So given that, we continue to go after new business for every single plant. I can’t think of any plant that we’re not able to fill at this point. So given even in a softer end market year, we continue to grow. That’s a testament to our pipeline. That’s a testament to the value we provide to our customers and our ability to continue to grow with not only existing customers, but also continuing to bring in new customers to MEC.
Edward Jackson: So I have one more question, but before I ask it, I’m going to summarize what you just said to make sure I listened to it correctly. What you’re telling me is that essentially I would say that maybe utilization rates today are not a good metric because your utilization, your capacity across your network of facilities is increasing as you’re making them more efficient, which means that your fixed cost is staying the same. You’re improving margins, but you even have more room for margin improvement as you fill this capacity because you have more capacity with the same fixed cost and you have a better runway in terms of realizing your goals as we think about your longer-term forecast. Is that kind of what you’re telling me, Jag?
Jag A. Reddy: I think you summarized it better than I could have, Ted. Thank you for that. Just one more comment on that, right. Some of our large plants, such as Mayville and the Defiance, have had just historically impressive volumes, revenues, and EBITDA margins, and EBITDA dollars in our history of 79 years. So that’s a testament to how we’re continuing to put additional volumes into our plants, but also we are able to take cost out and make these large, what we call as battleships, continue to be more efficient and being able to produce more. And back to your point of, yes, it’s the same fixed cost, right. If we can stuff more into some of these large plants, the drop-through is just incredible. So that’s where majority of our MBX initiatives are focused on is to continue to expand productivity, expand capacity in some of our large plants so that we can show to our customers that we can take more volume.
Even when we’re ramping up new capacity at Hazel Park, we continue to fill our existing plants with a lot more volume.
Edward Jackson: Great. And now my last question, because I’m taking up too much time. I want to circle back to the M&A strategy and progress. And I know that in the ideal world, what you really want to do is kind of pay off MSA, get the de-levering in place, and then be able to go and pick up whatever it might be, something in plastics, composites, or new customers in the existing businesses. That being said, when you think about M&A, it’s not necessarily you get to pick your timing when your opportunities come, they come, then you’ve got to have to just sort of dance with the dance. Where are you in terms of your funnel, is there anything that — you don’t have to get into too much of specifics, but is there any chance that any of the opportunities that you are in discussions with or evaluating could come into play during this fiscal year and next? That’s my last question. Thanks.
Jag A. Reddy: Yes. Great question, Ted. We continue to prioritize debt reduction for 2024. As you’ve seen the free cash flow generation in Q1, we continue to focus on inventory reduction, improving inventory returns, reducing our working capital. With all of these activities, we’re confident that we can reduce our debt and our leverage by end of this year. We will target the low end of that range, to be honest, to get to before end of this year with our increased focus on free cash flow generation. Having said that, we have not slowed down on our approaches, evaluations of potential M&A targets. We have a list of targets that what we call as must-dos. We will continue to engage with those targets, we’ll continue to wait for the appropriate time for these transactions to materialize, but with the first priority on debt reduction to get down to 1.5 times leverage by end of this year.
As we approach that low end of that range, 1.5 to 2 times as we laid out, we will get more active in terms of what we can do next with our M&A capacity. Having said all that, the chance of a transaction closing in 2024 is small. You never say never, but it will be small because we’re laser-focused on our debt reduction. But we will continue to engage with potential targets. We will continue to look for ways to fill our skills gap and our offerings to our end customers.
Edward Jackson: Okay, thanks very much guys and congrats on the quarter. And I was impressed with your free cash flow. I mean, I kind of like free cash flow. Talk to you later.
Jag A. Reddy: Thank you Ted.
Operator: The next question is from Tim Moore of EF Hutton. Please go ahead.
Jag A. Reddy: Good morning Tim.
Timothy Moore: Thanks and good morning. I just want to reiterate, it’s always nice to see free cash flow, and it’s really what I think stocks are based on in the long-term. So, great work there. It’s nice to see an organic sales growth be to maybe 2%. Powersports is very impressive. Jag, I was wondering maybe if you can give one or two examples of maybe wins over the last year or so or incremental work from current customers where you’re doing more of the value-added steps in the processes like painting, coding, and tackling some more of the complex assemblies, which are higher margin. Do remind me if I think from maybe a year ago when we met up for lunch, I might have written this down wrong, but I thought maybe like 75% of your value-added steps processes were being done at only two of your plants, is that still the case and kind of what’s the plan for that?
