FORWARD LOOKING AND CAUTIONARY STATEMENTS Some of the statements and information contained in this Quarterly Report on Form 10-Q may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements regarding the Company's financial position, business strategy and plans and objectives of the Company's management for future operations and other statements that are not historical facts, are forward-looking statements. Forward-looking statements are often characterized by the use of words such as "outlook," "may," "will," "can," "shall," "should," "could," "expects," "plans," "anticipates," "contemplates," "proposes," "believes," "estimates," "predicts," "projects," "potential," "continue," "intend," or the negative of such terms and other comparable terminology, or by discussions of strategy, plans or intentions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other important factors that could cause the actual results, performance or our achievements, or industry results, to differ materially from historical results, any future results, or performance or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to the impacts of the COVID-19 pandemic on our business, financial results and financial condition and that of our customers, suppliers, and other counterparties; general economic and financial conditions domestically and internationally; insufficient cash flows from operating activities; our ability to attract and retain key employees; feedstock and product prices; feedstock availability and our ability to access third party transportation; competition; industry cycles; natural disasters or other severe weather events (including theTexas freeze event), health epidemics and pandemics (including the COVID-19 pandemic) and terrorist attacks; our ability to consummate extraordinary transactions, including acquisitions and dispositions, and realize the financial and strategic goals of such transactions; technological developments and our ability to maintain, expand and upgrade our facilities; regulatory changes; environmental matters; lawsuits; outstanding debt and other financial and legal obligations (including having to return the amounts borrowed under the PPP Loans or failing to qualify for forgiveness of such loans, in whole or in part); difficulties in obtaining additional financing on favorable conditions, or at all; local business risks in foreign countries, including civil unrest and military or political conflict, local regulatory and legal environments and foreign currency fluctuations; and other risks detailed in our latest Annual Report on Form 10-K, including, but not limited to, "Part I, Item 1A. Risk Factors" and "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" therein, under similar headings in this Quarterly Report on Form 10-Q and in our other filings with theSecurities and Exchange Commission (the "SEC"). Many of these risks and uncertainties are currently amplified by and will continue to be amplified by, or in the future may be amplified by, the COVID-19 pandemic and other natural disasters such as severe weather events (including theTexas freeze event). There may be other factors of which we are currently unaware or deem immaterial that may cause our actual results to differ materially from the forward-looking statements. In addition, to the extent any inconsistency or conflict exists between the information included in this report and the information included in our prior releases, reports and other filings with theSEC , the information contained in this report updates and supersedes such information. Forward-looking statements are based on current plans, estimates, assumptions and projections, and, therefore, you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events. Overview The following discussion and analysis of our financial results, as well as the accompanying unaudited condensed consolidated financial statements and related notes to consolidated financial statements to which they refer, are the responsibility of our management. Our accounting and financial reporting fairly reflect our business model which is based on the manufacturing and marketing of specialty petrochemical products and waxes and providing custom manufacturing services. The discussion and analysis of financial condition and the results of operations which appears below should be read in conjunction with "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year endedDecember 31, 2020 . These discussions of results reflect the continuing operations of the Company unless otherwise noted. Our preferred supplier position into the specialty petrochemicals market is derived from the combination of our reputation as a reliable supplier established over many years, the very high purity of our products, and a focused approach to customer service. In specialty waxes, we are able to deliver to our customers a product performance and price point that is unique to our market; while the diversity of our custom processing assets and capabilities offers solutions to our customers that we believe are uncommon along theU.S. Gulf Coast . Table of Contents 18
-------------------------------------------------------------------------------- Enabling our success in these businesses is a commitment to operational excellence which establishes a culture that prioritizes the safety of our employees and communities in which we operate, the integrity of our assets and regulatory compliance. This commitment drives a change to an emphasis on forward-looking, leading-indicators of our results and proactive steps to continuously improve our performance. We bring the same commitment to excellence to our commercial activities where we focus on the value proposition to our customers while understanding opportunities to maximize our value capture through service and product differentiation, supply chain and operating cost efficiencies and diversified supply options. We believe our focus on execution, meeting the needs of our customers, and growing our business while maintaining prudent control of our costs, will significantly contribute to enhanced shareholder value. Review of First Quarter 2021 Results We reported first quarter 2021 net loss from continuing operations of$4.4 million , down from net income from continuing operations of$5.9 million in the first quarter of 2020. DuringFebruary 2021 , a prolonged duration of sub-freezing temperatures and snow resulted in widespread utilities failures and rolling blackouts across theState of Texas and the region. This caused significant disruptions for our suppliers, customers and our own facilities. TheTexas freeze event ultimately resulted in higher utility, repair and maintenance costs, as well as loss of sales at both facilities. Cost impacts of theTexas freeze event are estimated to be approximately$1.9 million across the Company, in addition to capital expenditures related to restoration of approximately$1.7 million . Sales volume of our Specialty Petrochemicals products decreased 12.9% in the first quarter of 2021 as compared to the first quarter of 2020. In addition, sales of Specialty Petrochemicals were also generally weaker compared to the same period last year due to the COVID-19 pandemic. Specialty Waxes sales revenue was up 1.6% compared to the first quarter 2020 due to wax feed supply interruptions in the first quarter of 2020. Adjusted EBITDA from continuing operations was$(0.5) million for the first quarter of 2021, compared with Adjusted EBITDA from continuing operations of$5.5 million in the first quarter of 2020. Adjusted EBITDA from continuing operations decreased due to factors associated with theTexas freeze event in first quarter 2021, as noted above, which increased costs for the Company and our suppliers and also reduced demand for our products through its impact on our customers and their facilities. The Company estimates the impact of theTexas freeze event on Adjusted EBITDA in the first quarter of 2021 to be between$4.5 million and$5.0 million . Adjusted EBITDA from continuing operations is a non-GAAP financial measure. See below for additional information about this measure and a reconciliation to the most directly comparable GAAP financial measure. COVID-19 Pandemic The continued global impact of COVID-19 has resulted in various emergency measures to curb the spread of the virus. We continue to monitor the progression of the COVID-19 pandemic on a daily basis. Our guiding principle is, and has always been, the protection of our people and the communities in which we work, as well as maintaining the overall integrity of our assets. While our essential plant personnel remain on-site, many of our other employees continue to work remotely and socially distanced when in our offices. We are continuing to follow the orders and guidance of federal, state, and local governmental agencies, as we maintain our own stringent protocols in an effort to mitigate the spread of the virus and protect the health of our employees, customers, and suppliers as well as the communities in which we work. As an organization, we adopted social distancing behaviors early, executed the necessary changes to enable all possible job duties to be performed remotely and rapidly identified and executed the necessary adjustments to support optimal productivity for all remote workers. To date, our plants have continued to operate as normal with regard to COVID-19, and our supply chain has generally remained intact, with adequate availability of raw materials. Importantly, under theU.S. Department of Homeland Security guidance issued onApril 17, 2020 as updated throughAugust 18, 2020 , as well as many related state and local governmental orders, chemical manufacturing sites are considered essential critical infrastructure, and as such, are not currently subject to closure in the locations where we operate. Although there has been some disruption in global logistics channels, we have not experienced significant delays in fulfillment of customer orders. The COVID-19 pandemic continues to have an impact on our business, results of operations, financial position and liquidity for the first quarter of 2021. In comparison to the same period in 2020, in the first quarter we continued to see reduced demand for our products and services which we attribute to the economic slowdown caused by the COVID-19 pandemic as well as to theTexas freeze event in February. This weakened demand may continue throughout 2021, and could spread more broadly to our other end markets. Our management will continue to actively monitor the impact of the global pandemic on our business, results of operations, financial condition, liquidity, suppliers, industry, investments, and workforce. We do not currently anticipate any material impairments, with respect to intangible assets, long-lived assets, or right of use assets, increases in allowances for credit Table of Contents 19 -------------------------------------------------------------------------------- losses from our customers, restructuring charges, other expenses, or changes in accounting judgments to have a material impact on our condensed consolidated financial statements. OnMarch 27, 2020 , the CARES Act was signed into law to address the economic impact of the COVID-19 pandemic. OnDecember 27, 2020 , the Consolidated Appropriations Act, 2021 was signed into law and includes further relief and stimulus provisions to address economic concerns related to the COVID-19 pandemic. OnMarch 11, 2021 , the American Rescue Plan Act of 2021 was signed into law and provides further economic relief and stimulus to deal with the economic impact of the COVID-19 pandemic. We continue to monitor any effects that may result from these Acts and other similar legislation or actions on our Company. Non-GAAP Financial Measures We include in this Quarterly Report on Form 10-Q the non-GAAP financial measures of EBITDA from continuing operations and Adjusted EBITDA from continuing operations and provide reconciliations from our most directly comparable GAAP financial measures to those measures. We believe these financial measures provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We also believe that such non-GAAP measures, when read in conjunction with our operating results presented under GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. These measures are not measures of financial performance or liquidity under GAAP and should be considered in addition to, and not as a substitute for, analysis of our results under GAAP. We define EBITDA from continuing operations as net income (loss) from continuing operations plus interest expense, income tax expense (benefit), depreciation and amortization. We define Adjusted EBITDA from continuing operations as EBITDA from continuing operations plus share-based compensation, plus restructuring and severance expenses, plus impairment losses and plus or minus gains or losses on disposal of assets. The following table presents a reconciliation of net income (loss), our most directly comparable GAAP financial performance measure for each of the periods presented, to EBITDA from continuing operations and Adjusted EBITDA from continuing operations. Three Months Ended March 31, 2021 Specialty Petrochemicals Specialty Waxes Corporate Consolidated (in thousands) Net income (loss) $ 205 $
(1,954)
- - - - Income (loss) from continuing operations $ 205 $ (1,954)$ (2,655) $ (4,404) Interest expense 302 - - 302 Income tax benefit (486) - (515) (1,001) Depreciation and amortization 200 23 3 226 Depreciation and amortization in cost of sales 2,602 1,452 - 4,054 EBITDA from continuing operations $ 2,823 $ (479)$ (3,167) $ (823) Stock-based compensation - - 571 571 Gain on disposal of assets (254) - - (254) Adjusted EBITDA from continuing operations $ 2,569 $ (479)$ (2,596) $ (506) Table of Contents 20
--------------------------------------------------------------------------------
Three Months Ended March 31, 2020 Specialty Petrochemicals Specialty Waxes Corporate Consolidated (in thousands) Net income $ 4,596 $ 1,214$ 4,910 $ 10,720 Income from discontinued operations, net of tax - - 4,857 4,857 Income from continuing operations $ 4,596 $ 1,214$ 53 $ 5,863 Interest expense 915 - 1 916 Income tax benefit (1,654) (1,456) (2,543) (5,653) Depreciation and amortization 186 24 6 216 Depreciation and amortization in cost of sales 2,431 1,305 - 3,736
EBITDA from continuing operations $ 6,474 $ 1,087
- - 390 390 (Gain) loss on disposal of assets (1) 17 - 16 Adjusted EBITDA from continuing operations $ 6,473 $
1,104
Liquidity and Capital Resources Working Capital Our approximate working capital days are summarized as follows: March 31, 2021 December 31, 2020 March 31, 2020 Days sales outstanding in accounts receivable 42.8 40.0 41.6 Days sales outstanding in inventory 19.4 20.5 12.3 Days sales outstanding in accounts payable 27.3 22.9 14.8 Days of working capital 34.8 37.7 39.1 Our days sales outstanding in accounts receivable atMarch 31, 2021 was 42.8 days compared to 40 days atDecember 31, 2020 . The increase was driven by higher selling prices during the first quarter of 2021. Our days sales outstanding in inventory decreased by approximately 1.1 days fromDecember 31, 2020 , driven primarily by lower production and the need to meet customer demands utilizing existing inventory. Our days sales outstanding in accounts payable increased primarily due to significant payables to our utilities suppliers driven by sharply higher rates for utilities inFebruary 2021 due to theTexas freeze event. Since days of working capital is calculated using the above three metrics, it decreased for the aforementioned reasons discussed. Our cash balance atMarch 31, 2021 was$53.0 million . The change in cash is summarized as follows: Three Months Ended March 31, 2021 2020 Net cash provided by (used in) (thousands of dollars) Operating activities$ 3,831 $ 4,301 Investing activities (4,500) 8,098 Financing activities (1,969) 18,906 Increase (decrease) in cash$ (2,638) $ 31,305 Cash$ 53,026 $ 37,450 Table of Contents 21
-------------------------------------------------------------------------------- Operating Activities Cash provided by operating activities totaled$3.8 million for the first three months of 2021,$0.5 million lower than the corresponding period in 2020. For the first three months of 2021, net income decreased by approximately$15.1 million as compared to the corresponding period in 2020. Major non-cash items affecting income in the first three months of 2021 included changes in depreciation and amortization of$4.3 million , deferred taxes of$(0.9) million , and stock-based compensation of$0.6 million . Major non-cash items affecting income in the first three months of 2020 included changes in depreciation and amortization of$4.0 million , deferred taxes of$10.4 million and stock-based compensation of$0.4 million . Additional factors leading to the decrease in cash provided by operating activities included: •Trade receivables increased approximately$0.6 million , primarily due to increases in selling prices. We do not expect any collection issues at this time. •Inventories decreased approximately$1.2 million driven by planned reduction of inventory due to the successful turnaround at SHR combined with maintenance of customer demand through existing inventory during theTexas freeze event. •Prepaid and other assets decreased$2.8 million primarily related to the payment of our foreign tax liability and amortization of our prepaid insurance for the quarter. •Accounts payable and accrued liabilities increased$1.3 million primarily due to significant payables to our utilities suppliers driven by sharply higher rates for utilities inFebruary 2021 due to theTexas freeze event. Investing Activities Cash used in investing activities during the first three months of 2021 was approximately$4.5 million , representing a decrease of approximately$12.6 million from the corresponding period of 2020. The primary outflow of the funds used in investing activities was additions and the rebuild and restoration of property, plant and equipment of approximately$4.8 million offset by proceeds from the sale of assets. Financing Activities Cash used in financing activities during the first three months of 2021 was approximately$2.0 million versus cash provided by financing activities of$18.9 million during the corresponding period of 2020. In the first quarter of 2021, we made a mandatory payment of$1.1 million on our Term Loan Facility and repurchased shares of our common stock under our Share Repurchase Program. During the first three months of 2020, we borrowed$20.0 million under the Revolving Facility for working capital purposes, offset by a mandatory payment on our Term Loan Facility. Anticipated Cash Needs As ofMarch 31, 2021 , we have approximately$53.0 million in cash, combined with an available balance on our Revolving Facility of approximately$53 million . As a result, we believe the Company is able to support its operating requirements and capital expenditures through internally generated funds supplemented with cash on our balance sheet and availability under our ARC Agreement. Results of Operations Comparison of Three Months EndedMarch 31, 2021 and 2020 Table of Contents 22 --------------------------------------------------------------------------------
Specialty Petrochemicals Segment
Three Months Ended March 31, 2021 2020 Change % Change (thousands of dollars) Product Sales$ 44,658 $ 50,386 $ (5,728) (11.4) % Processing 1,254 1,244 10 0.8 % Gross Revenue$ 45,912 $ 51,630 $ (5,718) (11.1) % Volume of Sales (gallons) Specialty Petrochemicals Products 17,201 19,741 (2,540) (12.9) % Prime Product Sales 14,675 16,218 (1,543) (9.5) % By-product Sales 2,526 3,523 (997) (28.3) % Cost of Sales$ 42,869 $ 44,796 (1,927) (4.3) % Gross Margin 6.6 % 13.2 % (6.6) % Total Operating Expense* 20,357 16,740 3,617 21.6 % Natural Gas Expense* 2,976 927 2,049 221.0 % Operating Labor Costs* 3,348 4,005 (657) (16.4) % Transportation Costs* 4,606 4,887 (281) (5.7) % General & Administrative Expense 3,074 2,776 298 10.7 % Depreciation and Amortization** 2,802 2,617 185 7.1 % Capital Expenditures 3,567 1,601 1,966 122.8 % * Included in cost of sales **Includes$2,602 and$2,431 for 2021 and 2020, respectively, which is included in operating expense Gross Revenue Gross Revenue for our Specialty Petrochemicals segment decreased for the first quarter 2021 compared to the first quarter 2020 by 11.1%, primarily due to lower sales volumes for prime products and by-products which were impacted by theTexas freeze event inFebruary 2021 as well as continued impact of the COVID-19 pandemic. Product Sales Specialty Petrochemicals segment product sales declined approximately 11.4% for the first quarter 2021 compared to the first quarter 2020. Prime products sales volume declined approximately 1.5 million gallons, or 9.5%, from the first quarter 2020 due to theTexas freeze event which resulted in widespread utilities failures and rolling blackouts across the state and region. This caused significant disruptions for our suppliers, customers and our own facilities. In addition, sales were also generally weaker compared to the same period last year due to the continued impact of the COVID-19 pandemic. By-product sales volumes in first quarter 2021 declined 28.3% compared to the first quarter 2020. By-products are produced as a result of prime product production and their margins are significantly lower than margins for our prime products. Foreign sales volume decreased to 17.8% of total Specialty Petrochemicals volume in the first quarter for 2021 compared to 22.8% in the first quarter 2020. Foreign sales volume includes sales to Canadian oil sands customers. Processing Processing revenues were$1.3 million in the first quarter 2021 compared to$1.2 million for the first quarter 2020. Cost of Sales (includes but is not limited to raw materials and total operating expense) We use natural gasoline as feedstock, which is the heavier liquid remaining after ethane, propane and butanes are removed from liquids produced by natural gas wells. The material is a commodity product in the oil/petrochemical markets and generally is readily available. The price of natural gasoline is highly correlated with the price of crude oil. Our Advanced Reformer unit upgrades the by-product stream produced as a result of prime product production. This upgrade allows us to sell our by-products at higher prices than would be possible without the Advanced Reformer unit. Cost of sales declined by 4.3% for the first quarter 2021 compared to the first quarter 2020. The decline in cost of sales compared to the same period last year was driven by depressed sales volumes, offset by higher natural gas costs associated Table of Contents 23
-------------------------------------------------------------------------------- with theTexas freeze event. BenchmarkMont Belvieu natural gasoline feedstock price increased by 42% from$0.93 per gallon in first quarter 2020 to$1.33 per gallon in the first quarter 2021. Despite the increase in feedstock costs, our margins for prime products were relatively flat in the first quarter of 2021 compared to first quarter of 2020. By-product margins were higher compared to the first quarter of 2020. This was primarily due to higher component prices. The gross margin percentage for the Specialty Petrochemicals segment decreased from 13.2% for the first quarter of 2020 to 6.6% in the first quarter of 2021, primarily because of increased operating costs. Total Operating Expense (includes but is not limited to natural gas, operating labor, depreciation and transportation) Total Operating Expense increased$3.6 million , or 21.6%, for the first quarter 2021 compared to the same period in 2020, primarily due to higher natural gas costs and repair and maintenance costs associated with theTexas freeze event. Capital expenditures primarily relate to restoration costs associated with freezing weather inFebruary 2021 . Capital Expenditures Capital expenditures in the first quarter 2021 were approximately$3.6 million compared to$1.6 million in the first quarter of 2020. First quarter 2021 capital expenditures included approximately$0.8 million for rebuild and repair of a distillation tower, approximately$0.6 million for restoration costs associated with the damage to pipes and other plant equipment due to theTexas freeze event and approximately$0.8 million of continued work on the GSPL pipe line. Specialty Waxes Segment
Three Months Ended
2021 2020 Change % Change (thousands of dollars) Product Sales$ 6,907 $ 6,797 $ 110 1.6 % Processing 1,766 3,640 (1,874) (51.5) % Gross Revenue$ 8,673 $ 10,437 $ (1,764) (16.9) % Volume of specialty wax sales (thousand pounds) 8,826 10,174 (1,348) (13.2) % Cost of Sales$ 9,321 $ 9,193 $ 128 1.4 % Gross Margin (Loss) (7.5) % 11.9 % (19.4) % General & Administrative Expense 1,235 1,483 (248) (16.7) % Depreciation and Amortization* 1,476 1,328 148 11.1 % Capital Expenditures$ 1,214 $ 316 $ 898 284.2 % *Includes$1,452 and$1,524 for 2021 and 2020, respectively, which is included in cost of sales Product Sales Product sales revenue for the Specialty Waxes segment increased by 1.6% for the first quarter of 2021 compared to the first quarter of 2020 due to higher selling prices. Specialty wax sales volume decreased nearly 1.3 million pounds in the first quarter of 2021 compared to the first quarter of 2020. Despite utilizing existing inventories, wax sales volumes in the first quarter of 2021 were depressed due to extended disruptions to feed supply and production limitations at ourPasadena facility resulting from theTexas freeze event. Our wax feed is based on certain by-products produced as a result of polyethylene production at major polyethylene producers' facilities on theUS Gulf Coast . Processing Processing revenues were$1.8 million for the first quarter 2021, a$1.9 million decrease compared to the first quarter 2020, driven by lower demand resulting from theTexas freeze event inFebruary 2021 and the resulting impacts on our customers. Cost of sales Cost of sales increased by 1.4%, or approximately$0.1 million , in the first quarter 2021 compared to the first quarter 2020. A reduction in force was completed in the first quarter of 2021 to improve the overall cost structure for the Specialty Waxes segment. Table of Contents 24
--------------------------------------------------------------------------------
Depreciation
Depreciation for the first quarter 2021 was$1.5 million , a$0.1 million increase compared to the first quarter of 2020. Capital Expenditures Capital Expenditures were approximately$1.2 million in the first quarter 2021 compared to$0.3 million in the first quarter of 2020. Capital expenditures primarily relate to restoration costs associated with the damage to pipes and other plant equipment due to theTexas freeze event inFebruary 2021 . Corporate Segment Three Months Ended March 31, 2021 2020 Change % Change (thousands of dollars) General & Administrative Expense$ 3,023 $ 2,415
Corporate expenses increased$0.6 million in the first quarter of 2021 compared to the first quarter of 2020 primarily due to increases in consulting and insurance costs. Investment in AMAK - Discontinued Operations Three Months Ended March 31, 2021 2020 Change % Change (thousands of dollars) Equity in earnings (losses) of AMAK $ - $
(532)
Equity in earnings (losses) of AMAK include amortization of the difference between the Company's investment in AMAK and the Company's share of net assets of AMAK. We completed the sale of our ownership interest in AMAK during the third quarter of 2020. See Note 5 for additional discussion. Contractual Obligations Our contractual obligations are summarized in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our Annual Report on Form 10-K for the year endedDecember 31, 2020 . There have been no other material changes to the contractual obligation amounts disclosed in our Annual Report on Form 10-K for the year endedDecember 31, 2020 . Critical Accounting Policies and Estimates Critical accounting policies are more fully described in Note 2, "RECENT ACCOUNTING PRONOUNCEMENTS" to the consolidated financial statements set forth in our Annual Report on Form 10-K for the year endedDecember 31, 2020 . The preparation of consolidated financial statements in accordance with generally accepted accounting principles requires management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the period reported. By their nature, these estimates, assumptions and judgments are subject to an inherent degree of uncertainty. We base our estimates, assumptions and judgments on historical experience, market trends and other factors that are believed to be reasonable under the circumstances. Estimates, assumptions and judgments are reviewed on an ongoing basis and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Actual results may differ from these estimates under different assumptions or conditions. Our critical accounting policies and estimates have been discussed with the Audit Committee of the Board of Directors and discussed in our Annual Report on Form 10-K for the year endedDecember 31, 2020 . For the three months endedMarch 31, 2021 , there were no significant changes to these policies. Recent and New Accounting Standards See Note 2 for a summary of recent accounting guidance. Table of Contents 25
--------------------------------------------------------------------------------
Off Balance Sheet Arrangements As ofMarch 31, 2021 , we do not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on our financial statements, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
© Edgar Online, source