Aaron Erter: Hey, Lisa. We are actually in full supply for the most part with a couple of exceptions, the most notable being our TRIM product in the south. But we expect to be in full supply shortly in the next couple of months. So it’s an opportunity for us to really drive and beat the market.
Lisa Huynh: Okay, sure. Then within that ColorPlus, growth still remains quite strong, I guess. Can you talk about where you’re seeing the slowdown the most to get across the product range? And is it largely same plank, or how should we be thinking about that?
Aaron Erter: Yes. As far as ColorPlus, we are seeing exceptional growth we’ve mentioned, up 31%. And we expect, as I said before, that to remain robust, and a lot better than new construction. So the regions that we sell ColorPlus are more highly indexed R&R in new construction. If we think about some of the products that we would see a slowdown, they would be focused on new construction. In those regions I mentioned, some of the regions that are more highly concentrated in new construction would be areas like Texas, for instance.
Lisa Huynh: Hello?
Aaron Erter: Yes, we’re still there, Lisa.
Lisa Huynh: Yes. Can I just tack on to that? So when throughout FY ’22, did ColorPlus growth take off? I just want to know when we should start cycling some of the strong growth we saw in the prior year baseline.
Aaron Erter: We had strong growth throughout last fiscal year, Lisa. We closed the year, full year 27% growth, which was steady throughout the year, started picking up, accelerating towards the back half, but it was strong all year. And then, obviously, the first two quarters of this year, both at 31%.
Lisa Huynh: Okay, sure. Thanks. I’ll leave it there.
Operator: Thank you. Your next question comes from Lee Power at UBS. Please go ahead.
Lee Power: Hi, Aaron. Hi, Jason. Just on the visibility piece , I guess, I’m a little bit confused as to was it you’re wrong on the visibility that you thought was there? Or did that kind of backlog get cancelled on you and given what’s happened with house prices and things like that, particularly in R&R? And then just to be clear, Aaron, can you actually tell us what you think backlog visibility is in weeks under the — under these kinds of new operating conditions that you’ve got?
Aaron Erter: Yes, that’s a good question, Lee. So, look, as we dove into the backlogs as I mentioned, we found that the backlogs were less than we thought with our products. And that really involved a fundamental change in building practices. As we think about North America, where you had products that were going up, like our products, were they in a different order than they usually did. If you looked at things that were supply constrained, like windows and roofs, they were putting our products on, and then they were putting these after the fact. So that really reduced the addressable backlog for us. So, just in full transparency, this is probably the piece we should have identified sooner. But you’re really talking about a change to a well rooted practice that has existed since we really started doing business here in the U.S over — for over 30 years.
So all of those factors decreased our estimate of the addressable backlog. And then as we look forward, we just think about all the economic indicators that we see, and hence the addressable backlog being lower, we think about some of the two additional Fed rate hikes on September 21 and November 2, where we think that’s going to continue to drive starts down from the current levels, and it’s going to continue to put pressures on cancellation. So, hence the reduced guidance here. And as far as where do we see addressable are the backlogs now, I just say, it’s a much shorter window than what we’ve seen in the past.
Lee Power: Are you willing to put a week or months number on that?
Aaron Erter: No, Lee, I’m not.
