not be successful, which may limit our growth or adversely affect our results of operations and financial condition. We have significant working capital requirements. Our information and computer processing systems are critical to the operations of our business and any failure could cause significant problems. The loss of any of our key personnel could harm our business. Our business would suffer if we could not attract enough temporary employees or skilled trade workers. Determinations that we have misclassified the jobs performed by our temporary employees for workers compensation insurance purposes in our monopolistic states, even if the misclassifications are inadvertent, could result in us owing penalties to government regulators and/or having to record additional expense. Labor unions have attempted to harm our business.

Full 10-K form ▸

768899--3/7/2006--LABOR_READY_INC