If you have — if you try to use some virgin and you put just a little bit of the recycled material in it, it’ll turn the pallet grey. So yes, it’s just a virgin is just easier and they can get it in a rail car and they can — it is easier. That’s what I would say in my response.
Unidentified Analyst : In terms of transportation costs, you guys are on the Mississippi River, correct?
Warren Kruger: Yes.
Unidentified Analyst : Do you ship or receive recycled plastics off the Mississippi, or is that not — that’s not liable?
Warren Kruger: No, we do not. We never have, and I’ve never even heard anyone discussing trying to deliver it on the river. It would have to be coming down from Canada and I just don’t — they were up north. And I just never had any of those discussions with anyone.
Unidentified Analyst : Final question, on your website, Jon Ackerman has quoted as saying, “You have the best export pallet on the market.”
Warren Kruger: Yes.
Unidentified Analyst : Why did he say that?
Unidentified Company Representative : Well, number one, he sells for us, so he’s a friend of ours. And his father, Marty Ackerman was a good friend of mine and was in the business for many, many years. And our pallet, we can put on a 44×56 two-part pallet. You can put 540 units on a truck, a 53 foot truck. With a nestable pallet, our export pallet, you can put 2,100 on. So people like that, because you can put a lot of product on a truck, and then it’s a one-way product. It’s only 17 pounds and it’s really a pretty darn robust pallet and we can sell it at a reasonable price. We’ve actually lowered our pricing on that. We went way up because of resin costs in ’21 to ’22, and we’ve gone down over the last quarter and our volume is picking back up. We lost a substantial amount of volume there, because again, people were looking at price, price, price, and that’s really a price-driven product, but it’s a very, very sturdy and a very, very good product.
Operator: We’ll take our next question from [Joe Russo].
Unidentified Analyst : Hey, Warren and team, congrats on the great quarter. I wanted to hit on EBITDA margins or the gross margins, however you guys want to talk about it. But I think there is the strongest quarter that you guys have ever put out, at least as far back as my model kind of shows. And it sounds like you guys think that those margins will stay up for the balance of the year. But I was hoping you could just talk about what’s driving that? Is it the additional B-B capacity? Just maybe like what’s different now versus in the past?
Warren Kruger: Bill, if you want to pipe in here, but I will say that in February, again, I hate to be — I don’t want to bore anyone, but in February of ’21, there was a freeze in South Texas, they call it the Big Texas Freeze for five days. And it really closed down the polyethylene and polypropylene markets in the country, and it affected the recycled side of it. Because people that were be B-B-ing recycling and B-B-ing product, all of a sudden they could get $0.30 and $0.40 more a pound and to people who absolutely needed to have the plastic. And it drove our pricing up and our scrap was up. Everything was out of control. And of course we didn’t have enough B-B capacity, so we were buying BB, some of the BB resin out there.
