Circuit City 2006 Annual Report Download - page 13

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Other factors that may affect our future results of operations and financial condition include, but are not limited to,
unanticipated developments in any one or more of the following areas, as well as other factors which may be detailed from
time to time in our Securities and Exchange Commission filings:
Readers are cautioned not to place undue reliance on any forward looking statements contained in this report, which
speak only as of the date of this report. We undertake no obligation to publicly release the result of any revisions to these
forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the
occurrence of unexpected events.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
Our primary facilities, which are leased except where otherwise indicated, are as follows:
•
•
•
Inability to hire and retain qualified technical personnel
Impact of privacy laws on the use of our product
Exposure to claims of infringement of intellectual property rights
•
Restrictions and covenants in our credit facility may limit our ability to enter into certain transactions.
Our United States/United Kingdom combined revolving credit agreement contains covenants restricting or
limiting our ability to, among other things:
•
•
•
•
incur additional debt
create or permit liens on assets
make capital expenditures or investments
pay dividends
If we fail to comply with the covenants and other requirements set forth in the agreement, we will have to
negotiate a waiver agreement with the lenders. Failure to enter into such a waiver agreement could adversely
affect the availability of financing to us which could materially impact our operations.
•
the effect on us of volatility in the price of paper and periodic increases in postage rates
• significant changes in the computer products retail industry, especially relating to the distribution and sale
of such products
•
timely availability of existing and new products
• risks involved with e-commerce, including possible loss of business and customer dissatisfaction if
outages or other computer
-
related problems should preclude customer access to us
•
risks associated with delivery of merchandise to customers by utilizing common delivery services such as
the United States Postal Service and United Parcel Service, including possible strikes and contamination
•
borrowing costs or availability
•
pending or threatened litigation and investigations
•
the availability of key personnel
Facility
Location
Approximate
Square Feet
Expiration
of Lease
Headquarters, Sales and Distribution Center (1)
Port Washington, NY
86,000
2007
Sales and Distribution Center
Buford, GA
647,000
2021
Sales and Distribution Center
Naperville, IL
330,000
2026
PC Assembly, Sales and Distribution Center
Fletcher, OH
297,000
Owned
Sales and Administrative Center
Miami, FL
80,000
2010