Suk Lee's questions to PTVE leadership • Q4 2023
Question
Asked for a bridge to understand the significant ramp-up in EBITDA required from Q1 to meet the full-year guidance, the financial impact of January's weather, and expectations for 2024 interest expense and tax rates.
Answer
The executive team explained the expected EBITDA ramp-up is due to cost initiatives gaining traction, a lag in COLA recoveries helping later in the year, and a backlog of new business starting in H2. The weather impact in Q1 was estimated at $5-10 million. A detailed free cash flow walk was provided, forecasting cash interest around $220 million and cash taxes around $100 million for 2024.