Q1 2023 Total Company Guidance
The Company expects challenging conditions in housing amid elevated mortgage rates and general uncertainty in economic conditions that may significantly impact the business. As a result, the Company is not providing guidance for the full year 2023 but will reassess each quarter.
For the first quarter of 2023, the Company expects to achieve the financial performance highlighted below. Projected net sales and Adjusted EBITDA include the expected benefit of price, commodity, and margin impacts for Q1 2023.
- Net Sales to be in a range of $3.4 billion to $3.7 billion.
- Adjusted EBITDA to be in a range of $400 million to $440 million.
- Adjusted EBITDA margin to be in a range of 11.7% to 11.9%.
2023 Full Year Assumptions
The Company’s anticipated 2023 performance is based on several assumptions for the full year, including the following:
- Total capital expenditures in the range of $300 million to $350 million.
- Interest expense in the range of $150 million to $170 million.
- An effective tax rate of 23.0% to 25.0%.
- Depreciation and amortization expenses in the range of $525 million to $550 million, including approximately $160 million of amortization related to intangible assets acquired in the BMC merger. Total depreciation projected to be $215 million and total amortization projected to be $325 million.
- No change in selling days in 2023 versus 2022.
- Productivity savings in the range of $90 million to $110 million.
