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(1) Net revenues are attributed to countries based on where product is produced.

Long-lived assets by geographic area is as follows:

(6) Comprehensive Income

Comprehensive income is as follows:

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General

This Form 10-Q contains certain "forward-looking" statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including but not limited to those that discuss strategies, goals, outlook or other non-historical matters, or projected or anticipated revenues, income, returns or other financial measures. These forward-looking statements are subject to numerous risks and uncertainties that may cause actual results to differ materially from those contained in or indicated by such statements, including but not limited to the ability of the Company to continue to identify suitable acquisition candidates, to consummate additional retail acquisitions on acceptable terms and to successfully integrate the operations of such acquired entities, demand for the Company's products, as well as general economic, competitive, key employee and other factors described in the Company's Annual Report on Form 10-K or other filings with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

Rock of Ages Corporation (the "Company") is an integrated quarrier, manufacturer, distributor and retailer of granite and products manufactured from granite. The quarry division sells granite blocks both to the manufacturing division and to outside manufacturers, as well as to distributors in Europe and Japan. The manufacturing division's principal product is granite memorials used primarily in cemeteries, although it also manufactures some specialized granite products for industrial applications. The retail division primarily sells granite memorials directly to consumers.

In June 1997, the Company acquired the successor to Keystone Memorials, Inc. ("Keystone") and in October 1997, acquired Childs & Childs Granite Company Inc. ("C&C"), granite memorial manufacturers in Elberton, Georgia. In connection with the Keystone and C&C acquisitions, the Company acquired Southern Mausoleums, Inc. ("SMI" and, together with C&C and Keystone, the "Elberton Manufacturing Operations"). Also in connection with the Keystone and C&C acquisitions, the Company acquired three granite quarrying companies operating quarries located in Georgia, Pennsylvania, North Carolina, South Carolina and Oklahoma (the "Quarry Companies"). In November 1998, the Company acquired another quarry company in North Carolina which produces a white granite that will be a companion stone for the Company's Bethel White Quarry ("Gardenia" and, together with the Quarry Companies, the "Acquired Quarry Operations"). In October 1997, the Company acquired the Keith Monument Company and related companies which are engaged in the retailing of granite memorials to consumers in the State of Kentucky ("Keith"). In 1998, the Company made acquisitions of thirteen additional retail monument companies (the "1998 Retail Acquisitions"), thereby expanding its retail presence to locations in Georgia, Iowa, Illinois, Minnesota, Nebraska, Ohio, South Dakota, Wisconsin, Pennsylvania and New Jersey. In 1999, the Company acquired an additional thirteen monument retailers (the "1999 Retail Acquisitions"), thereby bringing its total owned retail distribution base to 97 outlets in fifteen states. During the nine months ended September 30, 2000, the Company acquired two additional monument retailers.

In May 1999, the Company sold certain Keystone assets back to the original owners from whom it had purchased them in June 1997 (the "Keystone Sale"). In exchange for these assets, the Company received 263,441 shares of its Class B stock held by the Keystone owners. These shares were then retired.

The Company records revenues from quarrying, manufacturing and retailing. The granite quarried by the Company is sold both to outside customers and used by the Company's manufacturing division. The Company records revenue and gross profit related to the sale of granite sold to an outside customer either when the granite is shipped or when the customer selects and identifies the blocks at the quarry site. The Company does not record a sale, nor does the Company record gross profit, at the time granite is transferred to the Company's manufacturing division. The Company records revenue and gross profit related to internally transferred granite only after the granite is manufactured into a finished product and sold to an outside customer. Manufacturing revenues related to outside customers are recorded when the finished product is shipped from Company facilities. Manufacturing revenues related to internally transferred finished products are recorded when ultimately sold at retail to an outside customer. Retailing revenues are recorded when the finished monument is placed in the cemetery.

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Revenues for the three months ended September 30, 2000 decreased $887,000, or 3.6%, to $23.5 million from $24.4 million for the three months ended September 30, 1999. This decrease was primarily attributable to lower manufacturing revenues from the Company's Elberton Manufacturing Operations, which were partially offset by an increase in retailing revenues. The Company's retailing net revenues increased to 43.3% of total net revenues in the 2000 period from 37.7% in the 1999 period.

Gross profit for the three months ended September 30, 2000 decreased $556,000, or 5.4%, to $9.8 million from $10.3 million for the three months ended September 30, 1999. The Company's gross profit percentage decreased to 41.6% for the 2000 period from 42.4% for the 1999 period. These decreases were primarily attributable to a decline in quarrying gross profit dollars and percentage during the quarter.

Quarrying gross profit decreased $1.0 million, or 31.4%, to $2.2 million for the 2000 period from $3.2 million for the 1999 period. The quarrying gross profit percentage decreased to 36.9% from 51.5% for the 1999 period. These decreases were primarily attributable to increased development costs at the Company's Barre and Salisbury quarries during the 2000 period.

Manufacturing gross profit decreased $265,000, or 11.4%, to $2.1million for the 2000 period from $2.3 million for the 1999 period. The manufacturing gross profit percentage increased to 28.3% from 26.2% for the 1999 period. These results were primarily attributable to lower shipments by the Elberton Manufacturing Operations and improved profitability at the Barre Manufacturing Operations.

Retailing gross profit increased $727,000, or 15.3%, to $5.5 million for the 2000 period from $4.8 million for the 1999 period. This increase was primarily attributable to the 1999 Retail Acquisitions, several of which the company did not own during the 1999 period. The retailing gross profit percentage increased to 53.9% from 51.8% for the 1999 period. This increase was primarily due to improved results from the 1999 Retail Acquisitions.

Selling, general and administrative expenses ("SGA expenses") decreased $923,000, or 11.7%, to $7.4 million from $8.3 million for the 1999 period. This was due primarily to the reversal during the 2000 period of certain incentive compensation accruals that had been made during the second quarter of 2000. As a percentage of net revenues, SGA expenses decreased to 31.3% for the 2000 period from 34.1% for the 1999 period.

Interest expense decreased $25,000, or 4.5%, to $516,000 from $541,000 for the 1999 period. This was caused by decreased borrowings under the Company's credit facilities which were partially offset by a higher average interest rate during the 2000 period.

Nine Months Ended September 30, 2000 Compared to None Months Ended September 30, 1999

Revenues for the nine months ended September 30, 2000 decreased $4.3 million, or 6.1%, to $66.6 million from $70.9 million for the nine months ended September 30, 1999. This decrease was primarily attributable to lower manufacturing revenues from the Company's Elberton Manufacturing Operations, which were partially offset by an increase in retailing net revenues. The Company's retailing net revenues increased to 45.2% of total net revenues in the 2000 period from 35.5% in the 1999 period.

Gross profit for the nine months ended September 30, 2000 increased $1.9 million, or 7.2% to $28.2 million from $26.3 million for the nine months ended September 30, 1999. The gross profit percentage increased to 42.3% for the 2000 period from 37.0% for the 1999 period. These increases were attributable to the absolute and relative increases in retailing net revenues during the 1999 period as described above and to an improvement in the manufacturing gross profit percentage. The Company's retailing operations historically have experienced a higher gross profit percentage than either quarrying or manufacturing.

Quarrying gross profit decreased $151,000, or 2.4%,to $6.1 million from $6.2 million for the 1999 period. The quarrying gross profit percentage decreased to 37.3% from 40.6% for the 1999 period. These decreases were primarily attributable to lower gross profit at the Company's Bethel and Laurentian quarries.

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Retailing gross profit increased $3.4 million, or 26.0%, to $16.7 million from $13.2 million for the 1999 period. This increase was attributable to higher sales and gross profit percentage from the 1998 Retail Acquisitions and to the 1999 Retail Acquisitions, some of which the Company did not own during the entire 1999 period. The retailing gross profit percentage increased to 55.4% from 52.4% for the 1999 period. This increase was the result of a higher gross profit percentage at most of the Company's retailing operations, and to higher internal purchases of granite from the manufacturing division.

Selling, general, and administrative expenses ("SGA expenses") increased $1.0 million, or 4.5%, to $23.9 million from $22.9 million for the 1999 period. As a percentage of net revenues, SGA expenses increased to 36.0% from 32.3% from the 1999 period. These increases were primarily attributable to SGA expenses of the 1999 Retail Acquisitions, some of which the Company did not own during the entire 1999 period.

Interest expense increased $78,000, or 6.4%, to $1.6 million from $1.5 million for the 1999 period. This increase was caused by lower borrowing amounts under the Company's credit facilities which were offset by higher interest rates on those facilities.

Liquidity and Capital Resources

The Company considers liquidity to be its ability to meet its long and short-term cash requirements. Historically the Company has met these requirements primarily from cash generated by operating activities and periodic borrowings under commercial credit facilities. The Company's recent acquisitions have increased its requirements for external sources of liquidity, and the Company anticipates that this trend will continue as it further implements its growth strategy.

For the nine months ended September 30, 2000, net cash provided by operating activities was $6.1 million. Net cash used in investing activities was $2.0 million, which was mostly due to capital expenditures and acquisitions of monument retailers during the period. Net cash used in financing activities was $5.9 million, most of which was due to the Company reducing its borrowings under the credit facilities.

The Company has credit facilities pursuant to a financing agreement with the CIT Group/Business Credit ("CIT"). The agreement provides for an acquisition term loan line of credit of $25 million and a revolving credit facility of another $25 million. As of September 30, 2000 the revolving credit facility had $8.2 million outstanding and the term loan facility had $12.0 million outstanding. Given the covenants contained in that agreement, the Company's effective incremental credit availability as of that date was approximately $19.0 million. The interest rate on the revolving facility and term loan as of such date was 9.0% based on a formula of prime less 50 basis points. As of September 30, 2000, the Company also had $2.4 million available and none outstanding under a demand revolving line of credit with the Royal Bank of Canada. The Company is in the process of negotiating a revised and expanded credit facility with a group of lenders. The Company's primary need for capital will be to finance acquisitions of monument retailers as part of its growth strategy and to maintain and improve its existing manufacturing, quarrying and retailing facilities. The Company has $3.0 million budgeted for capital expenditures in 2000. The Company believes that the combination of cash flow from operations, its existing credit facilities, and cash on hand will be sufficient to fund its operations for at least the next twelve months.

Seasonality

Historically, the Company's operations have experienced certain seasonal patterns. Generally the Company's net sales have been highest in the third quarter and lowest in the first quarter of each year due primarily to weather. Cemeteries in northern areas generally do not accept granite memorials during winter months when the ground is frozen because they cannot be properly set. In addition, the Company typically closes certain of its Vermont and Canadian quarries during these months because of increased operating costs attributable to adverse weather conditions. As a result, the Company has historically incurred a net loss during the first three months of each calendar year.

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The Company believes that the relatively moderate rates of inflation experienced in recent years have not had a significant effect on its results of operations.

Item 3: Quantitative and Qualitative Disclosure About Market Risk

The Company has financial instruments that are subject to interest rate risk, principally debt obligations under its credit facilities. Historically, the Company has not experienced material gains or losses due to interest rate changes. Based on the Company's current variable rate debt obligations, the Company believes its exposure to interest rate risk is not material.

The Company is subject to foreign currency exchange rate risk primarily from the operations of its Canadian subsidiary. Based on the size of this subsidiary and the Company's corresponding exposure to changes in the Canadian/U.S. dollar exchange rate, the Company does not consider its market exposure relating to currency exchange to be material.

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(a) Exhibits

(b) Reports Submitted on Form 8-K:

On September 27, 2000, the Registrant filed a report on Form 8-K to report the acquisition of American Monument Corporation, a retailer of granite memorials. The Registrant also reported the resignation of Mark A. Gherardi from his position as Senior Vice President of Manufacturing.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ROCK OF AGES CORPORATION

Dated: November 15, 2000

By: /s/ John L. Forney

John L. Forney

Vice President, Chief Financial Officer

and Treasurer

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