5 unchanged sentences
Because of variable interest rates, the Company is exposed to the risk of interest rate fluctuations, which impact interest income, interest expense, and cash flows.
−Removed: The Company’s $100 million line of credit is subject to interest rate fluctuations.
+Added: The Company’s $75 million revolving line of credit and $25 million term loan is subject to interest rate fluctuations.
Additionally, the Company expects to generate cash from its operations that will subsequently be used to pay down as much of the debt (if any is outstanding) as possible or invest cash in short-term investments (if no debt is outstanding), while still funding the growth of the Company.
3 unchanged sentences
The Company’s strategic sourcing plans include mitigating supply chain risk by utilizing multiple suppliers for a commodity to avoid significant dependence on any single supplier.
−Removed: Although an interruption of these supplies and components could disrupt our operations, we believe generally that alternative sources of supply exist and could be readily arranged prior to the COVID-19 pandemic.
−Removed: As a result of the pandemic, we have increased our safety stock in certain components in order to mitigate a potential disruption to our operations resulting from an anticipated shortage of these same components. The Company has not experienced any significant supply chain problems in recent years.
+Added: Although an interruption of these supplies and components could disrupt our operations, we believe generally that alternative sources of supply exist and could be readily arranged.
+Added: We have increased our safety stock in certain components in order to mitigate a potential disruption to our operations resulting from an anticipated shortage of these same components. The Company has not experienced any significant supply chain problems in recent years.
With regard to price fluctuations of our raw material and component purchases, the price risk for materials the Company purchases is related to price increases in commodity items that affect all users of the materials, including the Company’s competitors. For the fiscal year ended June 30, 2022, the raw material component of cost of goods sold subject to price risk was approximately $226.7 million.
The Company does not actively hedge or use derivative instruments to manage its risk in this area.
−Removed: The Company does, however, seek and qualify new suppliers, negotiate with existing suppliers, and arranges stocking agreements to mitigate risk of supply and price increases.
−Removed: On occasion, the Company’s Lighting Segment has implemented price increases with customers to offset raw material price increases and to mitigate the impact of trade tariffs.
+Added: The Company does, however, seek and qualify new suppliers, negotiate with existing suppliers, and arranges stocking agreements to mitigate risk of supply shortages and price increases.
+Added: The Company’s Lighting Segment has implemented price increases with customers to offset raw material price increases and to mitigate the impact of trade tariffs.
The Company’s Display Solutions Segment generally establishes new sales prices, reflective of the then current raw material prices, for each program as it begins, with further price increases throughout the life of the program when warranted.
1 unchanged sentence
The Company has minimal foreign currency risk with respect to its Mexican and Canadian subsidiaries.
−Removed: The sales transacted by these subsidiaries in pesos and Canadian dollars represents approximately 2% of the Company’s consolidated net sales.
+Added: The sales transacted by these subsidiaries in pesos and Canadian dollars combined represents approximately 3.6% of the Company’s fiscal 2022 consolidated net sales.
All other business conducted by the Company is in U.S.
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.