BOISE Cascade (BCC) risk factors, FY2024 10-K

Risks Relating to Our Business

1. 01A portion of the products we manufacture or purchase and resell are commodities whose price is determined by the market's supply and demand for such products, and the markets in which we operate are cyclical and competitive
2. 02Our industry is highly competitive. If we are unable to compete effectively, our sales, operating results, and growth strategies could be negatively affected
3. 03Some of our products are vulnerable to declines in demand due to competing technologies or materials, as well as changes in building code provisions

Operational Risks

1. 04Cybersecurity risks related to the technology used in our operations and other business processes, as well as security breaches of company, customer, employee, and vendor information, could adversely affect our business
2. 05A material disruption at one of our manufacturing facilities could prevent us from meeting customer demand, including the demand from our Building Materials Distribution business, reduce our sales, and/or negatively affect our financial results
3. 06Declining demand for residual byproducts could negatively affect our financial results and operations
4. 07Labor disruptions, shortages of skilled and technical labor, or increased labor costs could adversely affect our business
5. 08We may be unable to attract and retain key management and other key employees
6. 09Product shortages, loss of key suppliers, and our dependence on third-party suppliers and manufacturers could affect our financial health
7. 10We depend on third parties for transportation services and limited availability or increases in costs of transportation could adversely affect our business and operations
8. 11Our manufacturing operations may have difficulty obtaining wood fiber at favorable prices or at all
9. 12Our strategy includes both organic growth and pursuing acquisitions, which we may be unable to execute efficiently and effectively
10. 13We invest resources to update and improve our information technology systems and software platforms. Should our investments not succeed, or if delays or other issues with new or existing technology systems and software platforms disrupt our operations, our business could be harmed
11. 14We may be unable to successfully pursue our long-term growth strategy related to innovation and digital technology

Financial Risks

1. 15A significant portion of our sales are concentrated with a small number of customers
2. 16Adverse market conditions may increase the credit risk from our customers
3. 17Our long-lived assets, goodwill, and/or intangible assets may become impaired, which may require us to record non-cash impairment charges that could have a material impact on our results of operations
4. 18Our operations require substantial capital, and recent significant capital investments and acquisitions have increased fixed costs, which could negatively affect our profitability
5. 19Our ability to service our indebtedness or to fund our other liquidity needs is subject to various risks
6. 20The terms of our debt agreements restrict, and covenants contained in agreements governing indebtedness in the future may impose significant operating and financial restrictions on our company and our subsidiaries, which may prevent us from capitalizing on business opportunities

Risks Relating to Laws and Regulations

1. 21Changes in foreign trade policy, including the imposition of tariffs, could impact our product pricing and input costs
2. 22Compliance with data privacy and security laws and regulations could adversely affect our business
3. 23The impacts of climate change, and related legislative and regulatory responses intended to reduce climate change, may adversely impact our business
4. 24We are subject to environmental regulation and environmental compliance expenditures, as well as other potential environmental liabilities
5. 25The nature of our business exposes us to product liability, product warranty, casualty, manufacturing and construction defects, and other claims

Risks Relating to Ownership of Our Common Stock

1. 26The price of our common stock may fluctuate significantly
2. 27We may not pay cash dividends in the future
3. 28Certain provisions of our organizational documents and other contractual provisions may make it difficult for stockholders to change the composition of our board of directors and may discourage hostile takeover attempts that some of our stockholders may consider to be beneficial