HWKN Hawkins, Inc.

Risks

• Environmental problems at any of our facilities could result in significant unexpected costs.
• Our food, pharmaceutical and nutritional products are subject to government regulation, both in the United States and abroad, which could increase our costs significantly and limit or prevent the sale of such products.
• Our businesses expose us to potential product liability claims and recalls, which could adversely affect our financial condition and performance.
• Demand for our food and nutritional products is highly dependent upon consumers’ perception of the safety and quality of our products, our customers’ products as well as similar products distributed by other companies, and adverse publicity and negative public perception regarding particular ingredients or products or the nutraceuticals industry in general could limit our ability to increase revenue and grow that portion of our business.
• The insurance that we maintain may not fully cover all potential exposures.
• Failure to comply with the covenants under our credit facility may have a material adverse effect.
• Impairment to the carrying value of our goodwill or other intangible assets could adversely affect our financial condition and consolidated results of operations.