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SMG » Topics » Debt

These excerpts taken from the SMG 10-K filed Dec 3, 2008.
Debt
 
We have a significant amount of debt that could adversely affect our financial health and prevent us from fulfilling our obligations. Our substantial indebtedness could have important consequences. For example, it could:
 
  •  make it more difficult for us to satisfy our obligations under outstanding indebtedness;
 
  •  increase our vulnerability to general adverse economic and industry conditions;
 
  •  require us to dedicate a substantial portion of cash flows from operating activities to payments on our indebtedness, which would reduce the cash flows available to fund working capital, capital expenditures, advertising, research and development efforts and other general corporate requirements;
 
  •  limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
 
  •  place us at a competitive disadvantage compared to our competitors that have less debt;
 
  •  limit our ability to borrow additional funds; and
 
  •  expose us to risks inherent in interest rate fluctuations because some of our borrowings are at variable rates of interest, which could result in higher interest expense in the event of increases in interest rates.
 
Our ability to make payments and to refinance our indebtedness, to fund planned capital expenditures and acquisitions and to pay dividends will depend on our ability to generate cash in the future. This, to some extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.
 
We cannot provide assurance that our business will generate sufficient cash flow from operating activities or that future borrowings will be available to us under our credit facilities in amounts sufficient to enable us to pay our indebtedness or to fund our other liquidity needs. We may need to refinance all or a portion of our indebtedness, on or before maturity. We cannot be sure that we would be able to refinance any of our indebtedness on commercially reasonable terms or at all.
 
Our credit facilities contain restrictive covenants and cross default provisions that require us to maintain specified financial ratios. Our ability to satisfy those financial ratios can be affected by events beyond our control, and we cannot be assured we will satisfy those ratios. A breach of any of these financial ratio covenants or other covenants could result in a default. Upon the occurrence of an event of
 
17

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default, the lenders could elect to declare the applicable outstanding indebtedness due immediately and payable and terminate all commitments to extend further credit. We cannot be sure that our lenders would waive a default or that we could pay the indebtedness in full if it were accelerated.
 
Debt


 



We have a significant amount of debt that could adversely affect
our financial health and prevent us from fulfilling our
obligations. Our substantial indebtedness could have important
consequences. For example, it could:


 












































































  • 
make it more difficult for us to satisfy our obligations under
outstanding indebtedness;
 
  • 
increase our vulnerability to general adverse economic and
industry conditions;
 
  • 
require us to dedicate a substantial portion of cash flows from
operating activities to payments on our indebtedness, which
would reduce the cash flows available to fund working capital,
capital expenditures, advertising, research and development
efforts and other general corporate requirements;
 
  • 
limit our flexibility in planning for, or reacting to, changes
in our business and the industry in which we operate;
 
  • 
place us at a competitive disadvantage compared to our
competitors that have less debt;
 
  • 
limit our ability to borrow additional funds; and
 
  • 
expose us to risks inherent in interest rate fluctuations
because some of our borrowings are at variable rates of
interest, which could result in higher interest expense in the
event of increases in interest rates.


 



Our ability to make payments and to refinance our indebtedness,
to fund planned capital expenditures and acquisitions and to pay
dividends will depend on our ability to generate cash in the
future. This, to some extent, is subject to general economic,
financial, competitive, legislative, regulatory and other
factors that are beyond our control.


 



We cannot provide assurance that our business will generate
sufficient cash flow from operating activities or that future
borrowings will be available to us under our credit facilities
in amounts sufficient to enable us to pay our indebtedness or to
fund our other liquidity needs. We may need to refinance all or
a portion of our indebtedness, on or before maturity. We cannot
be sure that we would be able to refinance any of our
indebtedness on commercially reasonable terms or at all.


 



Our credit facilities contain restrictive covenants and cross
default provisions that require us to maintain specified
financial ratios. Our ability to satisfy those financial ratios
can be affected by events beyond our control, and we cannot be
assured we will satisfy those ratios. A breach of any of these
financial ratio covenants or other covenants could result in a
default. Upon the occurrence of an event of

 



17






Table of Contents






default, the lenders could elect to declare the applicable
outstanding indebtedness due immediately and payable and
terminate all commitments to extend further credit. We cannot be
sure that our lenders would waive a default or that we could pay
the indebtedness in full if it were accelerated.


 




These excerpts taken from the SMG 10-K filed Nov 25, 2008.
Debt
 
We have a significant amount of debt that could adversely affect our financial health and prevent us from fulfilling our obligations. Our substantial indebtedness could have important consequences. For example, it could:
 
  •  make it more difficult for us to satisfy our obligations under outstanding indebtedness;
 
  •  increase our vulnerability to general adverse economic and industry conditions;
 
  •  require us to dedicate a substantial portion of cash flows from operating activities to payments on our indebtedness, which would reduce the cash flows available to fund working capital, capital expenditures, advertising, research and development efforts and other general corporate requirements;
 
  •  limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
 
  •  place us at a competitive disadvantage compared to our competitors that have less debt;
 
  •  limit our ability to borrow additional funds; and
 
  •  expose us to risks inherent in interest rate fluctuations because some of our borrowings are at variable rates of interest, which could result in higher interest expense in the event of increases in interest rates.
 
Our ability to make payments and to refinance our indebtedness, to fund planned capital expenditures and acquisitions and to pay dividends will depend on our ability to generate cash in the future. This, to some extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.
 
We cannot provide assurance that our business will generate sufficient cash flow from operating activities or that future borrowings will be available to us under our credit facilities in amounts sufficient to enable us to pay our indebtedness or to fund our other liquidity needs. We may need to refinance all or a portion of our indebtedness, on or before maturity. We cannot be sure that we would be able to refinance any of our indebtedness on commercially reasonable terms or at all.
 
Our credit facilities contain restrictive covenants and cross default provisions that require us to maintain specified financial ratios. Our ability to satisfy those financial ratios can be affected by events beyond our control, and we cannot be assured we will satisfy those ratios. A breach of any of these financial ratio covenants or other covenants could result in a default. Upon the occurrence of an event of default, the lenders could elect to declare the applicable outstanding indebtedness due immediately and payable and terminate all commitments to extend further credit. We cannot be sure that our lenders would waive a default or that we could pay the indebtedness in full if it were accelerated.
 
Debt


 



We have a significant amount of debt that could adversely affect
our financial health and prevent us from fulfilling our
obligations. Our substantial indebtedness could have important
consequences. For example, it could:


 












































































  • 
make it more difficult for us to satisfy our obligations under
outstanding indebtedness;
 
  • 
increase our vulnerability to general adverse economic and
industry conditions;
 
  • 
require us to dedicate a substantial portion of cash flows from
operating activities to payments on our indebtedness, which
would reduce the cash flows available to fund working capital,
capital expenditures, advertising, research and development
efforts and other general corporate requirements;
 
  • 
limit our flexibility in planning for, or reacting to, changes
in our business and the industry in which we operate;
 
  • 
place us at a competitive disadvantage compared to our
competitors that have less debt;
 
  • 
limit our ability to borrow additional funds; and
 
  • 
expose us to risks inherent in interest rate fluctuations
because some of our borrowings are at variable rates of
interest, which could result in higher interest expense in the
event of increases in interest rates.


 



Our ability to make payments and to refinance our indebtedness,
to fund planned capital expenditures and acquisitions and to pay
dividends will depend on our ability to generate cash in the
future. This, to some extent, is subject to general economic,
financial, competitive, legislative, regulatory and other
factors that are beyond our control.


 



We cannot provide assurance that our business will generate
sufficient cash flow from operating activities or that future
borrowings will be available to us under our credit facilities
in amounts sufficient to enable us to pay our indebtedness or to
fund our other liquidity needs. We may need to refinance all or
a portion of our indebtedness, on or before maturity. We cannot
be sure that we would be able to refinance any of our
indebtedness on commercially reasonable terms or at all.


 



Our credit facilities contain restrictive covenants and cross
default provisions that require us to maintain specified
financial ratios. Our ability to satisfy those financial ratios
can be affected by events beyond our control, and we cannot be
assured we will satisfy those ratios. A breach of any of these
financial ratio covenants or other covenants could result in a
default. Upon the occurrence of an event of default, the lenders
could elect to declare the applicable outstanding indebtedness
due immediately and payable and terminate all commitments to
extend further credit. We cannot be sure that our lenders would
waive a default or that we could pay the indebtedness in full if
it were accelerated.


 




This excerpt taken from the SMG 10-K filed Nov 29, 2007.
Debt
 
We have a significant amount of debt that could adversely affect our financial health and prevent us from fulfilling our obligations. Our substantial indebtedness could have important consequences. For example, it could:
 
  •  make it more difficult for us to satisfy our obligations under outstanding indebtedness;
 
  •  increase our vulnerability to general adverse economic and industry conditions;
 
  •  require us to dedicate a substantial portion of cash flows from operating activities to payments on our indebtedness, which would reduce the cash flows available to fund working capital, capital expenditures, advertising, research and development efforts and other general corporate requirements;
 
  •  limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
 
  •  place us at a competitive disadvantage compared to our competitors that have less debt;
 
  •  limit our ability to borrow additional funds; and
 
  •  expose us to risks inherent in interest rate fluctuations because some of our borrowings are at variable rates of interest, which could result in higher interest expense in the event of increases in interest rates.
 
Our ability to make payments and to refinance our indebtedness, to fund planned capital expenditures and acquisitions, and to pay dividends will depend on our ability to generate cash in the future. This, to some extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.
 
We cannot provide assurance that our business will generate sufficient cash flow from operating activities or that future borrowings will be available to us under our credit facilities in amounts sufficient to enable us to pay our indebtedness or to fund our other liquidity needs. We may need to refinance all or a portion of our indebtedness, on or before maturity. We cannot assure you that we would be able to refinance any of our indebtedness on commercially reasonable terms or at all.
 
Our credit facilities contain restrictive covenants and cross default provisions that require us to maintain specified financial ratios. Our ability to satisfy those financial ratios can be affected by events beyond our control, and we cannot be assured we will satisfy those ratios. A breach of any of these financial ratio covenants or other covenants could result in a default. Upon the occurrence of an event of default, the lenders could elect to declare the applicable outstanding indebtedness due immediately
 
15

 

and payable and terminate all commitments to extend further credit. We cannot be sure that our lenders would waive a default or that we could pay the indebtedness in full if it were accelerated.
 
This excerpt taken from the SMG 10-K filed Dec 14, 2006.
Debt
 
We have a significant amount of debt that could adversely affect our financial health and prevent us from fulfilling our obligations. Our debt levels will increase as a result of our plan to return $750 million to shareholders in the second quarter of fiscal 2007. Our substantial indebtedness could have important consequences. For example, it could:
 
  •  make it more difficult for us to satisfy our obligations under outstanding indebtedness;
 
  •  increase our vulnerability to general adverse economic and industry conditions;
 
  •  require us to dedicate a substantial portion of cash flows from operating activities to payments on our indebtedness, which would reduce the cash flows available to fund working capital, capital expenditures, advertising, research and development efforts and other general corporate requirements;
 
  •  limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
 
  •  place us at a competitive disadvantage compared to our competitors that have less debt;
 
  •  limit our ability to borrow additional funds; and
 
  •  expose us to risks inherent in interest rate fluctuations because some of our borrowings are at variable rates of interest, which could result in higher interest expense in the event of increases in interest rates.
 
Our ability to make payments and to refinance our indebtedness, to fund planned capital expenditures, acquisitions, and to pay dividends will depend on our ability to generate cash in the future. This, to some extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.
 
We cannot provide assurance that our business will generate sufficient cash flow from operating activities or that future borrowings will be available to us under our credit facility in amounts sufficient to enable us to pay our indebtedness or to fund our other liquidity needs. We may need to refinance all or a portion of our indebtedness, on or before maturity. We cannot assure you that we would be able to refinance any of our indebtedness on commercially reasonable terms or at all.
 
Our existing credit facility contains, and the new credit facilities will contain, restrictive covenants and cross default provisions that require us to maintain specified financial ratios. Our ability to satisfy those financial ratios can be affected by events beyond our control, and we cannot be assured we will satisfy those ratios. A breach of any of these financial ratio covenants or other covenants could result in a default. Upon the occurrence of an event of default, the lenders could elect to declare the applicable outstanding indebtedness due immediately and payable and terminate all commitments to extend further credit. We cannot be sure that our lenders would waive a default or that we could pay the indebtedness in full if it were accelerated.
14

Table of Contents

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Dec 3, 2008
10-K (2 sections)
Nov 25, 2008
10-K
Nov 29, 2007
10-K
Dec 14, 2006

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