Davey Tree Expert Co

Risks

• We may be unable to employ a sufficient workforce for our field operations.
• We could be negatively impacted if our self-insurance accruals or our insurance coverages prove to be inadequate.
• The unavailability or cancellation of third-party insurance coverage may have a material adverse effect on our financial condition and results of operations as well as disrupt our operations.
• We could be materially adversely affected by wildfires in California and other areas and other severe weather events and natural disasters, including negative impacts to our business, reputation, financial condition, results of operations, liquidity and cash flows.
• Our business is highly seasonal and weather dependent.
• Financial difficulties or the bankruptcy of one or more of our major customers could adversely affect our results.
• We are subject to third-party and governmental regulatory claims and litigation and adverse litigation judgments or settlements resulting from those claims could materially adversely affect our business.
• We are subject to the risk of changes in fuel costs.
• We are subject to intense competition.
• Our business is dependent upon service to our utility customers and we may be affected by developments in the utility industry.
• We cannot predict the impact that policies regarding changing climate conditions, including legal, regulatory and social responses thereto, may have on our business.
• Our quarterly results may fluctuate.
• We may be adversely affected if we enter into a major unprofitable contract.
• We may be unable to attract and retain skilled management.
• A disruption in our information technology systems, including a disruption related to cybersecurity, could adversely affect our financial performance.
• We may be adversely affected if our reputation is damaged.
• Because no public market exists for our common shares, your ability to sell your common shares may be limited.
• Natural disasters, pandemics, terrorist attacks and other external events could adversely affect our business.
• Our failure to comply with environmental laws could result in significant liabilities.
• We may be adversely affected if we are unable to obtain necessary surety bonds or letters of credit.
• Economic conditions may adversely impact our customers’ future spending as well as pricing and payment for our services, thus negatively impacting our operations and growth.
• We may not have access to capital in the future due to uncertainties in the financial and credit markets.
• We are subject to the effect of foreign currency exchange rate fluctuations, which may have a material adverse impact on us.
• Increases in our health insurance costs and uncertainty about federal health care policies could adversely affect our results of operations and cash flows.
• Our inability to properly verify the employment eligibility of our employees could adversely affect our business.