Quantitative and Qualitative Disclosures About Market Risk
−Removed: The Company is primarily exposed to market risk from changes in raw material prices, freight costs, and foreign currency exchange rates.
−Removed: Market risk is measured as the potential negative impact on earnings, cash flows or fair values resulting from a hypothetical change in interest rates, commodity prices or foreign currency exchange rates over the next year.
+Added: The Company is exposed to a variety of market risks, which primarily includes market risk from changes in interest rates, raw material prices, freight costs and foreign currency exchange rates.
+Added: Market risk is measured as the potential negative impact on earnings, cash flows or fair values resulting from a hypothetical change in interest rates, commodity prices, freight or foreign currency exchange rates over the next year.
The Company manages exposure to market risks at the corporate level.
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denominated activity is likely to increase.
+Added: A 10% devaluation in average foreign currency exchange rates for the U.S.
+Added: dollar would have resulted in a $0.9 million decrease to our revenues for the year ended December 31, 2024.
The Company has not historically used swaps or foreign currency hedges, however, the Company may utilize swaps or foreign currency hedges in the future.
−Removed: Commodity Risk
+Added: Commodity and Freight Risk
The Company, and the CT segment in particular, primarily relies upon supply relationships to meet many of its raw material needs.
−Removed: Price increases are passed along to the Company’s customers, where applicable or possible.
+Added: Commodity and freight price increases are passed along to the Company’s customers, where applicable or possible.
The Company presently does not utilize commodity derivative instruments but may consider utilizing forms of hedging to mitigate the effects of rising commodity prices on its supplies, in the future.
+Added: Interest Rate Risk
+Added: The Company is subject to interest rate risk under its ABL, which bears interest at the Wall Street Journal Prime Rate (subject to a floor of 5.50%) plus 2.0% per annum.
+Added: The interest rate under the ABL was 9.5% and 11.0% as of December 31, 2024 and 2023, respectively.
+Added: For the year ended December 31, 2024, the weighted-average interest rate was 10.8%.
+Added: During the year ended December 31, 2024, the Company incurred $0.7 million in interest and fees related to the ABL.
+Added: Based upon ABL borrowings outstanding as of December 31, 2024 of $4.8 million, a 100 basis point change in interest rates would have resulted in an approximate $0.1 million change to our annual interest expense.
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.