Brett McBrayer : I’d say’ 22, we lost a bit of share in particularly the UK, the Sweden plant was stable and now we are negotiating essentially 2024 volumes. Most recent – commit anything, but most recent outlooks look more positive going forward.
Dennis Scannel : Excellent. Good. Good. And then, I think this would be for Mike. But, can you talk a little bit about the capital spending for 2023 and then 2024, kind of what the what the budget looks like?
Michael McAuley: Yeah, sure, we can talk about that. No, we’re €“ for the year, I think, I quoted that and in the script, for the year, CapEx for total Corporation, we finished the year 2022
Brett McBrayer : $16.7 million.
Michael McAuley: Yeah, I think, $16.7 million. 2023 will be a bit heavier, especially on the kind of the strategic domestic machining assets that we’re putting in, in some of the heat treat furnaces. We’re going to see higher levels of CapEx in the next, particularly Q2 and Q3 of this year, I predict. So we’re going to see that bounce around between the quarters and be a bit elevated, for 2023 relative to 2022. We didn’t really give an outlook as far as that granular level of detail, but I think we’ll see, probably, maximum CapEx in 2023 and a tapering 2024, 2025.
Dennis Scannel : So, I mean, are we talking like $30 million in 2023? Or can you put a range on that?
Michael McAuley: Yeah, we’re not. No, it’s not going to be it’s not going to be that high.
Dennis Scannel : Okay? Okay.
Michael McAuley: What we’re doing is, we’re managing sustaining CapEx with more of the replacement, the machinery that we’re focused on putting and its replacing the older machinery. So we’re trying to spend less on sustaining to our forward our way through this program.
Dennis Scannel : Right. Right. And then, thinking about, once this capital spending this strategic capital spending is done by year end 2023, can you give a sense of kind of where CapEx shakes out for 2025 and beyond? I’m sorry, for 2024 and beyond?
Michael McAuley: We are probably going to be in the $15 million range.
Dennis Scannel : Okay. Yes. It’s helpful. And then, go ahead, I’m sorry.
Michael McAuley: Let’s, you know globally.
Dennis Scannel : Yeah, right. No, absolutely good. No that’s helpful. And then, I’m not sure. So, again, without having the K in front of me, so for the full year 2022, our operating cash flow, I think you gave for the fourth quarter, but for the full year, where would that have shaken out?
Michael McAuley: Cash flow from operating activities,
Dennis Scannel : Right.
Michael McAuley: It was a use of $27 million.
Dennis Scannel : Yeah. And as we look into 2023, we’ve got, heavy capital spending. Do you have any guidance in terms of how operating cash flow will look? I mean, again, we’re hoping to have some improved profits. Hopefully working capital won’t be as much of a drag. Hopefully where the raw material prices?
Michael McAuley: Right. 2022 was definitely a bit working capital Growth year and we all know inflation really added to that. But as we look to 2023, if we just focus on operating cash flow and because we already talked about CapEx.
Dennis Scannel : Great.
Michael McAuley: We should not be in that range. We will see higher sales and it depends on the timing of those sales for winds up being a large report. We may end the year with maybe a little a little bit on accounts receivable. But our game plan is to kind of control inventory through the year and we don’t really predict a large inventory growth. So, we expect a much more moderated working capital position in 2023, as compared to 2022. So we’re not, we’re not projecting a big use like that in 2023.
Dennis Scannel : But would you go out on a limb to say that we’re going to have positive operating cash flow in 2023?
Michael McAuley: I think it’ll be a challenge.
