Nat Krishnamurti: Yeah, I’ll start with it. Our primary focus as far as the use of cash is concerned is inventory. In other words, if prices do go up later on in the year, we have to govern that first and foremost. But then secondarily, to your point, M&A is of definite interest to us. So we just have to be patient in the right type of acquisition. As we’ve mentioned in the past, we’re just not here to roll up a bunch of acquisitions. We want to be very smart and very intuitive in terms of the types of benefit that we get from a potential acquisition. And this can include — it could include customer lists and other things like that, customer relationships, and to provide like other types of synergies that we need in our business to help cross-sell.
Brian Coleman: And maybe just to add one other thing to that, we have done quite a number of acquisitions over the last 20 years. I would say, though, there’s a little bit more competition or more dry powder available for private equity to complete acquisitions and particularly interest in the HVAC industry. So we’ve run into, let’s say, more competition or acquisition price pressure because of some of those activities and those funds. We haven’t changed our overall view about valuation. And so we hopefully tend to be on the conservative side of valuation when we eventually complete acquisitions. But we still think we will have an advantage over private equities because I do think we have a particular reputation in the industry. Typically when we do complete an acquisition, we’re looking to keep management and staff. It’s often the people that have the value in that transaction. So I think we have some advantage but there is pricing pressure right now in the market.
Josh Nichols: Thanks guys. Appreciate it. I’ll hop back in the queue.
Brian Coleman: Thank you.
Operator: Thank you. [Operator Instructions] The next question is coming from Leanne Hayden from Canaccord. Leanne, your line is live.
Leanne Hayden: Hi everyone. Thanks so much for taking my questions. So just to start, and to the extent that this is repetitive, I do apologize. I’ve had some connectivity issues throughout the call. But regardless, do you expect this year’s HFC refrigerant price increases to sufficiently offset the expected $20 million of non-recurring from the DLA contract?
Brian Coleman: So that’s a good question and at the moment difficult to answer. We’re so early in the season. As you can imagine, there’s no warm weather. The AC or comfort cooling really drives demand. We will start to see some increase in that demand in the southern states, Texas, Florida and so forth, hopefully in the near term here. And once we get into Q2, we’ll have more confidence about how we think our 2024 pricing relative to the selling season will look at. Right now, we don’t really have sufficient information to be able to predict what will happen with price. Generally speaking, we do think that prices would be up in 2024 because of the reduction in the availability of virgin production and consumption.
Leanne Hayden: Okay, right. That makes sense. All right. Thanks for that. And then just secondly for me, are you able to disclose which classes of refrigerates experience lower Q4 pricing relative to higher sales volume?
Brian Coleman: Yeah, so sorry, that was the — when we are generally today talking about price, we’ll be distinguishing HFC pricing as a complete bucket, but there’s about 20 different HFC refrigerants, versus let’s say R22. So when we were talking about some of the pricing pressure and some refrigerants pricing right now today slightly lower than how we exited last year, we were talking about that HFC class. As it relates to R22, we said a little earlier that pretty much the price of R22 is stable and around that $30 a pound price.
Leanne Hayden: All right, understood. Got it. Thanks so much, you guys.
Brian Coleman: Have a good evening.
Operator: Thank you. There were no other questions at this time. I would now like to hand the call back to Brian Coleman for closing remarks.
Brian Coleman: Well, thank you, operator. I’d like to thank our employees for their continued support and dedication to our business. And both are long-time shareholders and those that recently joined us for their support. We look forward to speaking with you after the first quarter results. Have a good night, everybody.
Operator: Thank you. This does conclude today’s conference. You may disconnect your lines at this time and have a wonderful day. Thank you for your participation.
