Craig Kennison: Hey, good afternoon. Thanks for taking my question as well. I wanted to follow up on Purple Wave. And I’m curious, is there a chance that your real estate footprint brings new value to this platform? It’s my understanding they have an on-site auction process, and I’m curious if your real estate is part of the synergy you see.
Jeff Liaw: Craig, they have built one of the very largest yellow iron auction platforms without any real estate whatsoever. So they have a digital-only platform, as you noted, to sell in place. On the margin, I think we look to opportunities to potentially partner with them. That’s not ultimately the foundation of the investment itself. It really is backing an exceptional team that’s built an exceptional community and business. So we’ll explore those kinds of ways to cooperate, whether it comes to customer relationships, certain technology expertise, real estate in some cases, and so forth. Those are all on the table, but fundamentally it is about backing an exceptional team.
Craig Kennison: And are you in a position now to bid on large liquidations? We know there was one, Yellow, for example. Are you able to help them bid on those types of deals? Was that always possible for them, given their footprint?
Jeff Liaw: I think we are able. I’m not – that doesn’t mean we will. But really across our entire business, principal investments in inventory are just a necessary enabling mechanism to ultimately win consignment volume. So there was an era in which we bought the vast majority of the vehicles we sold on behalf of insurance companies from them, so we took the principal risk on the cars. Over time, the better customer service outcome is for us to sell it on the consignment basis for our sellers and we to sit on the same side of the table, rooting for the highest possible prices. So if we were to do so in the Yellow Iron arena, it would again, be as an enabling mechanism to a consignment future. It is not an end state in and of itself.
Craig Kennison: Thanks. And one for you, Leah, if I could. I think you mentioned incurring some cost as you deployed resources in advance of potential hurricane situations. Even though that didn’t produce volume, you still had to incur that cost. Is there a way to quantify the implication there? The impact.
Leah Stearns : No, it’s really just part of our ongoing normalized cost structure. We do it every year in anticipation of hurricane season, and we did the same thing this year as we had done previously. We just did not experience the elevated level of repositioning folks and the kind of acute cost levels that we experience when there is a severe storm that does actually hit, and there’s significant recoveries that happen shortly thereafter. So I would not look to call it out specifically, because it’s just part of our ongoing cost structure.
Jeff Liaw: Craig, I would characterize in the aggregate, it’s very substantial, right. Meaning, we could undertake the rigorous accounting exercise of figuring out how much have we spent. Once and on an ongoing basis to maintain ex hundreds of acres of available land in Florida, North Carolina, New Jersey, New York, etcetera. We could quantify the elevated tow expense we pay year round by virtue of operating our own trucks, etcetera, etcetera, and try to capture the full life cycle elevated cost that we incur as a result. But in the end, we just accept that it’s a necessary cost of doing business. It helps empower our customers to trust us in a time of need. And if volume suddenly spikes 10x or 20-fold in a given region, that we very much are positioned to handle it.
Craig Kennison: That’s great. Yeah, thank you, Jeff and Leah.
Jeff Liaw: Thanks, Craig.
Operator: Thank you. Next question today is coming from Daniel Imbro from Stephens. Your line is now live.
Daniel Imbro : Yeah. Hey, good afternoon everybody. Thanks for taking our questions.
Jeff Liaw: Hey Dan.
Daniel Imbro : Jeff, I wanted to start maybe on the insurance side. Maybe ask another way on the market share, obviously there was a peer talking about some share shifting. I don’t think you’ll comment on it, but more curious around when you measure success or how you measure your comparative returns to the industry or to peers, are you seeing that gap widen? And if so, is that accelerating with all the investments, the strategic investments you’re making?
Jeff Liaw: Yeah Daniel, I think it’s a fair question. I think you rightly anticipated our reluctance. As you know, we don’t comment – out of respect, frankly, for the confidential decision-making processes of our clients, we just don’t want to comment on them individually. But generally, I think you are rightly focused on the ultimate decision rule, which is the delivered economic outcomes that we provide to our customers. And so if I had to more generically say, how does an insurance company decide who to use for their salvage remarketing services, I’d cite five general principles. One is delivered auction outcomes. We believe we’re truly differentiated by virtue of our global buyer base and our auction platform. We believe – and by the way, we define our competition pretty expansively, right.
