Yahoo Finance Phinia Inc (PHIN) Q1 2024 Earnings Call Transcript Highlights: Strategic Growth and Enhanced ...
Adjusted Sales: $846 million, up 1% year-over-year.
Adjusted EBITDA: $131 million, with a margin of 15.5%.
Adjusted Operating Margin: 13.6%, a 270 basis point improvement over the previous year.
Net Leverage: Below 1x EBITDA.
Shareholder Returns: $35 million returned to shareholders in the quarter.
Cash Position: $325 million in cash at the end of the quarter.
Adjusted Diluted EPS: $1.08.
Free Cash Flow: $13 million generated during the quarter.
Senior Secured Notes: Issued $525 million at 6.75%, used for debt repayment and general corporate purposes.
Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Congrats on a great quarter. Could you just provide a little bit of color on how we should think about seasonality for the rest of the year. So into the second quarter, we have to roll off some of the onetime items, but are there any other factors we should keep in mind? A: No. I think it will be kind of consistent with last year. I know a lot of people want to get into specific quarters. Things are going to move around always just a little bit depending on when holidays are and when the end of the quarter ends. In general, Q1 and Q4 from a revenue standpoint tend to be a little bit lighter. Obviously, we have some shutdowns in Europe in the summertime as well as in the U.S, but Q2 tends to be a good strong quarter in Q3. So again, it'd probably be similar kind of cadence with last year from an overall revenue once you take out the noise from any customer recoveries.
Q: Got it. And then now that you guys have cleared up some of the more restrictive covenants you had in the initial term loan B after the spin. How should we think about any shifts in your capital allocation priorities? A: Well, I think the capital allocation priorities kind of remain the same, but obviously, we don't have the restrictions. The TL B restrictions had a lot of limitations on both dividends and buybacks as well as some punitive cash sweeps if we got anywhere over one time. And so I think it will free us up a little bit and allow us to utilize more of the cash that we have on hand because we do continue to have probably more cash on hand than we need. So we'll look to deploy more of that as well. And with us paying down the revolver, our liquidity is now over $800 million. And again, that's probably excessive.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
