Greg Woods: So I’ll answer it in general and maybe David can be more specific about it. But yes, the inventory adjustment that you mentioned had a big impact on it. And if — when you average that out, you get more into the longer-term trend that we’re talking about getting back into the — I think we’re kind of in the 14% range before. So driving more towards, kind of, that mid-teens, I think is a more realistic thing to think about as we go forward. [Multiple Speakers]
Dennis Scannell: Yes. Go ahead, please David.
David Smith: I agree with that. That’s the way I would frame it. I would have said that you kind of take a look at the average there.
Dennis Scannell: Absolutely. No, that sounds great. Thank you for the further clarity. That’s great. Thank you.
Greg Woods: Alright, thanks, Dennis.
Operator: [Operator Instructions] Our next question is from Samir Patel for Askeladden Capital Management. Please go ahead. Your line is now open.
Samir Patel: Yes. Hey, I think we got cut off. We’re sorry about that. I just wanted to follow-up and see if you had any comments on the M&A pipeline.
Greg Woods: Yes. Well, it’s similar as we’ve talked about before. We’ve got some interesting opportunities in both T&M and the PI segment and we’ll see if we can finish any of those up. Typically, it’s about 1% or 2% of the things that we look at that we end up closing. But we’re actively looking at it. As David mentioned, we’re in great shape from a financial position to be able to pursue acquisitions in the size of the last one we did or even larger. So we’re out there. And hopefully, we do something this year. And if not, it means we didn’t find a good one here. So we’re kind of prudent about that as well to make sure it’s a good strategic fit and also that we don’t overpay, of course.
Samir Patel: Makes sense. And again, sorry, if you guys — I’m not sure if you referenced this in the script, but David, we’ve talked about your inventory levels and kind of cash flow. You gave your guidance on EBITDA, but maybe we could talk a little bit about sort of cash flow dynamics that you expect this year? I mean, you expect inventories kind of to stay flattish at these levels to continue coming down. Any other kind of working capital or other items you call out?
David Smith: Inventory continues to be a focus and it needs to be. We do see what I like to call areas of opportunity for improvement. We have had to make still some commitments to bring in inventory to support the supplies business, NPI on primarily ink, which has drawn off a lot of cash would have otherwise been able to pay down more debt more recently. And we continue to have some commitments that we need to make on the T&M side of the business. I think as we move through the year, the combination of improvement on the inventory side and obviously, the benefit of the higher margins are going to give us the ability to really go after the remaining portion of the revolving credit debt barring acquisitions, of course, which will cause us to take on more debt.
And I think by the end of the year, we’ll take a very large bite of what remains there and have the dry powder to do some things on the acquisition side and that will probably be the pattern. It’s been the pattern for a while and we work that continuous, pay down the debt and redeploy it first to support operations and then to do acquisitions.
Samir Patel: Makes sense. Thanks.
Operator: We currently have no further questions. So I will hand back over to Greg Woods to conclude.
Greg Woods: Great. Thank you, operator. So thanks, everyone, for joining us here this morning. In June, we’ll be presenting at the East Coast Ideas Conference in New York City. We hope to see many of you there in person as well, and have a great weekend, everyone. Bye now.
Operator: This concludes today’s call. Thank you for joining. You may now disconnect your lines.
