David Rush: Yes, I mean, if I just talk to Randall Langs, I think that’s right between 350 and 400 is the range a little bit below our base business assumption in terms of how the year has started, but it’s early.
Michael Dahl: Yes, lot of changes on, on that on a week-to-week or day-to-day basis. Okay. And, and then, so when we think about the range of scenarios. Obviously you’ve spoken to the gross margin dynamics a bit and SG&A is going to flex up or down a decent amount depending on if you’re like, down 10 versus down a 30, right? But when you think about putting this range together in terms of how you get down to the ultimate EBITDA number, which part is the bigger swing factor in in your models? Is the gross margin line pretty steady normalizing down and the swing factor in EBITDA margin is mostly SG&A flexing or is there a different mix as you get kind of progressively lower on the scale of these scenarios?
Peter Jackson: That’s a really good question. You know, we’re in the mid-20s, or sorry, low 20s for SG&A as a percent of sales and it’s about 70% variable. You’re talking about 6% that’s in that fixed bucket. You probably think about the impact of margins, obviously that falls like price all the way through the bottom line, so that’s very impactful. I guess off the top of my head they seem pretty comparable. I actually don’t have a hard answer for you on that, but I think you’re right. Those are two of the major components. What happens when sales decline and how much the leverage can we offset with, you know, rescaling the business. And then how does pricing fall through you know, the more aggressive any potential downturn might end up being. We do expect it to be harder on both margins and commodity prices.
Michael Dahl: Got it, okay. Thanks Peter.
Peter Jackson: Sure, thanks Mike. Good. We will take our last question from Alex Rygiel – B. Riley. Your line is now open.
Alex Rygiel: Thank you. You referenced a slowdown in the average daily sales sort of in December and January. Can you quantify that?
Peter Jackson: Well, I mean there’s two pieces to it. One of them is the normal seasonality. We do see generally speaking about 20% less sales in the depth of winter than we do in the peak of summer. It’s a lot more than that obviously in the seasonal markets, but we’re also seeing the down trend of sort of orders generating starts, generating sales from us on new houses. So that decline has been pretty consistent as one might expect, we would expect to lap the peak probably Q2.
Alex Rygiel: And then excluding commodity products are you seeing suppliers reduce their prices yet?
Peter Jackson: More rumors than actions, but there are a couple of categories where they’re, it looks like it’s probably going to happen and will stick. For the most part though, it’s been less increases or no increases.
David Rush: Yes, they’re still struggling as well with labor and what they’re having to pay for costs of labor. But at the end of the day, the normal dynamics around supply and demand are going to run out and people are going to go after share, they’re going to do it with whatever availability they have. It just hasn’t been widespread at this point.
Alex Rygiel: Thank you very much.
David Rush: All right, thank you.
Operator: This does conclude today’s conference call. Thank you for your participation. You may disconnect at any time.
