Gary Fields: While each segment reported — so you can see that both of those two segments that I just spoke of, ACP and basics were both below 2023, the growth, while it was marginal, was in Tulsa. And Tulsa just — it has no disruptions of any magnitude, a little bit of weather related for some of our — we had customers saying, “You’re shipping too early to us. With this weather we’re having weather delays. Can you slow down a little?” That happened across the whole enterprise. But Tulsa was less impacted by it. Does that answer your question, Ryan?
Ryan Merkel: Yes, I think so. I think maybe the follow-on would be, it sounds like — I think you said second quarter sales flat. So we are not seeing a lot of improvement in 2Q. When do you expect that these timing of backlog issues or the production issues that you talked about, when do you see that getting back to normal?
Gary Fields: Well, my perspective is that it will be improving through Q2, but it will be Q3 before it’s relatively normal.
Ryan Merkel: Got it. All right. Thanks. Pass it on.
Operator: Your next question comes from Julio Romero from Sidoti & Company. Please go ahead.
Julio Romero: Thanks. Hi, good afternoon. Maybe switching to parts a little bit. It was nice to see the parts sales growth of 10% in the quarter. Was that performance in parts partially due to having more than expected capacity for parts and volumes were a little depressed due to the issues you just outlined.
Gary Fields: Matt, do you have any perspective on that?
Matt Tobolski: Yes. I wouldn’t say that the — I wouldn’t say the impact of volumes on the ACP and basics segments provided excess capacity of parts. I’d say the parts growth is really parts demand. And also from just a kind of year-over-year comp also from last year to this year, just also a normalization of supply chain has really also kind of made it easier to transact parts in a kind of global sense. There’s a lot of noise that kind of supply chain created in terms of being able to actually manage part sales. That’s really stabilized now. So it’s really just driven by demand of parts, nothing to do with the kind of smaller volumes off any of the sites.
Julio Romero: Okay. Understood. And then maybe if we could talk about data centers. As you guys are assisting some of these data center customers and kind of being a hand holder of sorts, is there any opportunity to provide any sticky products or sticky solutions that can embed you with those data center customers for the longer term?
Matt Tobolski: That’s a fantastic question. I would say at a high-level, that’s sort of where we specialize in providing kind of value add to our customers. And so that does afford us the opportunity to really put us in unique positions with our customers and develop solutions that really provide us a far better opportunity within those customers. And so that is actually actively — in our prepared remarks when we talked about the engagement of our engineering and operations teams, that’s exactly what they’ve been doing. It’s really developing unique and really solutions tailored for giving owners kind of business models. And that’s one of the great benefits of being a manufacturer with that kind of custom DNA, where we can really solution something for the owners and then convert that to a mass produced product and really add a lot of value.
So definitely, it’s what we are most excited about. We certainly see opportunity to really ingrain ourselves and kind of their growth story and really be able to kind of be at the forefront of enabling that.
Julio Romero: Excellent. I will pass it on. Thanks very much.
Operator: [Operator Instructions] Our next question comes from Brent Thielman from D.A. Davidson. Please go ahead.
Brent Thielman: Hey, thanks. Good evening. Matt, actually, just kind of following up on that, could you actually talk about the opportunity on the liquid cooling side for basics? And are you beginning to see orders for that specific market?
Matt Tobolski: Yes. No, it’s an interesting one. And I will say the surge in AI, it’s really caused the industry to kind of really kind of look at how do you develop and deploy capacity to the marketplace that also has flexibility to kind of serve more traditional cloud compute as well as AI and kind of how do you blend your development strategy around that. And we’ve really been working pretty heavily in that kind of market where we are developing solutions and really working with customers to solve the airside and liquid side kind of conundrum and how we kind of go forward. And that has already gotten us to a point where we’ve got orders in hand and really substantial opportunities in the liquid cooling realm. And really the fun of it’s been kind of tracking solutions that really do provide flexibility in the deployment.
So we see that actually as a really good strong suit, because it provides a better opportunity to deploy products where you don’t necessarily know exactly what that future demand at that given location is going to look like. And that greater flexibility really is attractive to the overall end user and kind of as they look to deploy capital. So we are excited to be seeing the conversion to actually orders off of the liquid cooling efforts we are doing. And really, from a pipeline perspective, extremely optimistic on kind of what that’s going to mean for the enterprise as a whole.
Brent Thielman: Okay. And then a lot of the focus in the commentary has been just around some of the delays, I suppose, with Longview and basics. I guess my question would be, was the core sort of AAON Oklahoma rooftop business, what you would have expected this quarter, or were there some delays in timing there as well?
Gary Fields: I think it’s been relatively close, maybe just a slight bit softer than what we expected. But it’s — we thought that we would see more seasonality in that business than what we had seen in recent years. And I believe that’s mostly what we saw in the first quarter was the fact that Q1 historically has been a softer quarter for that product. The last few years, we’ve had exceptions for various reasons. There were times when we had extraordinary lead time and others didn’t that we got past some of that seasonality. There was buying habits that changed. There was just a whole lot going on. I think we are in a relatively normal cadence of business now. And our sales channel partners have strong backlogs themselves that they’re processing strong pipelines that they’re processing and sending to us. And so while it was just a touch softer than what we may have expected, it wasn’t entirely unexpected.
