And we’ve really worked to do that in a number of areas, new products that we’ve launched across the board. In packaging, we have new mailers we’ve launched. In filtration, we have new prefilter media that we’ve launched. In protective solutions, we have a new premium, bulletproof film that we’ve launched that we’re really excited about. So I think innovation continues. And we continue to invest there and drive volume in that regard. Customer programs that we’ve worked on to drive volume and gain share, we’re seeing that in filtration, as well as in our paper segment. And then the cost efforts that I’ve about, and really ensuring that we’re getting cost out to manage our facilities at the lowest cost possible. And we think that’s a big value for us.
And synergies is helping us drive that. So we continue to deliver on synergies. We had committed to $65 million. We’re on pace for that. We had committed to half of that in the first year and we’re on pace for that. So all of that to say, I think from a customer standpoint, the feedback is pretty mixed. And our position is we have to drive volume and we have to control our own destiny as much as possible. I think customers are working really hard to understand their demand profile. We work very closely with them. But it’s a challenge right now from a visibility standpoint, but we’re pleased with where margins ended up for the quarter. Constant with last year, which was a super strong quarter for both companies. And we’re pleased with the sequential improvement.
Daniel Harriman: I’ve made a note not to ask you about destocking ever again. So don’t worry about that.
Julie Schertell: You and everybody else in our building.
Daniel Harriman: My second question. Greg, this may be a little bit more for you, but y’all talked about this last week. And, obviously, leverage is top of mind for the investor base and it’s a major focus of the capital allocation strategy moving forward. The sequential EBITDA improvement in this quarter and then positive cash flow and sequential EBITDA improvement back half of the year. Do you anticipate being able to pay down a larger portion this year in addition to the 35% reduction upon close of the EP sale?
Greg Weitzel: I think the EP sale, specifically the 35%, and there is a potential for a little bit beyond that. Overall, you have that debt leverage of 4.2 at the moment, and we expect that to come down by another 0.3 turns with the EP sale.
Daniel Harriman: For 2024, still anticipating the $90 million in free cash flow that you talked about last week?
Greg Weitzel: Yep, that’s right.
Operator: Thank you very much. There are no further questions on the line. I’d now like to hand back to Julie for any closing remarks.
Julie Schertell: Thank you for your time today and your interest and we look forward to speaking to you on our next update.
Operator: Thanks, everyone. This now concludes today’s conference call. You may now disconnect your line. Have a lovely rest of the day and thank you for joining.
