American Home Shield 2010 Annual Report Download - page 14

Table of Contents
for 2011 compared to 2010. Fuel price increases can also result in increases in the cost of fertilizer, chemicals and other materials used in our business. We
cannot predict the extent to which we may experience future increases in costs of fuel, fertilizer, chemicals, raw materials, wages, employee benefits,
healthcare, vehicles, insurance and other operating costs. To the extent such costs increase, we may be prevented, in whole or in part, from passing these cost
increases through to our existing and prospective customers, and the rates we pay to our subcontractors and suppliers may increase, any of which could have a
material adverse impact on our business, financial position, results of operations and cash flows.
We may not successfully implement our business strategies, including achieving our growth objectives.
We may not be able to fully implement our business strategies or realize, in whole or in part within the time frames anticipated, the anticipated benefits
of our various growth initiatives. Our various business strategies and initiatives, including our productivity and customer retention initiatives, are subject to
significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, we may incur certain
costs to achieve efficiency improvements in our business. Even if these efficiency improvement initiatives are undertaken, we may not fully achieve our
expected cost savings and efficiency improvements or these initiatives could adversely impact our customer retention and/or our operations. Also, our
business strategy may change from time to time. As a result, we may not be able to achieve our expected results of operations and cash flows.
Our market segments are highly competitive. Competition could reduce our share of the market segments served by us and adversely impact our
reputation, business, financial position, results of operations and cash flows.
We operate in highly competitive market segments. Changes in the source and intensity of competition in the market segments served by us impact the
demand for our services and may result in additional pricing pressures. The relatively low capital cost of entry to certain of our businesses has led to strong
competitive market segments, including competition from regional and local owner-operated companies. Regional and local competitors operating in a limited
geographic area may have lower labor, benefits and overhead costs. The principal methods of competition in our businesses include name recognition, quality
and speed of service, pricing, customer satisfaction and reputation. No assurance can be given that we will be able to compete successfully against current or
future competitors and that the competitive pressures that we face will not result in reduced market segment share or adversely impact our reputation,
business, financial position, results of operations and cash flows.
Any inability to attract and retain qualified key executives could hurt the Company and its businesses and inhibit our ability to operate and grow
successfully.
On February 22, 2011, we announced that Harry J. Mullany III would become our new Chief Executive Officer ("CEO"), effective March 31, 2011. Our
future success and financial performance will continue to depend in significant part on our executive management team and other key management personnel
and the smooth transition to new leadership. Any inability to timely attract qualified key executives, retain our leadership team and recruit other important
personnel could have a material adverse impact on our business, financial position, results of operations and cash flows.
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