Susan Maklari: Okay. Sorry about that. I was on mute. I just wanted to follow up on a couple of points. One is, you mentioned in your remarks a focus on administrative costs in addition to the operational side of the business. And the SG&A was higher in dollars and as a percent of the revenues year-over-year in the first quarter. Is there anything specific there that you’re looking to or anything that you could kind of highlight in terms of the SG&A, and the opportunity there?
Mitchell Dolloff: Sure. I’ll let — Ben, I’ll let you take that one.
Benjamin Burns: Yes. Thanks for the question, Susan. I’d say, at this point, we’re just in the very early stages of this evaluation and we really don’t have an estimate on the impact at this point. But what we’re doing is investigating opportunities, such as streamlining our processes, eliminating duplicate activities between our shared services and our business units, and then taking a look at some of the elements of our IT systems to see what opportunities we might have to prune out some costs there. So just like I said, early innings of that, but that’s really what that entails.
Susan Maklari: Okay. All right. And then I also just want to touch a bit on the cost structure. I know that you mentioned that you still expect deflation this year, but can you just talk about how costs are moving more recently? It does seem like some of these commodities have kind of come up off the bottom. Just any thoughts on how that’s trending and where things are going?
Mitchell Dolloff: Yes, I think that things have been — maybe we’ve seen modest deflation, but some ups and downs on different things, maybe chemicals and things like that, but relatively stable. But, Tyson, anything you would add?
Tyson Hagale: No, it is relatively stable at this point. I mean, supply is back in a good place. And I think, overall, where demand has been, that we’ve seen some bumps up and down, but relatively minor. And overall it’s been — still in a pretty stable place.
Susan Maklari: Okay. All right. And then I just have one last one, which is that — it seems like, especially as we’ve gone through earnings, there’s been some sort of mixed, maybe, commentary and color on the state of the consumer. When you step back and you sort of look at your business and the overall trends that you are seeing broadly, I guess, how would you characterize the overall state of the consumer and where you think they are today? And has anything changed there?
Mitchell Dolloff: Yes. That’s a great question. I think there are mixed views. I don’t feel like a lot has changed since we last talked about this, but I think it depends on where their focus is. Right? I think on the consumer durable products, there’s still not a focus there, and I think it’s impacted by higher interest rates and inflation and just the need of people to dedicate their income to food and resources and things like that and more — still a little bit of a focus on services. But I don’t know, Tyson, anything you see differently?
Tyson Hagale: No, I think that’s the core issue in the short run. I think you still can — you see where the inflation is definitely having a major impact on basic staples, and that takes the focus away from longer-term durables and they can push some of those products off. I think the other thing that we’re watching really closely is just housing affordability, which goes back to both availability and mortgage rates. And that tends to be a big driver for a lot of our products. And, we’re in a pretty rough spot for that right now as well. So I think those things go hand in hand, but that’s definitely a big macro trend that we’re watching.
Mitchell Dolloff: Yes. And I think with what we’ve seen in the recent inflation and the Fed’s position, I think there’s less optimism that those rates are going to come down in the near term. So that’s why we’re preparing to just deal with this current environment as long as we need to.
Susan Maklari: Okay. All right. Thank you for all the color and good luck with everything.
Mitchell Dolloff: Okay. Thank you, Susan.
Operator: Thank you. There are no further questions at this time. I would like to turn the floor back over to Cassie Branscum for closing comments.
Cassie Branscum: Thank you for joining us and your interest in Leggett & Platt. Have a good day.
Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.
