Sunbeam 2004 Annual Report Download - page 36

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Management’s Discussion and Analysis of Financial Condition and Results of Operations
(cont’d)
‰We cannot be certain that our product innovations and marketing successes will continue;
‰We may experience difficulty in integrating acquired businesses, which may interrupt our
business operations;
‰Our operations are subject to a number of federal, state and local environmental regulations;
‰We may be adversely affected by remediation obligations mandated by applicable environmental
laws;
‰Our resources may be insufficient to manage the demands imposed by our growth;
‰We depend upon key personnel;
‰We enter into contracts with the United States government and other governments;
‰Our operating results can be adversely affected by changes in the cost or availability of raw
materials;
‰Our business could be adversely affected because of risks which are particular to international
operations;
‰Our business could be adversely affected by currency fluctuations in our international
operations;
‰Our performance can fluctuate with the financial condition of the retail industry;
‰Our business involves the potential for product recalls and product liability claims against us;
‰Our failure to successfully protect our intellectual property rights could have a material adverse
effect on our business;
‰Our business could be adversely affected by complications resulting from our implementation of
a new operating software system or other new computer technologies we install;
‰We may not be able to implement successfully our restructuring projects;
‰Certain of our employees are represented by labor unions;
‰Our significant indebtedness could adversely affect our financial health;
‰We will require a significant amount of cash to service our indebtedness. Our ability to generate
cash depends on many factors beyond our control;
‰The indenture related to our 9
3
⁄
4
% senior subordinated notes due 2012 and our senior credit
facility contain various covenants which limit our management’s discretion in the operation of
our business; and
‰Compliance with changing regulation of corporate governance and public disclosure may result
in additional expenses.
Should one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those described in the forward-
looking statements. We undertake no obligation to publicly update forward-looking statements,
whether as a result of new information, future events or otherwise.
34