Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995

• The demand for our products may be adversely affected by unfavorable economic conditions and changes in consumer discretionary spending.
• The COVID-19 pandemic, other major public health crises in the future, and associated responses could adversely impact our business and results of operations.
• We are susceptible to adverse weather conditions, which could intensify as a result of climate change.
• Our distribution business is highly dependent on our ability to maintain favorable relationships with suppliers.
• We depend on a global network of suppliers to source our products, including our own branded products and products we have exclusive distribution rights to. Failure to achieve and maintain a high level of product and service quality and safety could damage our reputation, expose us to litigation and negatively impact our financial performance.
• We face intense competition both from within our industry and from other leisure product alternatives.
• More aggressive competition by store- and internet-based mass merchants and large pool or irrigation supply retailers could adversely affect our sales.
• We depend on our ability to attract, develop and retain highly qualified personnel.
• Past growth may not be indicative of future growth, and while we contemplate continued growth through internal expansion and acquisitions, no assurance can be made as to our ability to:
  • penetrate new markets;
  • generate sufficient cash flows to support expansion plans and general operating activities;
  • obtain financing;
  • identify appropriate acquisition candidates and successfully integrate acquired businesses;
  • identify appropriate locations for new sales centers and successfully integrate them into our network;
  • maintain favorable supplier arrangements and relationships; and
  • identify and divest assets which do not continue to create value consistent with our objectives.

• We are subject to inventory management risks. Insufficient inventory may result in lost sales opportunities or delayed revenue, while excess inventory may negatively impact our gross margin.
• We rely on information technology systems to support our business operations. A significant disturbance, breach or cybersecurity attack of our technological infrastructure could adversely affect our financial condition and results of operations.
• Failure to maintain the security of confidential information could damage our reputation and expose us to litigation. Additionally, changes in data privacy laws and our ability to comply with them could have a material adverse effect on us.
• The nature of our business subjects us to compliance with employment, environmental, health, transportation, safety and other governmental regulations. Our costs of doing business could increase as a result of changes in, expanded enforcement of, or adoption of new federal, state or local laws and regulations.
• Governmental actions designed to address climate change or the failure to meet environmental social and governance (“ESG”) expectations or standards or achieve our ESG goals could adversely affect our business.
• We store chemicals, fertilizers and other combustible materials that involve fire, safety and casualty risks.
• We conduct business internationally, which exposes us to additional risks.
• Changes in import policy or trade relations, interruptions in our supply chain or increased commodity or supply chain costs could adversely affect our results of operations.
• Excess tax benefits or deficiencies recognized from our accounting for share-based awards impact our reported earnings.
• Increases in interest rates would increase the cost of servicing our debt and could reduce our profitability.
• We may be adversely affected by the transition away from LIBOR and the use of SOFR or other alternative reference rates.
• Changes in tax laws and accounting standards related to tax matters have caused, and may in the future cause, fluctuations in our effective tax rate.
• We cannot assure you we will continue paying dividends at the current rates, or at all.
• Lapses in our disclosure controls and procedures or internal control over financial reporting could materially and adversely affect us.