Company Page

Changed Risks for SIMPLY GOOD FOODS CO (SMPL)

Our only significant asset is ownership of 100% of NCP-ATK Holdings, Inc and such ownership may not be sufficient to pay dividends or make distributions or loans to enable us to pay any dividends on our common stock or satisfy our other financial obligations, including our obligations under the Tax Receivable Agreement (the “TRA”)

Our insurance may not provide adequate levels of coverage against claims

Taking advantage of the reduced disclosure requirements applicable to "emerging growth companies" may make our common stock less attractive to investors

Changes in consumer preferences, perceptions of healthy food products and discretionary spending may negatively impact our brand loyalty and net sales, and materially and adversely affect our business, financial condition and results of operations

We do not expect to declare any dividends in the foreseeable future

    

All of our products must comply with regulations of the Food and Drug Administration (“FDA”) as well as state and local regulations Any non-compliance with the FDA or other applicable regulations could harm our business

If we are unable to maintain or increase prices, our margins may decrease

Our advertising is regulated for accuracy, and if our advertising is determined to be false or misleading, we may face fines or sanctions

We have incurred and will continue to incur significantly increased costs as a result of operating as a public company, and our management has been and will continue to be required to devote substantial time to compliance efforts 

If we fail to successfully implement our growth strategies on a timely basis, or at all, our ability to increase our revenue and operating profits could be materially and adversely affected

We rely on sales to a limited number of retailers for a substantial majority of our net sales, and the loss of one or more such retailers may harm our business In addition, we maintain “at will” contracts with these retailers, which do not require recurring or minimum purchase amounts of our products

Disruptions in the worldwide economy may materially and adversely affect our business, financial condition and results of operations

We must expend resources to maintain consumer awareness of our brands, build brand loyalty and generate interest in our products Our marketing strategies and channels will evolve and our programs may or may not be successful

The loss of, a disruption in or an inability to efficiently operate our fulfillment network could materially and adversely affect our business, financial condition and results of operations

Our international operations expose us to fluctuations in exchange rates, which may materially and adversely affect our operating results

Our geographic focus makes us particularly vulnerable to economic and other events and trends in North America

Shortages or interruptions in the supply or delivery of our core ingredients, packaging and products could materially and adversely affect our operating results as we rely on a limited number of third-party suppliers to supply our core ingredients and a limited number of contract manufacturers to manufacture our products

If we do not continually enhance our brand recognition, increase distribution of our products, attract new customers to our brands and introduce new and innovative products, either on a timely basis or at all, our business may suffer

Anti-takeover provisions contained in our amended and restated certificate of incorporation and amended and restated bylaws, as well as provisions of Delaware law, could impair a takeover attempt 

If our brands or reputation are damaged, the perception of our brand by our consumers, distributors and retailers may diminish, which could materially and adversely affect our business, financial condition and results of operations

The credit facilities governing our debt arrangements contain financial and other covenants

Our indebtedness could materially and adversely affect our financial condition and ability to operate our company, and we may incur additional debt 

Our amended and restated certificate of incorporation provides that, to the extent allowed by law, the doctrine of “corporate opportunity” does not apply with respect to the directors, officers, employees or representatives of Conyers Park Sponsor, LLC ("Conyers Park Sponsor") Centerview Capital Holdings LLC (“Centerview Capital”) and Centerview Partners and their respective affiliates, excepted as provided below

If we are unable to implement appropriate systems, procedures and controls, we may not be able to successfully offer our products, grow our business and account for transactions in an appropriate and timely manner

Negative information, including inaccurate information, about us on social media may harm our reputation and brand, which could have a material and adverse effect on our business, financial condition and results of operations