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Financial report summary
?Risks
- Public health issues such as a pandemic or epidemic could harm business and results of operations of the Company.
- Changes in general economic, real estate and other business conditions may have an adverse effect on the homebuilding and mortgage industries, which could have a negative impact on our business.
- Increased competition levels in the homebuilding and mortgage lending industries could have a negative impact on our homebuilding and mortgage operations.
- If land is not available at reasonable prices or terms, we could be required to scale back our operations in a given market and/or we may operate at lower levels of profitability.
- Supply shortages and other risks related to the demand for skilled labor and building materials could continue to increase costs and delay deliveries.
- If mortgage interest rates continue to rise, if down payment requirements are increased, if loan limits are decreased, or if mortgage financing otherwise becomes less available, it could adversely affect our business.
- Changes to tax laws, incentives or credits currently available to our customers may negatively impact our business.
- Natural disasters could cause an increase in home construction costs, as well as delays, and could negatively impact our business.
- We have financial needs that we meet through the capital markets, including the debt and secondary mortgage markets, and disruptions in these markets could have an adverse impact on the results of our business.
- Our business is subject to numerous federal, state and local laws and regulations concerning land development, construction of homes, sales, mortgage lending, environmental and other aspects of our business. These laws and regulations could give rise to additional liabilities or expenditures, or restrictions on our business.
- In the ordinary course of business, we are required to obtain surety bonds, the unavailability of which could adversely affect our business.
- Product liability litigation and warranty claims that arise in the ordinary course of business may be costly.
- Repurchase requirements associated with HomeAmerican’s sale of mortgage loans, could negatively impact our business.
- Because of the seasonal nature of our business, our quarterly operating results can fluctuate.
- We are dependent on the services of key employees, and the loss of their services could hurt our business.
- Information technology failures and cybersecurity breaches could harm our business.
- Financial industry turmoil could materially and adversely affect our liquidity and consolidated financial statements.
- Our By-laws designate the Court of Chancery of the State of Delaware, subject to certain exceptions, as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders and designate the federal district courts of the United States as the exclusive forum for actions arising under the Securities Act of 1933, as amended, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
- The Merger is subject to receipt of approval from our stockholders as well as the satisfaction of other closing conditions, including conditions that may not be satisfied or completed within the expected timeframe, if at all.
- Failure to complete the Merger in a timely manner, or at all, could negatively impact our future business and our financial condition, results of operations and cash flows.
- We are subject to certain restrictions in the Merger Agreement that may hinder operations pending the consummation of the Merger.
- We will be subject to various uncertainties while the Merger is pending that may cause disruption and may make it more difficult to maintain relationships with employees, clients, customers, and others with whom we do business.
- The Merger Agreement contains provisions that could discourage a third party from making a competing acquisition proposal.
- In certain instances, the Merger Agreement requires us to pay a termination fee to Parent, which could affect the decisions of a third party considering making an alternative acquisition proposal.
- We have incurred, and will continue to incur, direct and indirect costs as a result of the Merger.