916504--3/28/2008--REMINGTON_ARMS_CO

related topics

{debt, indebtedness, cash}

{customer, product, revenue}

{condition, economic, financial}

{cost, regulation, environmental}

{acquisition, growth, future}

{cost, contract, operation}

{gas, price, oil}

{competitive, industry, competition}

{personnel, key, retain}

{regulation, government, change}

Because of the nature of potential injuries relating to firearms and ammunition, certain public perceptions of our products, and recent efforts to expand liability of manufacturers of firearms and ammunition, product liability cases and claims, and insurance costs associated with such cases and claims, may cause us to incur significant costs. Our business is subject to extensive governmental legislation and regulation that may restrict our operations, increase our costs of operations, or adversely affect the demand for our products by limiting the availability and/or increasing the cost of our products. Environmental litigation and regulations may restrict or increase the cost of our operations and/or impair our financial condition. Unfavorable market trends and social and political concerns could adversely affect demand for our products and our business. Our substantial indebtedness could have a material adverse effect on our financial health and our ability to obtain financing in the future and to react to changes in our business. Our ability to generate the significant amount of cash needed to make payments on and repay the Notes and our other debt and to operate our business depends on many factors beyond our control. The agreements and instruments governing our debt contain restrictions and limitations which could significantly impact the holders of the Notes and our ability to operate our business. If we default under our Amended and Restated Credit Agreement, we may not have the ability to make payments on our indebtedness. Our business is affected by seasonal fluctuations in business; inventory management practices have had an effect on our business. Decreases in consumer confidence and spending and/or significant increases in commodity and energy prices could have a material impact on the consolidated financial position, results of operations, or cash flows of the Company. A substantial amount of our business comes from one national account customer. A substantial portion of our accounts receivable is concentrated with two customers. Loss of business from these customers could adversely affect our revenues, operating results and statements of cash flows. We are dependent on a number of key suppliers. Loss or damage to our relationships with these suppliers could have a material adverse effect on our business, financial condition, results of operations and cash flows. We purchase a limited number of foreign manufactured firearms products through third party suppliers as part of our strategy to grow revenues and improve profitability, which exposes us to additional uncertainties. If we are unable to retain key management personnel, our business could be adversely affected. We may not be able to compete successfully within our highly competitive markets, which could adversely affect our business, financial condition or cash flows. Our business is subject to economic, market and other factors beyond our control or ability to predict. Worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., discount rates, investment returns, and health care cost trends) could negatively impact our operating results, financial condition, and cash flows. An increase in revenues to the government, law enforcement, and military sales channels could result in increased uncertainty to the timing of our sales revenues. The recent acquisition of RACI Holding by American Heritage Arms and our acquisition of The Marlin Firearms Company may not meet our expectations. The substantial diversion of management s attention from Remington s day-to-day business when evaluating and considering the impact of the acquisitions could negatively impact our business, operating results or financial condition. Any acquisitions that we undertake in the future could be difficult to integrate, disrupt our business and harm our operating results. Management has been increasing the prices on certain of our products and has been shortening sales terms. These higher product selling prices coupled with reduced sales terms could limit sales, which could negatively impact our business, operating results or financial condition.

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916504--3/28/2008--REMINGTON_ARMS_CO_INC/