Thomas Shannon: Well, the business is evolving. It’s evolving from longer leagues to shorter leagues, et cetera. It’s also evolving, in that. There were times of the week where the league business maximize the revenue opportunity, and now it doesn’t. And so we’ve selectively taken leagues out to replace with retail. So the fact that we’re up in league is pretty astonishing. I think the industry as a whole is down. But leagues are not your primetime business. They are really the off-primetime business, you have a lot of day leagues, you have leagues during the week, et cetera. And so, the league business for us is up. There’s an evolution going from the 32-week, leagues to the shorter social leagues that can be half of that, or even shorter, but they spend more on food and beverage, which doesn’t directly show up in the league number.
So moving around, all in a positive direction, and certainly positive for the business. But it’s not something that I would particularly focus on, sort of in the whole revenue mix.
Eric Handler : Got it. Okay. And then one last question, if you don’t mind for Brett. I believe all of your debt now is variable. How are you thinking about the debt that you have outstanding? Would it make sense maybe to pay down some of the debt with excess cash? How do we think about where the interest rates are trending to?
Brett Parker : Well, I mean, at this point, though it’s not low in the sense that everybody got sort of loaded into. The cost of capital is still pretty low, particularly when you compare it to the returns that we get by reinvesting in the business. So Tom mentioned the 25% hurdle rate, nearly all of our investment strategies were well ahead of that, in actuality. And we’re seeing — those returns continues so that the spread is just huge. So we continue to monitor it and we have considered putting on some caps. But typically trying to outsmart the interest rate environment, in marketplace has not been a winning strategy for most. So I think at this point, we’re more inclined to see how things shake up — shake out because it’s still dramatically cheaper than what our rate return is by reinvesting that money in the business.
Eric Handler : Thank you very much. Appreciate it.
Brett Parker : Thank you.
Operator: Thank you. Our next question is from Michael Kupinski with Noble Capital Markets. Please proceed with your question.
Michael Kupinski : Thank you, and thanks for taking my questions. Some of them have already been dressed, but I was just wondering, in terms of the color on Q2, and you indicated that you did increase pricing. Can you talk a little bit about the margins, particularly in the event revenue, given the fact that that seems to be rebounding very strongly, versus like, let’s say league play and others. And so if you could just kind of give us your thoughts on the composition of the revenue mix, and how margins kind of play into that, given your price increases and so forth?
Thomas Shannon: Sure, Michael. It’s Tom Shannon. The bowling part of the business has the highest margin, there’s no cost of goods sold. So it’s basically all profit on a variable basis. And we’re seeing very, very robust retail demand and event demand. So the retail bowling is the highest margin, the highest volume, the most important part of the business. We’re seeing the most robust demand we’ve ever seen in the company’s history. We’re also seeing extremely strong event sales which are accelerating. And that business is very high margin, also just slightly less high margin because you have a food and beverage component. So instead of it being basically 100% margin, let’s call that business 80% margin. So I think what’s important to keep in mind is that the quarter we just got out of is our lowest grossing quarter, even though it was very, very good quarter $230 million in revenue in the quarter that it’s not surprising that if you’re going to have margin compression in any quarter, it would be this one on a year-over-year basis, because you’re going from a quarter where you had abnormally low input costs to one where they’re more normalized, and it’s not a huge revenue quarter.
And so, the increase in costs sort of is magnified on a margin basis, versus what it would look like, say in this quarter or the next quarter. And so there’s a — we made a conscious decision to staff up to be fully capable of maximizing revenue and profit for the rest of the year. And we had to staff up in our lowest grossing quarter. So, the business across the board is extremely strong. Revenue generation continues to defy our expectations, Street’s expectations, our annual operating plan, really everything. And now we’re able to run the business in a sustainable way, and most importantly, deliver a high-quality guest experience.
Michael Kupinski : Well, your business is performing extremely with some pretty strong economic headwinds, not all of your peers are doing as well. I was just wondering if you have noticed that there might be more interest in acquisitions and that sort of thing, given that you’re doing so well, and others aren’t. And I’m just wondering if the pipeline of acquisition targets look like they’ve improved from where they were just maybe six months ago.
