1073713--12/28/2006--AMERICAN_ROCK_SALT_CO

related topics

{debt, indebtedness, cash}

{regulation, government, change}

{competitive, industry, competition}

{operation, natural, condition}

{cost, regulation, environmental}

{investment, property, distribution}

{financial, litigation, operation}

{cost, operation, labor}

{condition, economic, financial}

{stock, price, share}

{personnel, key, retain}

{product, market, service}

{cost, contract, operation}

{stock, price, operating}

{loss, insurance, financial}

The demand for our products changes seasonally and is dependent upon weather conditions. We operate in a highly competitive market. We must generally bid competitively to acquire contracts. We may be subject to certain penalties if we fail to meet performance requirements in our sales contracts. We may be adversely affected by the environmental regulations to which we are subject. Our operations are dependent on our having received the required permits and approvals from governmental authorities. Our business could suffer if we are unsuccessful in negotiating new collective bargaining agreements. If we lose our senior management, our business may be adversely affected. We face competition from both existing products and products under development. Flooding in our mine could seriously impact our ongoing operations. Mining is a highly regulated activity. The business of mining is subject to a variety of risks and hazards, not all of which can be covered by insurance. We depend upon geological surveys and studies and there can be no assurance as to the accuracy of such studies. We have certain agreements with our affiliates which may create conflicts of interest. We are controlled by our principal members, whose interests in our business may be different than those of the holders of our notes. Our substantial indebtedness could adversely affect our financial condition and prevent us from fulfilling our obligations under our indebtedness. Despite our substantial indebtedness we may still incur significantly more debt. This could exacerbate the risks described above. The proceeds from the collateral securing our indebtedness may not be sufficient to pay all amounts owed under such indebtedness. The ability of the trustee to foreclose on the collateral securing the senior secured notes may be limited. The lien on the collateral securing the senior secured notes is junior in some respects to the lien securing our bank facility. Restrictive covenants in our bank facility and the indenture governing the senior secured notes may restrict our ability to operate our business. To service our indebtedness, including the senior secured notes, we will require a significant amount of cash. The ability to generate cash depends on many factors beyond our control. We may not have the ability to raise the funds necessary to finance any change of control offer required by the indenture governing the senior secured notes. The market price for our senior secured notes may be volatile.

Full 10-K form ▸

1073713--12/28/2006--AMERICAN_ROCK_SALT_CO_LLC