12 unchanged sentences
The Company could be materially adversely affected by the effects of health pandemics or epidemics in regions where we or third parties on which we rely have business operations.
−Removed: In March 2020, the World Health Organization (“WHO”) declared that a new strain of coronavirus that originated in Wuhan, China, and had rapidly spread around the world (“COVID-19”) was a pandemic that posed significant risk to the international community.
−Removed: This outbreak contributed to shelter-in-place policies, unexpected factory closures, supply chain disruptions, and market volatility causing substantial declines in market capitalization, and occurring in the midst of an already challenging economic environment in some of our markets, most notably the oil and gas market.
−Removed: As a result of the outbreak, starting in March 2020 and intermittently through June 30, 2023, the Company suspended or reduced its operations, in whole or in part, in several of its locations.
−Removed: The Company’s businesses operate in market segments impacted by COVID-19.
−Removed: Operating during a global pandemic has exposed the Company to a number of material risks, including diminished demand for our products and our customers’ products, suspensions in the operations of our and our suppliers’ manufacturing facilities, maintenance of appropriate labor levels, our ability to ship products to our customers, interruptions in our supply chains and distribution systems, access to capital and potential increases to the cost of capital, collection of trade receivables in accordance with their terms and potential further impairment of long-lived assets;
−Removed: all of which, in the aggregate, have had an adverse effect on the Company’s business, financial condition, results of operations and cash flows.
−Removed: Management continues to monitor the global situation and its effect on financial condition, liquidity, operations, suppliers, industry and workforce.
+Added: Operating during a global pandemic could expose the Company to a number of material risks, including diminished demand for our products and our customers’ products, suspensions in the operations of our and our suppliers’ manufacturing facilities, maintenance of appropriate labor levels, our ability to ship products to our customers, interruptions in our supply chains and distribution systems, access to capital and potential increases to the cost of capital, collection of trade receivables in accordance with their terms and potential further impairment of long-lived assets;
+Added: all of which, in the aggregate, could have an adverse effect on the Company’s business, financial condition, results of operations and cash flows.
Certain of the Company ’ s products are directly or indirectly used in oil exploration and oil drilling and are thus dependent upon the strength of those markets and oil prices.
6 unchanged sentences
Historically, sales of many of the products that the Company manufactures and sells have been subject to cyclical variations caused by changes in general economic conditions and other factors.
−Removed: In particular, the Company sells its products to customers primarily in the pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets.
+Added: In particular, the Company sells its products to customers primarily in the pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government, military and industrial markets.
The demand for the products may be impacted by the strength of the economy generally, governmental spending and appropriations, including security and defense outlays, fuel prices, interest rates, as well as many other factors.
28 unchanged sentences
Sales to customers outside the United States approximated 73% of the Company’s consolidated net sales for fiscal 2025.
−Removed: The Company has international manufacturing operations in Belgium, Finland, Italy, the Netherlands and Switzerland.
−Removed: In addition, the Company has international distribution operations in Australia, New Zealand, Belgium, China, Italy, Japan, and Singapore.
+Added: The Company has international manufacturing operations in Belgium, Canada, Finland, Italy, the Netherlands and Switzerland.
+Added: In addition, the Company has international distribution operations in Australia, New Zealand, Belgium, China, Japan, and Singapore.
The Company’s international sales and operations are subject to a number of risks, including:
9 unchanged sentences
different customs and ways of doing business.
−Removed: To date, our operations have not been materially adversely affected by global conflicts including Russia’s invasion of Ukraine, the current Israel/Palestine conflict, or the recent attacks on merchant ships in the Red Sea.
−Removed: However, further escalation of these or other conflicts could result in, among other negative consequences, a disruption to the global economy and supply chain leading to a shortage of parts, materials and services needed to manufacture and timely deliver our products.
+Added: To date, our operations have not been materially adversely affected by global conflicts including Russia’s invasion of Ukraine.
+Added: However, further escalation of this or other conflicts could result in, among other negative consequences, a disruption to the global economy and supply chain leading to a shortage of parts, materials and services needed to manufacture and timely deliver our products.
Any such shortages could negatively impact our suppliers’ ability to meet our demand requirements and, in turn, our ability to satisfy our customer demand.
These challenges, together with other challenges associated with operating an international business, may adversely affect our ability to recognize revenue and our other operating results.
−Removed: A material disruption at the Company ’ s manufacturing facility in Racine, Wisconsin could adversely affect its ability to generate sales and meet customer demand.
−Removed: The majority of the Company’s manufacturing, based on fiscal 2024 sales, came from its facility in Racine, Wisconsin.
−Removed: If operations at this facility were to be disrupted as a result of significant equipment failures, natural disasters, power outages, fires, explosions, adverse weather conditions, labor force disruptions or other reasons, the Company’s business and results of operations could be adversely affected.
+Added: A material disruption at one of the Company ’ s largest manufacturing facilities could adversely affect its ability to generate sales and meet customer demand.
+Added: If operations at one of the Company’s largest facilities were to be disrupted as a result of significant equipment failures, natural disasters, power outages, fires, explosions, adverse weather conditions, labor force disruptions or other reasons, the Company’s business and results of operations could be adversely affected.
Interruptions in production would increase costs and reduce sales.
5 unchanged sentences
The ability to service the requirements of debt depends on the ability to generate cash and/or refinance its indebtedness as it becomes due, and depends on many factors, some of which are beyond the Company ’ s control.
−Removed: The Company entered into a credit agreement on June 29, 2018.
+Added: The Company entered into an amended and restated credit agreement on February 14, 2025.
The Company’s ability to make payments on its indebtedness, including those under the credit agreement, and to fund planned capital expenditures, research and development efforts and other corporate expenses depends on the Company’s future operating performance and on economic, financial, competitive, legislative, regulatory and other factors.
3 unchanged sentences
Any failure to meet debt obligations and financial covenants, and maintain adequate asset-based borrowing capacity could adversely affect the Company ’ s business and financial condition.
−Removed: The Company’s three-year revolving credit facility expiring April 2027 is secured by certain personal property assets such as accounts receivable, inventory, and machinery and equipment.
+Added: The Company’s revolving credit facility expiring April 2027 is secured by certain personal property assets such as accounts receivable, inventory, and machinery and equipment.
Under this agreement, the Company’s borrowing capacity is based on the eligible balances of these assets and it is required to maintain sufficient asset levels at all times to secure its outstanding borrowings.
−Removed: The Company is also required to comply with a total funded debt to EBITDA ratio, a minimum fixed charge coverage ratio, and a minimum tangible net worth.
+Added: The Company is also required to comply with a total funded debt to earnings before interest, taxes, depreciation, and amortization (“EBITDA”) ratio, a minimum fixed charge coverage ratio, and a minimum tangible net worth.
If the Company does not meet these financial covenants as specified under the agreement, the Company may require forbearance or relief from its financial covenant violations from its senior lender or be required to arrange alternative financing.
14 unchanged sentences
If these events were to transpire, they could have a material adverse effect on the Company’s business, results of operations and financial condition.
−Removed: The Company has made certain assumptions relating to the acquisition of Katsa in its forecasts that may prove to be materially inaccurate.
−Removed: The integration of Katsa into the Company’s business processes is ongoing.
−Removed: While the integration is currently proceeding as planned, the Company has made certain longer term assumptions relating to the forecast level of synergies and associated costs of the acquisition of Katsa that may be inaccurate based on the information that was available to the Company or as a result of the failure to realize the expected benefits of the acquisition, higher than expected integration costs, unknown liabilities and global economic and business conditions that may adversely affect the combined Company following the completion of the acquisition.
+Added: The Company has made certain assumptions relating to the acquisition of Katsa and Kobelt in its forecasts that may prove to be materially inaccurate.
+Added: The integration of Katsa and Kobelt into the Company’s business processes is ongoing.
+Added: While the integration is currently proceeding as planned, the Company has made certain longer term assumptions relating to the forecast level of synergies and associated costs of the acquisition of Katsa and Kobelt that may be inaccurate based on the information that was available to the Company or as a result of the failure to realize the expected benefits of the acquisition, higher than expected integration costs, unknown liabilities and global economic and business conditions that may adversely affect the combined Company following the completion of the acquisition.
The combination of the businesses will require significant management attention, and the Company may incur significant additional integration costs because of integration difficulties and other challenges.
−Removed: As a result of the acquisition of Katsa, the Company carries a significant amount of intangible assets, but it may never fully realize the full value of these assets.
−Removed: The full accounting for the acquisition, including the purchase price allocation, is pending final review by the Company.
−Removed: The Company recorded intangible assets, including customer relationships, technology know-how, trade name, and computer software.
+Added: As a result of the acquisition of Katsa and Kobelt, the Company carries a significant amount of intangible assets, but it may never fully realize the full value of these assets.
+Added: The full accounting for the Kobelt acquisition, including the purchase price allocation, is pending final review by the Company.
+Added: The Company recorded intangible assets, including customer relationships, technology know-how, trade name, and computer software for both Katsa and Kobelt.
Amortizable intangible assets are periodically reviewed for possible impairment whenever there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable.
30 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.