Sealed Air Corporation (NYSE:SEE) Q4 2022 Earnings Call Transcript

Christopher Stephens: Sure, Larry. Let me address your kind of the D&A related question, and then we will get into the growth aspect. So first, as it just relates to the D&A, really, a reflection of the investments, incremental investments we have made in our business. As you know, we have increased pretty meaningfully the CapEx profile in our business. So, the jump in D&A is primarily driven by those investments in the amortization.

Ted Doheny: Yes. Okay. So, I will take the second part, Larry. If you €“ if we look at our operating model slide, so exactly as you said, if you look at that backward slope of the last 5 years at 18%. And then you see the challenge we have in 2023 on EPS, as Chris has highlighted in the bridge, specifically the biggest one being the interest rates. And again, how do we pay down that debt as fast as possible. So, if you look at the slope of that curve from where it is in 23 to 27. It’s actually the 15% growth rate. But that target that we had out there is greater than 10%. Let’s continue to go beat what we say we are going to do. So, it actually the slope of that curve is higher than 10%, but we are also recognizing we took the dip in 2023 to get there. We think the model to your point, especially as we are adding higher margin as we continue to have margin expansion, we think beating that 10% EPS growth into 2027 is more than possible.

Larry De Maria: Okay.

Ted Doheny: I want to thank everyone for the entire call for today. We are in hope you feel the excitement, we are really excited about the opportunities what Liquibox brings to us and how it’s going to accelerate our growth to the future. And we look forward to speaking with all of you in May. Thank you everybody.