Cash America 2008 Annual Report Download - page 41

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of or inability to access the facilities in which the Company’s online operations, storefront point of sale
system and other technology infrastructure are based, such as a power outage, a failure of one or more
of its information technology, telecommunications or other systems, or sustained or repeated disruptions
of such systems could significantly impair its ability to perform such functions on a timely basis and
could result in a deterioration of the Company’s ability to write and process online cash advances,
perform efficient storefront lending and merchandise disposition activities, provide customer service,
perform collections activities, or perform other necessary business functions.
A security breach of the Company’s computer systems could also interrupt or damage its operations or
harm its reputation. In addition, the Company could be subject to liability if confidential customer
information is misappropriated from its computer systems. Despite the implementation of significant
security measures these systems may still be vulnerable to physical break-ins, computer viruses,
programming errors, attacks by third parties or similar disruptive problems. Any compromise of security
could deter people from entering into transactions that involve transmitting confidential information to
the Company’s systems, which could have a material, adverse effect on the Company’s business.
x The Company may be unable to protect its proprietary technology or keep up with that of its
competitors. The success of the Company’s business, particularly its online business, depends to a
significant degree upon the protection of its software and other proprietary intellectual property rights.
The Company may be unable to deter misappropriation of its proprietary information, detect
unauthorized use or take appropriate steps to enforce its intellectual property rights. In addition,
competitors could, without violating the Company’s proprietary rights, develop technologies that are as
good as or better than its technology. The Company’s failure to protect its software and other
proprietary intellectual property rights or to develop technologies that are as good as its competitors’
could put the company at a disadvantage to its competitors. Any such failures could have a material
adverse effect on the Company’s business.
x Changes in the Company’s financial condition or continued disruption in the capital markets
could reduce available capital. The Company regularly accesses the debt capital markets to refinance
existing debt obligations and to obtain capital to finance growth. Efficient access to these markets is
critical to the Company’s ongoing financial success; however, the Company’s future access to the debt
capital markets could become restricted due to a variety of factors, including a deterioration of the
Company’s earnings, cash flows, balance sheet quality, or overall business or industry prospects, a
sustained disruption or further deterioration in the state of the capital markets or a negative bias toward
the Company’s industry by market participants. The current disruptions and volatility in the capital
markets have caused banks and other credit providers to restrict availability of new credit facilities and
require higher pricing upon renewal of existing credit facilities. Our ability to obtain additional
financing in the future will depend in part upon prevailing capital market conditions and the current
state of the capital market may adversely affect our efforts to arrange additional financing on terms that
are satisfactory to us. If adequate funds are not available, or are not available on acceptable terms, we
may not be able to make future investments, take advantage of acquisitions or other opportunities, or
respond to competitive challenges and this, in turn, could adversely affect our ability to advance our
strategic plans. Additionally, if the capital and credit markets continue to experience volatility and the
availability of funds remains limited, third parties with whom we do business may incur increased costs
or business disruption and this could adversely affect our business relationships with such third parties.
x The Company’s growth is subject to external factors and other circumstances over which the
Company has limited control or that are beyond the Company’s control. These factors and
circumstances could adversely affect the Company’s ability to grow through the opening and
acquisition of new operating units. The Company’s expansion strategy includes acquiring existing
stores and opening new ones. The success of this strategy is subject to numerous external factors, such
as the availability of attractive acquisition candidates, the availability of sites with acceptable
restrictions and suitable terms, the Company’s ability to attract, train and retain qualified unit
management personnel, the ability to access capital and the ability to obtain required government