1. Diminishing Cash Reserves
2. Approx 1/2 Billion in debt (Debt to Equity off the charts)
3. Possibility of being in violation of restricted covenants with lenders
4. Dividend pay out ratio above 80%
5. Very high goodwill on balance sheet (in particular, the distribution segment of the business)
6. Inexperienced management at all levels within the corporation
7. Having great difficulties managing Distribution sales force
8. RSP (Revenue Sharing Program) at Aerospace has made payments well in excess of $100 million dollars to customers with a payback not to be recovered for many, many years, if ever.
9. Overhang of at least $16 million dollars if the IRS tax case is lost
10. Possibility of loss of market share in Distribution to the likes of Grainger, MSC and Fastenol