2 unchanged sentences
The Company’s top ten suppliers accounted for 85% of our purchases during 2025, including 62% from Carrier and 8% from Rheem.
−Removed: Carrier provides a diverse variety of brands of HVAC systems including Carrier, Bryant, Payne, Tempstar, Heil, Comfortmaker, and Grandaire (a private label product created by the Company), along with complimentary replacement parts.
−Removed: Rheem provides Rheem-brand HVAC systems along with complimentary replacement parts.
−Removed: Given the significant
−Removed: concentration of our supply chain, particularly with Carrier and Rheem, any significant interruption by any of the key manufacturers or a termination of a relationship could temporarily disrupt the operations of certain of our subsidiaries.
−Removed: Additionally, our operations are materially dependent upon the continued market acceptance and quality of these manufacturers’ products and their ability to continue to manufacture products that are competitive, that comply with laws relating to environmental and efficiency standards, and that keep up with shifting consumer preferences.
+Added: Products supplied by Carrier include a diverse variety of brands of HVAC equipment including Carrier, Bryant, Payne, Tempstar, Heil, Comfortmaker, and Grandaire (a private label product created by the Company), along with complimentary replacement parts.
+Added: Rheem provides Rheem-brand HVAC systems, as well as Freidrich and AireVantage (a private label product created by Nordyne, a subsidiary of Rheem), along with complimentary replacement parts.
+Added: Given the significant concentration of our supply chain, particularly with Carrier and Rheem, any significant interruption by any of the key manufacturers or suppliers or a termination of a relationship could temporarily disrupt the operations of certain of our subsidiaries.
+Added: Additionally, our operations are materially dependent upon the continued market acceptance and quality of these manufacturers’ and suppliers’ products and their ability to continue to manufacture and supply products that are competitive, that comply with laws relating to environmental and efficiency standards, and that keep up with shifting consumer preferences.
Our inability to obtain products from one or more of these manufacturers or a decline in market acceptance of these manufacturers’ products, including new HVAC systems that use refrigerants with a lower GWP, could have a material adverse effect on our results of operations, cash flows, and liquidity.
1 unchanged sentence
If any restrictions, including as a result of overall trade relations or a potential increase in tariffs (which the Trump administration has proposed), are imposed related to such products sourced from, or assembled in, Mexico and China, including as a result of amendments to existing trade agreements, and our product costs consequently increase, we would be required to raise our prices, which may result in cost inflation, the loss of customers, and harm to our business.
−Removed: We maintain trade name and distribution agreements with Carrier and Rheem that provide us with distribution rights on an exclusive basis in specified territories.
+Added: We maintain trade name and distribution agreements with Carrier, Rheem, and Mitsubishi that provide us with distribution rights on an exclusive basis in specified territories.
Such agreements are not subject to a stated term or expiration date.
−Removed: We also maintain other distribution agreements with various other suppliers, either on an exclusive or non-exclusive basis, for various terms ranging from one to ten years.
−Removed: Certain distribution agreements contain provisions that restrict or limit the sale of competitive products in the locations that sell such branded products.
+Added: We also maintain distribution agreements with various other suppliers, either on an exclusive or non-exclusive basis, for various terms ranging from one to ten years.
+Added: Certain distribution agreements for particular branded products contain provisions that restrict or limit the sale of competitive products in the locations that sell such branded products.
Other than where such location-level restrictions apply, we may distribute other manufacturers’ lines of air conditioning or heating equipment in other locations in the same territories.
5 unchanged sentences
• the successful operation and/or integration of acquired companies;
+Added: • the retention of existing customers purchasing from acquired companies;
• the efficiency and effectiveness of an acquired company’s internal control environment;
7 unchanged sentences
Failure to successfully manage the operational challenges and risks associated with, or resulting from, acquisitions could adversely affect our results of operations, cash flows, and liquidity.
−Removed: We operate in highly competitive environments.
+Added: We operate in highly competitive environments and, in larger markets, often compete with both national and local distributors.
We compete with other distributors and several air conditioning and heating equipment manufacturers that distribute a significant portion of their products through their own distribution organizations in certain markets.
24 unchanged sentences
Dependence on Key Personnel
−Removed: Much of our success has depended on the skills and experience of senior management personnel.
+Added: Much of our success has depended on the skills and experience of senior management personnel and key operators within our regions.
The loss of any of our executive officers or other key senior management personnel could harm our business.
6 unchanged sentences
Access to funds under our line of credit is dependent on the ability of the syndicate banks to meet their respective funding commitments.
−Removed: Disruptions in the credit and
−Removed: capital markets could adversely affect our ability to draw on our revolving credit agreement and may also adversely affect the determination of interest rates.
+Added: Disruptions in the credit and capital markets could adversely affect our ability to draw on our revolving credit agreement and may also adversely affect the determination of interest rates.
Additionally, disruptions in the credit and capital markets could also result in increased borrowing costs and/or reduced borrowing capacity under our revolving credit agreement.
10 unchanged sentences
Our international sales and operations, as well as sourcing of products from suppliers with international operations, are also sensitive to changes in foreign national priorities, including government budgets, as well as political and economic instability.
−Removed: In addition, post-pandemic delays and closures in China may disrupt the operations of certain of our suppliers, which could negatively impact our business.
Unfavorable changes in any of the foregoing could adversely affect our results of operations or could cause a disruption in our supply chain for products sourced internationally.
50 unchanged sentences
Payment of Dividends
−Removed: The amount of any future dividends that we will pay, if any, will depend upon a number of factors.
+Added: The amount of future dividends that we will pay, if any, will depend upon a number of factors.
Future dividends will be declared and paid at the sole discretion of the Board of Directors and will depend upon such factors as cash flow generated by operations, profitability, financial condition, cash requirements, potential dilution related to our dividend reinvestment plan, prospects, and other factors deemed relevant by our Board of Directors.
6 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.