Brent Thielman: And just the 2.96 leverage ratio, that’s factoring in contributions from the deals you’ve done into that trailing 12 EBITDA. Is that right?
Alan Palmer: That is correct. We get credit for that in that calculation with our bank, that will roll off each quarter, so we have to replace it with a real EBITDA.
Brent Thielman: And then just directionally, where would you like to see that leverage ratio? I know EBITDA and margins are compressed and that’s going to change. Where would you like to take it?
Alan Palmer: We’d like to get it down in the low 2s. We feel like the projection we’ve got will get down into the 2.1 to 2.2 range by the end of the year.
Brent Thielman: And then just, Jule, this might be for you, but there’s a lot of infrastructure work getting released around the country, maybe the best market, I mean, clearly in your areas, but elsewhere, too, maybe the best market we’ve seen in a long, long time. And I guess going through what you’ve had to go through the last couple of years with supply chain, I was curious on the liquid asphalt market. Is there any concern about availability or future availability, just given this kind of national pull in demand, and then maybe what you’re doing to ensure you get what you need?
Jule Smith: Brent, we haven’t heard of any supply chain or supply issues with liquid asphalt. But one of the things that we’ve done that I think helps hedge against that potential risk is, we have one terminal now and we’ll have two terminals here in the next few months. And so we’re able to store a lot of liquid asphalt and manage our own supply, at a wholesale environment, not retail. So that helps us if there is a potential supply issue there, but I haven’t heard of any concern there.
Brent Thielman: And last one, just on the M&A pipeline, which obviously continues kind of here and there, issues in availability and just cost of new equipment. Is that coming up in your conversations with folks that may potentially be wanting to partner up with you?
Jule Smith: Obviously, when I’m building relationships with potential sellers, we talk about the last two years and everyone’s lived that together. And so as you can imagine, there’s a lot of small talk about supply chain, and every contract has experienced it. But I would tell you, our potential sellers, the people that we’re talking to, they’re really making their decisions more based on what’s best for their family and long term planning, and that hasn’t changed. They’re getting — some of them have been running the business a long time, they’re getting ready for retirement. They’ve got a new generation that may not want to be in the asphalt business or the construction business. And so it’s really what’s best for their families driving their decisions, they’ve lived through macro challenges before. So I would say that’s still driving our M&A discussions.
Operator: Our final question is from Kevin Gainey with Thompson Davis.
Kevin Gainey: It’s Kevin on for Adam. I wanted to know if you can maybe provide some more detail on maybe the Ferebee acquisition. Did it have — is there any kind of vertical integration there already?
Jule Smith: Well, we’re very excited for the Ferebee’s to join the CPI family of companies. I have really enjoyed getting to know them. Their organization is very impressive. They’re from Charlotte, their business has grown up there and so they really know that market well. And it’s a — I’ve been very impressed just also with the market. From a vertical integration standpoint, one of the things that’s really impressive about them is they do a lot of crush concrete and making aggregate base that really helps them. And so that’s just been something that they’re really good at. And so we’re looking and I’m sure, throughout the CPI footprint, their sister companies will be talking to them and trying to learn from that expertise. So we consider that a vertical integration they do and do very well.
