Michael Ward: Daryl, if I could follow up on the dealership issue. You have a couple of good charts in the slides in there about the parts business and the growth and the benefits AcceleRide and EV sales. As vehicles become more complex, especially on the battery electric side, the service has to be done at the dealers because there is no independent aftermarket. Are your stores able to service some of these other start-up EV companies that are service constrained, call it, like a Rivian?
Daryl Kenningham: Well, I hope that we have all the work we can do with our own brands. We haven’t had any discussions with anybody like a Rivian or anything like that around any repair work or warranty work or anything like that. Could we — I’m certain that if we work on the brands we do, we could work on those. But our focus is on the brands that we have relationships with today, Mike.
Daniel McHenry: Mike, can I just add two thing to that. It’s Daniel here. We do the collision work for the EV. So we are approved that some of our collision centers for work and those start-up companies or more established EV operators.
Operator: [Operator Instructions] Our next question comes from Daniel Imbro from Stephens Inc. Please go ahead with your question.
Daniel Imbro: Hey, good morning, guys and congrats on the quarter.
Daryl Kenningham: Thank you.
Daniel Imbro: Daryl, I want to start — or a follow up on the service side. So obviously, trends remain strong there. You talked about parts availability. Let’s go over to labor side. So you’ve been able to hire and retain for a while here with the four-day workweek, but I think you guys have been testing some new comp plans. Just curious how the reception has been? Is that helping you kind of maintain your lead on the hiring side? And has anything changed materially on the technician availability or retention?
Daryl Kenningham: Daniel, thank you. Yes, we are still focused on attracting technicians and have had some success over the last year attracting them. Our turnover rate with technicians is down year-over-year. And then we are also piloting some different compensation plans that are — we hope will make us a more attractive place to work and we hope will give technicians more certainty in their compensation. And right now, we’ve got that in about four stores that we’re piloting and measuring. We want to make sure we maintain our productivity and our throughput, as well as employee retention and engagement, obviously, are super important there. So yes, we’re testing that. We’re also taking a hard look at our shop productivity, Daniel.
There’s traditional metrics around how much work we can put through our existing shop base. But then, are there some other levers we can pull to either increase the capacity of those shops or increase the throughput and productivity of those shops? And so we’re taking a look at some things we might be able to do there. So — we — at the end of the day, we still see lots of room to run. And aftersales, we see lots of opportunity in aftersales. And we continue to want to invest there and think that there’s going to be continued growth there for a long time into the future.
Daniel Imbro: That’s helpful. I appreciate it. And then, Daniel, maybe one, is you’re having about cap allocation. So you’ve made good progress, obviously, on the portfolio optimization. But curious what you’re seeing. Are seller multiples continuing to compress in the M&A market as we move further from peak same-store earnings? And I guess with the stock multiple compressing and the cash flow generation, where do share repurchases kind of fall in your capital priorities from here just as you look at how to spend that free cash?
