2 weeks Ago By GuruFocus.com
In This Article: Release Date: February 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript . Positive Points Negative Points Q & A Highlights Q : Any early prioritizations for the $70 million in cost savings and guidance on top-line synergies? A : David Wilson, President and CEO, explained that the $70 million in cost savings will focus on supply chain optimization, enhancing purchasing power, operational efficiencies, and eliminating duplicative structural expenses. Revenue synergies include leveraging global coverage, cross-selling, and simplifying solutions for customers, which are not yet built into the model and represent potential upside.
Q : How do you justify leveraging up to almost 5x amid global uncertainty? A : David Wilson, President and CEO, expressed confidence in the free cash flow generation of the combined businesses, expecting over $200 million annually. He anticipates that as regulatory approvals are obtained and policies stabilize, EBITDA will grow, aiding in leverage reduction. The company has a history of successful deleveraging post-acquisitions.
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