Bill Bosway: Yeah. When I was talking about the expansion, we have as an example I mentioned in Denver, we’re leveraging an existing Gibraltar facility to actually get into the wholesale market which traditionally we were not. And so we have opportunities like that that exists for us and that would be more of an organic play. There are parts of the country where we’re just not and there are companies that are similar to what we just described that are serving say Denver and Salt Lake that may be available to bring into the fray as well. So those are the tuck-ins I think that would help us with our expansion initiative, where we’re really focused on driving the wholesale business. And that’s really critical because that’s all 24-hour kind of service.
And if you can do that consistently, then you can grow and the margin profile of that business is different than it would otherwise be. So that’s my comment on that. There is other M&A activity. I think Tim mentioned in his comments around I’d say there’s more activity that we’re seeing develop in the residential space as an example than there has been in the last year or two. So that would be separate from the initiatives I just talked about necessarily. So yeah, we’re in a good position to act on some of the opportunities. There is more activity. We’re engaging and we’ll see how things evolve as the year moves on, but I think you’ll see hopefully some opportunities there for us to bring cross the finish line.
Julio Romero: Very helpful. Thanks very much.
Bill Bosway: You bet. Thanks, Romero.
Operator: Thank you. [Operator’s Instructions] Our next question comes from the line of Walt Liptak with Seaport Global Securities. Please proceed with your question.
Walt Liptak: Hi. Good morning, guys. Good quarter.
Bill Bosway: Hey, Walt.
Tim Murphy: Hey, Walt.
Walt Liptak: And so I wanted to ask about the bookings in the renewable segment. How are bookings looking? And how is the funnel looking? I know you kind of went into it in the last question a little bit, but I wonder if you can just provide a little bit more detail? Thanks.
Bill Bosway: Yeah. I would say despite — I’ve mentioned this new AD/CVD potential investigation, we still have these ongoing permitting things that we’re working through as an industry. It’s as active now as it has been — nothing’s changed on that front. I think the industry has been relatively resilient despite not having extra 10%. I would say you get to a point when you — like in this 10% domestic content credit where it shows up is you engage — you get to say Stage three or Stage four on the 7-stage process with a customer then thinking that hey they may get this may not and then they pause and then they’ll either move forward or they won’t. But I would say the activity across the seven gates that we measure in our sales process, it’s pretty filled up probably as much as it ever has been if not the most.
Some of that’s related to just a lot of activity coming with 1P and 2P as it’s come out here recently. And some of the larger projects that I mentioned, we have one we brought across finish 97 megawatts. Those take a little bit longer in the design cycle versus our traditional six to seven megawatts. So we’ve got a lot of things going on inside, under the hood if you will around demand profiles, mixes of the different aspects of the business, customer activity, but it’s all pointing towards I’d say pretty interesting pipeline of things that are out there in front of us. So, I know that’s not a very specific answer, but it’s — there’s a lot of moving parts, but it seems to us to be relatively positive despite some of the macro things that continue to be in the industry.
Walt Liptak: Okay. And then I wonder if we could just talk about the 1P tracker versus some of those macro things like from the IRA tax credits what do you think will be the bigger catalyst for future orders? Is it getting the 1P tracker just ramping that with your customers? Or is it getting this tax credit thing behind us?
Bill Bosway: I think just ramping with our customers. Everyone has been waiting for the tax credit for two and a half years. And I think people are anticipating it’s coming. And it will be helpful. I mean you think about how things are financed. A large chunk of these projects are financed through tax equity. So, cash flow associated with an extra 10% of the total project is a big deal, right? So, absolutely it will be helpful, but I don’t think it’s holding up necessarily what we’re seeing in 1P. I think it’s just more of a — we’re ramping up accordingly as we’ve talked about. Our order board continues to grow in that space. So, I would say it that way Walt. And once the 10% comes then I guess that just I don’t know if that will ramp things up quicker but it may prevent some of the iterative pauses that have been going on.
It may give our developers just a better sense of confidence that they can get more in the pipeline and work with themselves we’ll see. But that’s how we characterize.
Walt Liptak: Okay, great. And then just switching gears to just the corporate expense. It ran a little bit higher than I was thinking of. In the first quarter last year you were lower and you were at sort of a $10 million a quarter run rate. Was there something in the corporate expenses that was one-time in nature? And what do you think corporate expenses will be for the full year?
Bill Bosway: So, not really one-time, Walt, but our performance-based comp was — we called it up about $4 million or $0.10 a share in the first quarter. And I think it’s more probably timing than a lot of difference. But part of it is driven by stock price and our deferred comp plans. Part of it is driven by — we had really good performance last year and so some of that cost gets spread over a period. And I think last year we had one tranche of some of the equity that we heard a few years ago, we didn’t earn anything. So, we sort of probably normalize that. So, I think you’ll see that lessen as we move through the year, but this quarter, it was pretty noticeable.
Walt Liptak: Okay, great. Thank you.
Operator: Thank you. Our next question comes from the line of Daniel Moore with CJS Securities. Please proceed with your question.
Daniel Moore: Thanks again. Just wanted to touch a little on infrastructure which you doesn’t get as quite as much attention, but certainly a bright spot and 22% might be a record margin after the look back. What drove that? And how sustainable is it near term? And talk about just pipeline as well as reasonable kind of longer-term expectation ranges for as far as margin is concerned.
