Michael Swartz: Just to clarify something, I think you’ve talked about a number of times, which was the — maybe the timing difference between when you decided to go to market with some incentives and promotions relative to when the OEMs stepped in. Is that another way of saying that you expect the first quarter to be the lowest margin quarter of the year just from a new boat perspective? Is that how we should read that?
Michael McLamb: Yes, I would have to — let me just think through all the quarters. I think that’s probably accurate, because we went at it alone, Mike, so yes, that makes sense. But keep in mind the comparison that I said, the December quarter, we were up against our toughest product comparison, if you will. The March quarter is a little tougher than the June quarter. The June quarter is a little tougher than the September quarter. It kind of gets easier as we got through the year.
Michael Swartz: Okay. That’s great. And then just a second question is just on interest rates back jumping on top of Drew’s question. Another way to look at it, I mean — and maybe during historical cycles, when we’ve seen rates being cut, I guess how does the consumer go about that? I mean if I’m a consumer and I think rates are going to be lower in 3, 4, 5 months, what’s my incentive to buy today? I mean is there some aspect of this where we could see consumers dragging their feet until the fall or spring of next year?
Michael McLamb: I’m trying to think through different cycles where we’ve had declining rates. I think we know what happens in rising rates and declining rates. Sure, I would — I think I’d answer that by saying there’s some subsegment of the population that probably is going to be thinking about that. But I think if we get that person in front of our sales team, our sales team will explain the benefits of boating, the benefits of the product, getting out there with your family, and I think our sales team will help the consumer make a decision today to buy the product.
Michael Swartz: Okay. And then just final one for me, real quick. I think this year, you’ve either attended some boat shows that you hadn’t last year or you have a larger presence at this year. I’m just wondering, is there a way to think about the incremental costs in SG&A related to that, I guess, is that baked into your commentary that you don’t expect any real improvement in SG&A as we go through the year?
William McGill: Yes. I think that there’s some additional shows we’re attending. There are some that are kind of flat, maybe it will spend a little less. But overall, I mean, some of what we did in the first quarter was spent hard on marketing, too, to drive some of that, not just incentives. But — so yes, there are some boat shows that are a little more costly, the timing of when those land and costs get in there can affect things, for sure.
Operator: Our next question is from Fred Wightman with Wolfe Research.
Frederick Wightman: I just wanted to come back to the December inflection. I think Mike, you made a comment in your prepared remarks talking about fiberglass clients were sort of broad-based when you saw that softer October and November performance. I’m wondering if that recovery was similarly broad-based in December or if it was a little bit more segment-specific.
Michael McLamb: No, we did a very good job driving a very, very, very strong December, that was broad-based through the means that we talked about on the call. So yes, it was very broad-based. It wasn’t tied to any one specific segment.
Frederick Wightman: Yes. And then just coming back to the inventory. You, guys, have both made comments about how quickly OEMs cut production. But when you look at the amount of inventory, which you’ve said is still elevated at sort of an industry level, is there anything unusual or concerning just about the age of that inventory? Is there a lot of noncurrent product out there just given the fact that OEMs pulled back and what is sort of the outlook for pricing as a result of that sort of model year mix?
William McGill: We feel like we’re managing our aged inventory in a pretty good way as reflected in the Q1 results here. But some of that equation that we’re baking into the guidance for the year, I think take — we’re kind of wondering the same thing, what’s the competitive landscape look like for age? And how will that affect us from competitive incentives?
Michael McLamb: It seems like there’s a couple of segments that we mentioned, Fred, would have the higher noncurrent percentages because those manufacturers have really cut down production. So — but to Brett’s point, we feel pretty good about our noncurrent position.
Operator: Our next question is from John Healy with Northcoast Research.
John Healy: I just want to ask a follow-up question on the gross margin outlook for the year. If you look at Q1 and you think about Q2, I just want to make sure I heard right that, you’re thinking Q1 is probably the low point of the year. But that’s a function of the manufacturer stepping in and giving you dollar support to kind of soften that blow. Did I hear that right? And can you talk to what level of support are you getting from the manufacturers compared to maybe previous time frames when this digestion period is going on?
