Jack Springer: So on the first question, Fred, the comments that we made were relative to Malibu. So about weeks on hand being about what they were pre-COVID or maybe a little bit more in the Malibu case or our company case MBI and then saltwater being three to five weeks down overall. What I would tell you is that our benchmarking against the rest of the segmentation, we have been at the lower end of the spectrum for every single brand. So the inventory on hand with our dealers is less than other dealers with competitors. And so we do feel good about that. Moving to your second question. I think you get into a dilemma here and I understand where the dealers are coming from and I understand the cost that are being driven. But the bottom line to the equation is 50% or more of the boats are bought at the dealer lot.
And if you don’t have the inventory, you’re not going to sell the boat. So there’s a happy medium that we can’t go too far and push inventories too high. Conversely, we can’t go too far and not have enough inventory at dealer size, because that’s a guaranteed proposition for losing. So we have to work with the dealers and we have to look at things. I think to benchmark your 2019 comment, channel inventories probably need to be just slightly a tad a little bit lower than what they were weeks on hand in 2019.
Operator: The next question comes from Kevin Condon with Baird.
Kevin Condon: I wanted to ask a bit about the balance sheet. You guys didn’t report any debt for the quarter. And I think in association with that settlement you announced earlier this summer that you’d be using a revolver to fund some of that. But just bigger, how do you feel about your capital structure and the need for any new debt to fit in there?
David Black: Yes, I think when you look at our balance sheet, even taking into account drawing on the revolver of $75 million to address the litigation settlements, we feel like we’re in a very healthy position. I think as we look at it over time that’s something that we’ll consider from a capital allocation perspective. And one of those things that we’ll always be considering is what that means from a share repurchase perspective. But overall, we feel like we’re very healthy on the balance sheet side.
Kevin Condon: Does that comment extend some of these initiatives on the new capacity you have there, as well on that tooling center, do you feel like you can cover that or…
Jack Springer: So in terms of the tooling center, that’s really already been covered. A great portion of the facility here in the North City has already been covered as a part of this. And I think a bigger question that most people are going to be asking is what does this do from an M&A standpoint. And we still — given the facility that we have, we’re very comfortable that we have the facility to pull off a pretty nice M&A transaction if it comes to market. I think the other power of this, when David talks about the borrowings of the last quarter is the rapidity because we’re a 90% variable business and the rapidity with which we’re going to pay it off. So we’ll be back in that leverage position pretty quickly.
Operator: The next question comes from Joe Altobello with Raymond James.
Martin Mitela: This is Martin Mitela on for Joe Cabello. Just a quick question about the guide. You did mention the sales decline to mid to high teens. Just trying to get a breakout between volume and pricing and how those two may play off each other?
Jack Springer: We don’t typically provide guidance on the volume side, but I think you can back into it with the implied guidance that we gave around revenue. So depending on what your ASP assumption is, I’d say on the volume side, you’re probably looking at a 15% to 20% down.
Operator: I’m not showing any further questions at this time. I would now like to turn the call back to Jack Springer for any further remarks.
