850660--3/9/2010--THERMADYNE_HOLDINGS_CORP

related topics

{debt, indebtedness, cash}

{operation, international, foreign}

{cost, regulation, environmental}

{condition, economic, financial}

{personnel, key, retain}

{cost, operation, labor}

{product, market, service}

{tax, income, asset}

{customer, product, revenue}

{financial, litigation, operation}

{stock, price, share}

{property, intellectual, protect}

{competitive, industry, competition}

Our future operating results may be adversely affected by fluctuations in the prices and availability of raw materials. Our international sales and operations face special risks and are subject to various operational and financial developments and restrictions that may adversely impact our sales and earnings. We are subject to currency fluctuations and face risks arising from the imposition of exchange controls and currency devaluations. Sales of our common stock may result in a change of control under the Indenture, in which case, we may be required to repurchase the Senior Subordinated Notes, which would have a material adverse effect on the Company. Sales of our common stock may result in a change of control under our credit facility agreements, which constitutes an event of default under the agreements, could result in the acceleration of our debt obligations under those agreements and, absent a waiver of this default, would have a material adverse effect on the Company. The sale of shares by our principal stockholder or a combination of other stockholders may limit our ability to use net operating loss carryforwards to offset future taxable income for federal and state income tax purposes, which could have a material adverse effect on our cash flow and results of operations. We rely in large part on independent distributors for sales of our products and the continued consolidation of distributors and loss of key distributors could materially harm our business. Our business is highly competitive, and increased competition could reduce our sales, earnings and profitability. We may not be able to successfully implement our cost-reduction initiatives, which may limit our competitiveness and profitability. Failure to enhance existing products and develop new products may adversely impact our financial results. If we cannot adequately enforce or protect our intellectual property rights, our competitive position will suffer and we may incur significant additional costs. If our consolidated indebtedness increases or EBITDA decreases, our interest cost under our Senior Subordinated Notes may increase, which would negatively impact our results. We are subject to risks caused by changes in interest rates. If we fail to comply with the financial covenants in our debt instruments, our ability to obtain financing and make payments under our debt instruments may be adversely impacted. The Company is subject to risks caused by disruptions in the credit markets. The actual or anticipated sale of shares of our common stock may cause the market price of our common stock to decline. During 2008, the Company registered 4,496,555 shares of our common stock on behalf of our principal stockholder, and 1,500,000 shares of our common stock for future offer and sale by the Company. If our relationships with our employees were to deteriorate, we could be adversely affected. If we are unable to retain and hire key employees, we could be adversely affected. Liabilities relating to litigation alleging manganese induced illness could reduce our profitability and impair our financial condition. Our products involve risks of personal injury and property damage, which expose us to potential liability.

Full 10-K form ▸

850660--3/9/2010--THERMADYNE_HOLDINGS_CORP_/DE