...Overview Key strengths Key risks Favorable relationships with major insurers requiring strong operating metrics Narrow scale, scope, and diversity of operations, which focus on the highly fragmented U.S. collision repair industry Historically modest but consistent free cash flow generation. However, recent labor and parts inflation and expansion costs have reduced free cash flow Continued labor and vehicle parts shortages could hurt margins and free cash flow Increasing ability to pass along labor and parts inflation to insurers and improve margins Excessive leverage and aggressive acquisition strategy, given the company's ownership by a financial sponsor After margins weakened significantly at the end of 2021, we expect Wand (Caliber) will be able to pass on higher costs to insurance carriers, likely allowing the company to realize somewhat higher margins in 2022 compared to the fourth quarter of 2021. Margins deteriorated significantly in the last quarter of 2021 compared with 2020 due...
