Unidentified Analyst: Okay. And then the last one for me is, sounds like sales are going to inflect, your margins are as strong as you’ve been in a while, if not stronger. EBITDA looks good, and your CapEx seems like that’s going to decline a little bit. What are the thoughts on your cash flow and capital allocation? Are you — just continue delever or are there more small M&A opportunities, or are there more new product concepts that may be out there in the future for you?
Warren Kruger: Well, I think that earlier before we did this kind of expansion on the CapEx side, we were really pounding down debt. And I like that. We’ve always been over levered, always. I mean, I’ve been in the business 20 years and it’s just crazy amount of leverage we had early on. But that’s how we had to structure, just get to the — get to where we are today. But we delevered dramatically over the years. And I anticipate that we’re going to continue to pay down debt. But I also think that there are some other things that our Board has discussed on, okay, what’s the best way to allocate cash for our investors. We are always looking for opportunities. But I will tell you right now, I’m a little bit concerned about just overall the economy.
I’m going to be cautious about that. There’s a lot of demand, but there’s also a — it’s just, with employee issues and make sure you have enough employees, and we’re going to be cautious. We’re going to be aggressive, yet cautious. How’s that? If that makes any sense.
Unidentified Analyst: Great. Thanks. And looking forward to the next call, given the insight you provided. Thanks again.
Warren Kruger: Thank you so much, Eric.
Operator: We’ll take our next question from Robert Littlehale. [Ph]
Unidentified Analyst: Has your Board changed at all recently?
Warren Kruger: Bob, I’m so glad to hear from you. How are you?
Unidentified Analyst: I’m good. How are you, Warren?
Warren Kruger: I’m great. We have a guy named Drew Lockard. He’s a Young Turk and he’s a smart young. And we felt in our organization that we needed a little bit more. I’m pretty active [Technical Difficulty] he wanted to [Technical Difficulty] new ideas. And Drew is a very bright guy. He’s worked in large companies in workout situations. And he has — he’s an investor of his own [Technical Difficulty] well out there. And he has storage [Technical Difficulty] and he’s just a good businessman. Lives in Dallas, Texas. Really good guy. And on that — along that line, we’ve also added a new CFO. Bill’s on the phone with us today. And I think that this is fair, if that’s okay, Bill? Bill and I’ve been business associates and friends for over 20 years.
And Bill is — although you’d never know it, he’s not a spring chicken. Neither are — neither am I. So, Bill, we’ve hired a new CFO, who’s — Bill’s working with. And Bill’s working with us. Bill, are you going to work over the next quarter or do you want to share that?
Bill Rahhal: Yes. I kind of think by the end of this calendar year, I think that this — the new person, his name is Curtis Crosier. I think Curtis will be pretty well set to just take off the reins. He’s learning the business right now, learning the Company, learning the people. So, as you can imagine, it’s coming into a new situation. No matter how much your experience is, you have to learn the organization. And I sort of see me continually kind of phasing down.
Warren Kruger: Great. Thank you, Bill. And the other — that’s the only one we’ve added as of late to our Board. But, as we grow, we like independent minded people to — and so we may very well add another Board member, but that — we wouldn’t do that probably during this calendar year.
Unidentified Analyst: Is your headcount up or is it constant sort of year-over-year?
Warren Kruger: It’s actually off a few, a little bit. We are probably — we’re doing a lot of leasing of employees and we’re doing that because it is — you can — we just don’t have people showing up in the Quad Cities area in Iowa. You’ve got a lot of competition for employees. So, we’ve been working with some firms that actually draw nationwide and they’ll come in and they’ll get housing lined up, transportation lined up for the employees and it seems to be working very, very well for us. And these are the type of people that will — who say, we want to work at least one overtime shift a week. Well, that’s really helpful. I know we pay more, but when you have someone who’s saying, hey, give me 48 hours, or give me 60 hours, those are kind of employs you really like to have. So we don’t mind paying a little bit more because we feel we need more throughput out of those type of employees.
Operator: We’ll now take our next question from Joe Russo. [Ph]
Unidentified Analyst: I just wanted to ask, I think, like last quarter we had talked about maybe seeing some additional volumes with iGPS impacting the May quarter. It looks like based on the 10-K, like some of that stuff got delayed, either delayed out of the August quarter and pushed into — sorry, delayed out of May and pushed into August or potentially, I’m looking at your guide for the August quarter. I think — my Excel’s freezing out, but I think it’s like something like $18 million of revs. Is the majority of that increased quarter-over-quarter coming from the iGPS delayed resins or how should we think about that?
Warren Kruger: Bill, I can go ahead and answer. We did get some additional revenue towards the end of our corporate year. But we are into a situation now where we are producing extra for them. And so we will see that — we will have that effect in the first quarter, we’ll see the effect of that extra production.
Unidentified Analyst: So, is that like the majority of the sequential increase or is there — are there other customers sort of increasing as well?
Warren Kruger: I can’t off the top of my head, remember [Technical Difficulty] wise and Bill may [Technical Difficulty]. But we’ve got Simplot. We’ve been doing some things for Simplot, big potato company. I can’t remember how that revenue’s falling right now. And Walmart, we had some anticipated revenue from Walmart that they pulled back a little bit on that. So, we didn’t get as much revenue from Walmart as we thought during the latter part of the year. And we anticipate picking up some time here in the fall or after the first year. We’ve been into to see them — everyone is scratching around because of automation and robotics and it really is how much demand we have. So, it’s pretty exciting. And I really appreciate you calling in by the way, Joe.
Bill Rahhal: And this is Bill. And of those you mentioned Warren, some of — they’re starting off with some smaller type orders, but they’ve got some other projects on the line, which we think should start showing up in the third and fourth quarters.
Unidentified Analyst: That’s great. Just one last one for me. In the past, I think we’ve talked potentially about uplisting. And I know you’re making some moves bringing on another independent Board member as well as making CFO transition. Could you just talk about are these moves at all related to that, and then any updated thoughts on that front?
