Snap One Holdings Corp. (NASDAQ:SNPO) Q4 2022 Earnings Call Transcript

Brian Ruttenbur: Great. Thank you very much. I just wanted to follow-up on a couple of questions. First of all cash. So you’re at $21 million and you anticipate — I think that’s where you ended the year and that was down from third quarter. Can you anticipate an additional drop in first quarter and then a recovery in second quarter, third quarter? Is that correct? Just trying to understand the cash.

Mike Carlet: Yeah, that’s right, Brian. We don’t think about cash because we have a revolver. So we try to maintain our cash balance at the lowest minimal cash balance we need and then use the revolver appropriately. And so we really think about it on that basis. But yeah, if you think about total liquidity, that’s absolutely from a timing standpoint. We ended with $21 million of cash. We had a revolver draw of about $12 million at the end of the year. That’s going to be used somewhat in Q1 and then it will start recovering in Q2. So our low point of liquidity we look at in models should be the end of Q1.

Brian Ruttenbur: Okay. And then one other question about revenue. You gave us very good guidance on first quarter. Second quarter will be down still dramatically year-over-year pretty strong, maybe not as much on a year-over-year basis as first quarter. And then should third quarter be more of a breakeven on a year-over-year basis and then fourth quarter be slightly positive on a year-over-year basis? So I’m just trying to get the flow here.

Mike Carlet: It’s like you were reading off a cheat sheet there, Brian. That was very good. Yeah. So second quarter won’t be as bad as first quarter. Again, the impacts in the channel will still happen. But given some other things that are out there from a volume last year, from some volume expectations this year, some pricing activities last year and this year, it won’t be as bad in Q2 as Q1 around flat in Q3 and then positive in Q4.

Brian Ruttenbur: Perfect. Thank you very much.

Operator: Thank you. At this time, this concludes our Q&A session. I’d now like to turn the call back over to Mr. Heyman for his closing remarks.

John Heyman: Thanks, Josh, and thanks again to everybody for joining us today. 2022 was in many ways unprecedented in terms of kind of an operating environment for many of us. And I just want to thank our incredible team at Snap One for their efforts and their efforts specifically in delivering for our partners who continue to do great work out there in the field. So thanks again, and I’ll turn it back to you Josh.

Operator: Thank you for joining us today for Snap One’s Fiscal Fourth Quarter and Full Year 2022 Earnings Conference Call. You may now disconnect.