19 unchanged sentences
If our larger customers’ financial positions were to become impaired, our ability to fully collect receivables from such customers could be impaired and negatively affect our operating results, cash flows, and liquidity.
+Added: Consolidation among competitors, suppliers, and customers could negatively impact our business .
+Added: Our competitors continue to consolidate.
+Added: Among other things, this consolidation is being driven in part by customer needs and supplier capabilities, which could cause markets to become more competitive as greater economies of scale are achieved by distributors.
+Added: Customers are increasingly aware of the total costs of fulfillment and of the need to have consistent sources of supply at multiple locations.
+Added: We believe these customer needs could result in fewer distributors as the remaining distributors become larger and capable of being consistent sources of supply.
+Added: There can be no assurance that we will be able to take advantage effectively of this trend toward consolidation.
+Added: The trend in our industry toward consolidation could make it more difficult for us to gain or retain market share or maintain operating margins.
+Added: Our customers and suppliers also continue to consolidate, and this consolidation could result in the loss of existing customers and suppliers to our competitors.
+Added: Furthermore, continued consolidation among our suppliers may makes it more difficult for us to negotiate favorable pricing, consignment arrangements, and discount programs with our suppliers, thereby resulting in reduced margins and profits.
+Added: We are subject to disintermediation risk.
+Added: As customers continue to consolidate or otherwise increase their purchasing power, they are better able, and may choose, to purchase products directly from the same suppliers that use us for distribution.
+Added: In addition, our suppliers may elect to distribute some or all of their products directly to end-customers in one or more markets.
+Added: This process of disintermediation can put us at
+Added: risk of losing business from a customer, or of losing entire product lines or categories, or distribution territories, from suppliers.
+Added: Disintermediation also may also adversely impact our ability to obtain favorable pricing from suppliers and optimize margins and revenue with respect to our customers.
+Added: As a result, continued disintermediation could have a negative impact on our financial condition and operating results.
+Added: Our dependence on international suppliers and manufacturers for certain products exposes us to risks of new or increased tariffs and other risks that could affect our financial condition and expose us to certain additional risks .
+Added: Many of our suppliers and manufacturers are located outside of the United States.
+Added: Thus, compliance with federal laws and regulations regarding the importation of products, import taxes or costs, including new or increased tariffs, anti-dumping duties, countervailing duties, or similar duties, some of which could be applied retroactively, and modification to or withdrawal from free trade agreements or trade relationships, could increase the cost of the products that we distribute.
+Added: For example, the U.S.
+Added: has recently signaled its intention to change U.S.
+Added: trade policy, including potentially renegotiating or terminating existing trade agreements and leveraging tariffs.
+Added: In February 2025, the U.S.
+Added: imposed additional tariffs on imports from China and announced and subsequently paused implementation of tariffs on imports from Canada and Mexico.
+Added: These additional tariffs, as well as a government’s adoption of “buy national” policies or retaliation by another government against such tariffs or policies may have introduced significant uncertainty into the market and may affect the prices of and supply of the products available to us.
+Added: In addition, quotas, embargoes, sanctions, safeguards, and customs restrictions, as well as foreign labor strikes, work stoppages, or boycotts, could reduce the supply of the products available to us.
+Added: Geopolitical events, including war and terrorism, could also cause a reduction in the supply or increase the costs of the products available to us.
+Added: If we become subject to a reduction in available supply of imported products and we are unable to mitigate that reduction through alternative sources, or if the costs of our imported products increase and we are not able to pass along those increased costs to our customers, then our business, financial condition, and results of operations could be adversely affected.
We may experience pricing and product cost variability.
−Removed: Prices that we pay, and charge, for our products can be unpredictable and volatile.
Prices for our products are driven and influenced by many factors, including general economic conditions, demand for our products and competitive and other conditions in the industries within which we compete.
+Added: Prices that we pay and charge for our products can be unpredictable and volatile.
The factors that influence prices and costs also include, among others:
+Added: • National and international economic conditions, including inflationary conditions;
+Added: • Government regulations, trade policies, and market speculation;
+Added: • Consolidation among customers, particularly dealers, and their customers (i.e., home builders), and resulting changes in purchasing policies and payment practices;
• The use of auction markets, which are based on participants’ perceptions of short-term supply and demand, to determine prices and volumes for many commodities building products;
• The use of published indices (including those published by Random Lengths), which may not accurately reflect changes in market conditions, to set selling prices for products;
−Removed: • Labor and freight costs, periodic delays in the delivery of products and inventory levels in various distribution channels ;
−Removed: • Government regulation, trade policies and market speculation;
−Removed: • National and international economic conditions, including inflationary conditions;
+Added: • Labor and freight costs, curtailments, periodic delays in the delivery of products and inventory levels in various distribution channels ;
• The ability of large customers to influence prices of outside building materials suppliers and distributors in a highly fragmented industry.
−Removed: • Consolidation among customers, particularly dealers, and their customers (i.e., home builders), and resulting changes in purchasing policies and payment practices;
−Removed: • Consolidation among suppliers and its effects on pricing, consignment arrangements, and discount programs.
If supply exceeds demand, prices for our products could decline, and our results of operations, cash flows, and financial condition could be adversely affected.
These factors can cause short-term fluctuations in the price of our products, or costs related to our products.
−Removed: Increases in prices or costs are sometimes passed on to our customers, but our pricing quotation periods and pricing pressure from our competitors may limit our ability to pass on such price changes.
−Removed: We may also be limited in our ability to pass on increases in freight costs for our products.
+Added: We may be limited in our ability to pass on any increases to our customers.
In addition, economic conditions and market factors may make it difficult for us to raise our prices enough to keep up with the rate of inflation, which could reduce our profit margins or reduce the number of customers who can purchase our products and adversely impact our results of operations and cash flows.
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Also, financial stability is important to suppliers and customers in choosing distributors for their products, and it affects the favorability of the terms on which we are able to obtain our products from our suppliers and sell our products to our customers.
−Removed: Some of our competitors may have less financial leverage or are part of larger companies, and, therefore, may have access to greater financial and other resources than those to which we have access.
−Removed: Finally, we may not be able to maintain our costs at a level sufficiently low for us to compete effectively.
+Added: Some of our competitors may have less financial leverage or are part of larger companies, and may therefore have access to greater financial and other resources than those to which we have access.
+Added: Finally, we may not be able to maintain our costs at a level sufficiently low enough for us to compete effectively.
If we are unable to compete effectively, our net sales and net income may be reduced.
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Because we have meaningful fixed costs, a decrease in sales and margin generally may have a significant adverse impact on our financial condition, operating results, and cash flows.
−Removed: Consolidation among competitors, suppliers, and customers could negatively impact our business .
−Removed: Our competitors continue to consolidate.
−Removed: Among other things, this consolidation is being driven by customer needs and supplier capabilities, which could cause markets to become more competitive as greater economies of scale are achieved by distributors.
−Removed: Customers are increasingly aware of the total costs of fulfillment and of the need to have consistent sources of supply at multiple locations.
−Removed: We believe these customer needs could result in fewer distributors as the remaining distributors become larger and capable of being consistent sources of supply.
−Removed: There can be no assurance that we will be able to take advantage
−Removed: effectively of this trend toward consolidation.
−Removed: The trend in our industry toward consolidation could make it more difficult for us to gain or retain market share or maintain operating margins.
−Removed: Our customers and suppliers also continue to consolidate, and this consolidation could result in the loss of existing customers and suppliers to our competitors.
−Removed: Furthermore, continued consolidation among our suppliers makes it more difficult for us to negotiate favorable pricing, consignment arrangements, and discount programs with our suppliers, thereby resulting in reduced margins and profits.
−Removed: We are subject to disintermediation risk.
−Removed: As customers continue to consolidate or otherwise increase their purchasing power, they are better able, and may choose, to purchase products directly from the same suppliers that use us for distribution.
−Removed: In addition, our suppliers may elect to distribute some or all of their products directly to end-customers in one or more markets.
−Removed: This process of disintermediation can put us at risk of losing business from a customer, or of losing entire product lines or categories, or distribution territories, from suppliers.
−Removed: Disintermediation also adversely impacts our ability to obtain favorable pricing from suppliers and optimize margins and revenue with respect to our customers.
−Removed: As a result, continued disintermediation could have a negative impact on our financial condition and operating results.
Loss of key products or key suppliers and manufacturers could affect our financial health .
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Failure by our suppliers to continue to supply us with products on commercially reasonable terms, or at all, could have a material adverse effect on our financial condition, operating results, and cash flows.
−Removed: Our dependence on international suppliers and manufacturers for certain products exposes us to risks that could affect our financial condition and expose us to certain additional risks .
−Removed: Many of our suppliers and manufacturers are located outside of the United States.
−Removed: Thus, compliance with federal laws and regulations regarding the importation of products, import taxes or costs, including new or increased tariffs, anti-dumping duties, countervailing duties, or similar duties, some of which could be applied retroactively, could increase the cost of the products that we distribute.
−Removed: In addition, quotas, embargoes, sanctions, safeguards, and customs restrictions, as well as foreign labor strikes, work stoppages, or boycotts, could reduce the supply of the products available to us.
−Removed: Geopolitical events, including war and terrorism, could also cause a reduction in the supply or increase the costs of the products available to us.
−Removed: If we become subject to a reduction in available supply of imported products and we are unable to mitigate that reduction through alternative sources, or if the costs of our imported products increase and we are not able to pass along those increased costs to our customers, then our business, financial condition, and results of operations could be adversely affected.
Operating Risks
+Added: We are subject to information technology security risks and business interruption risks and may incur increasing costs in an effort to minimize and/or respond to those risks .
+Added: Our business employs information technology systems to secure confidential information, such as employee personal data, but with the rapidly evolving sophistication of cyberattacks, we may not be able to anticipate, prevent or mitigate our cybersecurity risks.
+Added: Any compromise of our security could result in a loss or misuse of our confidential information or confidential information of our customers or suppliers, violation of applicable privacy and other laws, significant legal and financial exposure, theft, damage to our reputation, interruption of our business operations, and a loss of confidence in our security measures, any of which could harm our business.
+Added: We may also be susceptible to phishing attacks, malware, ransomware, denial of service, and other attacks that could adversely affect our information technology systems.
+Added: Although we utilize various procedures and controls to monitor and mitigate these threats, there can be no assurance that these procedures and controls will be sufficient to prevent security threats from materializing.
+Added: As cyberattacks become more sophisticated, we may incur significant costs to strengthen our systems from outside intrusions, and/or obtain insurance coverage related to the threat of such attacks.
+Added: Additionally, our business is reliant upon information technology systems to, among other things, manage and route our sales calls, manage inventories and accounts receivable, make purchasing decisions, monitor our results of operations, place orders with our vendors and process orders from our customers.
+Added: These systems may be vulnerable to natural disasters, telecommunications or equipment failures, power outages and similar events, employee errors or to intentional acts of misconduct, such as security breaches or cyberattacks.
+Added: The occurrence of any of these events or acts, or any other unanticipated problems, could result in damage to or the unavailability of these systems.
+Added: Such damage or unavailability could, despite any existing disaster recovery and business continuity arrangements, interrupt the availability of one or more of our information technology systems.
+Added: We have from time to time experienced such disruptions, and while such disruptions did not materially affect our business, they may occur in the future.
+Added: Future disruptions in these systems could materially impact our ability to buy and sell our products, as well as generally operate our business, which could reduce our revenue.
We may be unable to effectively manage our inventory relative to our sales volume or as the prices of the products we distribute fluctuate, which could affect our business, financial condition, and operating results .
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In the future, if we are unable to effectively manage our inventory, our cash flows may be negatively affected, which could have a material adverse effect on our business, financial condition, and operating results.
−Removed: We may incur business disruptions resulting from a variety of possible causes.
−Removed: The operations at our distribution facilities may be interrupted or impaired by various operating risks, including, but not limited to, risks associated with catastrophic events, such as war, fires, floods, earthquakes, explosions, natural disasters, severe weather, including hurricanes, tornados and droughts, whether a result of climate change or otherwise, pandemics, or other similar occurrences;
−Removed: interruptions in the delivery of products via railroad or other inbound transportation means;
−Removed: adverse government regulations;
−Removed: equipment breakdowns or failures;
−Removed: prolonged power failures;
−Removed: unscheduled maintenance outages;
−Removed: information system disruptions or failures due to any number of causes;
−Removed: violations of our permit requirements or revocation of permits;
−Removed: releases of pollutants and hazardous substances to air, soil, surface water or ground water;
−Removed: disruptions in transportation infrastructure, including roads, bridges, railroad tracks and tunnels;
−Removed: shortages of equipment or spare parts;
−Removed: and labor disputes and shortages.
−Removed: Interruption or impairment of operations at one or more of our facilities could impact our ability to service customers, or could result in the loss of customers, suppliers or inventory, which could adversely affect our financial condition, operating results and cash flows.
−Removed: Our strategy includes pursuing acquisitions.
−Removed: We may be unsuccessful in making and integrating mergers, acquisitions and investments.
−Removed: As part of our overall strategy, we may make acquisitions or investments in the future.
−Removed: Acquisitions and investments involve significant risks and uncertainties, including uncertainties as to the future financial performance of the acquired business, the achievement of expected synergies, or exposure to unforeseen liabilities of acquired companies.
−Removed: In addition, the integration of acquisitions can involve significant anticipated and unanticipated operational challenges, including integrating different computer, enterprise resource planning, and accounting systems, integrating physical facilities and inventories, and integrating businesses and corporate cultures into our business.
−Removed: Addressing the risks and challenges associated with acquisitions and investments requires the attention of management and the diversion of resources from existing operations.
−Removed: Our failure to manage these risks and challenges effectively and at anticipated costs, or to manage other consequences of an acquisition or investment, could result in a failure to achieve anticipated benefits and synergies from an acquisition or investment, could cause disruptions in overall operating performance and deficiencies in customer service of the combined business, and could adversely affect our financial condition, operating results and cash flows.
−Removed: Disruptions and deficiencies associated with integrating an acquired business could also lead to increased costs, order and delivery errors, inventory and billing errors, the loss of employees, or the loss of customers, suppliers, or products either overall or in certain markets, which could adversely affect our financial condition, operating results, and cash flows.
−Removed: We are subject to information technology security risks and business interruption risks and may incur increasing costs in an effort to minimize and/or respond to those risks .
−Removed: Our business employs information technology systems to secure confidential information, such as employee personal data, but with the rapidly evolving sophistication of cyber-attacks, we may not be able to anticipate, prevent or mitigate our cybersecurity risks.
−Removed: Any compromise of our security could result in a loss or misuse of our confidential information or confidential information of our customers or suppliers, violation of applicable privacy and other laws, significant legal and financial exposure, theft, damage to our reputation, interruption of our business operations, and a loss of confidence in our security measures, any of which could harm our business.
−Removed: We may also be susceptible to phishing attacks, malware, ransomware, denial of service, and other attacks that could adversely affect our information technology systems.
−Removed: Although we utilize various procedures and controls to monitor and mitigate these threats, there can be no assurance that these procedures and controls will be sufficient to prevent security threats from materializing.
−Removed: As cyber-attacks become more sophisticated, we may incur significant costs to strengthen our systems from outside intrusions, and/or obtain insurance coverage related to the threat of such attacks.
−Removed: Additionally, our business is reliant upon information technology systems to, among other things, manage and route our sales calls, manage inventories and accounts receivable, make purchasing decisions, monitor our results of operations, place orders with our vendors and process orders from our customers.
−Removed: These systems may be vulnerable to natural disasters, telecommunications or equipment failures, power outages and similar events, employee errors or to intentional acts of misconduct, such as security breaches or cyber-attacks.
−Removed: The occurrence of any of these events or acts, or any other unanticipated problems, could result in damage to or the unavailability of these systems.
−Removed: Such damage or unavailability could, despite any existing disaster recovery and business continuity arrangements, interrupt the availability of one or more of our information technology systems.
−Removed: We have from time to time experienced such disruptions, and while such disruptions did not materially affect our business, they may occur in the future.
−Removed: Future disruptions in these systems could materially impact our ability to buy and sell our products, as well as generally operate our business, which could reduce our revenue.
Our success depends on our ability to attract, train, and retain highly qualified associates and other key personnel while controlling related labor costs .
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Using temporary or contract labor typically requires higher cost, and temporary or contract labor may be less productive than full-time associates.
−Removed: In addition, a shortage of qualified drivers could require us to increase driver compensation, let trucks sit idle, utilize third-party freight more so than normal, utilize less experienced drivers, or face difficulty meeting customer demands, all of which could adversely affect our growth and profitability.
+Added: In addition, a shortage of qualified drivers could require us to increase driver
+Added: compensation, let trucks sit idle, utilize third-party freight more so than normal, utilize less experienced drivers, or face difficulty meeting customer demands, all of which could adversely affect our growth and profitability.
Furthermore, our success is highly dependent on the continued services of our management team.
The loss of services of one or more key members of our senior management team could have a material adverse effect on us.
+Added: Our strategy includes pursuing acquisitions.
+Added: We may be unsuccessful in making and integrating mergers, acquisitions and investments.
+Added: As part of our overall strategy, we may make acquisitions or investments in the future.
+Added: Acquisitions and investments involve significant risks and uncertainties, including uncertainties as to the future financial performance of the acquired business, the achievement of expected synergies, or exposure to unforeseen liabilities of acquired companies.
+Added: In addition, the integration of acquisitions can involve significant anticipated and unanticipated operational challenges, including integrating different computer, enterprise resource planning, and accounting systems, integrating physical facilities and inventories, and integrating businesses and corporate cultures into our business.
+Added: Addressing the risks and challenges associated with acquisitions and investments requires the attention of management and the diversion of resources from existing operations.
+Added: Our failure to manage these risks and challenges effectively and at anticipated costs, or to manage other consequences of an acquisition or investment, could result in a failure to achieve anticipated benefits and synergies from an acquisition or investment, could cause disruptions in overall operating performance and deficiencies in customer service of the combined business, and could adversely affect our financial condition, operating results and cash flows.
+Added: Disruptions and deficiencies associated with integrating an acquired business could also lead to increased costs, order and delivery errors, inventory and billing errors, the loss of employees, or the loss of customers, suppliers, or products either overall or in certain markets, which could adversely affect our financial condition, operating results, and cash flows.
+Added: We may incur business disruptions resulting from a variety of possible causes.
+Added: While we maintain insurance covering our facilities and equipment, including business interruption insurance, the operations at our distribution facilities may be interrupted or impaired by various operating risks, including, but not limited to, risks associated with catastrophic events, such as war, fires, floods, earthquakes, explosions, natural disasters, severe weather, including hurricanes, tornados and droughts, whether a result of climate change or otherwise, pandemics, or other similar occurrences, interruptions in the delivery of products via railroad or other inbound transportation means, adverse government regulations, civil unrest, condemnation, equipment breakdowns or failures, prolonged power failures, unscheduled maintenance outages, information system disruptions or failures due to any number of causes, violations of our permit requirements or revocation of permits, releases of pollutants and hazardous substances to air, soil, surface water or ground water;
+Added: disruptions in transportation infrastructure, including roads, bridges, railroad tracks and tunnels, shortages of equipment or spare parts, and labor disputes and shortages.
+Added: For example, one of our owned warehouse facilities located in Erwin, Tennessee was damaged by Hurricane Helene in late September 2024.
+Added: We could incur uninsured losses and liabilities arising from such events, including damage to our reputation, and/or suffer material losses in operational capacity, which could have a material adverse impact on our business, financial condition, and results of operations.
+Added: In addition, war, terrorism, geopolitical uncertainties, and public health issues could cause damage or disruption to the global economy, and thus could have a material adverse effect on our financial condition, operating results and cash flows, our suppliers and our customers.
We are exposed to product liability and other claims and legal proceedings related to our business and the products we distribute, which may exceed the coverage of our insurance .
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Since we do not have direct control over the quality of products that are manufactured or supplied to us by third parties, we are particularly vulnerable to risks relating to the quality of such products.
−Removed: We are also from time to time subject to casualty, contract, tort, and other claims relating to our business, the products we have distributed in the past or may in the future distribute, and the services we have provided in the past or may in the future provide, either directly or through third parties.
−Removed: In addition, operating hazards, such as delivering and unloading products, operating large machinery and driving hazards, which are inherent in our business and some of which may be outside of our control, can cause personal injury and loss of life, damage to or destruction of property, plant, and equipment and environmental damage.
+Added: We are also from time to time subject to casualty, contract, tort, and other claims relating to our business, the products we have distributed in the past or may in the future distribute, and the services we have provided in the past or may in the future provide,
+Added: either directly or through third parties.
+Added: In addition, operating hazards, such as delivering and unloading products, operating large machinery and driving hazards, which are inherent in our business and some of which may be outside of our control, can cause personal injury and loss of life, damage to or destruction of property and equipment and environmental damage.
We cannot predict or, in some cases, control the costs to defend or resolve such claims.
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There can be no assurance that any current or future claims will not adversely affect our financial position, cash flows, or results of operations.
−Removed: Our business operations could suffer significant losses from natural disasters, catastrophes, fire, or other unexpected events .
−Removed: While we maintain insurance covering our facilities and equipment, including business interruption insurance, our warehouse facilities could be materially damaged by natural disasters, such as floods, tornadoes, hurricanes, and earthquakes, or by fire, adverse weather conditions, civil unrest, condemnation, or other unexpected events or disruptions to our facilities.
−Removed: We could incur uninsured losses and liabilities arising from such events, including damage to our reputation, and/or suffer material losses in operational capacity, which could have a material adverse impact on our business, financial condition, and results of operations.
−Removed: In addition, war, terrorism, geopolitical uncertainties, and public health issues could cause damage or disruption to the global economy, and thus could have a material adverse effect on us, our suppliers and our customers.
Our business operations and financial results could suffer from the impacts of climate change .
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Approximately 20 percent of our associates are represented by various local labor unions with terms and conditions of employment governed by Collective Bargaining Agreements (“CBAs”).
−Removed: Six CBAs covering approximately nine percent of our associates are up for renewal in fiscal year 2024, of which one has already been renegotiated, one is currently under negotiation, and we expect to renegotiate the remainder before their renewal dates.
+Added: Six CBAs covering approximately six percent of our associates are up for renewal in fiscal year 2025, of which one is currently in the renegotiation process.
+Added: We expect to renegotiate the remainder before their renewal dates.
Although we have generally had good relations with our unionized employees and expect to renew collective bargaining agreements as they expire, no assurances can be provided that we will be able to reach a timely agreement as to the renewal of the agreements, and their expiration or continued work under an expired agreement, as applicable, could result in a work stoppage.
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Department of Labor and Federal Trade Commission, regulations issued by the SEC, accounting standards issued by the Financial Accounting Standards Board (“FASB”) or similar entities, and state and local zoning restrictions, building codes and contractors’ licensing regulations.
−Removed: More burdensome regulatory requirements in these or other areas may increase our general and administrative costs and adversely affect our financial condition, operating results, and cash flows.
−Removed: Moreover, failure to comply with the regulatory
−Removed: requirements applicable to our business could expose us to litigation and substantial fines and penalties that could adversely affect our financial condition, operating results, and cash flows.
+Added: More burdensome regulatory requirements in these or other areas may increase our general and administrative costs
+Added: and adversely affect our financial condition, operating results, and cash flows.
+Added: Moreover, failure to comply with the regulatory requirements applicable to our business could expose us to litigation and substantial fines and penalties that could adversely affect our financial condition, operating results, and cash flows.
Our transportation operations, upon which we depend to distribute products from our distribution centers, are subject to the regulatory jurisdiction of the DOT and the FMCSA, which have broad administrative powers with respect to our transportation operations.
10 unchanged sentences
In addition, although their impact is difficult to predict, it is also possible that legislation and regulations enacted at the federal, state or local level relating to climate change, could result in changes to the way we conduct business or store or deliver products, and could result in significantly increased costs of compliance, including for transportation, environmental monitoring and reporting, capital expenditures, or insurance premiums and deductibles.
+Added: For example, a 2023 EPA rule imposed reporting and recordkeeping requirements on manufacturers and importers of per- and polyfluoroalkyl substances (PFAS), and the EPA has proposed to designate two widely used PFAS as hazardous substances.
These potential changes or increased costs could adversely impact our business and results of operations.
1 unchanged sentence
If an epidemic, global pandemic, or other widespread public health crises disrupts the worldwide economy or if similar widespread disease outbreaks occur in the future, our business, financial condition and results of operations could be negatively affected to the extent such event harms the economy or regions in which we operate.
−Removed: In particular, any outbreak or resurgence of COVID-19 or a similar variant or any other future variants, or governmental imposition of mandatory or voluntary closures in areas where our manufacturing facilities, suppliers or customers are located, could severely disrupt our operations.
−Removed: In addition to this potential direct impact on our facilities and operations, continuing outbreaks of the virus could negatively impact our industry and end markets as a whole or result in a longer-term economic recession.
+Added: In particular, any governmental imposition of mandatory or voluntary closures in areas where our manufacturing facilities, suppliers or customers are located, in response to any such disease outbreak, epidemic, pandemic or health crisis, could severely disrupt our operations.
+Added: In addition to this potential direct impact on our facilities and operations, any outbreaks, epidemics or pandemics could negatively impact our industry and end markets as a whole or result in a longer-term economic recession.
Any of these factors could negatively affect our business, financial condition, cash flows, profitability, and results of operations.
4 unchanged sentences
If our quarterly financial results or our predictions of future financial results fail to meet the expectations of securities analysts and investors, our stock price could be negatively affected.
−Removed: Any volatility in our quarterly financial results may make it more difficult for us to raise capital in the future or pursue acquisitions that involve issuances of our stock.
+Added: Any volatility in our quarterly financial results may make it more difficult for us to raise capital in the future or pursue
+Added: acquisitions that involve issuances of our stock.
In addition, because of this variability, our operating results for prior periods may not be effective predictors of future performance.
11 unchanged sentences
• adverse customs and tariff rulings including those relating to anti-dumping, countervailing duty, or circumvention investigations;
−Removed: • protectionist trade policies and import tariffs;
+Added: • protectionist trade policies and new or increased import tariffs;
• labor disruptions, shortages of skilled and technical labor, or increased labor costs;
38 unchanged sentences
If we fail to comply with these covenants and restrictions, a default may allow the creditors under the relevant instruments to accelerate the related debts and to exercise their remedies under these agreements, which typically will include the right to declare the principal amount of that debt, together with accrued and unpaid interest, and other related amounts, immediately due and payable, to exercise any remedies the creditors may have to foreclose on assets that are subject to liens securing that debt, and to terminate any commitments they had made to supply further funds.
−Removed: Refer to Note 8, Debt and Finance Leases , in Item 8 of this Annual Report for further details.
+Added: Refer to Note 8, Debt and Finance Lease Obligations , in Item 8 of this Annual Report for further details.
Despite our current levels of debt, we may still incur more debt, which would increase the risks described in these risk factors relating to indebtedness .
11 unchanged sentences
In addition, we may be unable to renew the leases at the end of their terms.
−Removed: If we close a distribution center that is subject to a non-cancelable lease, we would remain committed to perform our obligations under the applicable lease, which would include, among other things, payment of the base rent, insurance, taxes, and other expenses on the leased property for the balance of the lease term.
−Removed: Management may explore offsets to remaining obligations, such as subleasing opportunities or negotiated lease terminations, but there can be no assurance that we can offset
−Removed: remaining obligations on commercially reasonable terms or at all.
+Added: If we close a distribution center that is subject to a non-cancelable lease, we would remain committed to perform our obligations under the applicable lease, which would include, among other things, payment of the base rent, insurance, taxes, and
+Added: other expenses on the leased property for the balance of the lease term.
+Added: Management may explore offsets to remaining obligations, such as subleasing opportunities or negotiated lease terminations, but there can be no assurance that we can offset remaining obligations on commercially reasonable terms or at all.
Our obligation to continue to perform our obligations with respect to leases for closed distribution centers could have a material adverse effect on our business and results of operations.
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Political events in petroleum-producing regions as well as hurricanes and other weather-related events or natural disasters may cause the price of fuel to increase or the availability of fuel to decrease.
−Removed: Within our business units, we deliver products to our customers primarily via our fleet of trucks, which we fuel both onsite and through street fuel programs We also utilize third-party freight providers to deliver our products and the costs associated with them could affect the expense incurred to deliver products to our customers.
+Added: Within our business units, we deliver products to our customers primarily via our fleet of trucks, which we fuel both onsite and through street fuel programs.
+Added: We also utilize third-party freight providers to deliver our products and the costs associated with them could affect the expense incurred to deliver products to our customers.
Our operating profit may be adversely affected if we are unable to obtain the fuel we require or to fully offset the anticipated impact of higher fuel prices or third-party freight costs through increased prices or fuel surcharges to our customers.
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As of December 28, 2024, we had $50.6 million in net deferred tax assets.
−Removed: These deferred tax assets include temporary differences arising from such items as property, plant and equipment, accrued compensation, and accounting reserves related to inventory and other items in conjunction with net state operating loss carryovers that can be used to offset taxable income in future periods and reduce income taxes payable in those future periods.
+Added: These deferred tax assets include temporary differences arising from such items as property and equipment, accrued compensation, and accounting reserves related to inventory and other items in conjunction with net state operating loss carryovers that can be used to offset taxable income in future periods and reduce income taxes payable in those future periods.
Each quarter, we determine the probability of the realization of deferred tax assets, using significant judgments and estimates with respect to, among other things, historical operating results, expectations of future earnings, and tax planning strategies.
37 unchanged sentences
These rules are subject to interpretation by the SEC and various bodies formed to interpret and create appropriate accounting principles.
−Removed: Changes in these rules or their interpretation, such as recent changes regarding lease accounting standards, could significantly change our reported results and may even retroactively affect previously reported transactions.
+Added: Changes in these rules or their interpretation could significantly change our reported results and may even retroactively affect previously reported transactions.
Changes resulting from the adoption of new or revised accounting principles may result in materially different financial results and may require that we make changes to our systems, processes, and controls.
14 unchanged sentences
Broad market and industry factors may materially harm the market price of our common stock, regardless of our operating performance.
−Removed: In addition, share repurchases pursuant to our new share repurchase program could affect our stock price and increase its volatility.
+Added: In addition, share repurchases pursuant to our share repurchase program could affect our stock price and increase its volatility.
The existence of a share repurchase program could also cause our stock price to be higher than it would be in the absence of such a program and could potentially reduce the market liquidity for our stock.
20 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.