Acquisition Plans
Q: Are you planning any bolt-on acquisitions, and what's the outlook?
A: Yes, we're considering bolt-on acquisitions in the $10 million to $20 million revenue range, with $3 million to $4 million of EBITDA, typically paying 6x EBITDA. We've signaled our interest again after reducing debt under 3x quicker than anticipated. We might close 1 or 2 bolt-on acquisitions this fiscal year, funded through our $400 million revolver with $355 million capacity at year-end.

Organic Growth Outlook
Q: How does organic growth factor alongside bolt-ons?
A: Our normal organic growth in Metal Coatings tends to run with GDP. Adding a couple of acquisitions could boost growth by another 5% to 6% on a full-year run rate. On the Precoat side, volumes are improving; we were up about 9% in the fourth quarter , which contributes to organic growth. The Washington site coming online next year will also provide additional revenue and EBITDA growth.

Washington Plant Ramp-Up
Q: What impact will the Washington, Missouri plant ramp-up have on margins?
A: There shouldn't be a drag on margins this fiscal year. We've planned for start-up costs in our budgets and included contingencies. 75% of the production is contractually committed , providing confidence in the ramp-up. There's upside potential as the customer wanted 100%, and we have 25% capacity to sell.

Pricing Initiatives and Zinc Prices
Q: What's happening with pricing initiatives in Metal Coatings?
A: We've differentiated our value pricing versus zinc, but rising zinc prices help support our price levels. We're adding services like transportation, increasing revenue and flow-through income, which raises our price per hundredweight. We added another spin line late last year, leading to higher pricing per piece.

Metal Coatings Margin Outlook
Q: Will Metal Coatings gross margins improve in fiscal '25?
A: We believe we can drive margins further in fiscal '25. With our DGS and leadership teams, we're benefiting from various tactics. As long as volumes hold up, we expect to continue improving margins.

Interest Expense and Tax Rate Guidance
Q: Do you have forecasts for interest expense and tax rate?
A: Yes, we're utilizing a tax rate of around 23.5% to 24%, considering a 21% statutory rate plus 3% to 4% for being primarily in North America. For interest, we look at the forward curve on rates but haven't factored in rate cuts.

Market Share Gains in Precoat
Q: Where are you gaining market share in Precoat?
A: We're outperforming the market in the construction segment and the appliance market, with some conversions taking place.

Revenue Profile and Guidance
Q: Was business pulled from Q1 into Q4 due to warm weather?
A: On the Metal Coatings side, we saw some pull-in due to an early start from warm weather. We hope additional projects come in as we enter summer and fall. We feel the guidance is solid and traditionally try to be conservative.

Precoat Seasonality
Q: Was strong Precoat performance due to normal seasonality or other factors?
A: Partly due to a lighter winter, but also improved operating performance. This fourth quarter benefited from normal customer inventories, boosting productivity and efficiency. As volumes flow through, margins tend to improve.

Dependence on Single Customer
Q: Are you concerned about dependence on one customer at 75% commitment?
A: While we typically hesitate to depend heavily on one customer, this is a 7-year contractual arrangement, so we're less concerned. We have other plants to balance business and pursue additional opportunities.