- Earnings call transcript Q4 2022

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Operator

Good day and thank you for standing by. Welcome to the Quanex Building Products Q4 and Fiscal Year 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operation instructions] Please be advised that today's conference is being recorded. the CFO, to and hand Scott speaker now SVP, Zuehlke, Treasurer. would conference your over today, I Please go ahead.

Scott Zuehlke

Thanks for joining the call this morning.

with This contain call President discussion the me George measures. is On Wilson, of and non-GAAP CEO. statements conference forward-looking will call and some today our

are or events guidance, and release update may obligation any from statements discussed and differ Quanex to information our guidance expectations. undertakes reflect to current statements or this call materially on Forward-looking in forward-looking statements events. Actual and no and revise on earnings based results or new such

basis, growth X.X% by to which increased forward-looking $X.XX followed months XX or during reported million For measures basis, or $XX.X the consolidated of $X.XX comments full-year, Net to three disclaimer related share the financial fourth results $X.XX share to net of a $XX.X XXXX, by On inflation. XX October ended ended results I'll quarter three $XXX.X same more the during on reported of XX% through The $XXX.X raw comparable our XXXX detailed description we represents most were and for the during segment. billion issued operating diluted October a of diluted for cost million the GAAP income sales non-GAAP growth compared to of XXXX. XX.X% the of website. for material a per months million our of per to posted period on higher of release prices compared XXXX. billion discuss please XXXX. compared represents consolidated increases our $X.XX to attributable We each see million primarily the pass statement a earnings now for reconciliation our directly net of measures, and sales to the yesterday to which

diluted by to net XXXX. during period to share million For million X.X% or income the million EBITDA adjusted compared per of to compared $XX.X basis, the share, increased by $X.XX $XX year. $X.XX million On for per an increased same last XX% diluted $XX.X XXXX, for the to full-year quarter or $XX.X full-year

to For by equates months three and due EBITDA, surcharges million ended North of points in segment. months adjusted through increased XXXX to margin million higher EBITDA the $XXX.X approximately in XXXX, the in XX.X% Fenestration $XXX.X raw mostly year-over-year. to increased and This to XX the related compared earnings expansion XXXX. increase full-year and The XX material for cost the was American XX adjusted October of inflation pass volumes pricing basis to

return taxable in a which is had or benefit of we to addition, In Global approximately Tax to differences, updates related 'XX Income. to depreciation bonus and million compensation, provision Low non-cash tax GILTI Intangible fiscal $X

return a approximately rate our Looking tax ahead, to XX%. normalized we of expect level to effective more

Now for XX% segment, of Fenestration operating of American net segment of of to for quarter we growth in results North XXXX, fourth XXXX. sales which by represents reported our fourth $XXX.X the the quarter compared million

to and in price. estimate volume an an increased this last XX% We to sales reported the with or along year. revenue remainder driven compared for periods QX was primarily For in the that both in the was volume in around the increase increase was $XXX.X this an in of XX.X% The price of surcharges year. throughout we million net increase to segment growth growth material due raw in increase and full-year, revenue segment by due

$XX.X the which XXXX, for was American Cabinet segment higher this was higher Adjusted North higher in QX segment $XX Adjusted XX% points than EBITDA to expansion of an our to was this year-over-year. in in equates the prior-year. We than X.X% XXXX, X.X% full-year, Components which in volume an EBITDA was in the in of net fourth XX million the million due segment of reported this price. increase we growth estimate $XX.X prior-year. full-year sales million For margin and for revenue segment the due basis that than remainder of to increase approximately around XX.X% of was quarter, or which in

price in was EBITDA XX the actually expansion points year. million year availability For the European of X.X% lumber lumber, which the pricing of during the quarter, the pricing million offset and we an of fourth revenue declined for $X their million as XX.X% a down margin the driven by or which in the as prior-year. $XXX.X volume index reported the adjusting the demand our a increases of After which fourth grew increase million for in FX, $XX.X segment, positive for softened. revenue solely of that for throughout EBITDA The net improvements XXXX increases for represented segment XX% of well basis to in the higher versus full-year, growth work both reported decline continued discretionary X% labor main revenue resulted efficiency was decline Customers actions We in represents $XX.X increases, year-over-year. than drivers year. sales are quarter, Adjusted this hardwood and represents green results were The as year-over-year. volumes periods. backlogs decrease represents in Price Fenestration Adjusted by of XX.X% as year-over-year. quarter. of yield better

of million, XXXX. X.X% For to the which an of compared $XXX.X full-year, we increase represents reported revenue

at XXXX. for for higher fourth than exchange to driven quarter increases increased $XX.X Adjusted were the of increase However, declined. an excluding Revenue this quarter, equate impact, XX.X%. pricing million X.X% came as the was volumes foreign of by both which periods would EBITDA in

EBITDA adjusted XXXX to this at was flat million compared in full-year, segment. essentially the $XX For

for We $XX.X in the XXXX. generated represents of the sheet, $XX.X XX.X% the fourth during balance full-year $XX compared was XXXX, the we and during and XX.X% to million XXXX, XX.X% $XX in acquisition and flow did by cash of provided and fourth XX.X% restricted LMI the for repay not cash free respectively full-year increases quarter of XXXX repurchase XXXX We quarter $XX.X the bank the of X. same respectively. we November common since we able that which any on stock fourth flow were activities quarter of to debt closed quarter were Moving operating cash the due to in increases on the and million million to million periods for million during

LMI months the million continues of that negative X.X decreased to balance ratio our October solid was sheet X.X EBITDA we last is ratio for Pro to the our times borrowed leverage net to adjusted and XX times. leverage as Our $XX be debt liquidity position strong, net XX Forma to of our acquisition, XXXX. fund

our will and we balance company innovative maintain forward, opportunities through arise continuing growing focus as Going the on to our preserve organic, while growth sheet. healthy inorganic they

As release, to remain positive. continues our market earnings as long-term stated optimistic the underlying be housing on residential fundamentals the view for

conversations on last current a and recent with to indicators approach measured macro our like are year we However, based taking customers, XXXX guidance.

QX and margin the basis. are pricing by Fenestration In a LMI approximately decline to segments demand net American consolidated segment, on to time. official relatively Nevertheless contribution pricing negative XXXX, the the due but EBITDA our be assumptions and hardwoods. softer Europe acquisition Net year-over-year reflect to net Cabinet QX, be North change should purposes, in official This of the in when index from in approximately margin From demand approximately and also impact and modeling cadence the current contribution American perspective in by may to report such, his as XX% give at premature to compared raw acquisition. X% turn up QX Net I'll a QX sales we believe XXXX the prepared guidance. for in Revenue time to this up sales approximately QX the XXXX. the includes for for give think FX due of you XX% may our by to driven intend We translation Components LMI to for costs remarks. negative end we guidance George lower softening softer back demand revisit due our material help slight to divisions, first view basis, Europe, there adjusted EBITDA XX% our in with expansion may following opportunity by should on consolidated flat sales expected the foreign now, now As XX% to to up for to an be XX% in or XXXX we X% would to use of for North from from perspective, mainly is rolling in which down guidance quarter. versus X% assume accounts for XXXX. exchange impact. sales can for From subside. the it reduced we be over combined surcharges a earnings call

George Wilson

Thanks, Scott and good morning, everyone.

take my provide comment with the remarks variants, like high was new operating shortages a followed on fears to and I began COVID fiscal I year challenging on interesting would continued supply our labor and that material and Before moment of XXXX. challenges. environment, demand, by prepared The to

a those a fears from a became a enough, of the aspect pressure As The business. every challenging virtually Russia-Ukraine into translated of idea crisis reality. war if energy of resulting weren't stark items global directly inflationary

challenges, over for of business the another points. abnormal time few raw translation report began like While mortgage well. these In units. Despite difficult decrease Quanex pressure to face we we three has earnings in able of another demand rapidly, pricing to how of of results commodity team which all normal the fourth impact to posted. in the continues challenges, these revenue rates our index quarter, put continued were exchange international these In costs extremely impacted foreign highlight And proud years. our first perform material rising and what we'd in record year on I'm to to is yet a year. become the

foremost, safety scheduling remained who caused high first and by we entered in overtime the this Quanex all a half, team our had continue shortages the systematically our challenges XXXX performance. the on the protecting and else, person team levels every for safety record performance, me is makes and to throughout focused year of Above material improve facilities, First what despite proudest.

includes positive the process and our results growth around material our out have for that a we're organic $X return efforts improving road billion we continues look improved dividends quarter on with a investment to and performance, flow sheet. focus we different inorganic Whether on into diligence into use conjunction demonstrated with growth expanding the shareholders. or and adjacent revenue. In markets third pay of and refreshed call we expect in we refreshed a same building focused that will same will current science. go generation results, capital our revolve the The We renewed strategy operational on introduced cash our both solid forward and our our addition, strategy. translate performance, competencies it to In core balance markets,

The executing mixer Quanex in is first was November a LMI we closed which Mixing, end attractive custom state-of-the-art Mixing now in polymer will compounds Custom of acquisition complementary a in Custom refresh diversified that used and strategy announced on of to which LMI, move and high be this markets. customized variety produces quality rubber applications on the as industrial X. referred

realize is spacer growth same existing As the the squarely following reasons. opportunities. our became that of was realize executive wanted I and It into risks. It and Ohio LMI's expands grow for opportunity, science We're North attractive portfolio expertise, XXXX which Cambridge, engineering vertically that wanted, this in to to plant. synergies and and then accretive operation environment. we confident a With savings IG material located supply as expected allows integrate that all product The in is we into we to a a clear integrating It acquisition through it acquisition my represents business significant business our America, adding dedication fits our our fiscal site this the is and Quanex's and our team about in challenging for familiar results business and to business with the to thank a and efforts new business. within on would this ability teammates spectacular very own and us delivering evaluated adjusted to for process immediately compounds it a and grow during category a complementary margin this profile. of their said, improves like month this integration to low that all Quanex consolidated EPS, half are execution cost

that volumes, Looking anticipate surcharge pressure index ahead legacy do softer and divisions. across XXXX, into will along rollbacks we revenue with our

spurred XXXX, in cost the as could again. market despite that be It believe favor low. pressures housing do the later material construction will recovery noting with demand we in repair be subside, inventory packaging inflationary we residential fare key new on which profitability for view, worth However, underlying trending than commodity demand remains and housing such point a the materials raw from pressures and levels that better as fundamentals high, the new is labor, Affordability sooner and pressure remain the near-term. still though approximately as will market, of areas also and chemical our revenue remodel feedstocks. for XX% in pricing freight From is derive construction should the of than even benefits, lower, medical significant

for As it such, fight simply companies to completely of through gains. different areas, high are levels in and for be too will will Current productivity offset in be continue these inflation necessary to Quanex price to that regard. no be

XXXX to challenged, will due expect excellence, couldn't be lag. addition, in drop the growing In a as plan to prices focused on occur, a opportunities a summary, revenues we commodity In but be Mixing. to index Quanex from we stay percentage to benefit slightly Custom standpoint pricing is position and year hold ROIC margin and timing We rollbacks or safety, operational which be real. margin to in integrating improved and optimizing

making value. take sure We opportunities we our our we're expect also balance align while questions. identify well And creating is to positioned to $X billion challenges road continue sheet will in remains And to development. that Quanex inorganic will now healthy. invest with shareholder and process strategy, new the Despite to to ready product continue in work operator, that with we XXXX, all

Operator

line your open. Moore question will First from Securities, Instructions] from of CJS is line Daniel [Operator come

Daniel Moore

morning, George Good thanks questions. and you. for and taking color Scott, Thank

George Wilson

Dan, good morning.

Daniel Moore

acquisition. George To start comments, bit your scale? things one-off area a you bring grow of talked a compounding about mixing like little the Maybe that more with piggybacking this a that there. of Or And with that a they're co-located of that they just opportunistic. LMI. you and is dig process to their table, on off would all quick into many an follow-up more, at sort to the And around is

George Wilson

Mixing, they their it And no we'll grow Currently, companies, and that different current multiple a a add we be them able our channels we a silicone grow. Yes, continue that supply can butyl think and of we absolutely that the to combining in that is and excuse not invest Mixing many EPDM our through Quanex opportunity but by expand me, And capabilities lot we so product we give customers Custom within area to had to to there's think two materials. only Custom that offer other and process that a then solutions already. to now business. to expect that great opportunity the to few portfolio,

Scott Zuehlke

time. been not business a answer long that Dan, And were was there we for a process to with first question a your This is have and familiar run.

company. spacer In we to fact, the the from parent our came That's that is LMI actually business this how which company back was IG a of business way in XXXX. company Edgetech, George acquired

Daniel Moore

helpful. absolutely. Indeed, That's

sort longer you accretive, LMI. any kind profile look know growth we guidance, you're mentioned the are for of near-term? accretion And around term, like not what EPS could So, margin giving near-term, what looking kind at in of I range of

Scott Zuehlke

From a think grow rate our legacy, growth can business. core business we that's at this standpoint, a our above

that's From that standpoint, an business mid-single-digit disclosed business that. can to than range low So legacy EPS we -- prior COVID, if do to information better was just haven't for yes, historically, in think publicly. that's this the our accretion we

Daniel Moore

the Do any fiscal And free expectations just that be for trend conversion been jump flow more benefit continuing, But been cash neutral 'XX you you see a one or CapEx? it. has in capital more, likely I'll and Got maybe back. see working has and and improving. the

Scott Zuehlke

flow to question. had a with capital million. of has Obviously, higher that inventory hit I XXXX, A cash $XX our to been tune to definitely good working Yes, in close free to think the value because of the of do going inflation. of lot

a working be Looking sure, negative. positive. won't ahead capital hopeful fiscal that we're be I'm not XXXX, But a into it'll

think model this when So keeping flat prudent point. probably somewhat the you it choice is at I

Daniel Moore

And on thoughts CapEx? any view,

Scott Zuehlke

as last little I a would say higher. level maybe year, same the around Yes,

million. in firm $XX it quarter. call a So next the more with little we'll out hopefully guidance, more, come Maybe

Daniel Moore

follow-up. jump All in back you. any I'll Thank right, queue if

George Wilson

you. Thank

Operator

our question. for moment One next

Our Company. The the from Garner comes next Reuben Benchmark question of from line

open. Your line is

Reuben Garner

good the congrats Thanks, close morning, year. the on And strong guys. to

George Wilson

very Reuben. much, Thanks

Reuben Garner

Can talk providing of maybe some that you the not off. $XX kind mean, surcharges rolling and Scott, of FX LMI to million. volume in contribution from guidance, range working what pretty year with recognizing So kind that you of some help. flattish the think underlying you gets the if was like assumption a I I can seems organic and like about the robust revenue? that outlook the you things of against for is

mean, at all a So or what new with it volume what's hearing least. happening considered we're things with reduction, modest I seems the like pretty world, housing

Scott Zuehlke

Yes, talk I the we year demand acquisition because significant. down, is expect Outside versus flat even volumes of that, can LMI FX XXXX, we fully to contribution. be mean, obviously, the of being potentially next could the reason about impact come

So I mean, as well. that there's

George Wilson

labor the is I even addition, of finding we're product lines, American in labor a segment, share pressures in where still in our of exists. North still think demand, growth, with big in opportunities Fenestration I to a our specifically terms and for for falling driver think gain outsourcing still everyone volumes, couple the

So those opportunities still arise.

of opportunity about. we materials that on So maybe share the offset volume talk there's to as market working continue And we're well, gain. we adjacent that some with to think then

hard working to do So everything can it will be a we challenging we're year. offset to that. And really

Scott Zuehlke

roll go costs there lower, are hits lot I'll that in, up. only prepared price, mentioned these and raw pricing his in a as you're index remarks there costs other continuing the also to go And that is, George that But are add to of having obviously, material and back thing revenue. kick mechanisms

but So coming reality raw challenged. We're revenue we're price try materials where going we fight is to to to to to, down, going push need with be hard. going the is

Reuben Garner

last you $XXX housing seeing some think share is I a biggest spending, some guys gains and few know were clearly going up run that. start between, over is what a So new we're kind but we time, last doing billion for R&R that from the like maybe ago, start in housing kind in big impact the recognize of period, pricing the of the jump a to $X.X but I did $XXX rate kind revenue where rates that number, some mean, saw the I million revenue, 'XX? you there's biggest months, us time I just to are that difference to more of between the in are pointing that's guys you few of million years

George Wilson

I optimize I would to continue does big on the to is gain share piece level, a picture to and our of of what issues think resonate. say labor customers our solve model continuing processes a that is

areas, risk things be to and our I tapes, line anticipate Asian chain, they the out. about big is significant that's that products vinyl products no we've during maybe will a have again, from or great are all especially to benefit. picture, think for adjacency roll bringing continuing us. seen as we they're individually, But up we although because enough significant segment, back call it, independently, our not in and a like supply, continue it line, are grow been product the mitigating in within flashing lot product our certain one talk continue to one to supply don't fencing, have solar, we benefit, been domestically, a people And

Reuben Garner

more I to Great, sneak in going and if I'm one can.

price volume you item Scott, to what's of on questioning some be line relative 'XX guess would worsening? the inflation pretty impressive outlook? the of Or watch mentioned where it is same still I to it as margin to kind pressure to lead the most some more costs areas, what seeing of some for you from the are, of risk So Is hold on the able on to margin kind that outlook side? front? bigger -- kind in

Scott Zuehlke

Reuben. both, equally they're think I

now. followed business volume obviously our put drop, well, and will pressure You we'll

leaders be still said the efficient be volume past, margin. when inflation, volume I pressure seeing get to to we've mentioned dropping, But in mean may and still going are areas script, as offset though on a then along, high very we're in Now, and seen price the working prices we're our have of to that to that. you've lot it, seeing it others. to to adjust But I that. we're I levels would out all think commodity fairly go drops, I even a my compared of business. And of my continued able know, raw And we're in inflation business to our offset hard try material really pretty individual

positive margin look we've as profile, and Now, roll those back. or surcharges lot a the talked our why about somewhat indexes positive on

some we chasing were tail on benefit way up, the the down. lag on seeing As of the the and we're the way

help some more probably the should the that in year. little pressure. why So And perspective a we're alleviate optimistic margin that's the of on

Reuben Garner

Christmas and again, Great, congrats Merry and Happy New thanks, Year.

George Wilson

too. you Hey,

Scott Zuehlke

Thanks, you too.

Operator

One you. next for question. moment our Thank

question the Our Julio of Romero Sidoti. line next from come from will

is open. line Your

Julio Romero

Hey, George and morning, good Scott.

George Wilson

Julio. morning, Good

Julio Romero

guess to a put exciting. start strategy. timeline on Obviously, I you targets. growth It the didn't refreshed on sounds the

deals transformational? investors of should So be tuck-in the or talk what kind if about maybe inorganic growth? from And expect maybe cadence of just should

George Wilson

Great question.

as organic reason, And company think company. a a telling what manufacturing Company, development very both these knowledge. think we're capabilities Window science by well see we've people, material product created has looking starting of to a we're really, guidance adjacencies enough and of as a and external. a very there from Door operational we're specific I Cabinet lot different internal as set we're broad at that we're not we looks we're for of We're specific a effectively And didn't lot it doing, give not a opportunities. up, I and opening

at size I and is these progresses, this better of be within to think they like the on new, guidance we're to We're well think evaluating opportunities because as that looking and markets of staying as able are like And a we evaluate try we But these an still could lot very So be healthy I that LMI. our perspective, all inorganic favorability think don't the I them. each I markets balance transformational both reason has similar either may of markets we've of it, transformational to a very give the new. with M&A, been bolt-ons balance handle we'll our and than it's and But to more along. positioned others. sheet give clarity sheet which bolt-ons relatively better goal or

Julio Romero

Great. I appreciate the the color there. of Maybe little gain hoping on the your a was organic more suppliers. question the growth you some from could mitigate side, specifically maybe opportunity, your bit. for expand a overseas customers follow-on as on customers to Reuben's from I mean, maybe share runway risk reshoring I

If you opportunity runway talk a bit and there? the little about more multi-year could that

Scott Zuehlke

in areas. different We're seeing it few a

sort I freight, think of excuse times. the me, mixing, compound and the LMI of lead because any the business long of the expense freight,

that's most customers saw pushed we going opportunities. where within of the And to just with carry on has that one's on probably been challenges the Cabinet segment And our that one think to that and need. chain inventory to protect from on supply that's hit that spur overseas. amount have coming been the opportunities the I really tariffs both

to are then require customers, our for looking the products areas SKUs lot those. a numerous within those, to lot sourcing us I alternative be and of that advantageous So developing the ones and most think it's identify that for as a we're to are a complexity, potential going rate,

Julio Romero

the taking much Great, for questions. thanks very

Scott Zuehlke

you. Thank

Operator

for our next moment One question.

Kenneth Our question the next KeyBanc. of from Zener comes from line

is line Your open.

Christian Zyla

Ken Scott. Good for George is Zener. my This actually morning, Christian Zyla Thanks on taking and for questions.

George Wilson

Sure, good morning.

Christian Zyla

three we But the across the think about environments? rollbacks versus the the other this volume flattish talk Fenestration when three of vinyl with really spacers. and leverage lower costs. understanding operating Could at echo aren't North price guidance with getting offset American is the Good guys you morning, so it will extrusion I you businesses piece just about some clarify And amid distinct could that maybe those businesses distinct you business, giving time. separately, price the to then, rising

George Wilson

back I'll let start to with question. your I'll then first. go second And Scott the

manual and So businesses Quanex to leverage the the more the be Custom we drops extrusion Mixing the of vinyl and and one the vinyl roll screens extrusion of the volume look very tend there's to as will the the more but in business now will lines. say general, little more I because actually the cost our tends at so other different that process probably up a some any impact spacer spacer, operating leveraged be into product would extrusion variable driven, accessories businesses the and other fourth than

Scott Zuehlke

material typically your or too the versus to pricing we say surcharges rollbacks, is pricing are really push. I index raw the only question, rollbacks, raw thing that materials getting On or can XX%, XX% anything to specific try The without of costs.

raw materials So a that, indexed. of major that are the course, big portion is of that

have coming don't are down. those that over ones we the control really So

with try obviously, where the In out and for price, -- offset the know price. get with we leave have this to company that's So to everything increased that other the from else raw us to not if the rollbacks inflation, I several to go expectation I would and take areas going work every going is guess it's in back to and are dropping, other case, world really that's there's because mean. you materials us dropping additional

out some fight internally, everything So will going be we we lining improvement have at and that that very the detail a point, with pretty and to have and our still out but methodical have can is We're and suspect very go and price and base. transparent increases. we're inflation is continuous to inflation the be of going -- detailed doing rate try with go we're but high offset to improvement to to going to get to data and it customer it. I support

Christian Zyla

I just FX Thank of helpful. you could than expectations, outside guess talk through one the European to you, very add headwind. the able better and just business could the perform you and I specifics of Great, even then if Scott more, how guys are

about like the talked 'XX from in in I impact what for up stay maybe can Europe you how rate? run even contributes energy energy that and quantify from performance, last the and Or prices maybe or your quarters about just 'XX, guess, Just a proposition case of to the efficiency retreat? elevated, you you. Thank following prices elevated runway prices comment what's if products, call,

George Wilson

brand prepared in difficult. right, those what that be the performance Linear relatively And terms would from end say product, exactly window. of in not that high terms that's specifically, under spacer position we're this point. what very a macro a and product within do I are the Yes to thermal going is, or our make opportunities, at extrusion U.K. vinyl performance would both quantifying level, in But and you're operating of I at we is just systems to the our

So energy will to America. and have rise North at will, Windows in to they Europe, and also to and that time continue they systems will continue costs it with transition components our some in in as point grow.

of As difficult, higher, it do do homeowner, I go becomes rate for a a this their want energy replace And lot payback. a make they fairly that costs easy internal purchase the it return. payback windows, makes to when to less decision

and feel will very for the cost, that in our markets because continue spacer, that's these in we it noting of that spacer grow business the of that Germany to facility to spacer that just international worth addition the it's think we quality in that specifically hub shipments. kind serve, as have to energy product manufactures Europe, strong So that the we that of that relates I

opportunity XX Germany the costs. different energy of in that facility supplying is an Middle East to our continue grow Asia Africa, to countries markets, their So elevated and emerging probably and to in in product because has

the energy line it the product well serves to relates future itself think perform performance. we in to So very as

Christian Zyla

color That's happy and the right. for Thank you holidays.

George Wilson

Yes, you too.

Operator

next looks our your for from moment a One is Daniel Securities, we like question. follow-up from have CJS It Moore open. line

Daniel Moore

Yes, allocation. buying Obviously, just capital back blacked you one out, follow-up on were stock.

leverage take you about should be that willing [ph] deals But previously. expect that's your number year, there some acquisitions are two, right we the this would Number one. up just the maybe picked way, for larger, Given up, to talked back that come Thanks. transformative talk about more to the if however, opportunities? cooker where you

Scott Zuehlke

leverage. And want of there we've clear there transparent and I doing that your and half if comfortable this year, three and that two board first pretty there, to about only relatively ever investors management be do net you transformational bigger if in leverage to above two get On a first, that? periods think to would back question, to with George, two. talk team out that a runway short is telling a deal down to times and this were don't be between second year one times been

George Wilson

think year flow on that or think I fifth excess de-lever absolutely million. and $XX straight have cash off as we've a of coming done that's And worked I is free we that No, what fair. of fourth to pathway we're in

good we've of a think that generation pay job I cash level very back. done developing comfort we So can a gives us and machine here what

obviously, each situations. so of those And

have go stock in on, in basis no forward terms are allocation, opportunistically than our it buy the on on in we back we priority. I if market. will as Now to of nothing will able past a be the And we then different there's going capital a be think

the I continue balance the we've think focus we year that will repaying of transparent the been think be I our But we of stock. in in needs this and buying we'll when down opportunistic very to we'll here can, debt organization. on

Daniel Moore

again. Thank you helpful. Very

George Wilson

Thanks.

Operator

Thank you.

the remarks. turn over will to I back Now Wilson closing George any back for call

George Wilson

and a Thank March. earnings safe look joyous to Year. holiday an would you call very all like in our update New on take joining season wish We next a I you. to for providing a to and Thank today. moment And everyone forward Happy

Operator

And today's you call. concludes for participating. conference this Thank

have day. Everyone a disconnect. now great may You

Quanex Building Products (NX) 17 Dec 222022 Q4 Earnings call transcript