Item 1A Risk Factors
−Removed: In addition to the other information set forth in this report, carefully consider the factors discussed below and in Item 1A to Part I in Griffon’s Annual Report on Form 10-K for the year ended September 30, 2019, which could materially affect Griffon’s business, financial condition or future results.
+Added: In addition to the other information set forth in this report, carefully consider the factors in Item 1A to Part I in Griffon’s Annual Report on Form 10-K for the year ended September 30, 2020, which could materially affect Griffon’s business, financial condition or future results.
The risks described in Griffon’s Annual Report on Form 10-K are not the only risks facing Griffon.
Additional risks and uncertainties not currently known to Griffon or that Griffon currently deems to be immaterial also may materially adversely affect Griffon’s business, financial condition and/or operating results.
−Removed: The COVID-19 outbreak could adversely impact our results of operations.
−Removed: The future impact of the COVID-19 outbreak and the spread of the pathogen on a global basis could adversely affect our business in a number of respects, although the extent, nature and timing of such impact cannot be predicted at this time.
−Removed: The COVID-19 outbreak has led countries around the world, as well as most states in the U.S., to implement restrictions relating to the operation of almost all types of businesses.
−Removed: Within the U.S., the standards vary from state to state, but typically require all but “critical”, “essential” or “life-sustaining” businesses to close all offices and facilities.
−Removed: We believe, based on the various standards published to date, that our businesses meet the requisite standard in all U.S states.
−Removed: We also believe that our businesses meet the applicable standards to remain open in Canada and Australia.
−Removed: As of the date of this filing, all of our manufacturing and distribution facilities in the U.S., Canada, Australia and China are operating, although some of them are operating at reduced capacity as a result of enacting procedures designed to prevent the spread of the virus such as social distancing and staggered shifts.
−Removed: The AMES manufacturing plant in Reynosa, Mexico, as well as AMES’ facilities in the UK, Ireland and New Zealand were temporarily closed for various periods during the period March through June 2020, but have resumed operations.
−Removed: However, changing standards regarding what type of facilities are permitted to remain open, as well as evolving interpretations of existing standards, in both the United States and around the globe, could result in additional closures of Griffon facilities.
−Removed: To date, our supply chain has not experienced significant disruptions, and at this time we do not anticipate any such significant disruptions in the near term.
−Removed: However, our suppliers could be required by government authorities to temporarily cease operations in accordance with the various restrictions discussed above;
−Removed: might be limited in their production capacity due to complying with restrictions relating to the operation of businesses during the COVID-19 pandemic;
−Removed: or could suffer their own supply chain disruptions, impacting their ability to continue to supply us with the quantity of materials required by us.
−Removed: If as a result of the COVID-19 outbreak governments take additional protective actions, or extend the time period for existing protective actions, it may have a material adverse impact on Griffon’s business and operating results.
−Removed: This could include additional closures of our facilities;
−Removed: the extension of the term of closure for those of our facilities that are currently closed;
−Removed: or the closure of the facilities of our customers, suppliers, or other vendors in our supply chain.
−Removed: Any disruption of our supply chain or the businesses of our customers could adversely impact our business and results of operations.
−Removed: The COVID-19 outbreak has worsened in many U.S.
−Removed: states over the last four to eight weeks, and recently certain states have put in place new restrictions regarding the operation of many types of businesses or have tightened up restrictions already in place.
−Removed: In addition, the widespread public health crisis caused by the COVID-19 outbreak has adversely impacted the economies and financial markets worldwide, resulting in an economic downturn that has adversely impacted many businesses, including ours.
−Removed: The extent and duration of the impact on the global economy and financial markets from the COVID-19 outbreak is difficult to predict, and the extent to which the COVID-19 outbreak will negatively affect us and the duration of any potential business disruption is uncertain.
−Removed: The impact to our results will depend to a large extent on future developments and new information that may emerge regarding the duration and severity of the COVID-19 outbreak and the actions taken by authorities and other entities to contain the COVID-19 outbreak or treat its impact, and the impact of such actions, all of which are beyond our control.
−Removed: These potential impacts, while uncertain, could adversely affect our operating results.
−Removed: To the extent the COVID-19 outbreak adversely affects our business, operations, financial condition and operating results, it may also have the effect of heightening many of the other risks described in this “Risk Factors” section (including those described in Griffon’s Annual Report on Form 10-K for the year ended September 30, 2019, such as those relating to our high level of indebtedness, our need to generate sufficient cash flows to service our indebtedness, and our ability to comply with the covenants contained in the agreements that govern our indebtedness).
−Removed: See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” for a discussion of the impact, to date, of the COVID-19 outbreak on sales levels in our various business.
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.