Circor International (CIR) Financial Report Summaries

Risks

• We face significant competition and, if we are not able to respond, our revenues may decrease.
• We, along with our customers and vendors, face the uncertainty in the public and private credit markets and in general economic conditions in the United States and around the world.
• Implementation of our acquisition strategy may not be successful, which could affect our ability to increase our revenues, reduce our profitability or lead to significant impairment charges.
• If we cannot continue operating our manufacturing facilities at current or higher levels, our results of operations could be adversely affected.
• If we cannot pass on higher raw material or manufacturing costs to our customers, we may become less profitable.
• The inability of our suppliers to provide us with adequate quantities of materials to meet our customers’ demands on a timely basis has had, and may continue to have, an adverse effect on our business; in addition, if the quality of the materials provided does not meet our standards, we may lose customers or experience lower profitability.
• If we experience delays in introducing new products or if our existing or new products do not achieve or maintain market acceptance, our revenues may decrease.
• If we fail to manufacture and deliver high quality products in accordance with industry standards, we will lose customers.
• We rely on information technology in our operations, and any material failure, inadequacy, interruption or security failure of that technology could harm our business, financial condition, cash flows and results of operations.
• Terrorist activity, acts of war, and/or political instability around the world could cause economic conditions to deteriorate and adversely impact our businesses.
• The impact of the COVID-19 pandemic has adversely impacted, and continues to pose risks to, our business, results of operations and financial condition.
• If we are unable to continue operating successfully overseas or to successfully expand into new international markets, our revenues may decrease.
• Our international activities expose us to fluctuations in currency exchange rates that could adversely affect our results of operations and cash flows.
• A change in international governmental policies or restrictions could result in decreased availability and increased costs for certain components and finished products that we purchase from sources in foreign countries, which could adversely affect our profitability.
• Our ability to execute our strategy is dependent upon our ability to attract, train and retain qualified personnel.
• Recent changes in the Company’s executive management team may be disruptive to, or cause uncertainty in, our business, results of operations and the price of the Company’s common stock.
• Our review of strategic alternatives may not result in the identification or completion of a transaction, or create additional value for our stockholders, and the process may have an adverse effect on our business.
• We face risks from product liability lawsuits that may adversely affect our business.
• The costs of complying with existing or future governmental regulations on importing and exporting practices and of curing any violations of these regulations, could increase our expenses, reduce our revenues or reduce our profitability.
• If we incur higher costs as a result of trade policies, treaties, government regulations or tariffs, we may become less profitable.
• The costs of complying with existing or future environmental regulations and curing any violations of these regulations could increase our expenses or reduce our profitability.
• Regulations related to “conflict minerals” may cause us to incur additional expenses and could limit the supply and increase the cost of certain metals used in manufacturing our products.
• The trading price of our common stock continues to be volatile, and investors in our common stock may experience substantial losses.
• If we are unable to generate sufficient cash flow, we may not be able to service our debt obligations, including making payments on our outstanding term loan.
• Our credit agreement requires that we maintain certain ratios and limits our ability to make acquisitions, incur debt, pay dividends, make investments, sell assets or merge.