Jeff Strom: Yes. Sure. There’s always competition out there is one thing I’ll say. So you have to keep your eye on that on what’s going on. But if you think about what we’ve done over the past few years and the growth that we’ve done and the capacity we’ve added, that’s all about general line and some of the millwork items, which are the higher-margin ones. And so our focus and growth on that is what’s been holding it steady. But there’s a little pressure on the millwork side. And there’s always competition and everything else. But from where we sit right now, we feel good.
Operator: Our next question comes from Reuben Garner of Benchmark.
Reuben Garner: Sorry to harp on this, but I think it’s pretty critical right now. And I just want to clarify, on the inventory side, I understand you guys become more valuable in these sort of environments. You’re suggesting that your customers maybe go shorter on inventory when there’s uncertainty like this and commodity downside. Is that something that has already played out and is done in the first quarter? Is it something that’s ongoing and impacted your business in April and you’re expecting it to continue to impact the business? Can you just kind of clarify where we stand on that sort of channel destock?
Jeff Strom: I don’t know if it’s the destock as much as what — if you can get it in a limited risk, why wouldn’t you just buy exactly what you need when you need it? And that’s what’s happening. So we’re seeing right now as, for example, on the OSP side as prices are decelerating. People don’t want to step in and buy direct. They want to get what they need to cover as quick. And so our warehouse business, we’re seeing it right now is picking back up.
Reuben Garner: Okay. And then I guess, on the general line side, last time we kind of saw a jump in rates and some uncertainty kick in the distribution channel, including yourselves got pretty conservative and destocked in some certain categories. I guess how are you thinking about that? It looks like general line had a pretty strong first quarter? Is it different this time? Are there trends that are hanging in, in some of those areas that are different than the commodity side and aren’t maybe as rate sensitive as you thought? Can you just kind of update us on your thoughts there?
Jeff Strom: Yes. And in general line, the one big difference I’d say that we saw this year compared to last in the winter buy and the price increases that were announced in some products. Before people were — last year, for example, people are hesitant to step in, they just didn’t know. And this year, there was confidence of what was going to happen this year in the market. And so when those things came along, people jumped in and they purchased them. So as far as destocking goes, we don’t see that. In fact, in some of the winter buys, we’re starting to see people step back in and buy some more. So the general line has really been pretty stable.
Reuben Garner: Okay. Great. And then pricing, are there certain categories within BMD outside of the commodity that are facing more pressure than others? It sounds like you had some successful increases, anything going in the other direction?
Jeff Strom: Yes. I think right now, I mentioned it early. There’s always some EWP pricing pressure just for competition. And then the millwork side, there’s been a little bit there. And a lot of that has been driven by some of the components and things that come in from offshore and just what the freight has done and things like that. But those would probably be the 2 biggest areas that we’re seeing it right now.
Reuben Garner: Okay. Congrats on a strong quarter and above.
Operator: Backup is Ketan Mamtora from BMO.
Ketan Mamtora: Just one quick one. Was there any sort of geographic variations, what you saw in Q1 or in April in terms of regions, East versus West. Anything to call out there?
Nate Jorgensen: Ketan, it’s Nate. Yes, I don’t — I think it was pretty — I mean, there’s always weather-driven events that can kind of shape the first quarter. But I don’t think there was anything kind of unique in terms of strength or weaknesses from a geographic perspective. I think it was pretty steady and consistent kind of across our franchise.
Ketan Mamtora: Got it. Okay. And then just one last one on capital allocation. I’m just curious sort of, obviously, the balance sheet is very strong. But as you sit here today, there’s still uncertainty around kind of housing, repair-and-remodeling. So how do you sort of approach it so far as share repurchases is concerned versus kind of maintaining even more dry powder? Can you talk about sort of puts and takes there?
Kelly Hibbs: Yes, sure. I mean we have the balance sheet to execute on our expanded capital program. So anticipate we’re going to charge forward there. And that to your point, is there uncertainty in the marketplace in general, yes. But we still have plenty of dry powder to go pursue acquisitions if they make sense. And if they don’t come under fruition, again, I do expect we’ll be returning additional capital to shareholders. We’ve got – fortunately, we’ve got plenty of optionality, and we’ll be thoughtful and prudent. And again, we’ll just got to stay abreast to the market, stay abreast of M&A, and we’ll look to shareholder returns if we think that’s the right thing to do as the year develops.
Operator: Our next question comes from the line of Susan Maklari from Goldman Sachs.
Susan Maklari: I just wanted to quickly ask about the M&A pipeline. And I guess both just in terms of what you’re hearing from some of your key partners in BMD today, especially maybe across the general line as they kind of look out at their businesses over the next couple of years and think about growth? And then as well as just obviously, the initiatives you’ve got and the potential for further acquisitions?
Kelly Hibbs: Yes. I mean, I guess, certainly, the dealer levels still quite a bit of activity there, much more fragmented marketplace than where we sit in the channel. For us, we will be aware and be acquisitive if it’s the right thing to do. But I think my view is, for us, it’s going to be organic. It’s going to be our focus, and it’s going to be the main driver of our capital deployment here at least near term and less something surfaces that we’re not working on today.
Nate Jorgensen: Sue, it’s Nate. Yes. I think to Kelly’s point, it’s — the M&A always has to be aligned with our strategy and also our values just in terms of who we are and how we think about the marketplace. The other thing we are pretty insistent on is one plus one has to be greater than two, both in terms of the customers we serve and support as well as the supplier. So those are really important parts of — in our equation and how we think about it. And so we’ll continue to look at that lens as opportunities emerge.
