84581--4/2/2007--ROCK_OF_AGES

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{debt, indebtedness, cash}

{stock, price, operating}

{provision, law, control}

{cost, operation, labor}

{product, market, service}

{control, financial, internal}

{regulation, government, change}

{regulation, change, law}

{personnel, key, retain}

{cost, contract, operation}

{customer, product, revenue}

{property, intellectual, protect}

{operation, international, foreign}

{condition, economic, financial}

{cost, regulation, environmental}

{competitive, industry, competition}

{capital, credit, financial}

Risk Factors That May Affect Future Results Our credit facility with CIT expires on , and we will need to renew or refinance that facility prior to that time. Our credit facility with CIT includes restrictions on our business operations that we must comply with, and financial tests that we must meet, in order to continue to borrow under the facility to support our operations. If we or our independent registered public accounting firm are unable to affirm the effectiveness of our internal control over financial reporting in future years, the market value of our common stock could be adversely affected. Changes in the securities laws and regulations have increased, and are likely to continue to increase, our costs, and may also adversely affect our ability to attract and retain qualified directors. The Pension Protection Act may adversely affect our cash flow. The profitability of the Company depends, at least in part, on our ability to continue to successfully execute staff productivity improvements, sales and marketing initiatives, or other strategies, with respect to our retail division that will enhance overall financial performance. Improved performance of our retail division will depend, at least in part, on our ability to form relationships with funeral directors, cemeteries and other death care providers. If we are unable to maintain our relationships with independent retailers, our sales may not grow and could decline. Our international operations may expose us to a number of risks related to conducting business in foreign countries. Employee strikes and other labor-related disruptions may adversely affect our operations. If we lose key personnel, or are unable to attract and retain additional qualified personnel, our business could suffer. We face intense competition and, if we are unable to compete successfully, we may be unable to increase our sales, which would adversely affect our business and profitability. The increasing trend toward cremation, and potential declines in memorialization for other reasons, may result in decreased sales of our products. Sales of our products are seasonal and may cause our quarterly operating results to fluctuate. Our competitive position could be harmed if we are unable to protect our intellectual property rights. Our business is subject to a number of operating risks that are difficult to predict and manage. Sales of our ancillary products are cyclical, which may adversely affect our operating results. No-Call Legislation may adversely affect our retail marketing efforts. Existing stockholders are able to exercise significant control over us. We may incur substantial costs to comply with government regulations. Provisions of our corporate organizational documents and law could delay or prevent a change in control of the Company, even if it would be beneficial to our stockholders.

Full 10-K form ▸

84581--4/2/2007--ROCK_OF_AGES_CORP