Tom Spiro: Would you care to tell us how?
Wes Stockton: Well, the best way to describe it, Tom, is it’s in the results. So, through negotiation with the customer and determination of who is going to pay for what, that’s been resolved. The customer is going to replace the blade going forward and the cost impacts of that and to what extent we’re going to bear any cost impact of that is already in our results for the fourth quarter.
Tom Spiro: I see. And the CapEx in the fiscal year just ended, it seemed a little light. It seemed throughout the year, you were aiming for a higher number. In Q4, you’re aiming for a higher number. It never happened. Anything going on?
Wes Stockton: No, that’s a really good observation. And what you — and if you see our 2024 CapEx numbers are a bit higher than we would normally have as well, so some of that is simply carryover from 2023. We just didn’t make the progress we expected to make in terms of some of those improvements I mentioned in the prepared remarks regarding investments in the facility and some equipment. So, there’s an element of that that’s causing the lower CapEx for 2023.
Tom Spiro: I see. And lastly, the property sale recently for about $8.5 million. What exactly did you sell?
Wes Stockton: Yes. That was just — our facility is a fairly large facility and some of the property was actually acquired over time. And so what we sold was a piece of property, a portion of property that was acquired by the company some time ago, that has been underutilized for a very long time. And it’s just as we look ahead, it’s not something that we think we need for our operations going forward. And it gave us two benefits, one, we’re able to monetize an asset that we don’t think we need. And the other was it allowed us to further consolidate our footprint, which we think will have some efficiency benefits, both from a productivity perspective and help us reduce our ongoing operating costs.
Tom Spiro: I see. And as you review the remaining assets of the company, whether it’s real estate or equipment, et cetera, are there other significant assets that we may not need? Or are you now pretty lean and mean?
Wes Stockton: Yes. No, I think the latter is where we’re at, at this point. We’re happy with our asset base now, and we think it’s what we need to run the business. So, I wouldn’t expect us to be selling any more significant real estate or major equipment. Now, having said that, we’ll continue to look for opportunities to sell equipment and other things that we may not need or replace older equipment with newer equipment, et cetera. But that will just be more normal course.
Tom Spiro: Thanks much and good luck.
Richard Heo: Thanks Tom.
Wes Stockton: Thanks.
Operator: Thank you. [Operator Instructions] As there are no further questions, I would now hand the conference over to Richard Heo for his closing comments. Richard?
Richard Heo: In closing, I want to thank our customers and shareholders for their continued support as well as recognize our employees who continue to demonstrate a commitment to Gulf Island’s success. For those on the call, thank you again for your interest and I look forward to speaking with you on our next conference call and updating you on our progress. Be safe and take care. Thank you.
Operator: Thank you. The conference of Gulf Island has now concluded. Thank you for your participation. You may now disconnect your lines.
