They — like we do, these are shorter duration contracts. So they’ve got costs built into them, we’re seeing that. They’ve not bid on that pre-inflation cost, they’ve got acclerators in them just like we putting in. So that was very pleasing. So we think it’s going to be a good strong healthy backlog. And again, it’s part of just they were at the same place in the cycle and have the same sequence of completing jobs quickly that we do.
Operator: Our next question is from Tyler Brown with Raymond James.
Tyler Brown: Lots of good stuff in the preamble, but I do kind of want to go back to margins. So I appreciate you guys reported, call it, $28 million of EBITDA, but that does include a gain on sale. And I know there are gains time to time, but maybe not to the magnitude of this. So clearly, there’s a lot of moving parts in EBITDA. But Alan, I don’t know if you’ve done this, but if you were to normalize the gains, normalize the weather and the $50 million of no gross profit revenue. Do you have any idea of what that cleaned up Q1 margin might have been? I mean my simple math would maybe indicate that margins were more flat year-over-year, but just any color there would be super helpful.
Alan Palmer: As far as the gross profit margins, you’re exactly right. I mean the $50 million of revenue, if you just say on the low side, that would have been about 10% gross profit that would have added about another 1.5%. So that gets you to about 10.5%. And then compared to last year, the $4 million that Jule mentioned about, the weather impact on cost recovery, that’s about another 1.2%. So you get — that will get you right about or at the same margin we had last year for that. And as Jule said, that was a very positive first quarter for us, because of weather and other things with cost recovery. So you would be pretty comfortable to that same margin at the gross profit and then that takes out the gain and that would get you to the probably slightly higher on the EBITDA margin, but the gross profit margin, it would get you higher. And then, of course, we said the G&A is about 20 basis points lower than last year.
Tyler Brown: And so just big picture though, if we think about and specifically EBITDA margins, you would kind of expect those to start trending up year-over-year starting here in Q2, Q3, Q4. Is that right?
Jule Smith: Yes.
Alan Palmer: Yes, more Q3 and Q4. Q2, I think we’ve kind of given you some idea that the back end of this year is going to be more loaded as far as kind of the change in the margin profile from the first half to the second half, but that’s certainly what we expect. And as said we’ve got about $35 million more of this no margin backlog that will be spread out over the — more over the full year than it was in this first quarter, but real strong margin improvement. So our second half of the year compared to those same periods last year should be where we start to see a pretty big difference in the margin.
Tyler Brown: And then a couple of other quick modeling. So I think asphalt was still up about 30% year-over-year in Q1. Do you have what the asphalt index adjustment revenue was in the quarter?
Alan Palmer: We had $4.7 million in this quarter. And a lot of that is related to those older projects. So we expect that to drop off pretty significantly, because we bid projects that we’re beginning to do with that. So is that really old pre-September 30th, ’21 backlog goes away, those indexes will go the other way and they’ll stop and they could possibly, even if liquid asphalt stays down, they could start taking some revenue away from us.
