Cash America 2009 Annual Report Download - page 49

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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 internet 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.
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. The
Company’s 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 the Company’s efforts to
arrange additional financing on terms that are satisfactory to the Company. If adequate funds are not
available, or are not available on acceptable terms, the Company 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 the Company’s ability to advance its strategic plans. Additionally, if the capital and
credit markets continue to experience volatility and the availability of funds remains limited, third parties with
whom the Company does business may incur increased costs or business disruption and this could adversely
affect the Company’s business relationships with such third parties.
Failure to satisfy our debt obligations could have a material adverse effect on our business.
As of December 31, 2009, the Company had $429.2 million total debt outstanding, including the
Company’s credit facilities, senior unsecured notes and 2009 Convertible Notes as more fully described under
“Item 8. Financial Statements and Supplementary Data – Note 8.” If the Company is unable to generate
sufficient cash flow or otherwise obtain funds necessary to make required payments on these debt obligations
or if it is in breach of the covenants contained in the debt agreements it would default under the terms of the
applicable agreement or indenture. Any such default could result in an acceleration of the repayment
obligations to such lenders as well as the lenders under any of its other debt agreements under applicable
cross default provisions. Any such default could materially adversely affect the Company’s business,
prospects, results of operations and financial condition.
Some of the Company’s debt agreements contain financial covenants and other restrictions which may
limit its ability to operate its business.
Some of the Company’s debt agreements contain various restrictive covenants, compliance with
which is essential to continued credit availability. These restrictive covenants, among other things, restrict the
Company’s ability to:
• incur additional debt;
• incur or permit certain liens to exist;