Content analysis
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H.S. sophomore Avg
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New words:
automated, flat, manual, multiple, oil, sequentially, short, tighter
Removed:
accuracy, annually, case, consistent, defend, determine, ensure, hedging, ii, iii, January, litigation, occurring, plaintiff, potential, range, result, structure, summarize, TSR, vigorously
Financial report summary
?Risks
- The COVID-19 pandemic has adversely affected, and may in the future continue to adversely affect, our results of operations, financial condition and liquidity.
- The length and depth of product and industry business cycles in our segments may result in periods of reduced sales, earnings and cash flows, and portions of our business are subject to seasonality, weather-related effects and other adverse events outside our control.
- The loss of a significant customer relationship or the delay of large or multiple contracts or a strategic project may negatively impact our financial performance.
- Prices of certain raw materials used in our production processes are volatile and can have a significant effect on our manufacturing and supply chain procurement strategies as we seek to maximize our profitability. If we are unable to successfully adjust our strategies in response to volatile raw material prices, such volatility could have a negative effect on our earnings.
- Our business could be adversely affected if we are unable to retain or motivate key personnel or hire qualified personnel.
- Some of our employees are unionized, represented by works councils or employed subject to local laws that are less favorable to employers than the laws in the United States.
- If we are unable to realize expected benefits from our cost reduction and restructuring efforts, our results of operations may be adversely impacted
- We have identified material weaknesses in our internal control over financial reporting and we may identify additional material weaknesses in the future or otherwise fail to maintain effective internal control over financial reporting, which may result in decline in the market price of our common stock, material misstatements of our consolidated financial statements, cause us to fail to meet our periodic reporting obligations, or cause our access to the capital markets to be impaired.
- We have debt obligations that could restrict our business, adversely impact our financial condition, results of operations or cash flows or restrict our ability to return cash to shareholders.
- If we are not able to continue our technological innovation and successful introduction of new products, our customers may turn to other suppliers to meet their requirements.
- Our business and financial condition could be adversely affected if we are unable to protect our material IP or there is a loss in the actual or perceived value of our brands.
- A failure of our information technology systems could adversely impact our business and operations.
- We may be required to spend significant amounts of financial resources on environmental compliance.
- We work with dangerous materials that can injure our employees, damage our facilities and disrupt our operations.
- The divestiture of our Darex business could adversely affect our results of operations.
- Our effective income tax rate may fluctuate from quarter to quarter, which may affect our earnings and earnings per share.
- Our share price may fluctuate significantly.
- The Company may issue preferred stock with terms that could dilute the voting power or reduce the value of company common stock.
- The Company does not expect to pay any cash dividends for the foreseeable future.
Management Discussion
- •Specialty Construction Chemicals (“SCC”). Our SCC operating segment provides products, services and technologies to the concrete and cement industries, including concrete admixtures and cement, as well as in-transit monitoring and management systems, which reduce the cost and improve the performance and quality of cement, concrete, mortar, masonry, and other cementitious-based construction materials.
- •Specialty Building Materials (“SBM”). Our SBM operating segment produces and sells sheet and liquid membrane systems and other products that protect both new and existing structures from water, air, and vapor penetration, as well as from fire damage. We also manufacture and sell specialized cementitious and chemical grouts used for soil consolidation and leak-sealing applications in addition to a moisture barrier system and installation tools for the flooring industry.
- We operate our business on a global scale. During the six months ended June 30, 2022, approximately 47% of our net sales were generated outside of the U.S. We operate and have locations in over 30 countries and transact business in over 30 currencies.