878726--8/29/2008--TUESDAY_MORNING

related topics

{stock, price, operating}

{cost, regulation, environmental}

{competitive, industry, competition}

{personnel, key, retain}

{cost, operation, labor}

{operation, natural, condition}

{customer, product, revenue}

{stock, price, share}

{provision, law, control}

{control, financial, internal}

{condition, economic, financial}

{product, market, service}

{debt, indebtedness, cash}

{system, service, information}

{operation, international, foreign}

{capital, credit, financial}

Risks Related to Our Business We face a number of risks in opening new stores and relocating existing 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 the operations of, our centralized distribution center would have a material adverse effect on our business and operations. Our freight costs and thus our cost of goods sold are impacted by changes in fuel prices. 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. If we are not able to generate strong cash flows from our operations, we will not be able to support capital expansion, operations and debt repayment. 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. Inclement 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. We maintain internal control over financial reporting, but cannot provide absolute assurance that there will not be material errors in our financial reporting. 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 results of operations. Risks Related to Our Common Stock Our certificate of incorporation, bylaws and Delaware law contain provisions that could make it more difficult for a third party to acquire us without the consent of our board of directors. Our largest stockholder has significant influence over us, which may affect the rights of other stockholders. Sales of our common stock by our largest stockholder could depress our stock price. Because our Board of Directors voted to terminate the declaration of an annual cash dividend, stockholders must look solely to appreciation of our common stock to realize a gain on their investment.

Full 10-K form ▸

878726--8/29/2008--TUESDAY_MORNING_CORP/DE