Steve DiTommaso: Interest levels have remained pretty flat the SOFR benchmark rate levels in early January. So if that holds true, we think interest expense in Q1 will be about $1.8 million to $1.9 million in that range. That includes the interest expense on the new lease financing arrangements we went through.
Phil Gibbs: Appreciate that guy. Best of luck.
Denny Oates: Thank you.
Operator: Our next question is coming from John Deysher of Pinnacle. Your line is open.
John Deysher: Hi, good morning, Denny and everyone. You painted a pretty optimistic picture. The backlog was up. I guess just two brief questions. One, what is the CapEx budget for fiscal ’23?
Denny Oates: We’ll come in $16 million to $18 million. And the reason I give you that range is with the supply chain issues we have, it’s kind of challenging to really pin that number down. But right now, we’re planning on $16 million to $18 million.
John Deysher: Okay. Great. That’s helpful. And on the debt situation, if everything goes according to plan, and I know that’s a big if, where would you anticipate that to be a year from now? I think it’s, what, $90 million, $98.4 million? What should we think about for year-end debt levels?
Denny Oates: The $98.4 million includes the new lease arrangement you’re — just to make that point since that’s a change, and I would expect that number to be below $98.4 million. We’ll probably have some use of cash in the first half of the year as sales ramp and then flatten out and pay down during the second half of the year. That’s the way I would look at our numbers. So you’re $98.4 million, somewhere in the $85 million to $90 million range a year from now.
John Deysher: $85 million to $90 million, you said?
Denny Oates: Yes.
John Deysher: Okay. All right. That’s helpful and best of luck.
Denny Oates: Thank you.
Operator: Next question is coming from Douglas Dethy of D.C. Capital. Your line is open.
Douglas Dethy: Hi, D.C. Capital. Douglas, here. Good morning.
Denny Oates: Douglas, how are you?
Douglas Dethy: Good. Thank you. Could you comment on what your expectations are on volume increases in ’23 versus ’22 on some basis that you would look at it to get an idea on how much more is going to be flowing through the plant and equipment?
Denny Oates: You’re talking about shipment volume, I assume?
Douglas Dethy: Yes, probably. Shipment is probably as good as any measure.
Denny Oates: Two comments there. In terms of total pounds, you’re probably looking at something in the range of 10% with a significant shift in mix towards more premium melted products, which you’ve already started to see. And the wild card in that volume number is going to be some of our semi-finished products like plate that go into the heavy industrial market.
Douglas Dethy: And that’s based on where demand comes out then on that product?
