Chip Zint : So you’re right, the half a turn a year was our original going out guidance when we did the First American deal a little over 2 years ago. Obviously, interest rate environment has changed that economic conditions have changed a bit. So we’ve had to step back from that just a bit. Right now, as we look at the trajectory of the business, projections for free cash flow, we think we can get near that three time point some time in 2025. There’s still a little bit of ways to go, but we remain committed to that and see progress in the horizon to get us back down there.
Lance Vitanza: Great. Thanks so much, guys. Appreciate it.
Operator: Your next question is from the line of Charles Strauzer with CJS Securities.
Charles Strauzer: Hi. Good morning. I’m just hoping we could just talk a little bit more about the guidance. And it’s a pretty good range there, and just some of the assumptions and confidence you have behind the numbers, both the low end and the high end of the range is there. Just if you could give a little more color on to what you’re assuming in that — those numbers.
Chip Zint : Great. Thanks, Charlie. So first of all, we’re very pleased with the first half performance. As we look at the first half, whether it was getting through the ERP-related issues in the first quarter, recovering on those in the second quarter, we just feel really good about what we delivered and where we stand against our internal plan. As we look ahead, we see continued momentum, and we feel really good about the guide for the full year. It is important to note there’s a couple of dynamics inside of our year-to-date performance that we need to just anchor you on to make sure it’s very clear on what the second half should look like. So if you think about the second quarter and you think of EBITDA of $108 million, there’s really 2 caveats inside of that, that I want to make sure we’re clear.
So we had roughly $4 million of carryforward EBITDA from the first quarter related to the ERP delay that landed in the second quarter. That’s now cleared itself on a year-to-date basis and wouldn’t repeat going forward. We also nearly had the 4 Web hosting business for the whole quarter, which is about another $4 million of EBITDA. So on a run rate basis, while we’re pleased with the $108 million we delivered in the second quarter, we’re really more on a trajectory of closer to $100 million, give or take. And so you need to think of that as the launching point for the second half of the year. We feel good about our guidance. We continue to work on operational improvements to improve the cost structure and drive EBITDA and free cash flow. And of course, we continue to monitor the broader macroeconomic conditions and continue to think it’s wise to have a range on the revenue side.
We’re pleased with the way we’ve driven sales pipeline, the levers at our disposal. Barry mentioned, our confidence in Merchant, but there’s more volatility there, and so we maintain a bit of a range on the revenue outcome. And hopefully, when we get to the fourth quarter, we can tighten that range a bit.
Charles Strauzer: That’s very helpful. And then just looking on the cost side and some of the efforts you’ve been doing for a few years now just to make your business more efficient and more healthy fiscal. Can you talk a little bit more about some of the ongoing cost effort — cost reduction efforts that are still on the plate?
