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    Drew Estes

    Partner and Portfolio Manager at Banyan Capital Management

    Drew Estes is a Partner and Portfolio Manager at Banyan Capital Management, specializing in long-term, concentrated investments with a particular focus on insurance companies such as Berkshire Hathaway and other value-oriented compounders. Since joining Banyan in 2016 directly after completing his JD/MBA at the University of Alabama, he has steered the firm toward building permanent wealth for clients, and since taking control of the business in 2019, has utilized his research-driven, evolutionary approach to portfolio construction. Estes is a CFA charterholder, a member of the CFA Society of Atlanta, and holds an inactive status with the State Bar of Georgia. His professional credentials are complemented by a robust academic foundation, and he is registered as an investment adviser with Banyan Capital Management.

    Drew Estes's questions to PHINIA (PHIN) leadership

    Drew Estes's questions to PHINIA (PHIN) leadership • Q4 2024

    Question

    Drew Estes from Banyan Capital Management followed up on the tax issue, asking for clarification on the 'structurally difficult' regions, and also inquired about the company's maintenance capital expenditure level in a steady-state scenario.

    Answer

    CFO Chris Gropp and CEO Brady Ericson clarified the tax issue stems from inefficient legal and holding company structures inherited from the spin-off, not the manufacturing footprint. Unwinding these requires complex legal and IP moves. Ericson estimated maintenance CapEx would be around 1% of sales but emphasized that continuous investment is required to refresh programs and maintain revenue, making a pure maintenance scenario unrealistic.

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