1285720--3/29/2007--VERASUN_ENERGY

related topics

{gas, price, oil}

{control, financial, internal}

{acquisition, growth, future}

{competitive, industry, competition}

{stock, price, operating}

{cost, regulation, environmental}

{property, intellectual, protect}

{personnel, key, retain}

{loss, insurance, financial}

{regulation, government, change}

{debt, indebtedness, cash}

{financial, litigation, operation}

{customer, product, revenue}

The spread between ethanol and corn prices can vary significantly and we do not expect the spread to remain at recent high levels. The market for natural gas is subject to market conditions that create uncertainty in the price and availability of the natural gas that we use in our manufacturing process. Fluctuations in the selling price and production cost of gasoline may reduce our profit margins. Our business is subject to seasonal fluctuations. We engage in hedging transactions and other risk mitigation strategies that could harm our results. We are substantially dependent on two facilities, and any operational disruption could result in a reduction of our sales volumes and could cause us to incur substantial losses. We may not be able to implement our expansion strategy as planned or at all. Potential future acquisitions could be difficult to find and integrate, divert the attention of key personnel, disrupt our business, dilute shareholder value and adversely affect our financial results. We may not achieve anticipated operating results and our financial position may be adversely affected if we do not successfully develop our oil extraction business. Growth in the sale and distribution of ethanol is dependent on the changes to and expansion of related infrastructure which may not occur on a timely basis, if at all, and our operations could be adversely affected by infrastructure disruptions. We have a limited operating history and our business may not be as successful as we envision. New plants under construction or decreases in the demand for ethanol may result in excess production capacity in our industry. We may not be able to compete effectively in our industry. Our operating results may suffer if we cannot achieve results comparable to those achieved by marketing through Aventine once we begin marketing and selling our ethanol directly to customers. Operations at our Charles City facility or our additional planned facilities may not achieve results comparable to our Aurora facility or our Fort Dodge facility. The U.S. ethanol industry is highly dependent upon a myriad of federal and state legislation and regulation and any changes in legislation or regulation could materially and adversely affect our results of operations and financial position. We may be adversely affected by environmental, health and safety laws, regulations and liabilities. We are dependent upon our officers for management and direction, and the loss of any of these persons could adversely affect our operations and results. Our competitive position, financial position and results of operations may be adversely affected by technological advances. Our level of indebtedness could adversely affect our ability to react to changes in our business, and we may be limited in our ability to use debt to fund future capital needs. We are or will become subject to financial reporting and other requirements for which our accounting, internal audit and other management systems and resources may not be adequately prepared. Our common stock price may be volatile and you may lose all or part of your investment.

Full 10-K form ▸

1285720--3/29/2007--VERASUN_ENERGY_CORP