Again, this is broad, big picture North, South America. And we just need some time to work with our customers, get those forecasts in line, get them stabilized. We will be able to adjust our operations accordingly. But we are going through a number of revisions of those forecasts, and some of them just don’t make sense, Steve. I mean, that’s the hard part is we look to the second quarter, we’re seeing some forecasts that just don’t make sense and we’re working with the customers that say, well, look, let’s take a look at it and work together to moderate some of these fluctuations that you’re building into your forecast. And so literally every day, we’re seeing changes to it. But a lot of it’s driven by what you said. I mean, these supply chains are very complicated at the OEMs, as they’ve kind of turned the calendar into 2023.
They’ve been focused on getting the supply chain caught up. They’re focused on getting that partially built inventory off their lots, drawn down some of their inventory. And so you throw that all together. I mean, we believe 2023 is in a good position. It’s starting to year off strong. But at this point, we’re going to let the inventory situation settle down and then we’ll provide some updated information as those customer forecasts become clear.
Steve Ferazani: Sure, that makes sense. That makes sense. Can you give us a peak on how Q1 is playing out since we’re two months in?
Paul Reitz: Yes, it’s a pretty good start. We’ve had a very good January and February across the business. And so yes, we’re €“ I can’t say, a whole lot more than that obviously at this point, but it’s a very solid start.
Steve Ferazani: Okay. And then on another really strong free cash flow quarter you didn’t pay down debt, obviously you have over $150 million on the balance sheet now CapEx up a little bit, but as you noted, you still should be looking at a pretty strong cash flow year. Anything you want to offer in terms of capital allocation?
David Martin: Well, what I said in my remarks earlier was that we would be looking at opportunism €“ opportunistic acquisitions, joint ventures, things like that, things that can continue to grow our business and our core markets. Again, these things don’t always come at the times that I can’t really give you any strong forecast for exactly what that is. But being a market leader that we are, we have opportunities and we will continue to pursue those things that make sense for us. We will be supportive of the stock on the stock repurchase program as we need to. It’s not like we’re going to be in the market every day buying stock, but as we need to support the stock, we will do so with that. And so we will continue to be building cash for in the meantime and be looking at ways to improve our returns very proactively.
Steve Ferazani: Okay, Paul, David, thanks for all the answers, responses.
David Martin: Thanks, Steve.
Operator: Our next question comes from the line of Larry DeMaria with William Blair. Larry, your line is now open.
Larry DeMaria: Hi, thanks. Good morning everybody. So first just follow €“ hey guys. Follow up on the last question. I mean, from where we stand now, two months through 1Q, will we anticipate 1Q to be up, down, flat from a sales and EBITDA perspective? I would imagine we have some visibility on that.
David Martin: Well, I will say that, know we still have March to go here, but we’re off to a solid start comparatively to last year.
Larry DeMaria: Okay.
David Martin: We can’t give you a specific number yet, but it is €“ from the €“ all the critical numbers we are continuing to grow.
