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New words:
aforementioned, Agriculture, alia, ambition, Annex, appraisal, ARP, baseline, BiaXamTM, burden, cognizant, Council, coupled, deal, decree, defense, Delta, deployment, discourage, DL, DLC, electricity, encountered, factor, FIFRA, flex, Fungicide, globe, ID, illegal, impossible, indirect, infection, injunction, injunctive, Insecticide, Instruction, intention, inter, IX, lawsuit, logistic, logistical, merger, merit, Minnesota, momentum, motivate, navigate, neutral, Omicron, overwhelmingly, Parliament, post, preclusive, preliminary, procedure, properly, purported, pursuit, put, reallocated, reassessment, rebalance, rebuild, recommended, renamed, Rescue, restraining, reverted, Rodenticide, slightly, spike, spite, standalone, Storm, stricter, submitted, subside, surviving, ton, transposition, TX, Uri, Utah, vaccination, vii, virtually, whichever, withdrawn
Removed:
blinn, CariflexTM, Clarifying, Codification, Collaborative, complement, complementary, conducting, derecognition, diligence, Easement, explore, exploring, foreseeable, integrate, integrating, integration, leasing, lessee, negotiated, negotiating, OSHA, pattern, proceed, project, recording, rental, straight, sum, suspended, twelve, Unaudited
Financial report summary
?Risks
- Failure of the Merger to be consummated, the termination of the Merger Agreement or a significant delay in the consummation of the Merger could have a material adverse impact on our business, financial condition, and results of operations.
- We are subject to business uncertainties and contractual restrictions while the Merger is pending.
- Litigation against us, or the members of our board of directors, could prevent or delay the completion of the Merger.
- The Merger Agreement limits our ability to pursue alternatives to the Merger and may discourage other companies from trying to acquire the Company for greater consideration than what Parent has agreed to pay pursuant to the Merger Agreement.
- The failure of our raw material suppliers to perform their obligations under long-term supply agreements, or our inability to replace or renew these agreements when they expire, could increase our cost for these materials, interrupt production or otherwise adversely affect our results of operations.
- Significant fluctuations in raw material costs may result in volatility in our quarterly operating results and impact the market price of our common stock.
- Our business is subject to seasonality that may affect our quarterly operating results and impact the market price of our common stock.
- Chemical manufacturing is inherently hazardous, which could result in accidents that disrupt our operations or expose us to significant losses or liabilities.
- Loss of key personnel or our inability to attract and retain new qualified personnel could hurt our business and inhibit our ability to operate and grow successfully.
- We generally do not have long-term contracts with our customers, and the loss of customers could adversely affect our sales and profitability.
- Domestic or international natural disasters, health epidemics or pandemics, or terrorist attacks may disrupt our operations, decrease the demand for our products or otherwise have an adverse impact on our business.
- The COVID-19 pandemic is adversely impacting our business.
- Climate change and sustainability initiatives may result in significant operational changes and expenditures and adversely affect our business.
- Our substantial indebtedness could adversely affect our financial condition and prevent us from fulfilling our obligations under the terms of our indebtedness, including our senior notes and our senior secured credit facilities.
- Despite current indebtedness levels and restrictive covenants, we and our subsidiaries may incur additional indebtedness, or we may pay dividends in the future. This could further exacerbate the risks associated with our financial leverage.
- Our current and future debt instruments may impose significant operating and financial restrictions on us and affect our ability to access liquidity.
- To service our current, and any future, indebtedness, we will require a significant amount of cash, which may have an adverse effect on our results of operations, financial condition, and cash flow.
- Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.
- Fluctuations in currency exchange rates may significantly impact our results of operations and may significantly affect the comparability of our results between financial periods.
- We may be unable to realize the benefits of our net operating loss carry-forwards (“NOLs”).
- A decrease in the fair value of pension and other post-retirement assets could materially increase future funding requirements of the pension and other post-retirement plans.
- The European Union’s Renewable Energy Directive 2009/28 on the promotion of the use of energy from renewable resources (the “RED”), was repealed on July 1, 2021 and replaced by Directive 2018/2001, which had to be transposed by the Member States by June 30, 2021 (the “RED II”) and similar legislation in the U.S. and elsewhere may incentivize the use of CTO as a feedstock for production of alternative fuels, which may have an adverse effect on our results of operations, financial condition, and cash flow.
- Compliance with extensive environmental, health, and safety laws and regulations (including changes to such laws and regulations) could require material expenditures, changes in our operations or site remediation.
- We are subject to customs, international trade, export control, data privacy, antitrust, zoning and occupancy and labor and employment laws that could require us to modify our current business practices and incur increased costs.
- Risks Related to Stock Ownership
- Delaware law and certain provisions of our organizational documents may make a takeover of our company more difficult.
- We are a holding company with nominal net worth and will depend on dividends and distributions from our subsidiaries to pay any dividends.
- Investor sentiment towards climate change and sustainability could adversely affect our business and our stock price.
- If we are not able to continue the technological innovation and successful commercial introduction of new products, our customers may turn to other producers to meet their requirements.
- Our products may infringe on the intellectual property rights of others, which may cause us to incur unexpected costs or prevent us from selling our products.
- Increased information systems security threats and more sophisticated and targeted computer crime could pose a risk to our systems, networks, products, and services.
Management Discussion
- Revenue was $1,970.1 million for the year ended December 31, 2021 compared to $1,563.2 million for the year ended December 31, 2020, an increase of $407.0 million, or 26.0%. Revenue increased $241.2 million and $165.8 million for the Polymer and Chemical segments, respectively. For additional information regarding the changes in revenue, see our segment disclosures below.
- Cost of goods sold was $1,381.4 million for the year ended December 31, 2021 compared to $1,165.3 million for the year ended December 31, 2020, an increase of $216.1 million, or 18.5%. Cost of goods sold increased $148.5 million and $67.6 million for the Polymer and Chemical segments, respectively. For additional information regarding the changes in cost of goods sold, see our segment disclosures below.
- Selling, general, and administrative expenses were $164.2 million for the year ended December 31, 2021 compared to $161.9 million for the year ended December 31, 2020. The $2.2 million increase is primarily attributable to higher employee related costs, partially offset by lower transaction, acquisition, and restructuring costs and the benefit of cost reduction initiatives.