Enerpac Tool (EPAC)

Risks

• We have been and continue to be negatively impacted by the COVID-19 pandemic and its related impacts to our employees, operations, customers and suppliers.
• Supply chain issues, including shortages of adequate component supply that increase our costs or cause delays in our ability to fulfill orders, and our failure to estimate customer demand properly may result could have an adverse impact on our business and operating results and our relationships with customers.
• Deterioration of, or instability in, the domestic and international economy and challenging end-market conditions could impact our ability to grow the business and adversely impact our ability to execute our strategy, financial condition, results of operations and cash flows.
• Disruptions in global oil markets have adversely affected our business and results of operations and similar events in the future may adversely affect our business and results.
• Uncertainty over global tariffs, or the financial impact of tariffs, may negatively affect our results.
• Logistics challenges, including global freight capacity shortages or significant increases in freight costs, could continue to increase our freight costs or cause delays in our ability to fulfill orders and could have an adverse impact on our business and operating results.
• Collection risk for receivables in foreign jurisdictions
• Cybersecurity vulnerabilities, threats and more sophisticated and targeted computer crime could pose a risk to our systems, networks, operations, products, solutions, services and data.
• We may not be able to fully realize expected cost savings from restructuring actions
• Our business operates in highly competitive markets, so we may be forced to cut prices or incur additional costs.
• Our international operations pose political, currency and other risks.
• Our customers and other business partners often require terms and conditions that expose us to significant risks and liabilities.
• If we fail to develop new products, or customers do not accept our new products, our business could be adversely affected.
• Our growth strategy includes strategic acquisitions, which we may not be able to consummate or successfully integrate.
• We may not be able to realize planned benefits from acquired companies.
• The indemnification provisions of acquisition agreements may result in unexpected liabilities.
• Divestitures and discontinued operations could negatively impact our business, and retained liabilities from businesses that we have sold could adversely affect our financial results.
• Our goodwill and other intangible assets represent a substantial amount of our total assets.
• We are subject to many laws and regulations that may change in ways that are detrimental to our competitiveness or results.
• Legal compliance risks could result in significant costs to our business or cause us to restrict current activities or curtail growth plans.
• Health, safety and environmental laws and regulations may result in additional costs.
• Costs and liabilities arising from legal proceedings could be material and adversely impact our financial results.
• Our indebtedness could harm our operating flexibility and competitive position.
• The financial and other covenants in our debt agreements may adversely affect us.
• Our inability to attract, develop and retain qualified employees could have a material adverse impact on our operations.
• Our intellectual property portfolio may not prevent competitors from developing products and services similar to or duplicative to ours, and the value of our intellectual property may be negatively impacted by external dependencies.
• Our competitors or other persons could assert that we have infringed their intellectual property rights.
• Geopolitical unrest and terrorist activities may cause the economic conditions in the U.S. or abroad to deteriorate, which could harm our business.