Content analysis
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Constraining | ||
Legalese | ||
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H.S. freshman Avg
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New words:
agent, attached, carve, Chase, Concurrently, earliest, expanded, flat, impose, JPMorgan, loan, met, NM, permitted, proportionate, redemption, refinancing, springing, text, transferred, unpaid
Removed:
carryover, unregistered
Financial report summary
?Risks
- Our business may be sensitive to economic conditions, including those that impact consumer spending.
- Credit market deterioration and volatility may restrict the ability of our dealers and retail customers to finance the purchase of our products.
- The industries in which we operate are highly competitive. Failure to compete effectively against competitors could negatively impact our business and operating results.
- If we are unable to continue to enhance existing products and develop and market new or enhanced products that respond to customer needs and preferences, we may experience a decrease in demand for our products and our business could suffer.
- If we are unable to properly forecast future demand of our products, our production levels may not meet demand, which could negatively impact our operating results.
- Our business is both cyclical and seasonal and is subject to fluctuations in sales and net income.
- Our business depends on the performance of independent dealers.
- An increase in dealer consolidation or the loss of a significant dealer could have a material adverse effect on our business.
- If we are obligated to repurchase a substantially larger number of our products in the future than estimated due to dealer default, these purchases could result in adverse effects on our results of operations, financial condition, and cash flows.
- For some of the components used in production, we depend on a small group of suppliers and the loss of any of these suppliers could affect our ability to obtain components timely or at competitive prices, which would decrease our results of operations, financial condition, and cash flows.
- Our operations are primarily centered in northern Iowa and northern Indiana. Any disruption or delay at our primary manufacturing facilities could adversely affect our business and operating results.
- Unanticipated changes to our dealer inventory levels could negatively impact our operating results.
- Increases in raw material, commodity, and transportation costs and shortages of certain raw materials could negatively impact our business.
- Failure to effectively manage strategic acquisitions and alliances, joint ventures, or partnerships could have a negative impact on our business.
- If we fail to identify, attract, and retain appropriately qualified employees, including employees in key positions, our operations and profitability may be harmed. Changes in market compensation rates may adversely affect our profitability.
- Significant product repair and/or replacement costs due to product warranty claims and product recalls could have a material adverse impact on our results of operations, financial condition, and cash flows.
- Information Systems, Legal and Regulatory Risks
- We may be subject to information technology system failures, inefficiencies associated with system implementations, network disruptions, and breaches in data security that could adversely affect our business. Failure to prevent or effectively respond to a breach or system failure could expose our customers', clients', or suppliers' confidential information and expose us to substantial costs and reputational damage as well as litigation and enforcement actions.
- Our continued success is dependent on positive perceptions of our brands which, if impaired, could adversely affect our results of operations or financial condition. In addition, if the frequency and size of product liability and other claims against us increase, our reputation and business may be harmed.
- We are subject to certain government regulations that could have a material adverse impact on our business, including changing climate-related regulations that may require us to incur additional costs in order to be in compliance.
- Our ESG commitments may impact our reputation, expose us to additional costs, or have other impacts which could adversely affect our business, financial condition, or results of operations.
- An impairment in the carrying value of goodwill and trade names could negatively impact our consolidated results of operations.
- The terms of our notes and other debt instruments could adversely affect our operating flexibility and pose risks of default.
Management Discussion
- (1) Amounts are calculated based on unrounded numbers and therefore may not recalculate using the rounded numbers provided. In addition, percentages may not add in total due to rounding.
- Net revenues decreased primarily due to lower unit sales related to retail market conditions and higher discounts and allowances compared to prior year, partially offset by carryover price increases.
- Gross profit as a percentage of revenue decreased primarily due to volume deleverage and higher discounts and allowances compared to prior year.