Chapin Mechem: Hi, good morning guys. Just had a question for you on Viskase. Good quarter year-over-year continued. So that’s great. Thank you. But I’m curious just a little bit on like the sequential, it’s down a little bit versus the first two quarters of the year. And so, I’m just sort of curious, I think you’d mentioned that there were still some improvements coming on the last call, and you, in your comments said gross margins, which I assume is year-over-year. So I guess I’m just wondering if you can provide any additional color on what’s probably top line, if it’s pricing or volumes or just sort of what you’re seeing as the year has progressed from that front?
David Willetts: Sure, Chapin. Several things to think about. There are revenue headwinds right now. The volumes demands are down. Obviously, that’s not just a Viskase problem. You can see that across the market. Folks are doing a little bit of destocking, but it’s also based on what proteins consumers are choosing. Chicken has been a bit cheaper than some of the pork-based or beef-based sausage products that use our casings. Revenue top line has been a bit challenged. Russia and the Ukraine, we finally had embargoes put in place on any cross-border sales of casings, which was not present in Q1 and Q2. So revenue is softer than we had predicted and hoped. That said, the second issue is, it gets – further up the hill you climb, the harder it gets.
So we’re able to take very straightforward margin opportunities in Q1, Q2, Q3. As you take those, it gets harder. You have to stretch a little bit further to get the next chunk. That said, there are more things that we are doing, certainly with regards to factory productivity, certainly with regards to modernization of our equipment. All of those are in the works, but they’re going to be parsed out and the gains will be, I think, a bit slower to be realized than we felt in Q1, Q2, right? That’s just the challenge of being successful. I’d say, what the team continues to do a very, very good job of in spite of some of that revenue headwind has been contract margin management. They’ve been very, very, very focused on making sure that this case earns what is an appropriate return on its contracts, and they’ve been working aggressively with customers to exit the underperforming economically casings and giving the customer something that is actually value add to them where both parties succeed.
So they’ve been very good at that, and that continues to power a lot of the results in Q3 as it has in Q1 and Q2. Does that help?
Chapin Mechem: That’s great. Very helpful. Thank you so much.
David Willetts: You’re welcome.
Operator: Thank you. One moment for our next question please. It comes from the line of Andrew Berg with Post Advisory Group. Please proceed.
Andrew Berg: Thanks guys. Going back to the Investment segment, can you parse out what the returns were in the quarter, if you were to strip out the energy shorts?
David Willetts: I can’t. We have…
Andrew Berg: Was all that decline pretty much the energy short and X [ph] being short of that position, you were actually up in the quarter on everything else?
David Willetts: What I don’t want to do cavalierly, Andrew, is come up with a precise figure. So what I’ll say is directionally, right? Directionally, the fund would have been up if you had adjusted out the energy shorts related to CDI, right? But I’d rather not give a precise figure because we haven’t done the drill that precisely calculated for this call.
Andrew Berg: Good enough. I was sort of expecting something in the up low single-digit area, but obviously have not factored in the energy shorts. So it’s kind of that would strike me as in line with what expectations would have been otherwise. And then, willing to comment on where you are with those energy shorts still expressing that negative sentiment. Any change or I don’t want to say because it’s in the middle of the quarter?
