Brian Murphy: They were, yes, if you take a look in our MD&A, you’ll see that our DTC only which is Grilla plus MEAT was roughly $5 million. And then we just — we filed our investor deck showing that meat on a TTM basis is $8.7 million. So you can kind of, if you do the math from other presentations, you can kind of see where that’s going.
Operator: Our next question will come from John Kernan with Cowan.
John Kernan: Hey, good afternoon, guys. Thanks for taking my question. Thanks, the balance sheet $111 million in inventory on the balance sheet, it’s down from where it was on $1 basis in Q1. How should we think about the inventory balance in the back half of the year understanding that there’s some flow of product that’s going to go into your traditional channels of retail where they might be backed up still. But as we model the cash flow statement, this is a big part of how the overall cash position is going to shake out at the end of the year. So I’m just curious, is there anything that gives you confidence that this amount of inventory, the stays on hand is going to come down and create a cash inflow into the back half of the year?
Andy Fulmer: Yes, John, this is Andy. It’s a great question. So we’ve talked, starting last quarter that we’ve had these targeted inventory reduction initiatives that will drive cash conversion, we were actually saying closer to the second half of the year, we’re actually ahead of schedule on that. So we thought that the $9 million reduction in the quarter, we’re very pleased with that. But the work is not done. And we’re going to continue to drive those in — that inventory balance down to convert cash in the second half of the year, we’ve talked in the past about the $100 million plus is probably too high of an inventory balance. And on the low end, I think we ended fiscal €˜21 at $74 million. But we also had $15 million of backlog. So we’ve said that that number was too low. So it’ll take some time to bring the inventory levels down. But we have those initiatives in place. And we’re executing against those.
John Kernan: Got it and maybe talk to innovation in the product pipeline, by brand that you’re most excited about that can get the top line run rate improving as we head into the back half of year fiscal year and into the calendar year, next calendar year.
Brian Murphy: Yes. Certainly, hey, this is Brian. So like we mentioned, under the Caldwell brand, which is in our shooting sports category. And we’re focused in some of the larger I would say stable, more stable categories within shooting sports. So getting into shotguns sports, the claymore is, again, my opinion and also the folks that are getting their hands on it is a revolutionary product. I think that’s going to be a big Halo product for us going forward. So more to come on that we just started shipping that product. Within Frankford Arsenal, that’s our reloading brand. So now we’re getting into progressive presses if you know much about reloading, and so we’re just about to launch our x 10, which we showed at SHOT show last year, we began shipping some pilot units to consumers to get their feedback and also begin to build that groundswell.
As you look at the way we’re marketing some of our products now, just given the, I would say battening down the hatches somewhat, we’re getting more creative in terms of how we get our products out, how we’re launching those products, build working more with communities, quite honestly a lesson learned from Grilla. Grilla has done a fantastic job in that regard, and so we’re doing something very similar. With MEAT! Your Maker, we do have some other products planned that you’ll see here shortly, some nice high ASP products, Grilla, we’ve had a few products in development, beginning really just before the acquisition. And I say that because we were looking for a brand to apply some of these innovations and some of this IP, and it worked out perfectly with Grilla.
So you’ll see some of those innovations here in the next few quarters, probably the next quarter. And then going into the second. And then Bubba, right, we’ve got Bubba ICAST coming up next summer. So we’re working on some of those new products, we’ve got the smart fish scale, which is if you’ve heard me talk about it, like Strava for fishing, totally revolutionize the way that fishing tournaments happen and how they’re done. And so more news to come on that. But that will begin shipping here in the spring. So quite a few new, I’d say very disruptive products and some very large markets, largely the markets that we’re really excited about.
