Ashley Lee: Yeah, Pat has mentioned this couple of times. We are going to give out our formal 2024 guidance in February of next year. We did have a second quarter of really strong free cash flow generation. And we’ve done a lot of things internally to focus on that whether it’s expense control or better working capital management, it’s something that we’re laser focused on. I made the comment in the call that we are now free cash flow positive on a trailing 12-month basis and we expect that we will be free cash flow positive on a trailing 12-month basis going forward and we expect that to improve each quarter as we move forward.
Frank Takkinen: Perfect. I’ll stop there appreciate taking the questions and congrats on solid quarter.
Pat Mackin: Thanks, Frank.
Operator: [Operator Instructions] We’ll take our next question from Jeffrey Cohen from Ladenburg Thalmann. Please go ahead.
Jeffrey Cohen: Hi, Pat and Ashley. How are you?
Pat Mackin: Hey, Jeff.
Ashley Lee: Hey, Jeff.
Jeffrey Cohen: Just a couple short ones from — sorry if you’ve addressed many of the issues. So was there an update — I heard a quick mention about PerClot. Was there an update as far as manufacturing over the past quarter and what that looks like on your end from manufacturing and transferring that at some point?
Pat Mackin: Yeah, so we basically — this is as a refresher, so we’re currently producing PerClot for Baxter. They’ve done a very nice job with the product and kind of meeting exactly where we thought they would be. We basically — we don’t have perfect information, Jeff, on this, but it looks like we will be producing PerClot for them all of 2024 and maybe into the first half of 2025 and, again, it’ll depend on how their transfer goes. And we’ll have — I think, as we get closer, we’ll have better data, but I think for — we’re expecting to have it in all of 2024 and then we’ll know more kind of mid-to-late 2024, how their transfer is looking. So that’s about as good as I can do for right now.
Jeffrey Cohen: Excellent, so far. And then secondly, could you talk a little bit about your commercial channels, at least ex-US, as far as some of the territories that went from direct to distributors? And will any of those be moving in the near future? Is it something on your to-do-list as far as some of the territories moving either direction?
Pat Mackin: Yeah, so we’ve had — as you know, we’ve had a pretty deliberate strategy over the last five years to build out our channels in Asia Pacific and Latin America. I mean, when I joined the company nine years ago, we had one person in Asia and nobody in Latin America. Now we’ve got probably a team of 25 in Asia and half a dozen people in Latin America. We’re going to, basically — for 2024, we’re going to slow down the investment there. I think we’ve got good infrastructure. There’s more to do, but we’re not doing in 2024. I think we’ve invested what we need to invest for where we are as a company. We did — for example, we went to direct in Greece this past year, kind of in our European region. And we’ll look to do those things from time to time, but not in 2024.
So we’re kind of — our channel, we’ve got about 185 direct reps right now around the world and we’re kind of fixed there for next year and that’s part of the way you’re going to see the EBITDA drop through, because we’re not going to be investing in further channel expansion next year.
Jeffrey Cohen: Okay, perfect. That does it for us. Thanks for taking the questions.
Pat Mackin: Thanks, Jeff.
Operator: Thank you and that was our last question. I’d like to turn the floor back to Pat Mackin, President and CEO for closing remarks.
Pat Mackin: Well, thanks for joining the call. And as you can tell, we’re extremely positive about how things are going at the company. We’ve been raised every quarter. We had a great Q3. We kind of were hitting on all cylinders. We’ve got great new data. Our factories are firing on all cylinders. We’re delivering the numbers we told you we would deliver. And we feel very confident about our ability to deliver double-digit growth next year with 75 million of EBITDA. So look forward to next quarter and we’ll be giving out our 2024 guidance. So thanks for joining us.
Operator: Thank you. Ladies and gentlemen, this does conclude today’s teleconference. We thank you for your participation. You may disconnect your lines at this time and have a great day.
