Adam Bradley: All right. So that gives investors like me a little bit of a better window into performance. So along the lines of net working capital as a follow-on to that. So first of all, just tremendous performance in unwinding the net working capital position that had been built up over time. Historically, your business has been one that assuming normality in supply chain or at least stability, let’s call it that amount of stability. It’s a — you’re a cash-generating business due to your kind of asset-light nature. So as we look at your strategic initiatives and your opportunities, and now cash production rather than consumption through net working capital. Kind of you tell us a little bit more about the capital allocation plan for Hamilton Beach. I know you’ve laid out dividends and acquisitions. But just kind of your view over the next three years of where the best places to build value are in terms of capital allocation?
Sally Cunningham: Yes. This is Sally again. That’s a great question. I think that’s something that we’re working through right now as we’re thinking through our 2024 plan and our kind of 3- to 5-year strategic plan. I mean obviously, we’ve allocated the cash flow to reduce debt, right? And we’re getting it down to a comfortable level. I think we’ve talked about 1.5x to 2x EBITDA, right, as a comfortable debt level. And so as we look out, I think we’ll continue to have the viewpoint that we want to allocate free cash flow to our strategic initiatives and opportunistically to M&A where it makes sense. — specifically, which initiatives, I think we’re still working through right now. But certainly, we want them to be growth drivers.
Adam Bradley: Yes. And I guess it seems like some of the strategic initiatives are maybe more capital intensive than others. But overall, the M&A space, it’s a tough time to sell a business and a better time to buy one right now. Can you tell us a little bit more about what you’re seeing in the market? And your overall view of acquisitions — are they — do you look for more bolt-on that you can easily integrate? Or are you looking — if you found something that was big, would you go after it? Just — I know it’s tough to be hypothetical, but I think investors want to understand what the thinking is at least and if opportunity is available, how you might respond?
Gregory Trepp: So Adam, on the — how opportunities are presenting themselves or bubbling up. I do think that this environment is putting pressure on those folks that were not well positioned or overextended or whatever might cause a company to go into pressure situations. So this is definitely a time when having done the blocking and tackling and the important work during the pandemic puts a company in a better position post-pandemic. And I feel really good the team here did that. So I do think there will be an increase in opportunities for us to look at. It had been still relatively quiet, but there’s been a little bit of activity on the front of opportunities presenting themselves. But we’re going to look at anything and everything that makes sense for us and evaluate it.
I will say, more likely it’s going to be a bolt-on sort of opportunity. But — we have a very sophisticated board who views — they’re really focused on driving long-term shareholder value. So there was something that was more a larger opportunity to combine or buy or do something in the long term, they would definitely look at whatever opportunity presented itself. So in the end, I think I’m assuming we’re going to see something here in the coming year to at least evaluate whether it makes sense for us or not, we’ll be really focused on it was at the right price for the opportunity in front of us.
Operator: And there are no further questions at this time. I’d like to turn the call back over to our CEO, Greg Trepp, for any additional or closing remarks.
Gregory Trepp: Thank you. Today, we discussed our commitment to building long-term shareholder value. supported by our many competitive advantages in our strategic initiatives. We benefit from our leadership in the small kitchen appliance industry, which has a long history of strong durable demand. Our team is experienced with strong industry, customer and consumer knowledge. We have a strong portfolio of well-known trusted brands anchored by our flagship brands, Hamilton Beach and Proctor Silex. We are a proven innovator — our retailer relationships span a broad group of customers in brick-and-mortar, omnichannel and e-commerce channels. We have an asset-light global infrastructure. We plan to leverage all of these strengths in 2024 and beyond. That concludes our report for today. Thank you again for joining our call.
Operator: Thank you. And that does conclude today’s presentation. Thank you for your participation, and you may now disconnect.
