I think you’re seeing across a variety of industries, not necessarily specific to card manufacturing, which is not a major pullback, but just improving cost controls in an uncertain world. So no, we don’t see that impact domestically and hindsight is 2020. But we think we’re seeing this impact not just specific to card manufacturing.
Operator: Thank you. One moment for next question. And our next question coming from the line of Hal Goetsch with B. Riley. Your line is open.
Hal Goetsch: Hey Jon, can you just give us your thoughts on maybe what you think inventories in the channel are now after some of this cautiousness? Or is it — I mean the quarter for you guys was good domestically. The channel inventories were high. It’s probably why it was not meeting your expectations as inventory drawdown, but what do you think inventories are right now? Thank you.
Jon Wilk: Thanks, Hal. We don’t have visibility into inventory levels across all of our customers. It’s data that they generally hold tight across a few. We do have some visibility. But it’s — I think ranges in sort of the areas that I talked about could be three to six, three to seven months, of inventory that they can dial-up or down, depending on how they’re feeling going into end of year.
Operator: Thank you. One moment for next question. And our next question coming from the line of Chase White with Compass Point Research & Trading, LLC. Your line is open.
Chase White: Thanks for taking the question, guys. So on the updated guidance, what factors would drive you to the top end of the range in revenues and EBITDA versus the bottom end?
Jon Wilk: For us, it’s largely locked from orders and production. There are sort of a few things that we need to close out that would take you to the higher end of the range. And then, just from a production standpoint, being able to run without challenges. And one of the things that we talked about here briefly, and I just want to mention is, as we innovate, so as we deliver new products to the market that we’re excited about, we will see some up and down in our margin as times when we launch new products, we’ll see small bumps down in that. Other times, you’ll see small bumps up. But we will continue to deliver innovative new products that is the lifeblood of this company. It helps drive our future growth. And so making sure that is — those products are ramping up.
They’re running through efficiently in the factory. So closing out a few orders here and then making sure that we run efficiently between now and the end of the year would deliver us closer to the high end of the ranges.
Chase White: Got it. That’s helpful. And can you just remind us what needs to happen before you’re able to return capital to shareholders, whether it be buybacks or dividends or both?
Jon Wilk: Chase, its — I appreciate the question. On capital allocation, we’ve said specifically our two priorities are organic growth and paying down debt. And beyond that, we have conversations with the Board, as you could imagine, regarding capital allocation and what we might do and when and as the Board were to make decisions that would alter those priorities, we’ll certainly let you in the market know. But at this point, those are still our priorities.
Operator: Thank you. And as there appear to be no further questions in queue, this does conclude today’s conference call. Thank you all for participating. You may now disconnect.
