Green Dot 2010 Annual Report Download - page 30

distributors would need to modify operational elements of our product offering to comply with the proposed
rules. If we or any of our retail distributors were unwilling or unable to make any required operational
changes to comply with the proposed rules as adopted, we would no longer be able to sell our cards
through that noncompliant retail distributor, which could have a material adverse effect on our business,
financial position and results of operations. However, as the proposed rules are subject to further comment
and revision, it is difficult to determine with any certainty what obligations the final rules might impose or
what impact they might have on our business or that of our retail distributors.
State and federal legislators and regulatory authorities have become increasingly focused on the
banking and consumer financial services industries, and continue to propose and adopt new legislation
that could result in significant adverse changes in the regulatory landscape for financial institutions
(including card issuing banks) and other financial services companies (including us). For example,
changes in the way we or the banks that issue our cards are regulated, such as the changes under
the Dodd-Frank Act, related to the consolidation of the primary federal regulator for savings banks with the
primary federal regulator for national banks and the establishment of a federal Bureau of Consumer
Financial Protection with oversight over us and our products and services, could expose us and the banks
that issue our cards to increased regulatory oversight, more burdensome regulation of our business, and
increased litigation risk, each of which could increase our costs and decrease our operating revenues.
Additionally, changes to the limitations placed on fees, the interchange rates that can be charged or the
disclosures that must be provided with respect to our products and services could increase our costs and
decrease our operating revenues.
Our actual operating results may differ significantly from our guidance.
From time to time, we may release guidance in our quarterly results conference calls, or otherwise,
regarding our future performance that represents our management’s estimates as of the date of release.
This guidance, which includes forward-looking statements, is based on projections prepared by our
management. These projections are not prepared with a view toward compliance with published guide-
lines of the American Institute of Certified Public Accountants, and neither our independent registered
public accounting firm nor any other independent expert or outside party compiles or examines the
projections. Accordingly, no such person expresses any opinion or any other form of assurance with
respect to those projections.
Projections are based upon a number of assumptions and estimates that, while presented with
numerical specificity, are inherently subject to significant business, economic and competitive uncertain-
ties and contingencies, many of which are beyond our control, and are based upon specific assumptions
with respect to future business decisions, some of which will change. We intend to state possible outcomes
as high and low ranges that are intended to provide a sensitivity analysis as variables are changed but we
can provide no assurances that actual results will not fall outside of the suggested ranges.
The principal reason that we release guidance is to provide a basis for our management to discuss our
business outlook with analysts and investors. We do not accept any responsibility for any projections or
reports published by any of these persons.
Guidance is necessarily speculative in nature, and it can be expected that some or all of the
assumptions underlying the guidance furnished by us will prove to be incorrect or will vary significantly
from actual results. Accordingly, our guidance is only an estimate of what management believes is
realizable as of the date of release. Actual results will vary from our guidance and the variations may be
material. In light of the foregoing, investors are urged not to rely upon our guidance in making an
investment decision with respect to our Class A common stock.
Any failure to implement our operating strategy successfully or the occurrence of any of the events or
circumstances set forth in this Item 1.A. section could result in our actual operating results being different
from our guidance, and such differences may be adverse and material.
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