Philip Schlom: It is, yeah, at a 50 bps reduction and $1 billion outstanding. It equates to about $5 million per year. And we’re actively working with our bank group, and we’ll continue to watch some markets for opportunities to continue to do things that can help bring down that interest cost.
Jonathan Braatz: Okay. Good. Secondly, zinc costs currently are off on a year-over-year basis. And eventually, that’s going to — you’re going to work through that or work through those lower costs. Do you see a little bit of a tailwind to your operating margins in metal coating, maybe six months, nine months down the road. Is that going to prove to be a little boost to your operating profile?
Tom Ferguson: Yeah, we would hope so. I think it’s — we’ve got some of our Metal Coatings team sitting here and they’re looking with acquiring faces is what that’s going to do to their budget for next year, but we’re confident. We had talked about how we’ve done a better. They’ve done a great job of providing price for value. But we do think this is about within the next month or so is when we start — we’re having those negotiations with the zinc suppliers. And the big factor you have to add right now is the premiums are in the $0.30, $0.35 range added to whatever the LME is. So that’s part of the unknown at this point is what are those premiums going to look like next year. But yeah, I would anticipate this will provide us some tailwinds.
Jonathan Braatz: Can those premiums vary quite a bit year-to-year?
Tom Ferguson: They can vary quite a bit year-to-year and they have just the last year movement from, call it, in the less than $0.15 range to the $0.30, $0.35 range. And then you’ve also got some variance depending on the regions of the country. So these are all things that come into play as we make our commitments on zinc and work with our suppliers who have been — we feel good about the supply chain right now and the availability of zinc, which allows us to bring down any — some of our safety stocks.
Jonathan Braatz: Okay. Tom, looking ahead sort of into 2024, the new Washington facility. What are — what might — in terms of start-up costs, what kind of net contribution initially will Washington have on your finance or on your, let’s say, your income statement. Will it be a little bit of a drag? Will there be some costs to absorb before it becomes additive.
Tom Ferguson: We’ve got all those factored in. So with the formal and complete startup in fiscal 2026. So that’s already factored into our plans and outlooks as we look forward because we will add the skilled labor and bring them on, get them trained. But — so yeah, there’s some of that in there. But there’s not — it doesn’t go on for a long period.
Jonathan Braatz: Right. Okay. All right. Thank you very much.
Tom Ferguson: Thanks, Jon.
Operator: The next question comes from Brett Kearney of Gabelli Funds. Please go ahead.
Brett Kearney: Hi, guys. Thanks for taking my question and congrats on the continued momentum.
Tom Ferguson: Thanks, Brett.
Brett Kearney: On Precoat Metals great to see the improvement inconsistency in margins this fiscal year. I think it sounds like a lot of the heavy lifting was done, eliminating some of that excess warehousing expenses — just curious how you guys are feeling about, I guess, the sustainability of margins at that business here or even room for potential improvement, I know you’re focused on a few below fleet average sites and whether there would be any incremental investments going to kind of unlock the productivity improvements at those locations?
