Valvoline Inc. (NYSE:VVV) Q4 2023 Earnings Call Transcript

Mary Meixelsperger: Yes. So, interest expense, I think if you look at our interest income in the current year, we had $44 million of interest income that offset interest expense. And so, we still have $757 million at year-end of cash, cash equivalents and short-term investments. We’ll see some of that go away given market conditions with the [Indiscernible] for the 2030 bonds that I would expect some time in our second fiscal quarter. So, you’ll continue to see a little bit elevated or benefit to interest income in the current year given our cash position. But once we net through that, I think you’ll start to see a more normalized interest expense based on the outstanding 2031 bonds that are just under 4% discount rate — excuse me interest rate.

And the term loan A, which has a variable rate based on SOFR plus a spread. So, I think we’re in good shape. I will tell you that we built in a little bit of cushion in our guidance — our EPS guidance assuming that, we’re going to see the Fed move interest rates another 100 basis points or so. And so that is built into our EPS guidance.

Mike Harrison: All right. Thank you, very much.

Mary Meixelsperger: Thanks, Mike.

Operator: And with that, we have no further questions. So I’ll turn the call back to Lori for any closing comments.

Lori Flees: Thanks, Emily and thank you all for joining us today and for your thoughtful questions. Since our last update, I’ve enjoyed spending time with many of you and our investors and I look forward to the ongoing discussions. We have a resilient and durable business and I am excited about the momentum that we’re taking into FY ’24. So I appreciate your time today. Thanks.

Operator: Thank you everyone for joining us today. This concludes our call and you may now disconnect your lines.