Tim Moore: Great, Ed. That’s really helpful elaboration, because I feel like when we met a year ago at our E.F. Hutton conference, it was just so interesting how you are adding more value to the chain, not doing just the inspection and the testing, but actually taking some of the work off their hands to the – in the value chain and capturing more of that. And I think that’s something important investors maybe didn’t know as much a year ago. But just switching to Data Analytical Solutions I know it declined in the quarter from project push-outs. Revenue was very strong in the December quarter. I think it was up 18%, but it was only 5% growth in the September quarter. I’m just wondering maybe if you’re quantified or ballparked, nearly half a Data Analytical Solutions revenues, are they really lumpy from big projects, would you say, like an implementation and kind of a conversion, rather than kind of like ongoing, more smooth, smaller projects?
Manny Stamatakis: Traditionally it has been ongoing consistent revenue. This first quarter was an anomaly. A couple of projects did get pushed off, but we’re on target to meet the numbers by the end of the year. And we have a lot of other exciting things that we’re working on that we think is going to really revolutionize how data is collected in the field. As I mentioned, we’re working on digitizing the collection of data. This is something that everybody’s trying to get accomplished. We have a good plan to get there. We have the software and the tech techniques in place to do that. And we’re working on scaling that so that our customers can get their inspection data digitally, which will change the entire ball game. It’ll be much more efficient. It’ll be much – the customer will be able to do a lot more with the data, and it will save a lot of time and energy.
Tim Moore: Great. I just wanted to switch gears to one other topic, more of a low hanging fruit topic, optimizing your pricing contracts, seems like that could be maybe at least $5 million of potential there over a couple of years as those contracts roll over for renewals. You’ve got that pass-through cost inflation clause that’s starting to help. I’m just wondering, for the non-pass-through cost inflation, where you’re going to maybe reprice these contracts, add extra features and services, how has the initial reception and responsiveness been of the customers? And has it made you more aware maybe of which customers or projects to intentionally cull and just cut and not renew?
Manny Stamatakis: The customers have been very cooperative. This is a difficult time. Costs are going up, and we need to be able to offset those costs in order to remain profitable. Many of our customers understand that, and have been very cooperative in working with us to improve the pricing. Sometimes customers aren’t as cooperative, but our focus is to keep our business profitable and to focus on those customers that can work with us. We feel the value that we can add is significant, and our good customers understand cooperate with us in that regard. So, it’s working out quite well and we wanted to continue to improve in that area.
Tim Moore: Great. Manny, one last question for you. I believe you said the CEO search might be concluded by the end of this quarter, if I heard it correctly. I’m just wondering how long you plan maybe to stay involved with onboarding afterwards, or is that duration maybe not going to be too long, because you’ve added the Chief Transformation Officer?
Manny Stamatakis: When you say with onboarding, you mean onboarding the new CEO?
Tim Moore: Definitely that, yes.
Manny Stamatakis: Yes. Well, our goal is still to have that person in place by the end of Q3. We’re working with an excellent firm who has – is working hard to identify the right person to come in and take over. I will still be chairman of the board and will be committed to working closely with that individual. But a lot of the work we’ve been doing for the past six months, and we’ll continue to do throughout the remainder of the year, is to really clear the path so that that next CEO, when they come in, will be positioned to really focus on moving the company forward and to keeping – be committed to cost effectiveness and efficiency. We are committed to continuing to lower our costs. That is a commitment. We feel that there’s opportunities to do that, and it’s not just lower our costs.
It’s to do things better and more efficiently. So, that is – we’re committed to that. You’ll keep – and that’s why we have the Chief Transformation Officer position. It’s that important in the company. We were fortunate to get Hani as our CTO, and we’re excited about these prospects moving forward.
Tim Moore: Thanks, Manny, and Ed. That’s it for my question.
Operator: Thank you. And one moment for our next question. Our next question comes from Mitchell Pinheiro from Sturdivant & Co. Your line is now open.
Mitchell Pinheiro: Hey good morning. A couple of questions for you. First, what did your price increases contribute to revenue in the quarter?
Ed Prajzner: Hi, Mitch. Yes, good question. That’s approximately 2.5% to 3% of that almost 10% gain. So, a nice significant piece of that, a little less than a third or so of the growth, came from pure pricing, is about the magnitude of it.
Mitchell Pinheiro: Okay. And does that does that – I know like in turnarounds and things that, they don’t repeat regularly, but does the 2.5% to 3% type of level, is that what we should expect for the remaining three quarters this year, that type of contribution, or does it vary?
Ed Prajzner: It’ll vary a little bit, but that’s a pretty good – I mean, that is a piece of the growth. I think Q1 may have been a little stronger than average for the full year. But no, there’s a meaningful piece of price increase on top of volume that we anticipate this year. So, yes, there’ll be a portion of the growth, absolutely, coming from pricing this year.
Mitchell Pinheiro: And was the pricing sort of equally distributed across all your subsegments, Oil & Gas, Aerospace, Industrials, or was it concentrated in your largest Oil & Gas market?
Ed Prajzner: Great question, Mitch. Yes, it was across the board industry-wise, but it was more focused on smaller accounts. We kind of went through tier 1, 2, 3, 4, 5, and focused on smaller accounts initially for non-repeat work. Then we moved up to more moderate sized, finally up to the larger accounts. So, we’re kind of cycling that through. The larger accounts have longer-term work that would’ve had more fixed pricing. So, we’re kind of structurally creating strategic pricing practices to kind of feather that through the whole population. So, as we work through that, we’re having that discussion, as Manny said, successfully with many, many customers. We started in smaller pockets and moving up more structurally, building this as a process, as a strategy across the board.
