878726--3/15/2007--TUESDAY_MORNING

related topics

{operation, natural, condition}

{stock, price, operating}

{customer, product, revenue}

{condition, economic, financial}

{competitive, industry, competition}

{personnel, key, retain}

{stock, price, share}

{cost, operation, labor}

{provision, law, control}

{product, market, service}

{control, financial, internal}

{debt, indebtedness, cash}

{system, service, information}

{operation, international, foreign}

{cost, regulation, environmental}

{capital, credit, financial}

Risks Related to Our Business We face a number of risks in opening new stores. Poor economic conditions affect consumer spending and may significantly harm our business. Our business and results of operations are subject to a broad range of uncertainties arising out of world events. Our business is intensely competitive and increased or new competition could have a material adverse effect on us. We must continuously attract buying opportunities for closeout merchandise and anticipate consumer demand as closeout merchandise becomes available. The loss of, or disruption in, our centralized distribution center would have a material adverse effect on our business and operations. The loss or departure of one or more members of our senior management could have a material adverse effect on our business. We are dependent on external funding sources, which may not make available to us sufficient funds when we need them. An increase in the cost or a disruption in the flow of our imported products may significantly decrease our sales and profits. We are subject to environmental regulations. Our success depends upon our marketing, advertising and promotional efforts. If we are unable to implement them successfully, or if our competitors are more effective than we are, our revenue may be adversely affected. Inclimate weather in the markets in which our stores operate could adversely affect our operating results. We operate in highly competitive markets, and we may not be able to compete effectively. If we do not attract and retain quality sales, distribution center and other associates in large numbers, as well as, experienced buying and management personnel, our performance could be adversely affected. If we are unable to operate information systems and implement new technologies effectively, our business could be disrupted or our sales or profitability could be reduced. If we are not able to generate strong cash flows from our operations, we will not be able to support capital expansion, operations, debt repayment and our stock repurchase program. We maintain internal controls over financial reporting, but they cannot provide absolute assurance that there will not be material errors in our financial reporting. Changes in Customer Demands Could Materially Adversely Affect Our Sales, Operating Results and Cash Flow A Weak Fourth Quarter Would Materially Adversely Affect Our Operating Results Risks Related to Our Common Stock Our results of operations are subject to seasonal and quarterly fluctuations, which could have a material adverse effect on the market price of our common stock. A failure to grow or maintain our comparable store sales may adversely affect our stock price and impact our results of operations. Our largest shareholder has significant influence over us, which may affect the rights of other shareholders. Future sales of our common stock on the public market could depress our stock price. Provisions of our certificate of incorporation could discourage potential acquisition proposals and could deter or prevent a change in control.

Full 10-K form ▸

878726--3/15/2007--TUESDAY_MORNING_CORP/DE