6720--3/16/2007--K2

related topics

{cost, regulation, environmental}

{condition, economic, financial}

{property, intellectual, protect}

{operation, international, foreign}

{debt, indebtedness, cash}

{competitive, industry, competition}

{operation, natural, condition}

{acquisition, growth, future}

{tax, income, asset}

{stock, price, operating}

{customer, product, revenue}

{loan, real, estate}

K2 s strategic plan, involving growth through the acquisition of other companies, may not succeed. Current and future financings may place a significant debt burden on K2. K2 s variable rate indebtedness subjects it to interest rate risk, which could cause K2 s debt service obligations to increase significantly. K2 faces intense competition and potential competition from companies with greater resources, and, if it is unable to compete effectively with these companies, its business could be harmed. Certain K2 businesses are highly seasonal and subject to the conditions of the sporting goods industry. Purchasing decisions made by a small number of large format sporting goods retailers can have a significant impact on K2 s results. Changing consumer tastes and styles as well as adverse economic developments could harm K2 s business. K2 s financial results vary from quarter to quarter, which could hurt K2 s business and the market price of its stock. K2 may not be able to attract or retain the management employees necessary to remain competitive in its industry; the loss of one or more of K2 s key personnel, including Mr. Richard J. Heckmann, Executive Chairman of the Board of Directors of K2, and J. Wayne Merck, President and Chief Executive Officer, could have a material adverse effect on K2 s business, financial condition, results of operations and prospects. International operations, unfavorable political developments, natural disasters and weak foreign economies may seriously harm K2 s financial condition. Significant price volatility or interruptions in supply of K2 s raw materials may result in increased costs that it may be unable to pass on to customers, which could reduce profitability. K2 may be required to recognize future intangible impairment charges. Changes in currency exchange rates could affect K2 s revenues. Acts of war or terrorism may have an adverse effect on K2 s business. K2 is subject to and may incur liabilities under various environmental laws. K2 s success is dependent on its ability to protect its worldwide intellectual property rights, and K2 s inability to enforce these rights could harm its business. K2 s products may infringe the intellectual property rights of others, which may cause K2 to incur unexpected costs or prevent K2 from selling its products. Unfavorable weather can adversely affect K2 s sales. K2 is subject to and may incur liabilities under various tax laws.

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6720--3/16/2007--K2_INC