You should refer to Part I, Item 1A of our Annual Report (Form 10-K) for the year ended December 31, 2024, under the caption “Risk Factors” for specific details on the following factors and events that are not within our control and could affect our financial results.
Risks Related to Our Industry
| ● | Our business can be significantly impacted by economic conditions, customer business cycles, government policies, and seasonal factors. |
| ● | Extreme or unusual weather conditions can disrupt our operations, impact freight volumes, and increase our costs, all of which could have a material adverse effect on our business results. |
| ● | Our operations are subject to various environmental laws and regulations, including legislative and regulatory responses to climate change. Compliance with environmental requirements could result in significant expenditures and the violation of these regulations could result in substantial fines or penalties. |
| ● | We depend on third parties in the operation of our business, particularly rail service providers, transportation equipment manufacturers, third party carriers and independent contractors. |
| ● | Rapid changes in fuel costs could impact our periodic financial results. |
| ● | Insurance and claims expenses could significantly reduce our earnings. |
| ● | We operate in a regulated industry, and increased direct and indirect costs of compliance with, or liability for violation of, existing or future regulations could have a material adverse effect on our business. |
| ● | Difficulty in attracting and retaining drivers and delivery personnel could affect our profitability and ability to grow. |
| ● | We operate in a competitive and highly fragmented industry. Numerous factors could impair our ability to maintain our current profitability and to compete with other carriers and private fleets. |
| ● | Our business can be significantly impacted by the effects of national or international health pandemics on general economic conditions and the operations of our customers and third-party suppliers and service providers. |
Risks Related to Our Business
| ● | We derive a significant portion of our revenue from a few major customers, the loss of one or more of which could have a material adverse effect on our business. |
| ● | A determination that independent contractors are employees could expose us to various liabilities and additional costs. |
| ● | We may be subject to litigation claims that could result in significant expenditures. |
| ● | We rely significantly on our information technology systems, a disruption, failure or security breach of which or an inability to keep pace with technological advances could have a material adverse effect on our business. |
| ● | Acquisitions or business combinations may disrupt or have a material adverse effect on our operations or earnings. |
