Supercuts 2005 Annual Report Download - page 54

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SAFE HARBOR PROVISIONS UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This annual report, as well as information included in, or incorporated by reference from, future filings by the Company with the
Securities and Exchange Commission and information contained in written material, press releases and oral statements issued by or on behalf
of the Company contains or may contain “forward-looking statements” within the meaning of the federal securities laws, including statements
concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect
management’s best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could
cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often
identified herein by use of words including, but not limited to, “may,” “believe,” “project,” “forecast,” “expect,” “estimate,” “anticipate,” and
“plan.” In addition, the following factors could affect the Company’s actual results and cause such results to differ materially from those
expressed in forward-looking statements. These factors include competition within the personal hair care industry, which remains strong, both
domestically and internationally, and price sensitivity; changes in economic condition; changes in consumer tastes and fashion trends; labor
and benefit costs; legal claims; risk inherent to international development (including currency fluctuations); the continued ability of the
Company and its franchisees to obtain suitable locations and financing for new salon development; governmental initiatives such as minimum
wage rates, taxes and possible franchise legislation; the ability of the Company to successfully identify and acquire salons that support its
growth objectives; or other factors not listed above. The ability of the Company to meet its expected revenue growth is dependent on salon
acquisitions, new salon construction and same-store sales increases, all of which are affected by many of the aforementioned risks. Additional
information concerning potential factors that could affect future financial results is set forth in the Company’s Form S-
3 Registration Statement
filed with the Securities and Exchange Commission on June 8, 2005. We undertake no obligation to publicly update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further
disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-Q and 8-K and Proxy Statements
on Schedule 14A.
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
The primary market risk exposure of the Company relates to changes in interest rates in connection with its debt, some of which bears
interest at variable rates based on LIBOR plus an applicable borrowing margin. Additionally, the Company is exposed to foreign currency
translation risk related to its net investments in its foreign subsidiaries. The Company has established policies and procedures that govern the
management of these exposures. By policy, the Company does not enter into such contracts for the purpose of speculation. The following
details the Company’s policies and use of financial instruments.
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