Benjamin Burns: Yeah, I think that’s right. As we make progress on that deleveraging, I think like Mitch said, that gives us the flexibility to start to look at some of those other opportunities to drive growth. And so, again, if we redirected all free — available free cash flow to debt reduction, it would probably take us a couple of years. But again, as we make progress, we’ll have the ability to be a little bit more flexible and look at those other opportunities. So I think flexibility is the word. Right, Mitch? For sure. But we’ll definitely be opportunistic in those other opportunities.
Peter Keith: Okay, very good. And then to follow up on Bobby’s question regarding spring competition, I think you had referenced there are some larger international players that are competitive. What about the domestic market? It does seem like there’s more spring factories popping up in the US. Has the level of US domestic competition also intensified in recent years?
Mitchell Dolloff: Yes, Peter. Yes, we have seen some of that. Bobby asked the question about equipment. That is something — especially during the pandemic that we saw a rise in some of the capacity. As — some of that has also come from a result of the anti-dumping cases where we’ve seen some reshoring of mattress production in the US. And so some of it that wasn’t part of our addressable market, to begin with, was being imported, and now we’re competing with them domestically. So we have seen that as part of the market, and that’s part of what we’re talking about with the changing domestic market and why we’re making adjustments for our business as well.
Peter Keith: Okay, very good. And then the last one for me is that last quarter you had referenced that some customers looking to improve their financial position and that could negatively impact your sales. You took the impairment charge on especially foam business. The heart of the question is, some of those lost sales. I guess, customers might be going elsewhere or shutting down. Did that show up fully in Q1 or is there more impact to come as we think about Q2 and going forward from those customer changes?
Mitchell Dolloff: Go ahead.
Tyson Hagale: Yes, I’ll take that one as well, Peter. We didn’t see — we saw some just general slowdown from some of those accounts, but more that would track the market in the first quarter. But most of the impacts that we’ve talked about previously, and we’re taking the impairment charge, we’ll start to really see in the back half of the year. And that’s part of our guidance.
Peter Keith: Okay. So I’ll just then follow up on that. So I understand the guidance, no one has the perfect crystal ball, but certainly, like, if we look at bedding, you are just down high-single. I guess, it — from where you’re trending first half of the year, it does imply some healthy improvement in the back half. Is it a function of compares? Does seem like you’ve got the customer headwind coming, because what gives you the confidence in that general improvement as we look to the back half of the year?
Mitchell Dolloff: Ben, I’ll let you take that one. But I mean, there’s some seasonality too, particularly in, like, automotive and things like that.
Benjamin Burns: Yes. And then I’d say on the bedding side, it’s really the comparisons get a bit easier in the back half of the year.
Mitchell Dolloff: Yes. When we really, from a demand standpoint, plan for it to be more the same, I mean, really what we saw late last year, we haven’t forecasted any optimistic recovery or anything like that in demand. And we have baked in the customer attrition that we talked about.
Peter Keith: Okay, very good. Thanks so much.
Benjamin Burns: Thank you.
Operator: [Operator Instructions] Our next question is from Keith Hughes with Truist Securities. Please proceed with your question.
Keith Hughes: Thank you. A couple of questions. First, on the dividend, I understand why you’re cutting the dividend. I’m a little confused of why that dividend in February was paid at the old rate. I mean, the landscape looks very similar to what you thought in the last earnings release, probably what you were forecasting in January. Can you go through the thought process of the Board of how — the path that we got to where we are right now?
Mitchell Dolloff: Yes. And I tried to comment on this earlier, Keith, but I mean, it really goes back to how seriously we took that decision and we wanted to do the work that we needed to explore the various options that were in front of us and what the impacts were for us, both in the near and the long term. And so, it was a long and vigorous and thorough discussion and investigation of different opportunities. And so while we wanted to make sure we were making the right choice and also signaling that it was a discussion that we were having. And so just that’s how the timing worked out.
Keith Hughes: Okay. So you brought up the long-term ramifications of this. So you’ve got a big restructuring plan you’re working on, you highlighted at the beginning of the year. That’s a lot of cost take-out and things like that. But without a big dividend, it kind of changes how the stock’s going to trade. I guess my question is, will there be a real look inside this portfolio to say what businesses are really growth engines moving forward, and which maybe ones you don’t need to be in in the future?
Mitchell Dolloff: Yes. Great question, Keith. I mean, portfolio management is always something that’s on our radar. We think about and have conversations about the complexity of our business and what we do to maybe simplify that. And it means not only our portfolio, but even within some of our BUs, there’s a lot of complicated elements to it. So, it’s something that is definitely always on our radar and that we’ll continue to dig into.
Keith Hughes: And is there an ongoing review? Is there some kind of date we might see a result of that? Or is this more of the just traditional — you review business every six months, 12 months, whenever you do it?
Mitchell Dolloff: I think it’s a little bit of both. I mean, we have a lot of activity that’s underway right now. So we want to make sure that we’re advancing on the restructuring, that we’re taking these other operational efficiency improvement activities, that we’re looking at our G&A costs and all those things as well, and also digging into the portfolio. So it’s something that’s definitely an ongoing priority for us. So I don’t want it to sound like that it’s not something that’s on our radar, but I think we have work to do to determine where we go.
Keith Hughes: Okay. Thank you.
Operator: Thank you. Our next question is from Susan Maklari with Goldman Sachs. Please proceed with your question. Susan, are you on mute?
Susan Maklari: Yes. Can you hear me?
Mitchell Dolloff: We can now.
