Robert Culp : Yes, sir. Yes, sir. I mean we are ideally in our best days and we hope we can grow faster than the industry grows. That’s always our goal. And I don’t see why we can, but we certainly will stay with industry pace and see that steady growth.
Budd Bugatch : All right. And last for me, the other thing that I noticed in the quarter was SG&A was a little bit heavier than what we were looking for and operating expenses a little bit heavier. Maybe you can give us some color as to what we — why that might have been and what we should expect as we go down the road.
Ken Bowling: Yes, Budd, this is Ken. We listed some of the reasons for the hire. Obviously, wage inflation was a part of it. We did have some higher incentive compensation accrual. Keep in mind, we’re coming off of a very, very tough year, and our — the way we’re looking at this year is significant improvement. So we’ve got some opportunity there. We also have some professional fees that — just various professional fees. And also — and this is something that both divisions had to contend with was sampling expense and people forget about that. But this time last year, we didn’t have hardly any new programs, and now both teams are dealing with new great opportunities and new rollouts, and so the sampling expense was higher.
So all of those reasons kind of impacted all three, the corporate account, our corporate expense and divisionals. What we’re excited about is that we’ve talked about this in the prepared remarks, as we grow the business, we’ve got — our SG&A level right now is supporting our activities in our business models. As we grow sales, we’re going to have significant leverage opportunity to bank a lot of that profitability, and so both SG&A and fixed costs. So we’ve got everything ready to go, we just need that lift in sales to get that leverage.
Budd Bugatch : And is there an order of magnitude on the sampling cost that you’re willing to share? And doesn’t that go into gross margin? I mean, sampling costs will be fabric you create? Or do you take out those — that sample cost that you can isolate and then make sure that’s showing up in SG&A and operating expense?
Ken Bowling: Hey, Budd. The way that we characterize our sampling cost is really as a part of our launches, so it’s really a part of our commercial process of sampling, creating, doing all the development and design work relative to new programs.
Budd Bugatch : Okay. So it’s not just the cost of the fabric you produce for the samples, you produce or maybe send out to your clients, but it’s the wages and the cost inside of there for the team to develop those? There’s no….
Ken Bowling: It’s all the cost from sampling, design and launch preparations.
Budd Bugatch : And that winds up in operating expense. Is that right?
Ken Bowling: Yes, sir. Yes.
Budd Bugatch : Okay. Again, congratulations on navigating through a challenging period. There are some in the industry that — well, they’re not there anymore to do that.
Robert Culp : Thank you, Bud. Have a good weekend.
Operator: This concludes the question-and-answer session. I would like to turn the call back over to Iv Culp for any closing remarks.
Robert Culp : Thank you, operator. And again, thank you to everyone for your participation and your interest in Culp. We look forward to updating you on our progress next quarter.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
