Thank you
CHE.UN expects adjusted EBITDA in the $395M-$430M range for 2024. This is below the expected 2023 levels of $490M and the draw down is due to macro pressures creating lower selling prices, higher costs and lower sales volumes throughout the business. Debt has declined steadily in 2023 and net debt to adjusted EBITDA was 1.7x in Q3, displaying a solid improvement and management commitment to debt reduction. The increased distribution was nice to see and the company appears confident in improved long-term cash flows. Payout ratio is anticpated to be around 45% following the increased distribution. The adjusted EBITDA guidance was not particularly enticing from an investor perspective and the company highlighted that there will be both revenue and cost pressures in 2024. The increased distribution and debt reduction focus are nice to see, but the 2024 guidance did not move our prior opinion on CHE.UN. If one reads our historical questions, we simply do not believe it is that solid of a company, and its long term lack of value creation helps confirm that view.