Aaron Jagdfeld: They have put a cycle in the LRP exactly.
York Ragen: But maybe it just was a little bit harder down in ’24 than maybe the rig thought. But they think they’re going to be turning things back on in line with the LRP in ’25, ’26, call it.
Operator: One moment for our next question. Our next question comes from Keith Housum with Northcoast Research. Your line is open.
Keith Housum: Good morning, guys. Thanks for getting me in here. Just one question in terms of the interest rates. This time, focus more on the HSPs. Can you guys remind me in terms of how critical is the interest rate environment to, I guess, the growth or decline of HSPs in any given quarter?
Aaron Jagdfeld: Yes. Thanks, Keith. And sorry to get you in here at the end. I made you wait, 1.5 hours. But yes, the interest rate, actually, we’ve said this a couple of times, I think as we talk through this, I don’t know if we’ve talked about it publicly as much, but it’s not a high — the home standby category, in particular, is not a highly interest rate-sensitive category specifically. Now obviously, the impacts, the higher rates have on the macroeconomic environment be the job security issues for people or kind of other challenges with maybe around the way they feel about the way people feel about spending money on large ticket purchases that does have an impact kind of on the margins, but…
York Ragen: It’s not a highly financed.
Aaron Jagdfeld: It’s not a highly financed purchase, oddly enough. Now that said, we do have a third-party financing program through Synchrony, which has been a great program. It grew like almost 50% last year. So we are seeing more evidence of people using finance. But then when you peel the onion back, the number one thing that we see people using is the 18-month same as cash. So — we don’t think that — we think that that’s not necessarily evidence they’re just deferring their payment
York Ragen: So the cost was…
Aaron Jagdfeld: That doesn’t cost me I think they’re going to use somebody else’s money for that 1.5 years. So I don’t think that all indications are that — and you look at the kind of demographic that we sell into primarily there. And these are people that are — there are older Americans who — they have got their home paid for in a lot of cases, they’re probably retired in cases. So for them, it’s more about the — protecting their home, protecting their safety protecting their families. And I think that it’s — frankly, it’s more about that than it is maybe about where interest rates are at any point in time.
Operator: That concludes the question-and-answer session. At this time, I would like to turn the call back to Kris Rosemann for closing remarks.
Kris Rosemann: We want to thank everyone for joining us this morning. We look forward to discussing our first quarter 2024 earnings results with you in early May. Thank you again, and goodbye.
Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.
