Casey Keller: So, our track channel that we see, I think it’s pretty similar for most of the analysts. I know there were a couple that were way, way off in terms of what they were saying was going on in consumption versus what we actually saw. But I think we were down about 3.5% in consumption with the data that we see and that compares to being down 3% net sales for the quarter. So, we do have some non-track channels. So, our Canadian business is obviously not tracked here. That’s a little bit less than 10% of our business and we’ve got some food service, food service and members Mark and Sam’s, wouldn’t necessarily be tracked in the general data. So, there are some differences and we’ve seen strength in our out-of-home business, particularly in spices and seasonings.
Rob Dickerson: Right. Okay. Got it. And then, I guess, just Q4, I think you said sales will be down 0% to 4%. I’m assuming that’s organic and then, secondly, it’s just like what gets you to flat, what gets you to down 4%, like with two months left, one of the fulcrum variables.
Casey Keller: Yeah. That’s a meat business sales calculation. So, we exclude divestitures in that fourth quarter period. Honestly, the main thing that we’re watching, we know what the Crisco price decline is. So, the price decline is the pressing sales. But again, which much lower oil costs were, we’re doing just fine on the gross profit line. So, it’s really a matter of, I would say, how we come through our seasonal kind of merchandising period and how well are we getting left in the November and December time period on our holiday merchandising, particularly in the baking season. And then, I think it’s just, do we start to see some recovery in our frozen portfolio as we’ve taken some actions to compress the price premium on rice, vegetables, and some other places where we to act on that portfolio.
So, that range is kind of what we have out there now. We’ll watch it, obviously, pretty carefully and see where our trends are. But I feel pretty comfortable that we’re in the middle of that range right now.
Rob Dickerson: All right. And then, I guess also, with respect to this share issuance and ATM capital structure, you kind of went through a lot in the call. Do you feel at this point, you’re just in clearly a much better position with respect to capital structure such that we shouldn’t really expect more kind of opportunistic issuance or that kind of to be determined?
Casey Keller: The biggest thing from our capital structure over the last two years, or maybe the biggest two things have been leverage and then this first tranche of 2025 notes and certainly, we would love to go back in time to 2021 and refinance something at like sub 5% or crazy like that. Knowing the environment that we’ve been in, we’ve been very focused on solving that maturity and then also bringing our leverage down. So, the equity issuance this quarter or third quarter really helped accelerate our debt reduction. I think these two asset sales will help bring debt down, marginally beneficial from a leverage standpoint, but all in, we think we solved that capital structure issue and so, things are improving dramatically, but certainly, if there are questions around capital structure earlier this year or midsummer, we think those should be largely answered.
Rob Dickerson: All right, super. I’ll pass it on. Thanks.
Operator: The next question comes from Carl Pestelos of JP Morgan. Please go ahead.
UnidentifiedAnalyst: Hi, this is Mike on for Carlo. Thanks for taking our question. Two quick ones from us. The first being is that, you’re seeing the balance sheet for this quarter, $69 million assets held for sale. Is that the right way to assume what the proceeds are for the sale of Green Giant can and then better yet, the second part to that, the FY guide, you guys held EBITDA. Does that kind of imply that EBITDA for this business that you sold was kind of minimal this year, so there’s minimal impact or it’s just better improvement in the base business that’s offsetting that? Thanks.
Casey Keller: Yeah. So, on the EBITDA part, just a reminder that this is $75 million, $85 million of annual net sales. There’s two months left in the year that we won’t have this business for. So, that’s 10 months that we had the business. So, it will impact what our EBITDA is by a few million bucks, but we’re largely through the year. We’ll come back next year when we give our fourth quarter and full year update to talk more detail about the full year impact. And then as far as the other piece, we didn’t disclose the transaction details.
UnidentifiedAnalyst: Okay. That’s awesome.
Casey Keller: The bottom line is that this is the shelf stable. The Green Giant US can business is a lower margin than our average. And so, we feel like we can cover within our EBITDA guidance range, we can cover the seven-week impact of that coming out. On a sales basis, that’s obviously a little bit larger. So, we’re just closing here. We’re kind of adjusting that in terms of our sales guidance.
UnidentifiedAnalyst: Got it. Thank you. That’s helpful,
Operator: The next question comes from Karru Martinson of Jefferies. Please go ahead.
Karru Martinson: Good afternoon. Just so we’re clear, the asset has been divested. We’re not waiting on any kind of approval or…
Casey Keller: No, it’s complete. The rest are complete.
Karru Martinson: Okay. And now, with the sale, like when we look at Le Sueur or Canada Canned, does this just change anything in terms of having a more difficult time going to market with scale, more difficult time with sourcing product? Or how do you look at the remaining can side of the business?
Casey Keller: Honestly, the canned business in Canada is a completely different business. Not the same supplier, not the same products, not the same formulas. So, it has really nothing to do with the US business. We have a Canadian supplier that supplies everything labelled differently, packaged differently. There’s no synergies between our US and Canadian canned business. Le Sueur is a different business. We actually sourced that from Seneca, who bought the Green Giant canned business. So, we’ll continue to manage and market that. That’s actually a nice margin business. It’s very differentiated and it’s held up very nicely. So, we’ll keep that business for now. In the future, maybe that’s something that we could divest, but it’s a reasonably good business that I think we can run and continue to source.
Karru Martinson: Thank you very much, guys. Appreciate it.
Operator: The next question comes from David Palmer of Evercore ISI. Please go ahead.
