Jeffrey Edwards: No, Kirk. I think we’re — as we talked in the last call, we detailed all that for you. Look, as we get into ’24 and beyond, there’s always commercial conversations going on. So, we’ll have settlements each quarter and there always is. But nothing to the magnitude of what we’ve talked to you about last year. So, I would say, let’s just call it business as usual in ’24 as it relates to pricing.
Kirk Ludtke: Got it, perfect. I appreciate it. And then with respect to the — you mentioned that there’s — you see some upside to the earlier ’24 guidance. Are you still using the same production estimates that you gave us last quarter?
Jeffrey Edwards: Yes. the volumes that we talked about are unchanged. As you know, the first quarter was a bit challenging as it got started from a volume point of view. But then, we saw some recovery in February and March was I guess what we were hoping March would be is how I would describe it. So, a little bit of a slow start, but a strong March helped the overall number. And then our comments related to the rest of the year, we typically take a shot at that after the second quarter. We have a little bit better view of quarter three and four at that point. and then we’ll adjust anything for you at that stage is how we’ve done it for a decade. So, we’ll continue to do it that way.
Kirk Ludtke: Got it. Thank you. With respect to the geographic reporting, were you EBITDA positive in all the regions again this quarter?
Jeffrey Edwards: Yes.
Kirk Ludtke: Great. And then lastly, on the new business, it appears to be ramping. Are you — can you provide the percentage of your first quarter revenues that were generated from electric, hybrid or both vehicles?
Jeffrey Edwards: Yes. I don’t have that in front of me, Kirk, at this point. I mean, we certainly can provide it. I’m sure Roger can get back to you with that.
Kirk Ludtke: Okay. Is it meaningful?
Jeffrey Edwards: I think we continue to progress well as we manage what that future is. I mean, it certainly has been moving around on us, but we haven’t seen a whole lot of our core business cannibalized, if I could say it that way. So, that’s good. And as we have been told by our customers that certain EVs are being pushed out as much as two years on some new business that we already have been awarded. That wasn’t a significant hit to us, just because we hadn’t spent a bunch of money yet. And so, we’re just on hold there. And in the meantime, we’ll continue to run what we already run longer. So, that’s probably going to be a bit of a benefit too from an asset point of view. So, I guess there’s put and takes. but overall, I’m not complaining.
Kirk Ludtke: Awesome. I appreciate it. Thank you very much.
Jeffrey Edwards: Okay.
Jonathan Banas: Thanks, Kirk.
Operator: Our next question comes from the line of Ben Briggs from Sonic Financial, Inc. Please go ahead.
Ben Briggs: Good morning, guys. Thank you for taking the questions. So, I just want to touch on top-line revenue growth for a minute. I know that on a GAAP basis this quarter, your revenue was down, let’s call it 1% year-over-year. but there was a little bit of noise in there. And if you call it on a — call it like a same customer revenue line, you guys were actually up a little bit. Can you give me a little bit more clarity on what the trajectory of, call it, that same customer revenue should look like and what the drivers are going to be? Is it going to be pricing? Is it going to be more new business wins? Or is it going to be a combination of both?
Jeffrey Edwards: Yes, this is Jeff. So, I think what Jon went through with you was, we had a couple transactions. So, we sold a couple of businesses that resulted in a bit of a top-line down. But when you compare apples-to-apples and you look at the industry of automotive versus our automotive revenue, we were actually up for the quarter slightly. And so, I think as we look without getting into any more details about second through fourth quarter this year, I think that is what we think is going to continue to be like. So, I would say our business plan is pretty much spot on at this stage. I wouldn’t think the numbers are going to drift much differently as we go through second, third and fourth quarter. I mean obviously, each month changes a bit. but overall, we still expect to outgrow the markets that we serve in automotive. I think that’s the key point.
Ben Briggs: Okay. That’s helpful. Thank you. So, since your revenue is outgrowing the markets that you serve, is it fair to say that you’re winning market share?
Jeffrey Edwards: Yes. I think that’s what we’re saying and we with the announcement here around sealing and fluid handling going forward given the innovation we have and given the customers’ excitement about it and what I just talked to the previous caller about in terms of content per vehicle going up especially in our fluid business, we expect to continue to gain share.
Ben Briggs: Great. That’s helpful. Moving on to gross margins, you guys are obviously up, call it, 300 basis points on a year-over-year basis, down a little bit. but let’s call it close to flat sequentially. Do you guys see gross margin hitting the double digits, call it 10% plus, during the current fiscal year or is that something that we should think about more 2025 and beyond?
Jeffrey Edwards: This is Jeff. The answer is yes. And then I was pretty clear about what I think 25% is going to be. So, we should be back to double-digit EBITDA and ROIC as a company as we exit ’25.
Ben Briggs: All right, great. That’s very helpful. And then last thing from me is I know that your June on the third liens, the June interest payment, you guys elected to pay cash there. When do you need to formally elect whether your December interest payments will be cash or PIK?
Jonathan Banas: Hey, Ben. this is Jon. We have to elect that six months in advance. So really, by June 1st, essentially, we’ll be making that election on both the first lien and the third-lien loans.
Ben Briggs: Okay. Thanks very much. I appreciate you guys taking the questions.
Jonathan Banas: All right. Thanks, Ben.
Operator: Our next question comes from the line of Brian DiRubbio from Baird. Please go ahead.
Brian DiRubbio: Good morning, gentlemen. A couple of questions for you. Just, Jon, are you going to put out recast the segment results with the new segment structure in place?
