918962--3/31/2006--POINDEXTER_J_B_&_CO

related topics

{customer, product, revenue}

{debt, indebtedness, cash}

{competitive, industry, competition}

{acquisition, growth, future}

{condition, economic, financial}

{personnel, key, retain}

{cost, regulation, environmental}

{regulation, change, law}

{product, liability, claim}

{cost, operation, labor}

{capital, credit, financial}

Our businesses are highly cyclical. An economic downturn could adversely affect our ability to generate cash and make required payments on our debt. Demand for our truck body products depends largely on the replacement cycle of delivery trucks. The cyclicality of pickup truck sales could cause a decline in Truck Accessories sales. We have a substantial amount of debt outstanding and can incur more debt, which could hurt our future prospects, limit cash flow available from our operations and prevent us from fulfilling our obligations under the 8.75% Notes and our other debt obligations. We may not be able to compete favorably in our industries. Most of our businesses rely on a small number of customers, the loss of any of which could have a material adverse effect on us. Disruptions in delivery of truck chassis to us could impact the profitability of our business. Environmental and health and safety liabilities and requirements could require us to incur material costs. We may incur material losses and costs as a result of product liability and warranty claims that may be brought against us. We depend on the services of key management personnel, the loss of whom would materially harm us. We may be unable to realize our business strategy of improving operating performance and generating savings. We may not be able to consummate future acquisitions or successfully integrate acquisitions into our business. If we are unable to meet future capital requirements, our competitive position may be adversely affected. As a privately-held company, we are subject to less stringent corporate governance requirements than a company with public equity. This provides less protection to our investors.

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918962--3/31/2006--POINDEXTER_J_B_&_CO_INC