EPS of ($0.02) missed expectations of $0.192 and revenues of $776.7M missed expectations of $779.63M. The company focused on expanding its gross margins and reducing cost structure in the quarter, it generated $55M of distributable cash flow, used for infrastructure projects and future deleveraging. Its gross margins improved from 18.4% to 19.5% year-over-year, and management has noted its focus for 2023 is to maximize cash flow generation to strengthen its financial position. Management reaffirmed its guidance for 2023, and it trades at a cheap valuation, but this was not a great earnings report and it is seeing downward pressure on its share price. We would prefer to wait until its financial position stabilizes and it can generate more cash flow to reduce its leverage before entering here.
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