Avis 2008 Annual Report Download - page 32

Moreover, the Separation Agreement provides for cross-indemnities designed to place financial responsibility of certain liabilities and other
obligations with the proper company. For example, Realogy, Wyndham Worldwide and/or Travelport are required to indemnify us in respect of
certain effective guarantees that result from either us or one of our subsidiaries remaining a named lessee on real estate leases pertaining to
properties occupied by Realogy, Wyndham and/or Travelport. Any failure by Realogy, Wyndham Worldwide or Travelport to pay any of their
assumed liabilities when due or to indemnify us when required may adversely impact our results of operations.
Risks related to our common stock
The market price of our shares may fluctuate widely.
During 2008, the market price for our common stock experienced a substantial decline. We cannot predict the prices at which our common stock
will trade. The market price of our common stock may fluctuate widely, depending upon many factors, some of which may be beyond our
control, including:
The decrease in our stock price during 2008 has impacted our ability to provide equity incentives to our employees, officers or directors with a
value comparable to prior years and has impacted the value of prior incentive awards made to our employees; therefore our ability to retain our
key employees and officers could be adversely impacted.
Your percentage ownership may be diluted in the future.
Your percentage ownership may be diluted in the future because of equity issuances or equity awards that we granted or will grant to our
directors, officers and employees. As disclosed in the notes to our financial statements included herein, in 2008 we granted approximately
1.2 million restricted stock units and we granted stock options in January 2009. We also expect to grant restricted stock units, stock options
and/or other types of equity awards in the future.
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•
our quarterly or annual earnings, or those of other companies in our industry, including our suppliers;
•
actual or anticipated fluctuations in our operating results;
•
changes in accounting standards, policies, guidance, interpretations or principles;
•
announcements by us or our competitors of acquisitions or dispositions;
•
changes in earnings estimates by securities analysts or our ability to meet those estimates;
•
changes in investors
’
and analysts
’
perceptions of our industry, business or related industries;
•
the operating and stock price performance of other comparable companies;
•
overall market fluctuations;
•
general economic conditions and conditions in the credit markets; and
• our ability to meet the continued listing requirements of the New York Stock Exchange. See “If we do not meet the continued listing
requirements of the New York Stock Exchange, our common stock may be delisted
”
.