What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-05 compared with 2025-11-04 · 89 added, 111 removed, 104 unchanged (66% of the section changed)

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) provides a comparison of the Company's results of operations, as well as liquidity and capital resources for the quarters ended September 30, 2025 and 2024.

The MD&A should be read in conjunction with the Company's consolidated financial statements and notes included in Item 1 of this Quarterly Report.

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Macroeconomic Events

As a company with a global presence, we are subject to risks and uncertainties caused by significant events with macroeconomic impacts, including, but not limited to, persistent geopolitical tensions, elevated interest rates, monetary policy changes, and foreign currency fluctuations.

The global business environment remains volatile and is currently being shaped by ongoing uncertainties, including evolving trade policy dynamics.

These trade dynamics are also contributing to competitive shifts within the market.

Previously implemented U.S.

tariffs and related actions have begun to increase input costs, disrupt supply chains, and affect customer demand as end users absorb higher costs.

Ongoing policy changes and retaliatory measures continue to pressure manufacturing costs and pricing, which in turn, are influencing product demand.

We are actively monitoring these developments and adapting our operations in response to the changing environment.

Demand trends across our key markets remain mixed.

In China, while some targeted stimulus measures have been introduced, the overall economic recovery remains uneven, with market saturation continuing to impact product sales and intensify pricing competition.

In other regions like Mexico, elevated interest rates and persistent inflationary pressures are contributing to continued economic uncertainty, leading to delayed capital expenditure decisions and a sustained preference for rental solutions.

In Europe, softening economic growth combined with heightened competitive pressures have tempered demand for our products.

To manage these challenges, we are focused on cost control, operational improvements, and diversifying sourcing.

We are taking proactive pricing actions alongside supply chain initiatives to mitigate the impact of tariffs and other inflationary pressures.

While some margin pressure may persist as the full benefits of our cost-out and pricing initiatives are phased in, we anticipate a gradual improvement in margin rates.

At the same time, we are adapting our product and service offerings to meet evolving customer needs, and continuing to invest in innovation to support long-term demand, while maintaining disciplined spending across the organization.

As a global company, we are exposed to risks and uncertainties arising from macroeconomic, geopolitical, and regulatory conditions, including inflationary pressures, interest rate volatility, foreign currency fluctuations, changes in global capital markets, and evolving international trade and tariff policies.

These factors continue to influence our operating environment and may impact revenue growth, margins, liquidity, and the execution of our strategic initiatives.

During the first quarter of 2026, macroeconomic conditions were affected by escalating geopolitical conflict involving Iran and heightened tensions in the Middle East, which disrupted global energy markets and transportation routes.

As a result, global energy, fuel, and logistics costs increased, contributing to renewed inflationary pressures following periods of moderation in fiscal year 2025.

These dynamics led to higher costs in certain areas of our cost structure, including freight and select raw materials, and could adversely affect customer demand if sustained.

We continue to implement cost management initiatives to mitigate these impacts and are actively monitoring supply chain, sourcing, and input cost trends, while continuing to evaluate the evolving macroeconomic environment and its potential impact on our business, financial condition, and results of operations.

As described in Part I, Item 1A - Risk Factors in the annual report on Form 10-K for the fiscal year ended December 31, 2025, we may encounter financial difficulties if the United States or other global economies experience an additional or continued long-term economic downturn as our product sales are sensitive to declines in capital spending by our customers.

Any sustained adverse impacts to our business, the industries in which we operate, market demand for our products, and/or certain suppliers or customers may also affect our

future results of operations, financial position, or cash flows.

Any sustained adverse impacts to our business, the industries in which we operate, market demand for our products, and/or certain suppliers or customers may also affect our future results of operations, financial position, or cash flows.

Changes in foreign currency may also adversely impact our new sales, earnings, and financial condition.

We are actively monitoring the global macroeconomic environment, including geopolitical conflict, the potential impact of global supply chain constraints on material inflation, and change in demand for our products.

Slower global growth and the uncertain effects of higher tariffs on our international and domestic trade are forcing us to aggressively manage our margins.

Our core strategy involves market-based pricing actions and targeted supply chain initiatives, including supplier negotiations, dual sourcing, and logistics shifts, which are critical to mitigating tariff-related cost inflation and other input cost pressures.

While near-term results may reflect timing mismatches between the realization of price increases, tariff impacts, and cost-out initiatives, which could pressure margins, our disciplined execution across pricing and cost management remains essential to sustaining profitability and driving long-term margin expansion.

The following table compares the results of operations for the three and nine months ended September 30, 2025 and 2024, respectively (in millions, except per share data and percentages):

On February 20, 2026, the United States Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA).

The availability, timing, and amount

of any related refunds remain uncertain and subject to further legal and administrative processes.

Following the decision, the U.S.

presidential administration announced new temporary tariffs based on different statutory authority for a 150 day period beginning February 24, 2026.

These actions have created continued uncertainty regarding tariff levels, duration, and the potential for additional actions or retaliatory measures, and we are monitoring developments to assess potential impacts on our business and results of operations.

The Company entered fiscal year 2026 facing continued uncertainty in global economic conditions, elevated energy and logistics costs, and changes in international trade policy, including evolving U.S.

tariff programs.

Despite this environment, customer demand and order activity early in the year have remained favorable, supported by strength across core end markets and continued momentum in autonomous mobile robotics.

Operationally, fiscal year 2026 represents a transition period as the Company progresses beyond the initial implementation of its North America ERP system.

ERP recovery advanced steadily during the first quarter, with operational performance improving meaningfully as the quarter progressed following a planned two‑week shutdown of North American manufacturing facilities in January to complete a physical inventory count.

Management remains focused on restoring execution discipline and improving production flow, while continuing to actively manage inflationary pressures, including labor, freight, and tariffs.

The Company continues to invest selectively in growth initiatives, including robotic and autonomous cleaning solutions, while maintaining a disciplined approach to spending, liquidity, and capital allocation.

The following table compares the results of operations for the three months ended March 31, 2026 and 2025, respectively (in millions, except per share data and percentages):

Three Months Ended

September 30, Nine Months Ended

September 30,

2026 % 2025 %

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Interest expense, net (3.4) (1.1) (2.3) (0.8)

Net foreign currency transaction (loss) gain — — (0.4) (0.1) (1.0) (0.1) 0.1 —

Net foreign currency transaction loss (0.4) (0.1) (0.2) (0.1)

Other (expense) income, net (0.2) (0.1) 0.1 —

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Net income per share - diluted $ 0.01 $ 0.69

Consolidated net sales for the third quarter of 2025 totaled $303.3 million, a 4.0% decrease as compared to consolidated net sales of $315.8 million in the third quarter of 2024.

Consolidated net sales for the first quarter of 2026 totaled $297.9 million, a 2.7% increase as compared to consolidated net sales of $290.0 million in the first quarter of 2025.

The components of the consolidated net sales change were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

Price 2.8% 1.5%

Three Months Ended March 31,

Volume (6.1)%

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Foreign currency 4.1%

Total (4.0)% (4.8)%

The 4.0% decrease in consolidated net sales in the third quarter of 2025 as compared to the same period in 2024 was driven by:

• Organic sales decline of 5.4% primarily due to volume declines in North America, which lapped a significant backlog-reduction benefit in the prior-year period, partly offset by price realization;

• A net favorable impact from foreign currency exchange of approximately 1.4% primarily due to the strengthening of the Euro relative to the U.S.

The 4.8% decrease in consolidated net sales in the first nine months of 2025 as compared to the same period in 2024 was driven by:

• Organic sales decline of 4.9% primarily due to volume declines across all geographies, particularly in North America, which lapped a significant backlog-reduction benefit in the prior-year period, partly offset by price realization;

• Acquisition-related growth of 0.1% driven by TCS.

The following table sets forth the net sales by geographic area for the three and nine months ended September 30, 2025 and 2024 (in millions, except percentages):

The 2.7% increase in consolidated net sales in the first quarter of 2026 as compared to the same period in 2025 was driven by:

• A net favorable impact from foreign currency exchange of approximately 4.1% primarily due to the strengthening of the Euro, Brazilian real, and Mexican peso relative to the U.S.

• Acquisition related growth of 0.5% driven by the acquisitions of distributors in EMEA;

partly offset by

• Organic sales decline of 1.9% primarily due to volume declines in North America related to ERP impacts earlier in the quarter, partly offset by pricing r ealization in North America and EMEA.

The following table sets forth the net sales by geographic area for the three months ended March 31, 2026 and 2025 (in millions, except percentages):

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 % Change 2025 2024 % Change

2026 2025 % Change

Americas $ 194.0 $ 197.3 (1.7) %

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Total $ 297.9 $ 290.0 2.7 %

Americas net sales were $203.6 million for the third quarter of 2025, a decrease of 6.9% from the third quarter of 2024 driven by:

• Organic sales decline of 7.0% primarily due to volume declines in North America, a result of lapping a significant backlog-reduction benefit in the prior-year period, and the emerging trend of softening customer sentiment.

This was partially offset by price realization;

Americas net sales were $194.0 million for the first quarter of 2026, a decrease of 1.7% from the first quarter of 2025 driven by:

• Organic sales decline of 3.0% primarily driven by lower volumes in North America related to ERP impacts earlier in the quarter, partially offset by pricing realization in North America and increased rental and equipment volumes in Latin America;

• A net favorable impact from foreign currency exchange of approximately 1.3%.

Americas net sales were $614.4 million for the first nine months of 2025, a decrease of 7.2% from the first nine months of 2024 driven by:

• Organic sales decline of 6.4% driven by volume declines, particularly in North America industrial equipment, which lapped a significant backlog-reduction benefit in the prior-year period, partly offset by price realization and volume increases in commercial equipment;

• A net unfavorable impact from foreign currency exchange of approximately 0.8%.

Europe, Middle East and Africa ("EMEA")

EMEA net sales were $80.5 million for the third quarter of 2025, an increase of 5.5% from the third quarter of 2024 driven by:

EMEA net sales were $86.9 million for the first quarter of 2026, an increase of 14.3% from the first quarter of 2025 driven by:

• A net favorable impact from foreign currency exchange of approximately 11.3%;

partly offset by

• Organic sales decline of 0.4% primarily due to mixed regional performance with volume declines in certain markets, partly offset by volume increases in the UK and southern Europe, and price realization.

EMEA net sales were $241.2 million for the first nine months of 2025, an increase of 2.8% from the first nine months of 2024 driven by:

• Acquisition related growth of 2.0% driven by acquisitions of distributors;

• Organic sales growth of 1.0% primarily due to price realization and equipment volume increases in France and Germany.

Asia Pacific ("APAC")

APAC net sales were $17.0 million for the first quarter of 2026, an increase of 1.8% from the first quarter of 2025 driven by:

• A net favorable impact from foreign currency exchange of approximately 3.8%;

• Acquisition-related growth of 0.4% due to TCS;

partly offset by

• Organic sales decline of 0.4% primarily due to mixed regional performance with volume declines in certain markets, partly offset by volume increases in the UK, and price realization.

Asia Pacific ("APAC")

APAC net sales were $19.2 million for the third quarter of 2025, a decrease of 7.7% from the third quarter of 2024 driven by:

• Organic sales decline of 6.4% driven primarily by decreased commercial equipment volume in China and industrial equipment volume in South Korea;

• A net unfavorable impact from foreign currency exchange of approximately 1.3%.

APAC net sales were $56.3 million for the first nine months of 2025, a decrease of 7.9% from the first nine months of 2024 driven by:

• Organic sales decline of 6.3% driven primarily by decreased commercial equipment volume in China and industrial equipment volume in South Korea;

• A net unfavorable impact from foreign currency exchange of approximately 1.6%.

Gross profit margin of 42.7% was 30 basis points higher in the third quarter of 2025 compared to the third quarter of 2024.

The margin rate improved primarily due to strong price realization driven by strategic pricing actions, supplemented by additional tariff-related pricing adjustments.

This was partially offset by lower productivity.

Gross profit margin of 42.1% was 110 basis points lower in the first nine months of 2025 compared to the first nine months of 2024.

The margin rate decrease was primarily attributed to a shift in product and customer mix as well as ongoing inflation and lower productivity.

This was partly offset by price realization.

The prior-year periods include benefits from a significant reduction in the backlog, largely consisting of higher-margin industrial products sold through direct channels.

• Organic sales decline of 2.0%, primarily driven by lower pricing in China equipment sales and softer underlying demand, particularly in China, Australia, and Southeast Asia, partially offset by volume growth in India and Korea.

Gross profit margin of 38.1% was 330 basis points lower in the first quarter of 2026 compared to the first quarter of 2025.

The margin rate decline was driven primarily by incremental labor, freight, and expediting costs associated with ERP recovery efforts earlier in the quarter, as well as a shift in customer mix toward strategic accounts, which carry a different margin profile.

Tariff and other inflationary pressures were fully offset by price realization and cost-out initiatives.

Operating Expense

Selling and Administrative Expense

Selling and administrative expense ("S&A expense") was $96.6 million for the third quarter of 2025, an increase of $3.9 million compared to the third quarter of 2024.

As a percentage of net sales, S&A expense for the third quarter of 2025 increased 240 basis points to 31.8% from 29.4% in the third quarter of 2024.

The increase in S&A expense was primarily driven by $6.7 million associated with our strategic investments, $5.3 million of legal contingency costs related to an intellectual property dispute, and $1.3 million in restructuring charges.

The increase was partially offset by cost savings realized through lower variable compensation and reduced payroll expense following the restructuring actions executed at the end of the prior year.

S&A expense was $281.0 million for the first nine months of 2025, an increase of $5.5 million compared to the first nine months of 2024.

As a percentage of net sales, S&A expense for the first nine months of 2025 increased 200 basis points to 30.8% from 28.8% in the first nine months of 2024.

The increase in S&A expense was primarily driven by $19.4 million related to our strategic investments, $5.7 million of legal contingency costs related to an intellectual property dispute, a bad debt charge of $2.5 million, and $2.5 million restructuring-related charges.

This was partially offset by lower variable compensation expense.

Selling and administrative expense ("S&A expense") was $98.1 million for the first quarter of 2026, an increase of $7.4 million compared to the first quarter of 2025.

As a percentage of net sales, S&A expense for the first quarter of 2026 increased 160 basis points to 32.9% from 31.3% in the first quarter of 2025.

The increase in S&A expense was primarily driven by unfavorable foreign currency, legal and financial advisory costs, higher compensation and benefits, and software subscription fees.

Research and Development Expense

Research and development expense ("R&D expense") was $10.5 million, or 3.5% of net sales, for the third quarter of 2025, with R&D expense as a percentage of net sales increasing 20 basis points compared to the third quarter of 2024.

R&D expense was $30.0 million, or 3.3% of net sales, for the first nine months of 2025, with R&D expense as a percentage of net sales flat to the first nine months of 2024.

Research and development expense ("R&D expense") was $10.6 million, or 3.6% of net sales, for the first quarter of 2026, with R&D expense as a percentage of net sales increasing 30 basis points compared to the first quarter of 2025.

We continue to invest in developing innovative products and technologies at levels necessary to propel our technology and innovative leadership position and drive growth.

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Interest Expense, Net

Interest expense, net was $2.4 million in the third quarter of 2025 compared to $2.7 million in the third quarter of 2024.

The following table compares the debt levels, average interest rate, interest income and interest expense for the three and nine months ended September 30, 2025 and 2024, respectively (in millions, except percentages):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Interest expense, net was $3.4 million in the first quarter of 2026 compared to $2.3 million in the first quarter of 2025.

The increase was the result of higher weighted average outstanding borrowings, including incremental borrowings to fund share repurchases, partly offset by a lower average interest rate.

The following table compares the debt levels, average interest rate, interest income and interest expense for the three months ended March 31, 2026 and 2025, respectively (in millions, except percentages):

Three Months Ended March 31,

Weighted Average Outstanding Borrowings $ 306.8 $ 204.0

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Interest expense, net $ 3.4 $ 2.3

Our debt portfolio as of September 30, 2025 was comprised of debt predominately in U.S.

Our debt portfolio as of March 31, 2026 was comprised of debt predominately in U.S.

The Company manages its floating rate debt exposure using fixed rate interest rate swaps to reduce the Company's risk of the possibility of increased interest costs.

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Net Foreign Currency Transaction Loss

Net foreign currency transaction loss decreased by $0.4 million compared to the third quarter of 2024.

Net foreign currency translation loss was $1.0 million in the first nine months of 2025 compared to a gain of $0.1 million in the first nine months of 2024.

The unfavorable impact in both periods was primarily due to the strengthening of the Euro relative to the U.S.

We recognized a gain on sale of a building of $0.4 million in the third quarter of 2025.

The gain was recorded in other (expense) income, net on our consolidated statements of income.

The effective tax rate for the third quarter of 2025 was 23.2% compared to 24.4% for the third quarter of 2024.

The decrease was primarily due to the recognition of discrete tax benefits from additional research credits recognized in the third quarter of 2025.

The effective tax rate for the first nine months of 2025 was 24.6% compared to 22.5% for the first nine months of 2024.

The increase was primarily due to a decrease in discrete tax benefits associated with share-based compensation recognized in the first nine months of 2024.

Net foreign currency transaction loss was $0.4 million, a $0.2 million increase compared to the first quarter of 2025.

The unfavorable impact was primarily due to volatile currency markets driving larger than normal exchange rate fluctuations on small unhedged exposures.

The effective tax rate for the first quarter of 2026 was 80.5% compared to 23.8% for the first quarter of 2025.

The increase was primarily due to an increase of discrete tax costs associated with share-based compensation as a percentage of pre-tax book income.

In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is zero or immaterial.

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Liquidity and Capital Resources

Cash and cash equivalents totaled $99.4 million at September 30, 2025 compared to $99.8 million as of December 31, 2024.

Cash and cash equivalents totaled $82.6 million at March 31, 2026 compared to $106.4 million as of December 31, 2025.

Wherever possible, cash management is centralized and intercompany financing is used to provide working capital to subsidiaries as needed.

Our current ratio was 2.1 as of September 30, 2025 and 2.0 as of December 31, 2024.

Our primary working capital, which is comprised of accounts receivable, inventories and accounts payables, was $344.6 million as of September 30, 2025 and $316.0 million as of December 31, 2024.

Our debt-to-capital ratio was 27.1% as of September 30, 2025 compared to 24.3% as of December 31, 2024.

As of September 30, 2025, we had letters of credit and bank guarantees outstanding in the amount of $3.2 million, leaving approximately $409.3 million of unused borrowing capacity on our revolving facility.

Our current ratio was 2.1 as of March 31, 2026 and 2.0 as of December 31, 2025.

Our primary working capital, which is comprised of accounts receivable, inventories and accounts payables, was $362.1 million as of March 31, 2026 and $327.8 million as of December 31, 2025.

Our debt-to-capital ratio was 40.2% as of March 31, 2026 compared to 31.2% as of December 31, 2025.

As of March 31, 2026, we had letters of credit and bank guarantees outstanding in the amount of $3.2 million, leaving approximately $289.3 million of unused borrowing capacity on our revolving facility.

Cash Flow from Operating Activities

Net cash provided by operating activities during the nine months ended September 30, 2025 was $50.8 million compared to net cash provided by operating activities of $52.2 million during the nine months ended September 30, 2024.

The decrease was the result of lower operating performance, partly offset by decreased consumption of working capital.

Net cash used in operating activities during the three months ended March 31, 2026 was $31.2 million compared to net cash used in operating activities of $0.4 million during the three months ended March 31, 2025.

The increase was the result of investments in working capital investments, reflecting increases in accounts receivable and inventory, lower accounts payable, and changes in other assets and liabilities, as well as lower operating performance.

Cash Flow from Investing Activities

Net cash used in investing activities during the nine months ended September 30, 2025 was $18.3 million compared to net cash used in investing activities of $69.1 million during the nine months ended September 30, 2024.

The decrease was primarily due to one-time cash outflows in the prior year related to a $32.1 million investment in Brain, Corp and a $25.7 million net cash outlay for the acquisition of TCS.

Net cash used in investing activities during the three months ended March 31, 2026 was $10.3 million compared to net cash used in investing activities of $6.9 million during the three months ended March 31, 2025.

The increase was primarily due to the acquisition of Clean Machine in the first quarter of 2026, partly offset by lower capital expenditures.

Cash Flow from Financing Activities

Net cash used in financing activities during the nine months ended September 30, 2025 was $36.0 million compared to net cash provided by financing activities of $8.1 million during the nine months ended September 30, 2024.

The increase was driven by increased repurchases of common stock and lower proceeds from the exercise of stock options, partly offset by lower repayments of borrowings.

Net cash provided by financing activities during the three months ended March 31, 2026 was $17.2 million compared to net cash used in financing activities of $13.7 million during the three months ended March 31, 2025.

The increase was driven by increased net proceeds from borrowing, partly offset by higher repurchases of common stock.

Newly Issued Accounting Guidance

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Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative, which aims to clarify or improve disclosure and presentation requirements on a variety of topics and align the requirements in the FASB accounting standard with the Securities and Exchange Commission regulations.

This guidance is effective for the Company no later than June 30, 2027.

This guidance is effective for

the Company no later than June 30, 2027.

We do not expect the amendments in this update to have a material impact on our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740):

Improvements to Income Tax Disclosures , which is intended to enhance the transparency and decision usefulness of income tax disclosures.

The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information.

The amendments in this ASU are required to be adopted for fiscal years beginning after December 15, 2024.

Early adoption is permitted for annual financial statements that have not yet been issued.

The amendments should be applied on a prospective basis although retrospective application is permitted.

We are currently evaluating the impact of adoption on our financial disclosures.

In November 2024, the FASB issued ASU 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220) - Disaggregation of Income Statement Expenses , which requires disaggregation of certain income statement expense captions into specified categories to be disclosed within the notes to the financial statements, but does not change the expense captions on the consolidated income statement.

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We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures.

In November 2025, the FASB issued ASU 2025-09 Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements, which includes amendments to more closely align hedge accounting with the economics of an entity's risk management activities.

The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within those fiscal years.

Early adoption is permitted.

The amendments should be applied on a prospective basis.

We are evaluating the impact of the ASU to determine its impact on our consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-11 Interim Reporting (Topic 270):

Narrow-Scope Improvements, which clarifies the applicability of the interim reporting guidance, the types of interim reporting, and the form and content of interim financial statements in accordance with U.S.

generally accepted accounting principles.

The amendment does not intend to change the fundamental nature of interim reporting or expand or reduce current interim reporting disclosure requirements, but rather aims to provide clarity and improve navigability of the existing interim reporting requirements.

The update will be effective for interim periods within annual periods beginning after December 15, 2027.

Adoption of this ASU can either be applied prospectively or retrospectively to any or all prior periods presented in the financial statements.

We are evaluating the impact of the ASU to determine its impact on our consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-12 Codification Improvements, which aims to update the FASB Accounting Standards Codification for a broad range of topics arising from technical corrections, unintended application or the Codification, clarifications, and other minor improvements.

The ASU is effective for annual periods beginning after December 15, 2026, including interim periods within those fiscal years.

We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures.

No other new accounting pronouncements issued but not yet effective have had, or are expected to have, a material impact on our results of operations or financial position.

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Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “project,” or “continue” or similar words or the negative thereof.

These statements do not relate to strictly historical or current facts and provide current expectations of forecasts of future events.

These statements do not relate to strictly historical or current facts and provide current expectations or forecasts of future events.

Any such expectations or forecasts of future events are subject to a variety of factors.

These include factors that affect all businesses operating in a global market as well as matters specific to us and the markets the Company serves.

Particular risks and uncertainties presently facing us include:

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our ability to successfully protect our information technology systems from cybersecurity risks;

complications with our new Enterprise Resource Planning ("ERP") system;

complications with our new ERP system;

the occurrence of a significant business interruption;

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our ability to integrate acquisitions;

our ability to develop and commercialize new innovative products and services;

ability to develop and commercialize new innovative products and services;

and risks related to our business transformation and strategic initiatives.

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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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis