Waste Connections (WCN) risk factors, FY2024 10-K

Other

1. 01Risk Factors Related to Our Company and Industry
2. 02Our industry is highly competitive and includes companies with lower prices, return expectations or other advantages, and governmental service providers, which could adversely affect our ability to compete and our operating results
3. 03Price increases may not be adequate to offset the impact of increased costs, or may cause us to lose customers
4. 04We seek to grow through strategic acquisitions in addition to internal growth. Although we have and expect to continue to identify numerous acquisition candidates that we believe may be suitable, we may not be able to acquire them at prices or on terms and conditions favorable to us
5. 05We may lose contracts through competitive bidding, early termination or governmental action
6. 06Our financial and operating performance may be affected by restrictions associated with renewals or the inability to renew landfill operating permits, obtain new landfills and expand existing ones
7. 07Increases in labor costs and limitations on labor availability could impact our financial results
8. 08Increases in capital expenditures and the timing of receipt of fleet and equipment could impact our financial results
9. 09Our accruals for our landfill site closure and post-closure costs may be inadequate
10. 10The level of exploration, development and production activity of E&P companies will impact the demand for our E&P waste services
11. 11A portion of our growth and future financial performance depends on our ability to integrate acquired businesses, and the performance of our acquisitions
12. 12Our results will be affected by changes in recycled commodity prices and quantities
13. 13Our results will be affected by changes in the value of renewable fuels and quantities of gas generated and beneficially reused
14. 14Increases in risk management costs and the amount that we self-insure for various risks or limitations of our insurance coverage could reduce our operating margins and reported earnings
15. 15Our business is subject to operational and safety risks, including the risk of personal injury to employees and others
16. 16The seasonal nature of our business and “event-driven” waste projects cause our results to fluctuate
17. 17Climate change, including adverse weather and the adoption of climate change legislation or regulations restricting emissions of greenhouse gases, could adversely affect our operations and increase operating costs
18. 18Increases in the price of diesel or compressed natural gas, or CNG, fuel may adversely affect our collection business and reduce our operating margins
19. 19Our financial results could be adversely affected by impairments of goodwill, indefinite-lived intangibles or property and equipment
20. 20Our indebtedness could adversely affect our financial condition and limit our financial flexibility
21. 21We may be unable to obtain performance or surety bonds, letters of credit or other financial assurances or to maintain adequate insurance coverage
22. 22Alternatives to landfill disposal may cause our revenues and operating results to decline
23. 23Labor union activity could divert management attention and adversely affect our operating results
24. 24We could face significant withdrawal liability if we withdraw from participation in one or more multiemployer pension plans in which we participate and the accrued pension benefits are not fully funded
25. 25We have established long-term, aspirational targets associated with sustainability and ESG-related investments and projects which may or may not be achieved
26. 26We depend significantly on the services of the members of our senior and regional management team, and the departure of any of those persons could cause our operating results to suffer
27. 27Our decentralized decision-making structure could allow local managers to make decisions that may adversely affect our operating results
28. 28Our business and results of operations may be adversely affected by changes in national or global economic conditions, including higher inflation rates, changes in global trade policies and economic slowdowns
29. 29Our financial results are based upon estimates and assumptions that may differ from actual results
30. 30Uncertainties in the interpretation and application of existing, new and proposed U.S., Canadian and foreign tax laws could materially adversely affect us
31. 31Our operations in Canada expose us to exchange rate fluctuations that could adversely affect our financial performance and our reported results of operations
32. 32Public health crises and the effects of related governmental initiatives could adversely affect our business, financial condition and results of operations

Technology and Information Security Risks

1. 33We are increasingly dependent on technology, including through the use of Artificial Intelligence (AI), in our operations and a failure of our technology could impact our ability to service our customers and adversely affect our financial results, damage our reputation, and expose us to litigation risk
2. 34If we are not able to develop and protect intellectual property, or if a competitor develops or obtains exclusive rights to a breakthrough technology, our financial results may suffer

Legal, Regulatory and Compliance Risks

1. 35Extensive and evolving environmental, health and safety laws and regulations may restrict our operations and growth and increase our costs
2. 36We may be subject in the normal course of business to judicial, administrative or other third-party proceedings that could interrupt or limit our operations, require expensive remediation, result in adverse judgments, settlements or fines and create negative publicity
3. 37Pending or future litigation or governmental proceedings could result in material adverse consequences, including judgments or settlements
4. 38Extensive regulations that govern the design, operation, expansion and closure of landfills may restrict our landfill operations or increase our costs of operating landfills
5. 39Liabilities for environmental damage may adversely affect our financial condition, business and earnings