Budd Bugatch: I can hear you fine. I’m not getting the feedback. So I don’t think it’s coming from my line.
Andi Owen: Okay. Keeping going that.
Jeff Stutz: Alright. We were getting a little feedback in the room. Yes. So I would say that trend, which is at least moving in the right direction, albeit still year-on-year pressure combined with some of the funnel metrics that we’re seeing. And I don’t know, John, if you want to speak to that, that gives us some encouragement here.
John Michael: Yes. Thank you, Jeff. Hi, Budd. From a funnel perspective, we’ve seen significant growth in the over $1 million size projects, something we really haven’t seen a lot of since we’re pre-pandemic days if you will. So we’ve seen a lot of activity there. And the overall funnel is up quarter-to-quarter as well. I think from Q3 to Q4, our net funnel additions were up 38%. So the activity seems to be percolating a bit, and that gives us obviously some encouragement to see some change in order trend over time as well.
Budd Bugatch: And when you’re talking about funnel, you’re talking about visits and projects you’re bidding on? Or is there something more concrete to what you define as the funnel?
John Michael: It’s identified project and account opportunities that our sellers have identified and are pursuing in the market. So they are live projects that we’re tracking in pursuit of.
Budd Bugatch: And the BIFMA numbers, at least as we see them on a monthly basis, look like we’re getting into a situation where orders are just about flat year-over-year, not quite, but getting there. And so the fact that you’re still down single digit, does that mean that you’re performing a little bit behind BIFMA for the rest of the industry?
Andi Owen: I think you have to look at BIFMA with a grain sell, Budd. I mean, depending on how all of the players are reporting their numbers and what’s included in contract and if there is other visit, I wouldn’t say that that you can make that lead necessarily.
Budd Bugatch: Okay. I always take those numbers with a little bit of a grain of soft indeed.
Andi Owen: I think that we appreciate that.
Budd Bugatch: Jeff, can you give us maybe kind of an MD&A read of going from a walk to €“ from gross margin, either segment level or overall level as to what drove the difference because where is the contribution margin right now with all the changes that you’re experiencing with all the difficulties in the environment.
Jeff Stutz: Yes, happy to €“ I’m going to keep it at the enterprise level, Budd, just because we don’t guide at the segment level, but happy to talk kind of at the ink level for the business. And if you €“ I’ll just walk you year-on-year for the third quarter. Pricing was the big story for us this quarter, and it really has been. But that was a favorable 400-plus basis point move in gross margins. And again, that’s particularly encouraging because we have been expecting it and we’re getting it, which is great. The other positive is that we had a little bit of positive of around 60 basis points, best we can estimate from overall product mix shifts that have been in our favor. And that’s across all of our channels, by the way.
