Risk Factors Update Summary

• The company incurred substantial expenses related to the merger and integration activities, totaling $300 million. These expenses are expected to continue.
• The company reduced its financing agreement from $300 million to $150 million, reflecting a significant change in its financial structure.
• The company entered into a Second Amended and Restated Credit Agreement, providing for a $100 million senior secured term loan and a $25 million senior secured delayed draw term loan facility.
• The company's senior secured term loan was fully funded on November 6, 2023, with $125 million borrowed under the revolving credit facility.
• The company identified a material weakness in its internal control over financial reporting related to business combinations and goodwill, which could adversely affect its stock price.
• The company's net sales outside the U.S. were impacted by fluctuations in foreign exchange rates, resulting in a favorable impact of $2 million.
• The company's financial covenants require a total net leverage ratio of not more than 3.5 to 1.0, which can increase to 4.0 for up to 4 fiscal quarters following a material acquisition.