WillScot Holdings (WSC) risk factors, FY2024 10-K

Risks Relating to Our Business

1. 01US Government Contract Laws and Regulations
2. 02Department of Transportation and Titling Regulations
3. 03Anti-Corruption Laws and Regulations
4. 04Environmental Laws and Regulations
5. 05Actions of activist shareholders could negatively affect our business
6. 06We may be unable to successfully acquire and integrate new operations, which could cause our business to suffer
7. 07Global or local economic movements could have a material adverse effect on our business
8. 08Any failure of our management information systems could disrupt our business operations, which could result in decreased lease or sale revenue and increase overhead costs
9. 09Moreover, the integration of any acquisition may create unforeseen challenges for our management information systems, which could result in unforeseen expenditures and other risks, including difficulties in managing facilities and employees in different geographic areas or those operating other product lines
10. 10Trade policies and changes in trade policies, including the imposition of or increases in tariffs, their enforcement, downstream consequences, including any resulting changes in international trade relations, may materially adversely affect our business, results of operations, and outlook
11. 11If we do not manage our credit risk effectively, collect on our accounts receivable, or recover our rental equipment from our customers, it could materially adversely affect our business, financial condition and results of operations
12. 12Fluctuations in interest rates and commodity prices may also materially adversely affect our revenues, results of operations and cash flows
13. 13We are subject to risks associated with labor relations, labor costs and labor disruptions
14. 14Anticipated changes in immigration laws and regulations could decrease the pool of candidates with legal work authorization, cause disruption in the workforce for all companies, and increase the costs, time, and requirements to hire new employees
15. 15Our customer base includes customers operating in a variety of industries which may be subject to changes in their competitive environment as a result of the global, national or local economic climate in which they operate and/or economic or financial disruptions to their industry
16. 16We may not be able to adequately protect our intellectual property and other proprietary rights that are material to our business
17. 17Our operations could be subject to natural disasters and other business disruptions, which could materially adversely affect our information systems, future revenue, financial condition, cash flows, and increase our costs and expenses
18. 18Our operations are dependent, in part, on our ability to establish and profitably maintain the appropriate physical presence in the markets we serve
19. 19We may incur property, casualty or other losses not covered by our insurance
20. 20Failure to close our unit sales transactions as we project could cause our actual revenue or cash flow for a particular fiscal period to differ from expectations
21. 21If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results, which could lead to a loss of investor confidence in our financial statements and have an adverse effect on our stock price
22. 22We are subject to evolving public disclosure, financial reporting, internal controls, and corporate governance expectations and regulations that impact compliance costs and risks of noncompliance
23. 23We may be unable to achieve our environmental, social and governance goals
24. 24Our operations are exposed to operational, economic, political, and regulatory risks
25. 25Effective management of our fleet is vital to our business, and our failure to properly safeguard, design, manufacture, repair, maintain and manage our fleet could harm our business and reduce our operating results and cash flows
26. 26Changes in state building codes could adversely impact our ability to remarket our buildings, which could have a material adverse impact on our business, financial condition and results of operations
27. 27Our operations face foreign currency exchange rate exposure, which may materially adversely affect our business, results of operations and financial condition
28. 28Significant increases in the costs and restrictions on the availability of raw materials and labor could increase our operating costs significantly and harm our profitability
29. 29Fluctuations in fuel costs or a reduction in fuel supplies may have a material adverse effect on our business and results of operations
30. 30Third parties may fail to manufacture or provide necessary components for our products properly or in a timely manner
31. 31If we determine that our goodwill, intangible assets, and indefinite-life intangible assets have become impaired, we may incur impairment charges, which may adversely impact our operating results

Risks Relating to Income Tax

1. 32Our ability to use our net operating loss carryforwards and other tax attributes may be limited
2. 33We may be unable to recognize deferred tax assets such as those related to our tax loss carryforwards and, as a result, lose future tax savings, which could have a negative impact on our liquidity and financial position
3. 34Unanticipated changes in our tax obligations, the adoption of a new tax legislation, or exposure to additional income tax liabilities could affect profitability

Risks Relating to Our Capital Structure

1. 35Global capital and credit market conditions could materially and adversely affect our ability to access the capital and credit markets or the ability of key counterparties to perform their obligations to us
2. 36Our leverage may make it difficult for us to service our debt and operate our business
3. 37Despite our current level of indebtedness, we and our subsidiaries will still be able to incur significant additional amounts of debt, which could further exacerbate the risks associated with our substantial indebtedness
4. 38We are subject to and may, in the future become subject to, covenants that limit our operating and financial flexibility and, if we default under our debt covenants, we may not be able to meet our payment obligations
5. 39The historical market price of WillScot’s Common Stock has been volatile and the market price of our Common Stock may continue to be volatile and the value of your investment may decline