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New words:
accessed, Adder, administered, affiliate, Al, alleging, anticompetitive, apportionment, attempt, back, begun, body, break, Campaign, capita, cessation, CGU, Chatham, CHRO, Comptroller, congressionally, David, defend, defense, deliberation, Density, divert, Dupont, ELT, encouraged, Enterprise, exacerbated, excise, exfiltrated, expert, Fargo, fiduciary, Footnote, foremost, forensic, goal, heightened, Houck, ID, incident, inflationary, isolate, isolated, knowledge, lump, missed, Notably, notified, overnight, oversee, parachute, parent, pendency, pending, precautionary, proceeding, promptly, RAY, renegotiate, repaid, restored, River, score, SOFR, SONIA, Sterling, technical, threat, TIBOR, unsettled, USD, validate, verified, wage, Yen
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analyze, appraisal, clock, cody, collection, comparability, computed, consolidating, corridor, declined, deficit, Deluxe, disclaim, doubtful, exceeded, exceeding, expired, extending, finalized, fluctuated, Francisco, GILTI, grouping, hand, heading, identifying, incurrence, issuable, led, lien, making, modify, monitored, North, occurrence, patch, proposal, remained, reportable, retained, reverse, Ryan, San, satisfied, settled, shared, split, strict, tender, tight, treat, undertaken
Financial report summary
?Risks
- Global market and economic conditions, which have been significantly affected by the COVID-19 pandemic, as well as the effects of these conditions on our clients’ businesses, may adversely affect us.
- Our business is dependent upon brand reputation and the quality of our client support and services offerings. If we fail to offer effective client support and services, our brand reputation could be harmed and clients may not use our products and services, which may have an adverse effect on our results of operations.
- We may be adversely affected by rising inflation, a decline in the availability of raw materials, supply chain disruptions, and labor shortages.
- The highly competitive market for our products and industry consolidation may continue to create adverse price pressures.
- Undetected errors or failures found in our products and services may result in loss of or delay in market acceptance of our products and services that may seriously harm our business.
- Adverse financial market conditions, our operating performance and our creditworthiness may limit our ability to obtain future financing and the cost of any such capital may be higher than in past periods.
- Our ABL Credit Agreement limits our borrowing capacity to the value of certain of our U.S. assets. In addition, our obligations under our ABL Credit Agreement and Term Loan Credit Agreement along with our Secured Notes are secured by substantially all of the assets of the Company and our material domestic subsidiaries and lenders may exercise remedies against the collateral if an event of default occurs.
- An increase in interest rates could have a material adverse effect on our business.
- We may not be able to reduce or extinguish our material indebtedness, and as a result we may have increased financial leverage, which may adversely affect our business.
- Our operations are subject to political and regulatory risks in the countries in which we operate.
- Changes in rules and regulations to which we are subject may increase our costs, which may adversely affect us.
- We are subject to taxation related risks in multiple jurisdictions.
- We may be unable to improve our operating efficiency rapidly enough to meet market conditions.
- A decline in our Company’s or our individual reporting units’ expected profitability may result in the impairment of assets, including goodwill, other long-lived assets and deferred tax assets.
- Catastrophic events may damage or destroy our factories, distribution centers or other facilities, which may disrupt our business.
- We may be unable to hire and retain talented employees, including management.
- The trend of increasing costs to provide health care and other benefits to our employees and retirees may continue.
- Changes in market conditions or lower returns on assets may increase required pension and OPEB plan contributions in future periods.
- Our services depend on the reliability of computer systems we and our vendors maintain. If our systems fail or are unreliable, our operations may be adversely affected.
- We have suffered and may in the future suffer a systems intrusion in our technical environment. If our efforts to protect the security of corporate information are unsuccessful, any such further failures may result in significant costs to us to investigate and remediate the data-breach, to defend against private litigation or government enforcement actions or to pay penalties. Any such failures may have a material adverse effect on our results of operations, financial condition, cash flows and reputation.
- Risks to operating in foreign countries
- We may be more vulnerable to adverse events and trends associated with operations outside the U.S.
- We are exposed to significant risks related to potential adverse changes in currency exchange rates.
- Distribution related risks
- Changes in postal rates, regulations and delivery structure may adversely affect demand for our products and services.
- Increased transportation costs and changes in the relationships with independent shipping companies may have an adverse effect on our business.
Management Discussion
- Net sales for the year ended December 31, 2021 were $4,963.7 million, an increase of $197.4 million, or 4.1%, compared to the year ended December 31, 2020. Net sales increased $50.0 million due to favorable changes in foreign exchange rates and were unfavorably impacted by $6.5 million due to the Chile business closure in 2020. Net sales also increased due to higher volume reflecting strengthening demand for many of our products and services and higher prices as we attempt to recover inflationary cost increases. Notably, higher demand for books and trading cards contributed to the growth in our Commercial Print and Packaging products. The increase also reflects continued recovery from the COVID-19 pandemic, partially offset by large, non-recurring pandemic-related orders in 2020 and the Census project, which was fully completed in the third quarter of 2020.