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Risks

• Fluctuations in the price and availability of resins, our principal raw materials, and our inability to obtain adequate supplies of resins from suppliers and pass on resin price increases to customers could adversely affect our business, financial condition, results of operations and cash flows.
• The COVID-19 pandemic, efforts to mitigate the pandemic, and the related weakening economic conditions, could have a significant negative impact on our operations, liquidity, financial condition and financial results.
• Any disruption or volatility in general business and economic conditions in the markets in which we operate could have a material adverse effect on the demand for our products and services.
• Demand for our products and services could decrease if we are unable to compete effectively, and our success depends largely on our ability to convert current demand for competitive products into demand for our products.
• Our results of operations could be adversely affected by the effects of weather.
• The loss of any of our significant customers could adversely affect our business.
• Because our business is working capital intensive, we rely on our ability to manage our supply purchasing and customer credit policies.
• We may be unable to successfully integrate our and Infiltrator’s businesses in order to realize the anticipated benefits of the acquisition or do so within the intended timeframe.
• Our international operations expose us to political, economic and regulatory risks not normally faced by businesses that operate only in the United States. As a result of our international operations, we could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar foreign anti-corruption laws.
• Conducting a portion of our operations through joint ventures exposes us to risks and uncertainties, many of which are outside of our control.
• We may not be able to successfully expand into new product or geographic markets.
• Increased fuel and energy prices, and our inability to obtain sufficient quantities of fuel to operate our in-house delivery fleet.
• Internally manufacturing our products at our own facilities subjects our business to risks associated with manufacturing processes.
• The nature of our business exposes us to construction defect and product liability claims as well as other legal proceedings.
• Our operations are affected by various laws and regulations in the markets in which we operate, including government mandated regulatory product standards, and our failure to obtain or maintain approvals by municipalities, state departments of transportation, engineers and developers may affect our results of operations.
• Interruptions in the proper functioning of information technology systems could disrupt operations and cause unanticipated increases in costs, decreases in revenues, or both. The implementation of our technology initiatives could disrupt our operations in the near term, and our technology initiatives might not provide the anticipated benefits or might fail.
• Cybersecurity attacks may threaten our confidential information, disrupt operations and result in harm to our reputation and adversely impact our business and financial performance.
• Our success depends upon our ability to control labor costs and to attract, train and retain highly qualified employees and key personnel.
• If we are unable to protect our intellectual property rights, or we infringe on the intellectual property rights of others, our ability to compete could be negatively impacted.
• We could incur significant costs in complying with environmental, health and safety laws or permits or as a result of satisfying any liability or obligation imposed under such laws or permits.
• We may be affected by global climate change or by legal, regulatory or market responses to such potential change.
• Our level of indebtedness could adversely affect our business, financial conditions or results of operations and prevent us from fulfilling our obligations under the agreements governing the terms of our indebtedness.
• Future sales of shares by existing stockholders, including our Employee Stock Ownership Plan, could cause our stock price to decline.
• Our directors, officers and principal stockholders have significant voting power and may take actions that may not be in the best interests of our other stockholders. The trustee of our ESOP has certain limited powers to vote a large block of shares on matters presented to stockholders for approval.
• Anti-takeover provisions in our charter documents and Delaware law could discourage, delay or prevent a change in control of us and may affect the trading price of our common stock.