e focal nursery schools and child care centers, including church-affillated and other non-profit centers; e providers of child care services that operate out of homes; and e substitutes for group child care, such as relatives, nannies and stay-at-home parents. In many markets, the Company faces competition from preschool services and before and after schoo! programs offered by public schools that provide such services at little or no cost to parents. The number of school districts offering these services is growing, and we expect increased competition from such services in the future. In addition, local nursery schools, child care centers and in-home providers generally charge less for their services than the Company. Many denominational and other non-profit child care centers have lower operating expenses than the Company and may receive donations and/or other funding to subsidize operating expenses. Consequently, operators of such centers often charge lower tuition rates than us. Moreover, fees for home-based care are normally substantially Jower than fees for center-based care. 6.1.6 The Company may acquire companies that are not well-established or are experiencing financial difficulties The Company may acquire less established companies. Acquisitions of interests in such companies may involve greater risks than are generally associated with acquisitions of more established or stable companies. For example, such companies may have shorter operating histories on which to predict future performance and may have negative cash flow. Their performance may be more volatile and they may be unable to sustain the growth rates or success achieved by established companies. In the case of start-up enterprises, such companies may not have significant or any operating revenues. Such companies aiso may have a lower capitalization and fewer resources (including cash) and may be more vulnerable to failure, resulting in the loss of the Company's entire investment in such company.