927417--3/12/2008--POLYMER_GROUP

related topics

{debt, indebtedness, cash}

{customer, product, revenue}

{product, market, service}

{cost, regulation, environmental}

{stock, price, share}

{stock, price, operating}

{provision, law, control}

{cost, operation, labor}

{personnel, key, retain}

{tax, income, asset}

{property, intellectual, protect}

{product, liability, claim}

{operation, international, foreign}

{acquisition, growth, future}

Risks Related to the Company's Business Because the specialized markets in which we sell our products are highly competitive, we may have difficulty growing our business year after year. We must continue to invest significant resources in developing innovative products in order to maintain a competitive edge in the highly specialized markets in which we operate. The loss of only a few of our large volume customers could reduce our revenues and profits. Increases in prices for raw materials or the unavailability of raw materials could reduce our profit margins. Reductions in our selling prices to customers, pursuant to contractual requirements, could reduce our profit margins. In response to changing market conditions, we may decide to restructure certain of our operations resulting in additional cash restructuring charges and asset impairment charges. Our substantial indebtedness could harm our ability to react to changes in business or market developments and prevent us from fulfilling our obligations under our indebtedness. Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly. To service our indebtedness and fund our capital expenditures, we will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control. Non-compliance with covenants contained in our Credit Facility, without waiver or amendment from our lenders, could adversely affect our ability to borrow under the Credit Facility and render all outstanding borrowings immediately due and payable. Because a significant number of our employees are represented by labor unions or trade councils and work under collective bargaining agreements, any employee slowdown or strikes or the failure to renew our collective bargaining agreements could disrupt our business. We generate most of our revenue from the sale of manufactured products that are used in a wide variety of consumer and industrial applications and the potential for product liability exposure could be significant. We rely on a limited number of suppliers to provide significant machinery and components used in our production facilities. A material interruption in supply could prevent or limit our ability to accept and fill orders for our products. Our international operations pose risks to our business that are not present with our domestic operations. We could incur substantial costs to comply with environmental laws, and violations of such laws may increase costs or require us to change certain business practices. If we are unable to adequately protect our intellectual property, we could lose a significant competitive advantage. Due to the particular industry in which we operate, the loss of our senior management could disrupt our business. The success of our business depends, in part, on achieving our objectives for strategic acquisitions and dispositions. Risks Related to our Class A Common Stock The nature of the stock market in general, and our Class A Common Stock in particular, could minimize the use of equity markets as a source of capital to fund future capital spending or acquisitions. Our amended and restated certificate of incorporation and amended and restated by-laws contain provisions that could delay or discourage takeover attempts that stockholders may consider favorable and adversely affect the trading price of our Class A Common Stock. A significant stockholder has the ability to substantially influence us and its interests may conflict with or differ from your interests as a stockholder.

Full 10-K form ▸

927417--3/12/2008--POLYMER_GROUP_INC