Walt Liptak: Okay, great. And then on the resi side, you said there was a price adjustment. I don’t remember hearing about those maybe these have been more behind the scenes. But I wonder if you just talked about the Resi price adjustment that happened.
Tim Murphy: Yes, late 2022, early 2023 is when there were some pricing adjustments. But we’re lapping it now. Right. So there’s just a mix of – we were some of the price adjustments went out in the fourth quarter, first quarter, and I think a little bit in the second quarter. If you’ll recall, commodity price on steel really sort of started dropping pretty significantly in the third quarter of 2022. So when we look at the end of 2023 sales against the end of 2022 sales on average, prices were higher at the end of 2022 than they are at the end of 2023.
Walt Liptak: Okay, great. And then maybe a last one for me is just the Tim, you talked about the slow start to the year. I wonder if you can give us kind of directionally from the fourth quarter year-over-year or maybe as a percentage of sales. How are you thinking the first quarter sales are going to look?
Tim Murphy: Well, it’s Renewable specifically that I called out.
Walt Liptak: Okay.
Tim Murphy: And we’re still working supply chain, but we expect a slower start than we would have seen than what we saw last quarter just because of the sort of the time it takes to get material available to even go out into the field and do an install versus some of our other products where we could take an order and be in production within 30 days and be in the field in 45. The tracker product right now is more than 12 weeks. So orders that we’re taking at the end of last year, we just can’t get started in the quarter at all and some of the stuff that came in a little earlier will get started it’ll be late in the quarter.
Walt Liptak: Okay. So are we thinking Renewables will be down from the fourth quarter?
Bill Bosway: Yes, it’s year-over-year. I didn’t look at quarter-over-quarter, but we’ll be down against last year’s first quarter is really what the comment was.
Tim Murphy: But well, just to clarify, Gibraltar, we’re not expecting that.
Walt Liptak: Okay, got it.
Bill Bosway: That’s a Renewable.
Tim Murphy: Yes. That’s a Renewable situation told Gibraltar we’re not expecting that.
Bill Bosway: Okay, got it. Okay, thank you.
Operator: Our next question is a follow-up question from the line of Julio Romero. Please proceed with your question.
Julio Romero: Hey, guys, thanks for taking a couple of follow ups here. Just on the CapEx. Can you maybe expand on some of the opportunities to in source some manufacturing, just any color on product lines or segments that’s targeted towards?
Bill Bosway: Yes, it’s really renewable.
Tim Murphy: No.
Bill Bosway: Tim, go ahead.
Tim Murphy: Yes, I was going to say it’s not any one segment that we’ve got opportunities in, but additional opportunities probably are around Renewables, depending on how some of that IRA guidance comes out for domestic manufacturing and for domestic content. It may, we’ve identified opportunities to do things, and sometimes we’re down to the math of does it make sense and can we do it in others? It’s, hey, when this guidance comes out, here’s five ideas, but we got to wait till the guidance before to make the investment.
Julio Romero: Okay. Got it.
Tim Murphy: If you think about our CapEx, call it $15 million to $20 million over the past few years, we could be in the high 20s. So it’s not huge dollars, but I wanted to call it out because it would be a little different than what you guys are used to.
Julio Romero: Yes, for sure. And you have a very nice balance sheet at this point. And you talked a little bit about M&A pipeline, some short term ops in resi. But beyond that are maybe some of the challenges with regards to M&A more about valuation or a lack of available opportunities at this point.
Bill Bosway: I think it’s timing, Julio. Just when these opportunities are going to present themselves, there’s more activity today than there was a year ago and even six months ago. So we’re starting to see that percolate. So it’s more of a timing issue, and we’ll be engaged and involved as a few of these opportunities get a little bit more clarity around them. But we’re ready to roll. It’s just a matter of when the processes start.
