The Real Good Food Company, Inc. (NASDAQ:RGF) Q4 2022 Earnings Call Transcript

Akshay Jagdale: Sure. Yes. So our cost of debt is in a low double digits now with the rates where they are and how high they’ve gone in the last few months. But keep in mind that our revolver is PIK, paid in kind, so it does not impact our cash, it impacts our availability. And as you saw probably a couple of weeks ago, we did an amendment and expanded our credit facility, which essentially created at least $20 million more in liquidity for us, which is big one, especially in this environment. As far as your question on how much will we use, I mean, we’re not giving free cash flow guidance, especially not for the first two quarters. But what I tried to say in my remarks is, we’ve got this big reset happening with a very large retailer here in May, like literally a month away.

And our gross margins were already at 14% when we’re 50% utilized. So think about the fixed cost leverage and what impact that’s going to have on our margins and also on our cash flow. So we’re maintaining our guidance for operating cash flow positive for the full year. And we also said here starting in May, June, we should start to be operating cash flow positive as well. So we remain on track to achieve that and a lot of it’s going to come from better utilization and everything else that we’re doing to improve margins.

George Kelly: Got you. Thank you.

Endof Q&A:

Operator: Thank you. There are no further questions at this time. I’d like to hand the floor back over to Executive Chairman, Bryan Freeman, for any closing comments.

Bryan Freeman: Thank you for joining us on this fourth quarter call. I look forward to updating you on our progress on our upcoming call on Q1. Thank you and have a good day.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.