MoneyGram 2007 Annual Report Download - page 63

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Table of Contents
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING STATEMENTS
This Annual Report on Form 10-K and the documents incorporated by reference herein may contain forward-looking statements with
respect to the financial condition, results of operation, plans, objectives, future performance and business of MoneyGram International,
Inc. and its subsidiaries. Statements preceded by, followed by or that include words such as "may," "will," "expect," "anticipate,"
"continue," "estimate," "project," "believes" or similar expressions are intended to identify some of the forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 and are included, along with this statement, for purposes of
complying with the safe harbor provisions of that Act. These forward-looking statements involve risks and uncertainties. Actual results
may differ materially from those contemplated by the forward-looking statements due to, among others, the risks and uncertainties
described in this Annual Report on Form 10-K, including those described below and under Item 1A entitled "Risk Factors," and in the
documents incorporated by reference herein. These forward-looking statements speak only as of the date on which such statements are
made. We undertake no obligation to update publicly or revise any forward-looking statements for any reason, whether as a result of new
information, future events or otherwise, except as required by federal securities law.
• Substantial Dividend and Debt Service Obligations. Our substantial dividend and debt service obligations, as well as covenant
requirements, adversely impacts our ability to pay dividends, to obtain additional financing and to operate and grow our business.
• Significant Dilution to Stockholders and Control of New Investors. The Series B Stock issued to the Investors at the closing of the
Capital Transaction, dividends accrued on the Series B Stock post-closing and potential special voting rights provided to the
Investors' designees on the Company's Board of Directors significantly dilutes the interests of our existing stockholders and gives
the Investors control of the Company.
• Retention of Global Funds Transfer Agents. We may be unable to renew material retail agent customer contracts, or we may
experience a loss of business from significant agents or customers.
• Operation of Payment Systems Segment. We may be unable to operate our Payment Systems segment profitably pursuant to our
new official check strategy and portfolio realignment.
• Stockholder Litigation and Related Risks. Stockholder lawsuits and other litigation or government investigations of the Company or
its agents could result in material settlements, fines or penalties.
• Maintenance of Banking Relationships. We may be unable to maintain existing or establish new banking relationships, including
the Company's clearing bank relationships, which could adversely affect our business, results of operation and our financial
condition.
• Loss of Key Employees. We may be unable to retain and attract key employees.
• Failure to Maintain Sufficient Capital. We may be unable to maintain sufficient capital, which may hamper our ability to pursue
our growth strategy and fund key strategic initiatives, such as product development and acquisitions.
• Development of New and Enhanced Products and Related Investment. We may be unable to successfully and timely implement
new or enhanced technology and infrastructure, delivery methods and product and service offerings and we may invest in new
products or services and infrastructure that are not successful.
• Intellectual Property. The loss of intellectual property protection, the inability to secure or enforce intellectual property protection
or the inability to successfully defend against an intellectual property infringement action could harm our business and prospects.
• Competition. We may be unable to compete against our large competitors, niche competitors or new competitors that may enter the
markets in which we operate.
• U.S. and International Regulation. Failure by us or our agents to comply with the laws and regulatory requirements in the U.S. and
abroad, or changes in laws, regulations or other industry practices and standards could have an adverse effect on our results of
operations.
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