Paul Huckfeldt: I’m sorry Budd the remaining cost reductions of those warehouse reductions that we’ve got planned, we don’t have any personnel related actively say we don’t have any personal related…
Jeremy Hoff: No, we feel really good about our overhead position and also the cost — the next cost reductions all have to do with more space in Savannah, getting out of more space in Savannah to get to the $500,000 we talked about. And also, we believe there’s labor efficiency that will save us down there as well. So — but most of our cost reductions have been taken care of. And our plan moving forward is just run a solid, sustainable business that is actually predictable and we don’t have the surprises we’ve had to report in the past.
Budd Bugatch: Okay. Paul, I would have thought one thing you did say is that the higher freight costs is that out of the inventory now, has impacted inventory it had to flow in there. Do you think all those excess of container rate costs are gone?
Paul Huckfeldt: Yes. I think through the summer, we worked our way out of it by the end of the summer. I think most of the excess costs were gone.
Budd Bugatch: Thank you. Well, congratulations, good luck on the next part of the year.
Jeremy Hoff: Thank you, Budd. We appreciate it.
Operator: [Operator Instructions] Our next question comes from Barry Haimes with Sage Asset Management. Your line is open.
Barry Haimes: Thanks very much. I had a couple of questions. First is — could you give the backlog number at the end of the quarter and then what the comparison was both a quarter ago and a year ago?
Paul Huckfeldt: End of July, the backlog was $88 million versus $201 million a year ago.
Barry Haimes: And what was it at the end of the first quarter?
Paul Huckfeldt: End of the first quarter, it was $87 million versus $282 million in the prior year.
Barry Haimes: Got it. Thank you so much. That’s very helpful. And then just on BOBO, it seems like the acquisition certainly makes sense. But could you give us — is it already closed? And if so, what was the closing date? And could you give us the price that you paid for it? Thanks.
Paul Huckfeldt: It was mid-June, June 12, and we paid $2.4 million. It was a small acquisition.
Barry Haimes: Got it. Thanks so much, appreciate it.
Jeremy Hoff: Thank you.
Operator: Thank you. And our last question comes from John Deysher with Pinnacle Value Fund. Your line is open.
John Deysher: Hi, good morning. Thanks for taking my questions. Just back to BOBO for a second. Can you share with us what the revenue run rate was when you bought it?
Paul Huckfeldt: When we bought it, the revenue run rate was around $5 million. It’s been in…
Jeremy Hoff: Yes.
John Deysher: Okay. And obviously, you have growth expectations for it. How soon before that product line is integrated in terms of your sales force and distribution capabilities. When will that be accomplished?
Jeremy Hoff: So it will be fully integrated with our sales force and distribution as of the October market coming up.
John Deysher: Okay. What is that — at the end of October?
Jeremy Hoff: I believe…
Paul Huckfeldt: Mid-October.
Jeremy Hoff: It’s second or third week of October.
John Deysher: Okay. All right. Good. And what do you think that business is capable of? I mean what is fully integrated — what would the dream be in terms of revenue for that business?
Jeremy Hoff: We believe it will be a smaller brand for us on the top line. So $15-ish million is what we believe it can do fairly in a couple of years, 2 to 3 years. But the bottom line, the margins and whatnot in those categories are different from kind of anything we do now. So it is it’s somewhat impactful for us even at that volume level.
Paul Huckfeldt: And it’s supporting our sales, our brand.
Jeremy Hoff: Right. It helps us complete a more whole home picture, and we can sell really the entire room in many ways.
John Deysher: Yes. No, I mean, it makes total sense. So you would say the margin profile is better than the core business?
Jeremy Hoff: Correct.
John Deysher: Okay. Fair enough. Good, then one final minor question. What were the orders for the quarter?
Paul Huckfeldt: $96 million.
John Deysher: Okay, great. Thanks very much and good luck.
Jeremy Hoff: Okay, thank you.
Paul Huckfeldt: Thank you.
Operator: Thank you. I would now like to turn the conference over to Jeremy Hoff for closing remarks.
Jeremy Hoff: I would like to thank everyone on the call for their interest in Hooker Furnishings. We look forward to sharing our fiscal ’24 third quarter results in December. Take care.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
