We may be unable to execute our Ñnancial strategy.
Our ability to execute our Ñnancial strategy is dependent upon our ability to maintain an investment grade
rating on our senior debt. The credit rating process is contingent upon a number of factors, many of which are
beyond our control.
Our Ñnancial strategy is also dependent upon our ability to generate suÇcient cash Öow to reinvest in our
existing business, to fund our internal growth, to acquire other solid waste businesses, repurchase shares of our
common stock, pay dividends, minimize our borrowings and take other actions to enhance stockholder value.
We cannot assure you that we will be successful in executing our broad-based pricing program, that we will
generate suÇcient cash Öow to execute our Ñnancial strategy, that we will continue to repurchase our common
stock, or that we will be able to pay cash dividends or increase the amount of our dividends.
We may be unable to execute our acquisition growth strategy.
Our ability to execute our growth strategy depends in part on our ability to identify and acquire desirable
acquisition candidates as well as our ability to successfully consolidate acquired operations into our business.
The consolidation of our operations with the operations of acquired companies, including the consolidation of
systems, procedures, personnel and facilities, the relocation of staÅ, and the achievement of anticipated cost
savings, economies of scale and other business eÇciencies, presents signiÑcant challenges to our management,
particularly if several acquisitions occur at the same time. In short, we cannot assure you that:
‚ desirable acquisition candidates exist or will be identiÑed,
‚ we will be able to acquire any of the candidates identiÑed,
‚ we will eÅectively consolidate companies which are acquired and fully or timely realize the expected
cost savings, economies of scale or business eÇciencies, or
‚ any acquisitions will be proÑtable or accretive to our earnings.
Additional factors may negatively impact our acquisition growth strategy. Our acquisition strategy may
require spending signiÑcant amounts of capital. If we are unable to obtain additional needed Ñnancing on
acceptable terms, we may need to reduce the scope of our acquisition growth strategy, which could have a
material adverse eÅect on our growth prospects. The intense competition among our competitors pursuing the
same acquisition candidates may increase purchase prices for solid waste businesses and increase our capital
requirements and/or prevent us from acquiring certain acquisition candidates. If any of the aforementioned
factors force us to alter our growth strategy, our Ñnancial condition, results of operations and growth prospects
could be adversely aÅected.
We may be unable to manage our growth eÅectively.
Our growth strategy places signiÑcant demands on our Ñnancial, operational and management resources.
In order to continue our growth, we will need to add administrative and other personnel, and make additional
investments in operations and systems. We cannot assure you that we will be able to Ñnd and train qualiÑed
personnel, or do so on a timely basis, or expand our operations and systems to the extent, and in the time,
required.
Businesses we acquire may have undisclosed liabilities.
In pursuing our acquisition strategy, our investigations of the acquisition candidates may fail to discover
certain undisclosed liabilities of the acquisition candidates. If we acquire a company having undisclosed
liabilities, as a successor owner we may be responsible for such undisclosed liabilities. We typically try to
minimize our exposure to such liabilities by obtaining indemniÑcation from each seller of the acquired
companies, by deferring payment of a portion of the purchase price as security for the indemniÑcation and by
acquiring only speciÑed assets. However, we cannot assure you that we will be able to obtain indemniÑcations