Dollar General 2006 Annual Report Download - page 12

ITEM 1A. RISK FACTORS
Investing in our securities involves a degree of risk. Persons buying our securities
should carefully consider the risks described below and the other information contained in
this report and other filings that we make from time to time with the SEC, including our
consolidated financial statements and accompanying notes. If any of the following risks
actually occurs, our business, financial condition, results of operation or cash flows could be
materially adversely affected. In any such case, the trading price of our securities could
decline and you could lose all or part of your investment. The risks described below are not the
only ones facing us and are not intended to be a complete discussion of all potential risks or
uncertainties. Additional risks not presently known to us or that we currently deem immaterial
may also impair our business operations.
Some of the statements in our reports are not statements of historical fact; instead, they
are what are known as “forward-looking statements” that may or may not come to fruition.
Certain of the discussions in this report and in the documents incorporated by reference into this
report may express or imply projections of revenues or expenditures; plans and objectives for
future operations, growth or initiatives (such as the proposed merger; expectations regarding
certain planned real estate and merchandising strategic and operational changes and their related
timing, charges and cost estimates and anticipated results and benefits; the expected number of
new store openings, relocations and remodels; our gross profit rate; the expected sale of
inventory and our plans with respect to product assortment, inventory levels and the impact of
seasonality; and other potential initiatives and plans referred to in “Results of Operations –
Executive Overview”); expected future economic performance; the expected outcome or impact
of pending or threatened litigation; our anticipated effective tax rate; or the anticipated levels of
borrowings under our amended credit facility and the expected use of those funds. These and
similar statements regarding events or results which we expect will or may occur in the future are
forward-looking statements concerning matters that involve risks and uncertainties that may
cause actual results to differ materially from those projected. Forward-looking statements
generally may be identified through the use of words such as “believe,” “anticipate,” “project,”
“plan,” “expect,” “estimate,” “objective,” “forecast,” “goal,” “intend,” “will likely result,” or
“will continue” and similar expressions.
Although when we make forward-looking statements we believe they are based on
reasonable assumptions within the bounds of our knowledge of our business, a number of factors
could cause our actual results to differ materially from those that are projected. Factors and risks
that may cause actual results to differ from this forward-looking information include, but are not
limited to, those described below, as well as other factors discussed throughout this document,
including, without limitation, the factors described under “Critical Accounting Policies and
Estimates” or, from time to time, in our SEC filings, press releases and other communications.
We cannot assure you that the results or developments expected or anticipated by us will be
realized or, even if substantially realized, that those results or developments will result in the
expected consequences for us or affect us or our operations in the way that we expect.
We caution readers to evaluate all forward-looking information in the context of these
risks and uncertainties and not to place undue reliance on forward-looking statements made
in this document which speak only as of the document’s date. We have no obligation, and do
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