Rafe Jadrosich: Hi. Good morning. Thanks for taking my question. The first one I wanted to ask just, can you talk a little bit about the trends you’re seeing by channel. I know you’re primarily a wholesale distributor, but are there any differences between distribution, retail or e-commerce you’re seeing out there? And then related to that, do you have a lot of home center exposure today? And then can you talk about the potential opportunities or impacts from Home Depot buying SRS and Heritage?
Kevin Holleran: Yes. But first, I wouldn’t say that we have seen any kind of a mix shift across kind of channels to market rate, distribution continues to be the primary channel to market, and we’re, committed to the distribution channel to serve the professional trade. There is – obviously, there’s some product that has transacted through e-commerce channels, and we have participated in that, historically. But no, we don’t see any kind of a – of a shift playing out there. In terms of the announcement last month between Home Depot and SRS, we all know the deal has not closed yet. So certainly, more to learn as this progresses. But we’ve spoken with the Heritage and the SRS team. they’re telling us that they expect business to remain, as usual, and that they’re going to continue to be run really independently with the same management team in place, which we view as great.
At Home Depot, has interest in their growth strategies across all three verticals, of which pool is one, obviously. And that Home Depot certainly brings plenty of resources and capabilities with them. And, we see this as, we’re hopeful that with that brand behind on the SRS team that, that can help expand the TAM and have a very positive growth impact on the overall pool industry. So today, we don’t have much exposure there, Rafe, I think that was part of your question. And we don’t have a great deal of home center exposure. And, as this thing plays out over the next year or so, as the acquisition and the integration occurs, we’re anxious to work closely with them and see how we can be the partner that they expect.
Rafe Jadrosich: Great. It could be interesting opportunity. And then I wanted to ask on what are you seeing in terms of input costs? What are you expecting on the raw material side for this year? And there’s – can you just remind us of what the key exposure is there, like there’s been some copper inflation recently, for example, like when would you expect that to start to have an impact to your P&L?
Eifion Jones: Yes. So we – hi, Rafe. It’s Eifion. I think we appropriately called the inflation environment coming into this year. Obviously, copper is a little bit more elevated, but there are others that are compensating in our basket of goods. We’ve got some specialty metals, which have decreased in cost year-over-year. So on balance, I think we’ve got just over 2% baked into our inflation forecast, and that’s kind of playing out in the aggregate basket as we had expected. And we also have, and we talked about this before, protection mechanisms, either through contractual fixed pricing or through hedging in our procurement processes. And we feel adequately protected against the current elevation of copper, at least through the primary season here.
We’ll have to take another look as we get into the second half of the year, but we feel comfortable with where we’re at right now. I think over the last four years has allowed us to demonstrate is we have a great price/cost agility. And if for any reason that we need to go back to market with a price consideration to combat, notable elevation in inflation, we’re prepared to do that. Every year, we have a pricing opportunity on October 1. And we’ll start to think about what that needs to be as we’re moving to the latest summer period. But for right now, we’re expecting that to be normal. And we think we’ve got inflation managed correctly in our current pricing structures.
Rafe Jadrosich: Great. Thanks for all the color. Appreciate it.
Operator: There are no further questions at this time. Kevin, please proceed with your closing remarks.
Kevin Holleran: Thanks, Lester. I’d like to thank everyone for their interest in Hayward. Our business is very well-positioned to navigate the near-term challenges and deliver value for all stakeholders in the years ahead. This wouldn’t be possible with the hard work, dedication and resilience of our employers and partners around the world. Please contact our team if you have any follow-up questions, and we look forward to talking to you again on the second quarter earnings call. Thanks, Lester. You can now end the call.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for joining. You may now disconnect.
