Volt Information Sciences (VOLT)

Risks

• Our business, results of operations and financial condition has been and may continue to be adversely impacted by global public health epidemics, including the strain of coronavirus known as COVID-19, and future adverse impacts could be material and difficult to predict
• Our credit facility contains financial covenants that may limit our ability to take certain actions
• Turmoil in the financial markets could limit our ability to fully utilize available credit, which could negatively affect our operations and limit our liquidity
• Our ability to retain acceptable insurance coverage limits at commercially reasonable cost and terms may adversely impact our financial results
• The loss of major customers could adversely impact our business
• Our results of operations and ability to grow may be negatively affected if we are not able to keep pace with rapid changes in technology
• Unexpected changes in workers’ compensation and other insurance plans may negatively impact our financial condition
• Many of our contracts provide no minimum purchase requirements, are cancellable during the term, or both
• We could incur liabilities, or our reputation could be damaged, from a cyber-attack or improper disclosure or loss of sensitive or confidential company, employee, associate, candidate or client data, including personal data
• We rely extensively on our information technology systems which are vulnerable to damage and interruption
• Our stock price has experienced volatility and, as a result, investors may not be able to resell their shares at or above the price they paid for them
• Certain shareholders, whose interests may differ from those of other shareholders, own a significant percentage of our common stock and may be able to exercise significant influence over Volt
• Our business could be negatively affected as a result of a potential proxy contest for the election of directors at our annual meeting or other shareholder activism
• New York State law, our Articles of Incorporation and By-laws contain provisions that could make corporate ownership changes at Volt more difficult
• The contingent staffing industry is very competitive with few significant barriers to entry
• We are dependent upon the quality of our human capital
• We are subject to employment–related claims and losses, including class action lawsuits, which could have a material adverse effect on our business
• Our operational results could be negatively impacted by currency fluctuations and other global business risks and regulations
• The United Kingdom’s (“U.K.”) referendum to exit from the European Union (“E.U.”) may continue to have uncertain effects and could adversely impact our business, results of operations and financial condition
• New or increased government regulation, employment costs or taxes could have a material adverse effect on our business, especially for our contingent staffing business