RBC Bearings (RBC) risk factors, FY2025 10-K

Other

1. 01Cautionary Statement as to Forward-Looking Information
2. 02Risk Factors Relating to Our Company
3. 03The bearings, engineered components and essential systems industries are highly competitive, and competition could reduce our profitability or limit our ability to grow
4. 04The loss of a major customer, or a material adverse change in a major customer’s business, could result in a material reduction in our revenues, cash flows and profitability
5. 05Weakness in any of the industries in which our customers operate, as well as the cyclical nature of our customers’ businesses generally, could materially reduce our revenues, cash flows and profitability
6. 06Future reductions or changes in U.S. government spending could negatively affect our business
7. 07Fluctuating supply and costs of subcomponents, raw materials and energy resources could materially reduce our revenues, cash flows and profitability
8. 08Some of our products and operations are subject to certain approvals and government regulations and the loss of such approvals, or our failure to comply with such regulations, could materially reduce our revenues, cash flows and profitability
9. 09The retirement of commercial aircraft could reduce our revenues, cash flows and profitability
10. 10Risks associated with utilizing information technology systems could adversely affect our operations
11. 11Work stoppages and other labor problems could materially reduce our ability to operate our business
12. 12Unexpected equipment failures or catastrophic events could increase our costs and reduce our sales due to production curtailments or shutdowns
13. 13We may not be able to continue to make the acquisitions necessary for us to realize our growth strategy
14. 14Businesses that we acquire may have liabilities for which we are liable
15. 15Goodwill and indefinite-lived intangibles comprise a significant portion of our total assets, and if we determine that goodwill and indefinite-lived intangibles have become impaired in the future, our results of operations and financial condition in such years may be materially and adversely affected
16. 16We depend heavily on our senior management and other key personnel, the loss of whom could materially affect our financial performance and prospects
17. 17We have operations in Australia, England, Canada, France, Germany, India, Mexico, the Peoples Republic of China, Poland and Switzerland. Of our 54 facilities in 11 countries, 20 are located outside the U.S., including 12 manufacturing facilities in four countries
18. 18Currency translation risks may have a material impact on our results of operations
19. 19We may incur material losses for product liability and recall-related claims
20. 20Our intellectual property and proprietary information are valuable, and any inability to protect them could adversely affect our business and results of operations; in addition, we may be subject to infringement claims by third parties
21. 21Cancellation of orders in our backlog could negatively impact our revenues, cash flows and profitability
22. 22Quarterly performance can be affected by the timing of government product inspections and approvals
23. 23We incurred substantial debt in order to complete the Dodge acquisition, which could constrain our business and exposes us to the risk of defaults under our debt instruments
24. 24Our ability to make scheduled payments on and to refinance our indebtedness depends on and is subject to our financial and operating performance and no assurance can be given that our business will generate sufficient cash flow to service our debt
25. 25Increases in interest rates would increase the cost of servicing our term loan and could reduce our profitability
26. 26Provisions in our charter documents may prevent or hinder efforts to acquire a controlling interest in us
27. 27Pursuant to our charter documents, our Board of Directors (the “Board”) consists of nine members serving staggered three-year terms and divided into three classes. As a result, two annual meetings are required to change a majority of the Board members
28. 28We do not expect to pay cash dividends on our common stock in the foreseeable future