Dick's Sporting Goods 2011 Annual Report Download - page 38

litigation;
pricing and other actions taken by our competitors; and
weather conditions in our markets.
Our same store sales will fluctuate and may not be a meaningful indicator of future performance.
Our same store sales may vary from quarter-to-quarter and could decline relative to the comparable
period in the prior fiscal year. A decline in revenues or same store sales may cause the price of our
common stock to decrease or to fluctuate significantly. A number of factors, many of which are outside
of our control, have historically affected, and will continue to affect, our same store sales results,
including:
general regional and national economic conditions;
competition;
our new store openings;
consumer trends and preferences;
changes in the shopping centers, malls and retail nodes in which we are located and their tenants;
new product introductions and changes in our product mix;
timing and effectiveness of promotional events;
lack of new product introductions to spur growth in the sale of various kinds of sports equipment;
and
weather conditions in our markets.
Our ability to operate and expand our business and to respond to changing business and economic conditions
will be dependent upon the availability of adequate capital. The terms of our senior secured revolving credit
facility impose certain restrictions that may impair our ability to access sufficient capital.
The operation of our business, the rate of our expansion and our ability to respond to changing
business and economic conditions depend on the availability of adequate capital, which in turn depends
on cash flow generated by our business and, if necessary, the availability of equity or debt capital. We
cannot assure you that our cash flow will be sufficient to meet these needs or that we would be able to
obtain equity or debt capital on acceptable terms or at all.
Our current senior secured revolving credit facility contains provisions that limit our ability to incur
additional indebtedness or make substantial asset sales, which might otherwise be used to finance our
operations. In the event of our insolvency, liquidation, dissolution or reorganization, the lenders under
our senior secured revolving credit facility would be entitled to payment in full from our assets before
distributions, if any, were made to our stockholders.
If we are unable to generate sufficient cash flows from operations in the future, and if availability
under our current senior secured revolving credit facility is not sufficient, we may have to obtain
additional financing. We cannot assure you that we could obtain refinancing or additional financing on
favorable terms or at all. Ongoing distress in the worldwide financial markets may result in continued
diminished liquidity and credit availability. Furthermore, a downturn in the equity or debt markets or
the tightening of credit markets could make it difficult to obtain additional financing or raise capital,
and thus we cannot be certain that additional funds will be available if needed or available on
acceptable terms. Our liquidity or access to capital could also be adversely affected by other unforeseen
changes in the financial markets and global economy.
16 Dick’s Sporting Goods, Inc. 2011 Annual Report