771729--4/16/2007--PEMCO_AVIATION_GROUP_INC

related topics
{customer, product, revenue}
{regulation, government, change}
{regulation, change, law}
{product, market, service}
{cost, regulation, environmental}
{stock, price, operating}
{personnel, key, retain}
{debt, indebtedness, cash}
{competitive, industry, competition}
{cost, contract, operation}
{product, liability, claim}
{control, financial, internal}
{condition, economic, financial}
{acquisition, growth, future}
{operation, international, foreign}
{provision, law, control}
{financial, litigation, operation}
{property, intellectual, protect}
{system, service, information}
RISK FACTORS THAT MAY AFFECT FUTURE PERFORMANCE The Company is Heavily Dependent on U.S. Government Contracts. A Significant Portion of the Company s Revenues is Derived From a Few of its Contracts, and the Termination or Failure to Renew Any of Them Could Materially Harm the Company s Business. If the Company s Customers Experience Financial or Other Difficulties, the Company s Business Could Be Materially Harmed. The Company Faces Risks from Downturns in the Domestic and Global Economies. The Company s Markets are Highly Competitive and Some of its Competitors Have Greater Resources than the Company. Expansion Into International Markets May Expose the Company to Greater Risks. The Company is a Party to Legal Proceedings that Could be Costly to Resolve. The Company Could Incur Significant Costs and Expenses Related to Environmental Problems. The Company May Not Be Able to Hire and Retain a Sufficient Number of Qualified Employees. The Company May Need Additional Financing to Maintain its Business Which May or May Not Be Available. The Amount and Terms of the Company s Indebtedness Restrict the Company s Financial and Operational Flexibility. Failure to Introduce New Services in Response to Technological Advances and Evolving Industry Standards Could Materially Harm the Company s Business. The Company s Trust for its Defined Benefit Plan is Under-Funded and Subject to Financial Market Forces. The Company Faces Potential Product Liability Claims. The Company s Business is Subject to Extensive Government Regulation. The Company Has Implemented Anti-Takeover Provisions that Could Prevent an Acquisition of its Business at a Premium Price. Compliance with Changing Regulation of Corporate Governance and Public Disclosure May Result in Additional Expenses. Insiders Have Substantial Control Over the Company and Can Significantly Influence Matters Requiring Stockholder Approval. The Company Has Material Weaknesses in its Internal Control Over Financial Reporting. Failure to Sell the Commercial Services Business Could Materially Harm the Company s Business.

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