Jonathan Banas: Yes. when we issue our 10-Q later today, Brian, you’re going to see the segment results for not only this first quarter of this year, but also 2023. And then each subsequent quarter, we’ll put in the historical frame of reference for you on those. We’re going to obviously get to once we get to the 10-k, there’ll be a full three years in there. We’ll go all the way back to 2022, just because of the comparative rules from SEC standpoint. So, you’ll see those coming as we publish our upcoming financials.
Brian DiRubbio: Got it. Excuse me. And then — Sorry, go ahead.
Jonathan Banas: No, I was just going to point out that you also see the previous years in the press release that we issued last night as well. So, you get the historical Q1 of last year.
Brian DiRubbio: Yes, that I got it. So, just got to rewrite my model now.
Jonathan Banas: Yes.
Brian DiRubbio: Just fine. So, just on the PIK versus cash pay, I guess my question for you on that is, if you were — if you would have cash paid your coupons this year, would you still be free cash flow positive?
Jonathan Banas: Well, I gave you the general that we expect to be free cash flow positive. We don’t get into the details of what the magnitude of that is. We don’t give free cash flow guidance. So, we’ll — I’ll just leave it at that. We’re continuing to work towards obviously not having to elect that. We only have it for the rest of this year through the Q4 payment. and then that rolls off in ’25 forward. But clearly, the goal is to not add to the quantum of debt and be able to straight pay all that. So, I won’t give you the adjusted pro forma guidance on that. but we’ll just leave it at that.
Brian DiRubbio: Fair enough. Is it your expectations that you still like to do a global refi next year?
Jonathan Banas: That’s our current thinking. Of course, that all depends on the production environment, the interest rate environment and the like. But certainly, with our trajectory, what we’re thinking about in terms of continued improvements in the cost base of the business, improvements in free cash flow that that Jeff and I have been talking about here today, we think that sets us up very well to be in the market next year, but a lot of factors go into that.
Brian DiRubbio: Got it. And then final question is just on raw materials. Natural rubber and butadiene prices have been trending upward. Are we — are those mostly on a lag basis in terms of your pricing resets?
Jonathan Banas: Yes, Brian, it’s Jon again. Typically, they’re on a quarter or perhaps a two-quarter lag, same thing with our steel and aluminum buys as well. Typically, you see a quarter or two there. So, we are seeing what you described on the rubber side, but also on the steel — cold rolled steel side, we’re seeing some headwinds. When we came into 2024, we thought we’d have a slight tailwind. but now, that’s kind of been mitigated by recent commodity trends and we’re back to kind of a flat commodity environment overall for the year. That’s our current outlook.
Brian DiRubbio: Got it. And final one from me. Could you remind me what your — the cost recovery payments were last year in aggregate?
Jonathan Banas: Are you talking about the cost we were able to take out of the business?
Brian DiRubbio: No, no. What the OE sort of compensated you for the prior year inflation pressures?
Jeffrey Edwards: This is Jeff. We haven’t revealed that and we’ll keep that to ourselves, I guess, from a pricing point of view. We feel like we have done a really good job. Our customers have certainly stood up and supported Cooper-Standard’s requests. We’ve talked about the impact at the end of last year. You can see the impact that that’s had during the first quarter. Obviously, our bullish comments today about what we think ’24 could be and certainly ’25. And clearly, we’ve got our own lifting to still do. This isn’t about just how much money did we negotiate in price increases. Frankly, most of it is — it reflects the cost increases that the business went through. But I think we’re in a good position to be successful. We’re in a good position to return ourselves to the level of profitability that we need to be and to generate the type of cash we need to be generating in order to provide our customers with the consistent ongoing support we’ve always done.
and certainly, continuing to improve for our shareholder base is a part of that whole equation as well. So, we’ll keep the amount to ourselves at this stage.
Brian DiRubbio: Fair enough. Still had to ask. Appreciate the color. Thank you.
Jeffrey Edwards: Thanks, Brian.
Operator: It appears that there are no more questions. I would now like to turn the call over back to Mr. Roger Hendriksen. Please go ahead.
Roger Hendriksen: Okay. Thanks, everybody for joining the call. We appreciate your questions and the engagement. Please feel free to reach out to me directly if there are other questions that we didn’t cover or we’d like to address in more detail. Thanks, again. This concludes our call.
Operator: Ladies and gentlemen, this concludes today’s conference call for today. Thank you for your participation. you may now disconnect.
