Unifirst (UNF) risk factors, FY2024 10-K

Other

1. 01SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

RISKS RELATING TO OUR BUSINESS AND OPERATIONS

1. 02We face intense competition within our industry, which may adversely affect our results of operations and financial condition
2. 03Adverse economic and business conditions or geopolitical events may affect our business and our customer base and have a material adverse impact on our sales and operating results
3. 04Increases in inflation rates, could have a material adverse impact on our revenues and operating margins. In addition, if our costs increase and we are not able to pass along these price increases to our customers, our results of operations would be adversely affected, and the adverse impact may be material
4. 05Our failure to implement successfully our acquisition strategy and to grow our business could adversely affect our ability to increase our revenues and could negatively impact our profitability
5. 06If we are unable to preserve positive labor relationships or become the target of corporate labor unionization campaigns, the resulting labor unrest could disrupt our business by impairing our ability to produce and deliver our products
6. 07We may incur unexpected cost increases due to rising healthcare costs, the Affordable Care Act and other labor costs
7. 08Our failure to retain our current customers, renew our existing customer contracts and enter into customer contracts with new customers could adversely affect our business, results of operations and financial condition
8. 09Periods of high fuel and energy costs and increases in fuel and energy costs could materially adversely affect our operating costs
9. 10As a result of our significant presence in energy producing regions, a prolonged drop in energy prices could negatively impact our financial results
10. 11Fluctuations in the nuclear portion of our Specialty Garments segment, including the loss of key customers or a significant reduction in our business derived from key customers, could disproportionately impact our revenue and net income and create volatility in the price of our Common Stock
11. 12Our international business results are influenced by currency fluctuations and other risks that could have an adverse effect on our results of operations and financial condition
12. 13Our failure to properly and efficiently design, construct, implement and operate a new ERP system could materially disrupt our operations, adversely impact the servicing of our customers and have a material adverse effect on our financial performance
13. 14If our information technology systems suffer interruptions or failures, including as a result of cyber-attacks, our business operations could be disrupted or other material adverse impacts on our business could result
14. 15comply with such laws or regulations, we may be subject to litigation, monetary damages, enforcement actions or fines in one or more jurisdictions, which could have an adverse effect on our business
15. 16Our business may be subject to seasonal and quarterly fluctuations
16. 17Loss of our key management or other personnel and our inability to hire qualified personnel could adversely impact our business
17. 18We depend on third parties to supply us with raw materials and facility services products and our results of operations could be adversely affected if we are unable to obtain adequate raw materials in a timely and economic manner, or at all, or if our supply chain is otherwise disrupted
18. 19Unexpected events could disrupt our operations and have a material adverse impact on our operating results
19. 20Our business could be adversely impacted if we have deficiencies in our disclosure controls and procedures or internal control over financial reporting, including as a result of the material weaknesses identified by management and discussed above

LEGAL AND REGULATORY RISKS

1. 21The expenses we may incur to comply with environmental regulations, including costs associated with potential environmental remediation, may prove to be significant and could have a material adverse effect on our results of operations and financial condition
2. 22We continue to address environmental conditions under terms of consent orders negotiated with the applicable environmental authorities or otherwise with respect to sites located in or related to certain sites
3. 23In addition to contingencies and claims relating to environmental compliance matters, we may from time to time be subject to legal or regulatory proceedings and claims related to our business operations which may have a material adverse effect on our financial condition and operating results
4. 24Failure to comply with state, federal, international and other laws, rules and regulations to which we are subject may result in penalties or costs that could have a material adverse effect on our business
5. 25Changes in or new interpretations of the governmental regulatory framework may affect our contract terms and may reduce our sales or profits
6. 26Adverse global financial and economic conditions may result in impairment of our goodwill and intangibles
7. 27The price of our Common Stock may be highly volatile, which could result in significant price declines
8. 28If we are unable to accurately predict our future tax liabilities or become subject to increased levels of taxation or our tax contingencies are unfavorably resolved, our results of operations and financial condition could be materially adversely affected
9. 29We are controlled by our principal shareholders, and our other shareholders may be unable to affect the outcome of shareholder voting