American Home Shield 2011 Annual Report Download - page 66

Table of Contents
settlements and expiration of statutes of limitations; the valuation of marketable securities; estimates of accruals for self-insured claims related to workers'
compensation, auto and general liability risks; estimates of accruals for home service contract claims; estimates of future payments under operating and
capital leases; estimates for increases in healthcare costs; the outcome (by judgment or settlement) and costs of legal or administrative proceedings, including,
without limitation, collective, representative or class action litigation; post-closing purchase price adjustments, including, without limitation, items related to
working capital and potential indemnification claims associated with the TruGreen LandCare disposition; our ability to renegotiate or extend our
$50.0 million receivable securitization arrangement; and the impact of prevailing economic conditions.
Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that
forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation,
our actual results of operations, financial condition and liquidity, and the development of the market segments in which we operate, may differ materially
from those made in or suggested by the forward-looking statements contained in this report. In addition, even if our results of operations, financial condition
and cash flows, and the development of the market segments in which we operate, are consistent with the forward-looking statements contained in this report,
those results or developments may not be indicative of results or developments in subsequent periods. A number of important factors, including, without
limitation, the risks and uncertainties discussed in Item 1A—Risk Factors in Part I of this report, could cause actual results and outcomes to differ materially
from those reflected in the forward-looking statements. Additional factors that could cause actual results and outcomes to differ from those reflected in
forward-looking statements include, without limitation:
the effects of our substantial indebtedness and the limitations contained in the agreements governing such indebtedness;
our ability to generate the significant amount of cash needed to fund our operations and service our debt obligations and debt repurchases;
changes in interest rates, because a significant portion of our indebtedness bears interest at variable rates;
our ability to secure sources of financing or other funding to allow for direct purchases or leasing of commercial vehicles, primarily for TruGreen
and Terminix;
changes in the source and intensity of competition in our market segments;
our ability to attract and retain key personnel;
weather conditions, including, without limitation, potential impacts, if any, from climate change, known and unknown, and seasonality factors
that affect the demand for, or our ability to provide, our services and the cost of our claims and services;
higher commodity prices and lack of availability thereof, including, without limitation, fuel and chemicals (primarily at TruGreen and Terminix),
which could impact our ability to provide our services and the profitability of our brands;
increases in operating costs, such as higher insurance premiums, self-insurance costs and compensation and benefits costs, including, without
limitation, costs related to the comprehensive health care reform law enacted in the first quarter of 2010;
employee retention and labor shortages;
63
•
•
•
•
•
•
•
•
•
•