KBHS Home Loans, LLC NMLS 1542802 (www.nmlsconsumeraccess.org) Headquarters:300 East Royal Lane, Suite 250, Irving, TX 75039. I wrote this article myself, and it expresses my own opinions. As per the analysis by Fortune, KB Home, one of the nations largest homebuilders, has reported a significant improvement in its second-quarter cancellation rate. A KB sales counselor will walk you through a home one-on-one. Any estimated energy costs or savings should not be relied upon in any way when making purchasing decisions. Thats because every home is uniquely built for each customer, at a price that fits their budget. KB Home is one of the largest and most recognized homebuilders in the United States, operating in 47 markets from coast to coast, and building over 670,000 quality homes in our more than 65-year history. "The current conditions remain challenging. KB Home - KB Home Reports 2023 Second Quarter Results Please enter a valid location or select an item from the list. The national. In this case, the company is dealing with market weakness and a very tough comparison quarter. Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Lennar said 21% of orders are being canceled, while Meritage Homes MTH, 3.52% reported a 30% cancellation rate. However, the companys ability to adapt its pricing strategies and leverage its expanded profit margins has helped mitigate the impact of the housing correction in these regions. Net orders for the second quarter increased 1% to 3,936, a significant improvement to the 49% year-over-year decrease in the 2023 first quarter. I bid a few thousand over list with no contingencies. The company also has Southwest, Central, and Southeast exposure, which somewhat lowers regional risks. I wrote this article on UK house builders a few months back. Housing Rebound: Cancellations for New Homes Drop to Lowest in Over a Year KB Home, for example, said its cancellation rate for the first three months of 2023 stood at 36%, down from 68% the quarter prior. December SF sales are down 46% on Oahu. (321) 299-6844 or ckane@kbhome.com, Senior Vice President, Investor Relations Is housing in a recession or a reality check? A personal onsite tour is a great way to experience the living spaces of an individual floor plan. Please disable your ad-blocker and refresh. Earlier this month KB Homes, one of the largest builders in the country, said that 68% of its orders for new homes last quarter were canceled. As Cancellations Rise, Home Builder Confidence Is Falling Ending backlog homes totaled 7,286, compared to 12,331. Feel free to reach out to me via DMs or find me on Twitter (@Growth_Value_) for more insights.Thank you for visiting my profile! Explore on-site amenities and local services. KB Home, a Los Angeles-based homebuilder that operates in 47 markets across the country, announced on Tuesday that it launched the first-of-its kind virtual reality community to inspire more "exploration and engagement" among its customers. We produced strong financial results in the second quarter that exceeded the high-end of our guidance ranges, with year-over-year growth in revenues to $1.8 billion and a gross margin of over 21%, driving diluted earnings per share of $1.94. A lot of buyers are backing out of contracts. Moreover, I still believe that demand will come back once unemployment has increased a lot. Monthly net orders per community were 5.2, compared to 6.2. Prices shown refer to the base floor plan and do not include any optional features, upgrades, homesite premiums, upgrade exterior elevations, or association fees. The Fed's ongoing housing market 'reset' sees buyer cancellation rate at one of the nation's largest homebuilders spike to 68%. Requires a non-alphanumeric character in the password. This category only includes cookies that ensures basic functionalities and security features of the website. All over asking. Notes payable decreased by $151.8 million to $1.69 billion, mainly due to repayments under the Companys unsecured revolving credit facility. / Stats / By Bryn Kaufman Previous Post Next Post Recent Comments on December 2022 101 KB Home orders plunge amid 'challenging' environment The Companys lots owned or under contract totaled 57,932, compared to 68,795, mainly due to homes delivered, reduced land investments and the abandonment of previously controlled lots. Prices shown refer to the base house and do not include any optional features, upgrades, homesite premiums, upgrade exterior elevations, or association fees. Excluding total inventory-related charges of $4.3 million for the current quarter and $.7 million for the year-earlier quarter, the homebuilding operating income margin decreased 380 basis points to 11.7%. The UK still has it bad. Race-based affirmative action at colleges is over. 2. Today is January 16th 2023 and Randy will discuss the following topics:KB Homes Has 68% Cancellation Rate in Q4 2022Need to See Foreclosure Data ? KB Homes, the nation's l. Nation's Largest Home Builder Has a 68% Cancellation Rate in Q4 2022 - Housing Bubble 2.0Another blow to the overall Housing Market. Theres a lot happening in the world. Net order value of $1.90 billion was down 11%, reflecting a lower average selling price. Each of our divisions has an action plan in place to significantly reduce build times by the end of 2023. Your donation today powers the independent journalism that you rely on. Restrictions may apply. The Companys ending backlog value was $3.46 billion, compared to $6.12 billion which was the highest second-quarter level in the Companys history. Will be worse this past quarter--builders will have nothing to build and earnings will be off a cliff. All renderings and floor plans are an artists'' conceptual drawings and will vary from the actual plans and homes as built. The Companys ending community count expanded 16% to 249, and average community count increased 20% to 253. Selling, general and administrative expenses as a percentage of housing revenues anticipated to be roughly 10.3%. Homebuilders' earnings showed he was correct: In the fourth quarter of 2022, KB Home's buyer cancellation rate spiked to 68%. Housing gross profit margin of approximately 21.2%, assuming no inventory-related charges. Selling, general and administrative expenses as a percentage of housing revenues improved 20 basis points to 9.6%. We bid on a home last month on the resale side. Marketplace is a division of MPR's 501 (c)(3). Your agreement is not a condition of purchasing any property, goods, or services, and you may call us instead of submitting your information online. Requires a lowercase character in the password. 1 BabyLlama-Drama 5 mo. Cara Kane, Media Contact If we update or revise any such statement(s), no assumption should be made that we will further update or revise that statement(s) or update or revise any other such statement(s). In Japan, inflation is actually good news. The homebuilding operating income margin was 11.5%, compared to 15.4%. Here in KC market the new homes are basically at a standstill on new homes. Not enough. If someone signed a contract early last year, they thought they were buying at a 3% interest rate, Wolf explained. Yet, it hasn't worked - so far. This article serves the sole purpose of adding value to the research process. Buying a new home is one of the most exciting decisions you'll ever make, so we've broken it down step-by-step, so you'll know just what to expect. Meaning that over 2/3 of Homebuyers walked away from their contracts in the quarter. investorrelations@kbhome.com, P.O. KB Homes Earnings: 68% Cancellation Rate for Q4, Up From 13% - Reddit "The No. If construction cut-off deadlines have passed, certain options/upgrades may no longer be available. This includes incentivizing buyers in some markets with mortgage buydowns and reducing the number of days between selling a property and beginning construction. As rates continued higher in October, hitting 7% late in the month, our orders declined further. See disclaimers for more information. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. The headline numbers suggest that KBH had an abysmal quarter. The company saw its cancellation rate increase from around 6% in Q3 2021 to 15.6% in Q3 2022. (888) 667-7640 While issues persist, we could be looking at a normalization by the end of 2023, three years after the pandemic. Mezger attributed the improvement in housing demand to the sustained increase in net orders throughout the second quarter. The backlogs were already tumbling in the 3rd Quarter, with DHI, for example, sitting on less than 3 months worth. The worst part (for the economy) is that this bear case is currently unfolding. Explore local schools, shopping, dining and recreation. Operationally, our divisions are executing well, driving reductions in both build times and direct construction costs as well as opening new communities. from $399,990. * No CDD fees * Less then 8 miles to Jacksonville Zoo and Gardens * Commuter friendly; convenient Garden St. and Imeson Rd., Jacksonville, FL 32219, 2154 Hudson Grove Dr. Jacksonville, FL 32218, 2154 Hudson Grove Dr., Jacksonville, FL 32218, * No CDD fees * Cul-de-sac, pond and wooded homesites * Just minutes to shopping and dining at River City Marketplace * Convenient to I-95 and I-295 * Minutes to Jacksonville International Airport * Less than 8 miles to Jacksonville Zoo and Gardens. KB: 68% Of Homebuyers Cancelled Their Contracts In Q4 2022 (Oct 1, 2022 to Dec 31, 2022) KB: 68% Of Homebuyers Cancelled Their Contracts In Q4 2022 (Oct 1, 2022 to Dec 31, 2022) The Homebuying Cancellation Rate Last Peaked At 47% During The Last Real Estate Market Crash Of 2008-2010. AZ BK #0939988; Licensed by the Department of Financial Protection and Innovation Under the California Residential Mortgage Lending Act RMLA #41DBO-67718. The good news is that supply chain issues are fading. You can sign up for additional alert options at any time. One of America's largest homebuilders just reported poor fourth quarter results as it missed both EPS and revenue estimates. Stay up to date with what you want to know. KB Home reported a staggering 68% buyer cancellation rate in the fourth quarter, but it has improved to 22% in the second quarter. The improvement is attributed to aggressive pricing and incentives offered by the homebuilder. The national housing market has stabilized, and builders like KB Home have gained an edge over the existing/resale market. Builders had the flexibility to reduce margins and cut prices during the housing downturn caused by mortgage rates. KB Homes business in the West and Southwest housing markets was particularly affected by last years rising mortgage rates. Net income and diluted earnings per share were $164.4 million and $1.94, respectively, compared to $210.7 million and $2.32. Learn more about how we build homes built on relationships by visiting kbhome.com. Click here for additional information on homesite premiums. By using this website, you are giving your consent for us to use cookies. This has helped restore equilibrium in the market and create a more favorable environment for homebuilders like KB Home. Through it all, Marketplace is here for you. The Companys investments in land and land development for the six months ended May 31, 2023 decreased 46% to $763.2 million, compared to $1.40 billion for the year-earlier period. I love that KB is one of the few builders that still has a design studio and allows buyers to truly customize so much of their home. Requires an uppercase character in the password. Of the Companys total lots, approximately 75% were owned and 25% were under contract, compared to 70% owned and 30% under contract. Your consent herein also applies to any future registration on national or state Do-No-Call lists. Nonetheless, there's no denying that homebuilders are in a bad spot with no easy way out. Discover how our energy- and water-efficient homes reflect our commitment to sustainability. Total revenue came in at $1.94 billion, which is an improvement of 15.5% vs. 4Q21 and $40 million less than expected. Walk through a move-in ready home in person without the presence of a KB sales counselor. The Company believes this non-GAAP financial measure is relevant and useful to investors in understanding its operations, and may be helpful in comparing the Company with other companies in the homebuilding industry to the extent they provide similar information. 2256 Hudson Grove Dr, Jacksonville, FL 32218. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. Headquartered in Los Angeles, the company maintains a built-to-order model, which efficiently uses lot spaces as it doesn't build inventory without having the demand to back it up. Cancellations have been higher in places where prices really shot up during the pandemic, Wolf added. Getty Images In early January, KB Home said its fourth-quarter buyer cancellation rate was. Decentraland is a web browser platform where people can buy virtual plots of land with cryptocurrency and build digital homes. That's up from 35% in the third quarter of 2022, and up from 13% in the fourth quarter . However, this does not take into account that wage inflation remains persistent, as well as the fact that getting core inflation down is a tough task to achieve - let alone keeping inflation at 2% without risking new surges like the 1970s and 1980s. 1 reason for cancellation was buyer's. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz- und Cookie-Einstellungen oder Datenschutz-Dashboard klicken. Phone: (310) 231-4000 The Fed's housing market 'reset' sees buyer cancellation rate at one of The Companys debt to capital ratio improved to 30.9%, compared to 33.4%. "We know consumers are increasingly immersing themselves and spending more time in virtual spaces," KB Home's CEO Jeffrey Mezger said in the announcement. The Companys net income reflected an effective tax rate of approximately 24%, compared to approximately 26%. You must click the activation link in order to complete your subscription. Pricing is best visualized using Redfin's median four-week rolling home sales price. He stated that KB Home is well-positioned to achieve its revenue target for 2023. Nation's Largest Home Builder Has a 68% Cancellation Rate in Q4 2022 - Housing Bubble 2.0Another blow to the overall Housing Market. KB Home's stock falls from 16-year high despite blowout earnings and No two KB homes are the same. His grim outlook in January reflected how the stocks performed in Federal Reserve tightening periods, while his bullish pivot in September was due to the timing of the groups stock performance relative to the S&P 500. Early pain equals early gain, he wrote in his September note, highlighting that builders typically rebound ahead of the rest of the market. To see all the homes youve saved, visit the My Favorites section of your account. Large players with cash reserves start buying, outbidding the average private buyer who suffers from a weak economy (high unemployment). KB homes reported a 68% cancellation rate in Q4 2022 Homebuilders are not in a great position. I am not receiving compensation for it (other than from Seeking Alpha). Diluted earnings per share was $3.38, down 11%. *Advertised monthly payments assume a sales price of [#sales-price#] and includes principal, interest, taxes, insurance and estimated mortgage insurance premium only: any other fees such as HOA and lot premiums not included and will result in a greater actual monthly payment amount. Average selling price decreased 3% to $479,500. This cancellation rate was made much worse by the aforementioned decision to not focus on new orders. and right on Airport Center Dr. E./New Berlin Rd. What sets KB Home apart is our focus on building strong, personal relationships with every customer from those buying their first home to experienced buyers so they have a real partner in the homebuying process. One of America's largest built-to-order homebuilders is expanding into the metaverse as more homebuyers in the real world cancel their purchase agreements. See sales counselor for approximate timing required for move-in ready homes. LOS ANGELES--(BUSINESS WIRE)-- I believe that the decline to 50% is caused by market fundamentals, which made housing unaffordable for starters with often limited budgets. Overall new orders should come in close to 1,900 homes. Consult our Privacy Policy for additional information, including unsubscribe options. Box 43078 I have entered into a partnership with the leading provider of distressed property data, Foreclosure.com. (310) 893-7456 or jpeters@kbhome.com Equal Housing Opportunity. Good, i've been needing home prices to drop. The LA-based builder KB Home opened a first-of-its-kind community in the metaverse on January 17. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Dani Romero Updated January 12, 2023 at 10:11 AM Homebuilder KB Home ( KBH) reported revenue and profits that missed estimates in the fourth quarter as its net orders plunged and the value of. Prices, terms, promotions, features, options, amenities, floor plans, elevations, designs, materials, square footages, associations fees, and descriptions are subject to change without notice. 3. KB Home: Buy Into The Weakness (NYSE:KBH) | Seeking Alpha KB Home has had a great few years, but leading indicators imply that weakness lies ahead. What some dont realize is even though their stock is up (DR Horton too), there is a 12 month or more lag in earnings. computershare.com/investor. Revenues of $3.15 billion were essentially even. The housing market correction just took a new turn. The minimum length of the password is 6. At that point, I'm looking to deploy a lot of my current cash reserves to buy housing-related stocks. There are two key factors contributing to this improvement. These efforts come as the number of newly constructed homes on the market continue to take up a growing share of the US housing inventory. The company's CEO said the community is meant to inspire "exploration and engagement" among its customers. The improvement in demand we started to see in February was sustained throughout our second quarter, as we achieved monthly sequential increases in our net orders, resulting in an overall absorption pace of 5.2 net orders per month, per community. While KBH is down 12.5% over the past 12 months, it is up 28% over the past three months. On Wednesday, KB Home announced that its buyer cancellation rate in the fourth quarter of 2022 spiked to 68%. Resale homes are still in short supply and holding fairly strong. Net orders per community per month dropped to 1.0. Firstly, the national housing market has stabilized this spring due to a shortage of existing home inventory and seasonal factors. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. This press release contains, and Company managements discussion of the results presented in this press release may include, information about the Companys adjusted housing gross profit margin, which is not calculated in accordance with generally accepted accounting principles (GAAP). We believe our orders, starts and production are well-balanced and, with the sequential increase in our backlog at quarter-end, we are well-positioned to achieve our revenue target for 2023., We remained selective on land investments while still positioning our business for growth. Have one of our sales counselors tour you through a KB home without leaving the comfort of your home. Buyer may be required to pay for any additional features/upgrades and is responsible for all taxes, insurance and other fees. KB Homes, a large home builder, just reported a 68% CANCEL RATE. At that point, KBH will turn into a long-term outperformer again. This LA-based homebuilder reported horrible numbers, showing a sky-high cancellation rate, imploding new orders, and a somewhat grim outlook. Jill Peters, Investor Relations Contact This indicates that the companys pricing strategies and incentives have successfully attracted buyers and boosted sales. This website uses cookies to improve your experience while you navigate through the website. That's the midpoint of the company's range. KB Home is one of the largest and most recognized homebuilders in the United States, operating in 47 markets from coast to coast, and building over 670,000 quality homes in our more . When it comes to regional exposure, the company generates 41% of its revenues on the West Coast, despite delivering just 29% of homes in that area. KB Home Disappoints As Market Weakness Hits (NYSE:KBH) In December, I wrote an article focused on finding attractive housing-related investments in case 2023 would bring us more weakness. This channel discusses recent articles, data and information about the Housing Bubble, Housing Crash, Home Prices, Forbearance, Foreclosures and Short Sales.Additionally there is a focus on Mortgage Delinquencies, Mortgage Rates, FHA Loans, Real Estate Investing, and Housing Market Predictions for 2022 and Beyond. Mezger said during the company's Q4 earnings call that the company saw an increase in the number of cancellations of homes that were "close to or at completion" because of challenges with adding utilities to completed homes and a lack of confidence among homebuyers. If you have an ad-blocker enabled you may be blocked from proceeding. Excluding the above-mentioned inventory-related charges, the housing gross profit margin decreased 390 basis points to 21.4%, mainly due to price decreases and other homebuyer concessions, together with higher construction costs and a shift in the mix of homes delivered. Net Orders Totaled 3,936; Average Community Count Up 20% Zener compared homebuilders to the broader market in recent decades. to community on the left. Reason one comes down to affordability, Wolf said. These cookies do not store any personal information. Download our Mobile App Today!! All rights reserved. Please provide a preferred contact method. Land acquisition expenditures included in these amounts were down 79% to $130.6 million. That's up from 35% in the third quarter of 2022, and up from 13% in the fourth. Turn right on New Berlin Rd. Due to a low number of gross new orders, a relatively "normal" number of cancellations amplified the cancellation rate. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Stockholders equity increased to $3.77 billion, compared to $3.66 billion, primarily reflecting net income, partly offset by common stock repurchases. However, because it is not calculated in accordance with GAAP, this non-GAAP financial measure may not be completely comparable to other companies in the homebuilding industry and, thus, should not be considered in isolation or as an alternative to operating performance and/or financial measures prescribed by GAAP. 2023 Minnesota Public Radio. 1. I really had a great home buying experience from working with a great sales rep., to an awesome designer, to a great team over at KBHS. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. The graph below from homebuilder KB Homes shows that in the fourth quarter, a cancellation rate of over two-thirds of the contracts they signed. They may no longer qualify for a mortgage, or they may have just decided they can no longer afford it. Lennar Homes held a Black Friday-esque sale last year in hopes of inspiring more homebuying activity as well. Visit a KB Home community this 4th of July weekend! KBHS Digital - KBHS Home Loans December SF sales are down 46% on Oahu. What we're dealing with here is peak negativity and investors rushing to buy into the bad news. Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. ", [] But with construction costs up more than 30% since inflation began to take off at the beginning of the year, there is little room for builders to cut prices. Providence, RI 02940-3078 By providing your name and contact information and clicking the submission button, you consent and agree to receive marketing communications from NewHomeSource, from NewHomeSources homebuilder clients, and from their respective agents, employees or representatives, including emails, calls or text messages using an automatic telephone dialing system or an artificial or prerecorded voice. Book value per share of $46.72 increased 24% year over year. The most important risk factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, but are not limited to the following: general economic, employment and business conditions; population growth, household formations and demographic trends; conditions in the capital, credit and financial markets; our ability to access external financing sources and raise capital through the issuance of common stock, debt or other securities, and/or project financing, on favorable terms; the execution of any securities repurchases pursuant to our board of directors authorization; material and trade costs and availability, including building materials and appliances, and delays related to state and municipal construction, permitting, inspection and utility processes, which have been disrupted by key equipment shortages; consumer and producer price inflation; changes in interest rates, including those set by the Federal Reserve, which the Federal Reserve has increased sharply in the past few quarters and may further increase to moderate inflation, and those available in the capital markets or from financial institutions and other lenders, and applicable to mortgage loans; our debt level, including our ratio of debt to capital, and our ability to adjust our debt level and maturity schedule; our compliance with the terms of our revolving credit facility and our senior unsecured term loan; the ability or willingness of the applicable lenders and financial institutions, or any substitute or additional lenders and financial institutions, to meet their commitments or fund borrowings, extend credit or provide payment guarantees to or for us under our revolving credit facility or unsecured letter of credit facility; volatility in the market price of our common stock; home selling prices, including our homes selling prices, being unaffordable relative to consumer incomes; weak or declining consumer confidence, either generally or specifically with respect to purchasing homes; competition from other sellers of new and resale homes; weather events, significant natural disasters and other climate and environmental factors, such as a lack of adequate water supply to permit new home communities in certain areas; any failure of lawmakers to agree on a budget or appropriation legislation to fund the federal governments operations, and financial markets and businesses reactions to any such failure; government actions, policies, programs and regulations directed at or affecting the housing market (including the tax benefits associated with purchasing and owning a home, and the standards, fees and size limits applicable to the purchase or insuring of mortgage loans by government-sponsored enterprises and government agencies), the homebuilding industry, or construction activities; changes in existing tax laws or enacted corporate income tax rates, including those resulting from regulatory guidance and interpretations issued with respect thereto; changes in U.S. trade policies, including the imposition of tariffs and duties on homebuilding materials and products, and related trade disputes with and retaliatory measures taken by other countries; disruptions in world and regional trade flows, economic activity and supply chains due to the military conflict in Ukraine, including those stemming from wide-ranging sanctions the U.S. and other countries have imposed or may further impose on Russian business sectors, financial organizations, individuals and raw materials, the impact of which may, among other things, increase our operational costs, exacerbate building materials and appliance shortages and/or reduce our revenues and earnings; the adoption of new or amended financial accounting standards and the guidance and/or interpretations with respect thereto; the availability and cost of land in desirable areas and our ability to timely and efficiently develop acquired land parcels and open new home communities; impairment, land option contract abandonment or other inventory-related charges, including any stemming from decreases in the value of our land assets; our warranty claims experience with respect to homes previously delivered and actual warranty costs incurred; costs and/or charges arising from regulatory compliance requirements or from legal, arbitral or regulatory proceedings, investigations, claims or settlements, including unfavorable outcomes in any such matters resulting in actual or potential monetary damage awards, penalties, fines or other direct or indirect payments, or injunctions, consent decrees or other voluntary or involuntary restrictions or adjustments to our business operations or practices that are beyond our current expectations and/or accruals; our ability to use/realize the net deferred tax assets we have generated; our ability to successfully implement our current and planned strategies and initiatives related to our product, geographic and market positioning, gaining share and scale in our served markets and in entering into new markets; our operational and investment concentration in markets in California; consumer interest in our new home communities and products, particularly from first-time homebuyers and higher-income consumers; our ability to generate orders and convert our backlog of orders to home deliveries and revenues, particularly in key markets in California; our ability to successfully implement our business strategies and achieve any associated financial and operational targets and objectives, including those discussed in this release or in any of our other public filings, presentations or disclosures; income tax expense volatility associated with stock-based compensation; the ability of our homebuyers to obtain homeowners insurance policies, which may depend on the ability and willingness of insurers to offer coverage in certain locations at an affordable price or at all; the ability of our homebuyers to obtain residential mortgage loans and mortgage banking services, which may depend on the ability and willingness of lenders and financial institutions to offer such loans and services to our homebuyers; the performance of mortgage lenders to our homebuyers; the performance of KBHS; the ability and willingness of lenders and financial institutions to extend credit facilities to KBHS to fund its originated mortgage loans; information technology failures and data security breaches; an epidemic or pandemic, and the control response measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may precipitate or exacerbate one or more of the above-mentioned and/or other risks, and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period; and other events outside of our control.