17 unchanged sentences
The impacts of such an economic downturn may magnify the adverse effect on our business.
−Removed: The COVID-19 pandemic has had and continues to have a material adverse effect on our results of operations and could have a material adverse effect on our ability to operate, financial condition, liquidity, access to capital, payment of dividends, and capital investments.
−Removed: The World Health Organization has declared the COVID-19 outbreak a pandemic, and the virus continues to spread in areas where we operate and sell our products and services.
−Removed: The COVID-19 pandemic has had, and similar issues in the future could have, a material adverse effect on our results of operations.
+Added: Shortages of skilled labor and/or qualified employees have adversely impacted and could continue to impact our operations.
+Added: We depend on skilled labor in the manufacture, maintenance, and repair of railcar products and on other qualified employees in all aspects of our business.
+Added: Some of our facilities are located in areas where demand for skilled laborers exceeds supply.
+Added: We have experienced shortages of qualified employees and/or skilled labor and increased turnover at certain facilities, resulting in increased labor costs from temporary workers and operating inefficiencies.
+Added: Shortages of, or the inability to attract, train, integrate and retain, some types of skilled laborers, such as welders, restrict our ability to maintain or increase production rates and could increase our labor costs.
+Added: An overall labor shortage, lack of skilled labor, increased turnover, or higher labor costs could adversely impact our operations and profitability.
+Added: A disruption in the movement of rail traffic has impaired and could continue to impair our ability to deliver railcars and other products to our customers in a timely manner, which could prevent us from meeting customer demand, reduce our sales, and negatively impact our results of operations.
+Added: Once a railcar or other product is manufactured in one of our plants, it must be moved by rail to a customer delivery point.
+Added: In many cases, the manufacturing plant and the delivery point are in different countries.
+Added: Many different and unrelated factors could cause a delay in our ability to move our goods in a timely manner from the manufacturing plant to the delivery point, including physical disruptions such as armed conflict, natural disasters and power outages;
+Added: strikes, labor stoppages or shortages hindering the operation of railroads and related transportation infrastructure;
+Added: regulatory and bureaucratic inefficiency and unresponsiveness;
+Added: railroad embargoes or operational inefficiencies;
+Added: and other causes.
+Added: A material disruption in the movement of rail traffic could negatively impact our business and results of operations.
+Added: Fluctuations in the price and supply of materials used in the production of our products, including inflationary pressures, could have a material adverse effect on our ability to cost-effectively manufacture and sell our products.
+Added: In some instances, we rely on a limited number of suppliers for certain materials required in our production.
+Added: A significant portion of our business depends on the adequate supply of numerous specialty and other parts and components at competitive prices such as brakes, wheels, side frames, bolsters, and bearings for the railcar business.
+Added: During 2022, we experienced significantly elevated commodity and supply chain costs, including the costs of labor, raw materials, energy, fuel, materials and other inputs necessary for the production and distribution of our products, and we expect elevated levels of inflation related to these costs to continue in 2023.
+Added: Our manufacturing operations partially depend on our ability to obtain timely deliveries of materials in acceptable quantities and quality from our suppliers.
+Added: Certain materials for our products are currently available from a limited number of suppliers and, as a result, we may have limited control over pricing, availability, and delivery schedules.
+Added: The inability to purchase a sufficient quantity of materials on a timely basis could create disruptions in our production and result in delays while we attempt to engage alternative suppliers.
+Added: Worsening economic or commercial conditions could reduce the number of available suppliers, potentially increasing our rejections for poor quality and requiring us to source unknown and distant supply alternatives.
+Added: Any such disruption or conditions could harm our business and adversely impact our results of operations.
+Added: Global health crises, such as the COVID-19 pandemic, have had and could continue to have a material adverse effect on our results of operations and could have a material adverse effect on our ability to operate, financial condition, liquidity, access to capital, payment of dividends, and capital investments.
+Added: The continued evolution of COVID-19 and its variants, as well as periodic spikes in infection rates, local outbreaks on our sites or supplier or customer sites, in spite of safety measures, have had, and similar issues in the future could have, a material adverse effect on our results of operations.
The prolonged negative economic impact of the COVID-19 pandemic and the related governmental response could have a material adverse effect on our ability to operate, results of operations, financial condition, liquidity, access to capital, payment of dividends, and capital investments.
−Removed: Several public health organizations have recommended certain measures to slow and limit the transmission of the virus, including quarantines, travel restrictions, and social distancing.
−Removed: Such preventive measures, or others we may voluntarily put in place, may have a material adverse effect on our business for an indefinite period of time, such as the potential shut down of certain facilities, potential border closures, restrictions on shipping, and other potential impacts.
+Added: Although restrictions have eased, several public health organizations have at times recommended certain measures to slow and limit the transmission of the virus, including quarantines, travel restrictions, and social distancing.
+Added: Such preventive measures, or others we may voluntarily put in place, may have a material adverse effect on our business for an indefinite period of time.
Additionally, illness or exposure to the virus may lead to decreased employee availability.
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These challenges could also result in decreased demand, or our customers' inability to pay, for our products and services.
−Removed: The COVID-19 pandemic has also resulted in periodic shortages of certain personal protective equipment ("PPE"), which may reoccur if the COVID-19 pandemic has a prolonged negative impact on the supply chain for PPE.
−Removed: An inability to procure PPE for operations may have a material adverse effect on our business, including potential shut down of certain facilities or operations.
The COVID-19 pandemic may also materially affect our future access to our sources of liquidity, particularly our cash flows from operations, financial condition, capitalization, access to capital, and capital investments.
1 unchanged sentence
The extent to which the COVID-19 pandemic affects our results will also depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of COVID-19 and actions taken to contain the outbreak or treat its impact, among others.
−Removed: Shortages of skilled labor and/or qualified employees have adversely impacted and could continue to impact our operations.
−Removed: We depend on skilled labor in the manufacture, maintenance, and repair of railcar products and on other qualified employees in all aspects of our business.
−Removed: Some of our facilities are located in areas where demand for skilled laborers exceeds supply.
−Removed: We have experienced shortages of qualified employees and/or skilled labor and increased turnover at certain facilities, resulting in increased labor costs from temporary workers and operating inefficiencies.
−Removed: Shortages of, or the inability to attract, train, integrate and retain, some types of skilled laborers, such as welders, restrict our ability to maintain or increase production rates and could increase our labor costs.
−Removed: An overall labor shortage, lack of skilled labor, increased turnover, or higher labor costs could adversely impact our operations and profitability.
Risks related to our operations outside of the U.S., particularly Mexico, could decrease our profitability.
−Removed: Our operations outside of the U.S.
+Added: The majority of our railcars are manufactured in Mexico.
+Added: Our Mexico operations and other operations outside of the U.S.
are subject to the risks associated with cross-border business transactions and activities.
16 unchanged sentences
We may not be able to sustain our market leadership positions, which may impact our financial results.
−Removed: We face aggressive competition in all geographic markets and each industry sector in which we operate.
+Added: We face aggressive competition in the end markets we serve.
In addition to price, we face competition in respect to product performance and technological innovation, quality, reliability of delivery, customer service, and other factors.
11 unchanged sentences
Furthermore, the resale market for previously leased railcars has a limited number of potential buyers.
−Removed: Our inability to re-lease or sell leased or unleased railcars on favorable terms could result in lower lease rates, lower lease utilization percentages, and reduced revenues and operating profit.
+Added: Our inability to re-lease or sell leased or unleased railcars in a timely manner on favorable terms could result in lower lease rates, lower lease utilization percentages, and reduced revenues and operating profit.
The limited number of customers for certain of our products, the variable purchase patterns of our customers, and the timing of completion, delivery, and customer acceptance of orders may cause our revenues and income from operations to vary substantially each quarter, potentially resulting in significant fluctuations in our quarterly results.
4 unchanged sentences
As a result of these quarterly fluctuations, we believe that comparisons of our sales and operating results between quarterly periods may not be meaningful and should not be relied upon as indicators of future performance.
−Removed: Fluctuations in the price and supply of materials used in the production of our products could have a material adverse effect on our ability to cost-effectively manufacture and sell our products.
−Removed: In some instances, we rely on a limited number of suppliers for certain materials needed in our production.
−Removed: A significant portion of our business depends on the adequate supply of numerous specialty and other parts and components at competitive prices such as brakes, wheels, side frames, bolsters, and bearings for the railcar business.
−Removed: Our manufacturing operations partially depend on our ability to obtain timely deliveries of materials in acceptable quantities and quality from our suppliers.
−Removed: Certain materials for our products are currently available from a limited number of suppliers and, as a result, we may have limited control over pricing, availability, and delivery schedules.
−Removed: The inability to purchase a sufficient quantity of materials on a timely basis could create disruptions in our production and result in delays while we attempt to engage alternative suppliers.
−Removed: Worsening economic or commercial conditions could reduce the number of available suppliers, potentially increasing our rejections for poor quality and requiring us to source unknown and distant supply alternatives.
−Removed: Any such disruption or conditions could harm our business and adversely impact our results of operations.
Changes in the price and demand for steel could lower our margins and profitability.
20 unchanged sentences
It is important that the data processed by these systems remains confidential, as it often includes sensitive information relating to our business, customers, employees, and vendors.
−Removed: At times, certain of our vendors have suffered cybersecurity attacks.
−Removed: Although these incidents have not had a material adverse impact on our operations, failure to prevent or mitigate data loss or system intrusions from cybersecurity attacks or other security breaches could expose us, our vendors, or our customers to a risk of loss or misuse of such information, adversely affect our operating and financial results, restrict or prevent operations or financial reporting, result in litigation or potential liability and otherwise harm our business.
+Added: As with most companies, we are subject to attempted cybersecurity disruptions and intrusions, and we expect such attempts to continue.
+Added: At times, certain of our vendors have suffered cybersecurity breaches.
+Added: These incidents have not had a material adverse impact on our operations, and, to date, the Company has not experienced a material information security breach itself.
+Added: However, failure to prevent or mitigate data loss or system intrusions from cybersecurity attacks or other security breaches could expose us, our vendors, or our customers to a risk of loss or misuse of such information, adversely affect our operating and financial results, restrict or prevent operations or financial reporting, result in litigation or potential liability and otherwise harm our business.
Likewise, data privacy breaches from our systems could expose personally identifiable information of our employees or contractors, sensitive customer data, or vendor data to unauthorized persons, adversely impacting our customer service, employee relationships, and our reputation.
36 unchanged sentences
See Note 15 of the Consolidated Financial Statements for more detailed information on any material pending legal proceedings other than ordinary routine litigation incidental to our business, including the current status of the highway products litigation for which the Company retained certain obligations following the sale of the highway products business.
−Removed: While state and federal procedural rules exist to curtail the filing of claims against the Company in jurisdictions unrelated to the underlying claims, courts sometime may not enforce these rules, exposing us to a greater likelihood of unfavorable results and increased litigation costs.
+Added: While state and federal procedural rules exist to curtail the filing of claims against the Company in jurisdictions unrelated to the underlying claims, courts may not enforce these rules, exposing us to a greater likelihood of unfavorable results and increased litigation costs.
Whenever our products were sold to or are ultimately owned and/or operated by governments or their authorized agencies, we may be unable to seek redress or recourse to at-fault parties.
24 unchanged sentences
Some of these proposals would require industries to meet stringent new standards that may require substantial reductions in carbon emissions.
−Removed: While Trinity cannot assess the direct impact of these or other potential regulations, it does recognize that new climate change protocols could affect demand for its products and/or affect the price of materials, input factors, and manufactured components.
+Added: While the Company cannot assess the direct impact of these or other potential regulations, we do recognize that new climate change protocols could affect demand for our products and/or affect the price of materials, input factors, and manufactured components.
Potential opportunities could include greater demand for certain types of railcars, while potential challenges could include decreased demand for certain types of railcars or other products and higher energy costs.
46 unchanged sentences
Volatility in the global markets or in industries that our products serve may adversely affect our business and operating results.
−Removed: Instability in the global economy, negative conditions in the global credit markets, volatility in the industries that our products serve, fluctuations in commodity prices that our customers produce and transport, changes in legislative or trade policy, adverse changes in the availability of raw materials and supplies, or adverse changes in the financial condition of our customers could lead to customers' requests for deferred deliveries of our backlog orders.
+Added: Instability in the global economy, negative conditions in the global credit markets, high rates of inflation, volatility in the industries that our products serve, fluctuations in commodity prices that our customers produce and transport, changes in legislative or trade policy, adverse changes in the availability of raw materials and supplies, or adverse changes in the financial condition of our customers could lead to customers' requests for deferred deliveries of our backlog orders.
Additionally, such events could result in our customers' attempts to unilaterally cancel or terminate firm contracts or orders in whole or in part, resulting in contract or purchase order breaches and increased commercial litigation costs.
13 unchanged sentences
Any material and untimely changes in interest rates or exchange rates could result in significant losses to us.
−Removed: The phaseout of the London Interbank Offered Rate (LIBOR) and the replacement of LIBOR with a different reference rate may have an adverse effect on our business.
−Removed: The United Kingdom’s Financial Conduct Authority (the authority that regulates LIBOR) has announced that it would phase out the most popular LIBOR indices by the end of June 2023.
−Removed: In the U.S., the Alternative Reference Rates Committee has identified the Secured Overnight Financing Rate ("SOFR") as its preferred alternative to LIBOR.
−Removed: Certain of our and our subsidiaries’ indebtedness utilize LIBOR or an alternative benchmark reference rate for calculating the applicable interest rate.
−Removed: After LIBOR is phased out, the interest rates for these obligations might be subject to change.
−Removed: The replacement of LIBOR with SOFR or an alternative benchmark reference rate may adversely affect interest rates and result in higher borrowing costs under these agreements and any future agreements.
−Removed: This could materially and adversely affect our results of operations, cash flows, ability to acquire debt financing, and liquidity.
−Removed: We cannot predict the effect of the elimination of LIBOR or the establishment and use of SOFR or alternative benchmark reference rates and the corresponding effects on our cost of capital.
Risks Related to Laws and Regulations
47 unchanged sentences
Some of these policies require the use of estimates and assumptions that may affect the reported value of our assets or liabilities and financial results and are critical because they require management to make difficult, subjective, and complex judgments about matters that are inherently uncertain.
−Removed: Accounting standard setters and those who interpret the accounting standards (such as the Financial Accounting Standards Board, the SEC, the Public Company Accounting Oversight Board, and our independent registered public accounting firm) may amend or even reverse their previous interpretations or positions on how these standards should be applied.
+Added: Accounting standard setters and those who interpret the accounting standards (such as the Financial Accounting Standards Board, the SEC, and our independent registered public accounting firm) may amend or even reverse their previous interpretations or positions on how these standards should be applied.
These changes can be difficult to predict and can materially impact how we record and report our financial condition and results of operations.
43 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.