Matthew Howlett: I really appreciate that. And we’ll be certainly watching for that because the price target was very high for that. It would be great to be able to monetize some of that. And I guess that leads me to the last question. You guys are shareholder friendly. You’re trading at 10, 11 times and while your portfolio companies could be worth a lot more than, what’s the appetite to repurchase stock? You obviously, didn’t put the program in there, if you didn’t think the stock was undervalued. If you get some of this cash conversion, what’s the — and obviously with this paydown from Advanced Circuits. What’s the appetite to return capital via share repurchases? Thank you.
Elias Sabo: Yes. I mean, as you know, Matt, we already returned a decent amount of capital through our annual dividend. But as you said, the stock price is so attractive today that it warrants us having a buyback in place. And so we put it in place because we are absolutely prepared to act on it. As all these buybacks are, they are kind of scaled generally against where the price is in the marketplace. And our view is if investors have such a short-term nature, where they’re looking at a quarter or two of results against what the long term is, then we’ll advantage our long-term holders by buying back their shares because there’s nothing fundamentally that has impaired any of these businesses. These businesses are better positioned than they were a year ago, and we were trading kind of in the low 30s.
So if investors want to sell shares to us on — for the benefit of our long-term shareholders to accrete more value over time to them, then we’ll take advantage of that on their behalf. But ultimately, we are a young growth company, and we would like to use our capital to facilitate growth through acquisition and investment in our subsidiaries. So there is the reality of capital allocation that we constantly are looking at. But with our stock down here in the kind of low 20s, it’s just hard for us not to look and say this is the best opportunity for our shareholders to deploy our capital against buying it back. And that may be a temporary condition. We would hope so because we hope our stock kind of rebounds and kind of reflects the value and the intrinsic value of these companies and the efforts that we’re putting in.
But in the near term, sometimes dislocations happen, and you’re able to take advantage of that for your long-term shareholders, and we’re prepared to do that.
Matthew Howlett: Appreciate it. You have it at your hip pocket. I’m sure you’ll utilize it. And I really appreciate it. Thank you.
Elias Sabo: Thank you, Matt.
Operator: Your next question comes from the line of Barry Haimes from Sage Asset Management. Barry Haimes, your line is now open.
Barry Haimes: Thanks so much. I had two questions. The first one is you guys talked about some of the macro issues, the consumer doing better and the tight labor market. But the flip side of that is the upward pressure on inflation and rates. And so the question is, how are you thinking about your debt and whether you want to try to raise more long-term debt or not? Obviously, the 10-year yield moved down, now it’s moved back up a little bit. So I’m just kind of curious how you’re thinking about kind of long-term debt capital. And then the second question on Lugano. That was great feedback on the return on inventory. But I’m curious, since you’re opening a couple of new locations, I imagine you’ve looked at lots of potential locations.
How many locations do you think are potentially Lugano locations over the next three to five years? And what sort of ROIC do you get on a new location? And how long does it take for that new location to get to more of a steady state? Is it a 12 to 18-month thing or a two or three year thing? So any color on those two would be great.
