Kemp Dolliver: Right. Okay, good. Second question relates to the industry headwinds that you’ve mentioned, and I’m curious, one thing we’ve read several times over the course of the last few months is that fertilizer prices, after running up last year, have rolled over or dropped significantly. Is that a factor in the recent performance of the business?
Enrique Lopez Lecube: Hi, Kemp, this is Enrique. Good to have you on the call. So, look, obviously, I would say that the micro-beaded fertilizer line, because of the way that technology works, that is essentially by replacing commodity fertilizers, is exposed to price dynamics in MAP and DAP. What is not exposed is the margin that we make, because MAP and DAP are essentially the main raw material for the micro-beaded fertilizer that we manufacture. So, in terms of top line, yes, we might be exposed to that, and that might be part of the drop in revenues that you saw in Q2 and Q3, but it was mostly volume out of the drug situation in Argentina. So, what we believe now is that MAP and DAP prices seem to have stabilized, and that should sort of like allow us to continue resuming growth.
And when we talk about growth in micro-beaded fertilizer, we essentially measure that in volume to draw out any noise from increasing or decreasing of commodity fertilizer prices. But for the sake of a forward-looking exercise, what we are assuming is that MAP and DAP prices will remain stable, and that should allow us to keep growing the revenue line if we grow volume.
Kemp Dolliver: That’s great. And then just one last question. The other income line, which is normally volatile, was higher than what we’ve seen in the last couple of years. Is there anything in particular that led to the negative swing?
Enrique Lopez Lecube: In which one in particular are you mentioning? I lost you there.
Kemp Dolliver: Yes, sorry. That’s okay. This is the negative 2.2 million for other income, which you report just above the operating income line.
Enrique Lopez Lecube: Yes, yes, yes, absolutely. So, obviously there, it’s anything that is not strictly related to the segments, and in particular in this quarter, we are accounting for some of the inventory ramp-up costs that we decided not to identify in the $81.1 million EBITDA. So, if you were to make an apples-to-apples comparison to the $62 million in adjusted EBITDA that we took as the base to compare last year’s result, in reality this year, you should be adding back this $2.2 million. But we decided not to do that because we consider that this is part of what the business needs to digest from a profitability perspective, but it’s essentially driven by that.
Kemp Dolliver: Fabolous. Thank you.
Operator: Thank you, Mr. Dolliver. Our last question is from the line of Brian Wright with ROTH MKM. You may proceed.
Brian Wright: Hey. Good afternoon. Just summing up on that one real quick before the couple others, is the best way to describe that that’s just an inventory write-down of $2.2 million based on some of the other comments? Is that a fair characterization?
Enrique Lopez Lecube: Hi, Brian, yes, yes, I think that that’s a fair characterization. Just to clarify, what we are not going to do anymore is adjust EBITDA or talk about baseline business excluding that. We believe that that’s part of the underlying business, and therefore, it should be deducted from the EBITDA, and that’s why we’re including it as a negative result in the $81 million that we reported in EBITDA. But that, in this particular quarter, was essentially driven by the inventory wrap-up costs.
Brian Wright: Got it. Okay. And just a little bit differently, because we don’t have the full balance sheet yet, can you give us an update on the inventory level?
