RE:RE:All about deliveries I echo both of your sentiments. I think this is exactly what BD/EM is trying to accomplish, in adding the Pearson facility. They're aware of the fact that they are cyclical on deliveries, and the machanization that is deployed on Pearson will help off set that somewhat. I would hope that is case, although I'm not sure. I'm thinking that, knowing the direction they took this company in so far, indicates that they are on this patern, of making this company less vulnerable to a Quarterly "feast or famine" direction.
I'm seeing that in why they expanded in the Service side, where they are taking a constant CF of $400M plus. Then the LTD re-shuffle of no larger $750M Bonds. I'm sure they've look at this imbalance in deliveries between Q1 and Q4 too. In the begining of the Pure Play in 2021, we all had the fear of this cyclical nature of the deliveries, coupled with fear of enough Casflow to meet the LTD payments, and even to have enough FCF for the survival of the company and not go BK. Hence the reliance of this board on deliveries. Because when you're a one trick pony? You have to do that trick, very well, and no room for failing. So we were foccussed on deliveries. Now I think they're balancing the company out.
I think EM discussed that very cyclical issue already in 2022. First part of the plan was, the reduction of the huge debt to reduce the heavy interest payments every Quarter. We're getting to that manageable balance on debt payments now, by lower Interest payments, and lower Bond payments on Maturities. This leads to LTD payment stability from Quarter to Quarter. The heavy deliveries for Q4 was the second part of the plan. They addressed that with a good, and predictable Backlog for almost 2 years. Then they've increased their production capacity with Pearson, and other improvements to their manufacturing facilities. This increase in capacity, will help balance the output Quarter by Quarter. The strong Backlog and Increase in production capability, will give them the flexibility to plan that Backlog production, in a regular, and timely manner, and it will even manage the Increase in production planned by the company.
So yes we've had this huge Q4 production this year, and even some Cashburn in Q1/2/3, to get this Pearson Facility in order, but we had the Reserves to pull this off. They didn't increase the LTD for all the Facility expansions, including the Service facilities, and now they are almost there, on balancing the Manufacturing side of this, every year end, mad dash to deliver everything.
These were some of the improvements necessary to Balance the company out.
I have the feeling that we're there in 2024 guys.