Curtis Woodworth's questions to PTVE leadership • Q4 2023
Question
Questioned the company's operating leverage, asking why guided EBITDA growth is only 2% on low single-digit volume growth. Also inquired about the long-term capital expenditure requirements following the company's restructuring and shift to an asset-light model.
Answer
Management explained that operating leverage is currently being offset by significant labor inflation, but as their PEPS productivity program ramps up, they expect to outpace inflation. For capital spending, they provided a 'normalized' go-forward number of around $250 million (excluding one-time items), with about half being sustaining capital and the rest for customer needs and flexible, return-generating growth projects.