7 unchanged sentences
The end markets that we serve have historically been, and will continue to be vulnerable to general downturns, which in turn could materially and adversely affect the demand for our products and services.
−Removed: Our customer projects, budgets for capital expenditures and the need for our services have in the past, and may in the future, be adversely affected by among other things, poor economic conditions, low commodity prices, political uncertainties, and currency fluctuations.
+Added: Our customer projects, budgets for capital expenditures and the need for our services have in the past, and may in the future, be adversely affected by among other things, the price of oil and gas, poor economic conditions, low commodity prices, political uncertainties, and currency fluctuations.
These variables may impact the number and/or the amount of new awards, delays in the timing of awards or potential cancellation of projects.
+Added: Changes in product mix or services can have a significant impact on our gross margins on a quarterly and annual basis.
The uncertainty of our contract award timing is outside of our control and can also present difficulties in matching workforce size with contract requirements.
3 unchanged sentences
Some of our competitors are significantly larger and have substantially greater global resources such as engineering, manufacturing and marketing resources, and at various times, may be a customer or supplier on any given project.
−Removed: Competition in the industry depends on a number of factors, including the number of projects available, technical ability, production capacity, location and price.
+Added: Competition in the industry depends on a number of factors, including the number of projects available, technical ability, production capacity, location and the ability to win projects we bid.
Certain of our competitors may have lower cost structures and may, therefore, be able to provide their products or services at lower prices.
1 unchanged sentence
New companies may enter the markets in which we compete, or industry consolidation may occur, further increasing competition in our markets.
−Removed: Our failure to compete effectively could adversely affect future revenues and have an adverse impact on our results of operations.
−Removed: Technological innovations by competitors may make existing products and production methods obsolete.
+Added: Our failure to compete effectively and secure projects we bid could adversely affect future revenues and have an adverse impact on our results of operations.
+Added: Technological innovations may make existing products and production methods obsolete.
All of the products that we manufacture and sell depend upon the best available technology for success in the marketplace.
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therefore, we cannot be certain that our competitors will not develop the expertise, experience and resources to provide products and services that are superior in both price and quality.
−Removed: Our future success will depend, in part, on our ability to anticipate and offer products that meet changing customer specifications.
+Added: Our future success will depend, in part, on our ability to anticipate and offer products that meet changing customer specifications as well as fund our research and development costs.
+Added: Consumer demand for further automation is changing the markets we operate in.
Failure to successfully develop new products, or to enhance existing products, could result in the loss of existing customers to competitors, the inability to attract new business or an overall reduction in our competitive position, any of which may adversely affect our business or results of operations.
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Our business requires skilled and unskilled labor, and we may be unable to attract and retain qualified employees.
−Removed: Our ability to maintain our productivity at competitive levels may be limited by our ability to employ, train and retain personnel necessary to meet our requirements.
+Added: Our ability to maintain our productivity at competitive levels may be limited by our ability to employ, compensate, train and retain personnel necessary to meet our requirements.
We face competition for qualified personnel in our industry.
We may experience shortages of qualified personnel such as engineers, project managers and select skilled trades.
−Removed: We cannot be certain that we will be able to maintain an adequate skilled labor force or key technical personnel necessary to operate efficiently and to support our growth strategy and operations.
−Removed: We cannot be certain that our labor costs will not increase as a result of a shortage in the supply of skilled, unskilled and technical personnel.
+Added: We cannot be certain that we will be able to maintain an adequate skilled or unskilled labor force or key technical personnel necessary to operate efficiently and to support our growth strategy and operations.
+Added: We cannot be certain that our labor costs will not increase as a result of a shortage in the supply of skilled, unskilled and technical personnel or any governmental regulations.
Labor shortages or increased labor costs could impair our ability to maintain our business, meet customer commitments or grow our revenues, and may adversely impact our business and results of operations.
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We have both indoor and outdoor manufacturing facilities that are susceptible to numerous industrial safety risks that can lead to personal injury, loss of life, damage to property and equipment, as well as potential environmental damage.
−Removed: While we take
−Removed: every precaution to avoid incidents, we have experienced accidents in the past and may again in the future, which can negatively affect our safety record.
−Removed: A poor safety record can harm our reputation with existing and potential customers, jeopardize our relationship with employees and could adversely impact our business and results of operations.
+Added: While we take every precaution to avoid incidents, we have experienced accidents in the past and may again in the future, which can negatively affect our safety record.
+Added: A poor safety record can harm our reputation with existing and potential customers, jeopardize our relationship with employees, increase our insurance costs and could adversely impact our business and results of operations.
Catastrophic events, including natural disasters, health epidemics (including the COVID-19 pandemic), acts of war and terrorism, among others, could disrupt our business.
The occurrence of catastrophic events, ranging from natural disasters to health epidemics (including the COVID-19 pandemic), to acts of war and terrorism, among others, could disrupt or delay our ability to operate our business and complete projects for our customers and could potentially expose us to third-party liability claims.
+Added: A significant portion of our operations are located near the Texas Gulf Coast.
+Added: Our operations have been and are subject to the potential impacts of weather-related events such as hurricanes and flooding.
+Added: Future weather events could cause significant damage to our property and equipment and adversely impact our operations.
We may declare the existence of a force majeure event under our contracts in certain situations;
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These situations or other disruptions are outside of our control and may adversely impact our business and results of operations.
−Removed: The spread of COVID-19 has created and continues to create significant uncertainty and economic disruption across the world.
−Removed: It is difficult to predict the economic impact that the COVID-19 pandemic may have on our business, results of operations and cash flows going forward.
−Removed: Certain of our customers have asked that we delay our manufacturing of their projects as their operations have been negatively impacted by this pandemic, the reduced oil and gas demand and commodity price volatility.
−Removed: These delays may have a negative effect on the timing of revenue recognition and cash flow.
+Added: The COVID-19 pandemic continues to create significant uncertainty and economic disruption across the world.
+Added: It is difficult to predict the economic impact that the COVID-19 pandemic may continue to have on our business, results of operations and cash flows going forward.
+Added: Certain of our customers have asked that we delay or cancel our manufacturing on their projects as their operations have been negatively impacted by this pandemic.
+Added: These delays and cancellations may have a negative effect on the timing of revenue recognition and cash flow.
We have experienced supply disruptions and anticipate these supply disruptions may continue.
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Additionally, the loss of significant volume from one particular customer at one of our facilities could adversely impact the operating results of that facility.
−Removed: If one or more of our suppliers or subcontractors experiences difficulties that result in a reduction or interruption in supply to us, or they fail to meet our manufacturing requirements, our business could be adversely impacted until we are able to secure alternative sources.
+Added: If one or more of our suppliers or subcontractors experiences difficulties that result in a reduction, delay or interruption in supply to us, or they fail to meet our manufacturing requirements, our business could be adversely impacted until we are able to secure alternative sources.
Furthermore, our ability to maintain or expand our business would be limited in the future if we are unable to maintain or increase our bonding capacity or our bank credit facility on favorable terms or at all.
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Revenues recognized over time from our fixed-price contracts could result in volatility in our results of operations.
−Removed: As discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” and in the Notes to Consolidated Financial Statements included elsewhere in this Annual Report, the majority of our revenues are recognized over time.
+Added: As discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates” and in the Notes to Consolidated Financial Statements included elsewhere in this Annual Report, the majority of our revenues are recognized over time.
Revenues are recognized as work is performed and costs are incurred.
1 unchanged sentence
The determination of the revenue recognized requires the use of estimates of costs to be incurred for the performance of the contract.
+Added: The timing of the costs incurred may lead to fluctuations in revenue recognized on a quarterly and annual basis.
The cost estimation process is based upon the professional knowledge and experience of our management teams, engineers, project managers and financial professionals.
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Our material costs represented 49% of our consolidated revenues for Fiscal 2021.
−Removed: Unanticipated increases in raw material requirements or prices, the imposition of tariffs, and changes in supplier availability or supplier consolidation, could increase production costs and adversely affect profitability as fixed-price contracts may prohibit our ability to charge the customer for the increase in raw material prices.
+Added: Unanticipated increases in raw material requirements, rising prices due to overall inflationary pressure, the imposition of tariffs, changes in supplier availability, delays in transportation, or supplier consolidation could increase production costs and adversely affect profitability as fixed-price contracts may prohibit our ability to charge the customer for the increase in raw material prices.
We purchase a wide variety of materials and component parts from various suppliers to manufacture our products, including steel, aluminum, copper and various components.
1 unchanged sentence
If we are unable to obtain key components and raw materials from these suppliers, the key components and raw materials may not be readily available from other suppliers or available with acceptable terms.
−Removed: Our success depends on our ability to meet customer commitments and could be negatively impacted if a supplier experiences a disruption or discontinuance in their operations.
+Added: Our success depends on our ability to meet customer commitments and could be negatively impacted if a supplier experiences a disruption or discontinuance in their operations or we experience a delay in transportation of materials and components from our suppliers.
The time and effort associated with the selection and qualification of a new supplier and changes in our design and testing to accommodate similar components from other suppliers could be significant.
3 unchanged sentences
We are often required to provide our customers security for the performance of their projects in the form of surety bonds, letters of credit or other financial assurances.
−Removed: Our continued ability to obtain surety bonds, letters of credit or other financial assurances will depend on our capitalization, working capital and past performance.
+Added: Our continued ability to obtain surety bonds, letters of credit or other financial assurances will depend on our capitalization, working capital and financial performance.
Our ability to issue letters of credit is dependent upon the availability of adequate credit issued by our banks and could be negatively impacted by our compliance with our financial covenants.
−Removed: Future compliance with such covenants may be affected by factors beyond our control, including general or industry-specific economic downturns.
+Added: Future compliance with such financial covenants may be affected by factors beyond our control, including general or industry-specific economic downturns.
We are also dependent on the overall bonding capacity, pricing and terms available in the surety markets.
3 unchanged sentences
Our credit agreement contains various financial covenants and restrictions, which are described in Note G of the Notes to Consolidated Financial Statements.
−Removed: Our ability to remain in compliance with such financial covenants and restrictions may be
−Removed: affected by factors beyond our control, including general or industry-specific economic downturns.
−Removed: If we fail to remain in compliance with such covenants and restrictions, absent a modification or waiver, this could result in an event of default under the credit agreement.
−Removed: Among other things, the occurrence of an event of default could limit our ability to obtain additional financing or result in acceleration of outstanding amounts under the credit agreement or a termination of the agreement, any of which could have an adverse impact on our liquidity, business and results of operations.
+Added: Our ability to remain in compliance with such financial covenants and restrictions may be affected by factors beyond our control, including general or industry-specific economic downturns.
+Added: If we fail to remain in compliance with such covenants and restrictions, absent an amendment or waiver, this could result in an event of default under the credit agreement.
+Added: Among other things, the occurrence of an event of default could limit our ability to issue letters of credit, obtain additional financing or result in acceleration of outstanding amounts under the credit agreement or a termination of the agreement, any of which could have an adverse impact on our liquidity, business and results of operations.
We extend credit to customers in conjunction with our performance under fixed-price contracts which subjects us to potential credit risks.
3 unchanged sentences
Any of these factors could adversely impact our business and results of operations.
+Added: A significant portion of our revenues may be concentrated among a small number of customers.
+Added: Due to the nature and timing of large projects, a significant percentage of our revenues in a given period may result from one specific contract or customer.
+Added: During Fiscal 2021, approximately 20% of our consolidated revenues were generated from our large domestic industrial project that was awarded in Fiscal 2020.
+Added: We believe the reduction in business volume from a particular industry or the loss of a major customer could have an adverse effect on our business.
+Added: From time to time, an individual manufacturing facility may have significant volume from one particular customer that would be material to that facility.
+Added: If during that time the customer were to experience financial distress, a decline in business or circumstances that would otherwise necessitate a cancellation of a project with us, our revenue could be adversely impacted.
We carry insurance against many potential liabilities, but our management of risk may leave us exposed to unidentified or unanticipated risks.
−Removed: Although we maintain insurance policies with respect to our related exposures, including certain casualty, property, business interruption and self-insured medical and dental programs, these policies contain deductibles, self-insured retentions and limits of coverage.
−Removed: In addition, we may not be able to continue to obtain insurance at commercially reasonable rates or may be faced with liabilities not covered by insurance, such as, but not limited to, environmental contamination or terrorist attacks.
+Added: Although we maintain insurance policies with respect to our related exposures, including certain casualty, property, professional, business interruption, cyber security and self-insured medical and dental programs, these policies contain deductibles, self-insured retentions and limits of coverage.
+Added: In addition, we may not be able to continue to obtain insurance at commercially reasonable rates, or at the policy limits we may require or may be faced with liabilities not covered by insurance, such as, but not limited to, environmental contamination or terrorist attacks.
We estimate our liabilities for known claims and unpaid claims and expenses based on information available as well as projections for claims incurred but not reported.
However, insurance liabilities, some of which are self-insured, are difficult to estimate due to various factors.
−Removed: If any of our insurance policies or programs are not effective in mitigating our risks, we may incur losses that are not covered by our insurance policies, that are subject to deductibles or that exceed our estimated accruals or our insurance policy limits, which could adversely impact our business and results of operations.
+Added: If any of our insurance policies, coverage limits or programs are not effective in mitigating our risks, we may incur losses that are not covered by our insurance policies, that are subject to deductibles or that exceed our estimated accruals or our insurance policy limits, which could adversely impact our business and results of operations.
Our international operations expose us to risks that are different from, or possibly greater than, the risks we are exposed to domestically and may adversely affect our operations.
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If any of our financial, operational, or other data processing systems fail or have other significant shortcomings due to natural disaster, power loss, telecommunications failures, cyber security attacks or other similar events, our business or results of operations could be adversely affected.
−Removed: In addition, despite implementation of security measures, our business systems may be vulnerable to computer viruses, cyber-attacks, the accidental release of sensitive information and other unauthorized access.
+Added: In addition, despite implementation of security measures, our business systems may be vulnerable to computer viruses, ransomware attacks, cyber-attacks, the accidental release of sensitive information and other unauthorized access.
These failures of our business systems or security breaches could impact our customers, employees and reputation and result in a disruption to our operations or in legal claims or proceedings.
1 unchanged sentence
We rely on third-party systems which could also suffer operational system failure or cyber-attacks.
−Removed: Any of these occurrences could disrupt our business, result in potential liability or reputational damage or otherwise have an adverse effect on our business or results of operations.
+Added: Any of these occurrences may not be covered by insurance and could disrupt our business, result in potential liability or reputational damage or otherwise have an adverse effect on our business or results of operations.
Network security and internal control measures have been implemented to address these risks and disruptions to our business.
7 unchanged sentences
There can be no assurance that we will declare or pay future dividends on our common stock.
−Removed: Our Board of Directors has approved a regular dividend since Fiscal 2014.
+Added: Our Board of Directors has approved a regular quarterly dividend since Fiscal 2014.
The declaration, amount and timing of future dividends are subject to capital availability and determinations by our Board of Directors that cash dividends are in the best interest of our stockholders and are in compliance with all respective laws and applicable agreements.
6 unchanged sentences
These laws and regulations are administered by various state, federal and international agencies.
−Removed: Changes in policy, laws or regulations, including those affecting oil and gas exploration and development activities and the resulting decisions by customers and other industry participants, could reduce demand for our products and services, which would have a negative impact on our operations.
+Added: Changes in policy, laws or regulations, including those affecting oil and gas exploration and development activities or climate change matters and the resulting decisions by customers and other industry participants, could reduce demand for our products and services, which would have a negative impact on our operations.
Various regulations have been implemented around the world related to safety and certification requirements applicable to oil and gas drilling and production activities, and we cannot predict whether operators will be able to satisfy these requirements.
1 unchanged sentence
The Dodd-Frank Wall Street Reform and Consumer Protection Act requires disclosure of use of "conflict" minerals mined from the Democratic Republic of Congo and adjoining countries and our efforts to prevent the use of such minerals.
−Removed: In our industry, conflict minerals are most commonly found in metals.
+Added: In our industry,
+Added: conflict minerals are most commonly found in metals.
As there may be only a limited number of suppliers offering "conflict-free" metals, we cannot be sure that we will be able to obtain necessary metals in sufficient quantities or at competitive prices.
Also, we may face challenges with our customers and suppliers if we are unable to sufficiently verify that the metals used in our products are "conflict-free."
−Removed: Changes in and compliance with environmental laws could adversely impact our financial results.
+Added: Changes in and compliance with environmental laws and regulations, including those regarding climate change, could adversely impact our financial results.
Private lawsuits or enforcement actions by federal, state, provincial or foreign regulatory agencies may materially increase our costs.
2 unchanged sentences
These potential environmental liabilities may or may not be fully covered by our various insurance policies and may adversely affect our business and results operations.
+Added: Climate change regulations could require us or our customers to incur additional expenditures to either purchase new, or modify existing, equipment or processes.
+Added: These laws and regulations may also increase our raw materials cost from our suppliers.
+Added: The potential for future environmental, social and governance (ESG) and climate risk reporting requirements may result in additional costs to monitor, track and report sustainability measures.
+Added: Additionally, increased attention to climate change, conservation measures, energy transition and consumer demand for alternatives to oil and gas could reduce the demand for oil and gas and have an adverse impact on demand for the products produced by our customers and therefore reduce demand for our products, which could adversely impact our business and results of operations.
Provisions of our charter documents or Delaware law could delay or prevent an acquisition of our company, even if the acquisition would be beneficial to our stockholders, and could make it more difficult to change management.
3 unchanged sentences
These provisions may frustrate or prevent any attempt by our stockholders to replace or remove our current management by making it more difficult to replace or remove our Board of Directors.
−Removed: Significant developments arising from recent U.S.
−Removed: Government proposals concerning tariffs and other economic proposals could adversely impact our business.
−Removed: As a result of recent changes to U.S.
−Removed: administration policy and recent U.S.
−Removed: government proposals, there may be greater restrictions and economic disincentives on international trade that could include significant increases in tariffs on goods.
+Added: Significant developments arising from tariffs and other economic proposals could adversely impact our business.
+Added: Additional restrictions or economic disincentives on U.S.
+Added: or international trade such as significant increases in tariffs on goods could adversely impact our business.
Changes in U.S.
3 unchanged sentences
Actual and potential claims, lawsuits and proceedings could ultimately reduce our profitability and liquidity and weaken our financial condition.
−Removed: We could be named as a defendant in future legal proceedings that claim damages in connection with the operation of our business.
+Added: We could be named as a defendant in legal proceedings that claim damages in connection with the operation of our business.
Most of the actions against us arise out of the normal course of our performing services or manufacturing equipment.
16 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.