But it also shows that the machine can do that. So as we kind of come out of the space that we’re in, return to growth, it’s really the same business with a few tweaks there for wages and rent. And so — and I’m really happy with the decisions that we’ve made on hanging in there with those investments.
Reade Fahs: Yes. And then I’m just going to reinforce one thing, Zack. We are investing to emerge stronger because we are confident that historical cycles will return because that’s how it works in our category for a decades. That’s what happens with the human eye, and we’re making those investments so that when things do normalize, we’re coming out even stronger.
Zack Fadem: Got it. And just a couple of nitpicky follow-ups for you. First of all, I calculate per store inventory down 7%. So any color there on inflation versus units, in stock levels, and to what extent that was intentional would be helpful? And then second, could you walk through the hedging mechanics on the interest expense in a little bit more detail? And whether you expect this lower interest expense level to be a temporary Q3, Q4 phenomenon or a new run rate?
Melissa Rasmussen: Sure, Zack. This is Melissa. As far as the inventory per store goods, we are down 7% at our inventory levels. However, we are pleased with our efforts to mitigate the supply chain disruptions that have existed so far. And our merchandising and supply chain teams have done a great job at managing our inventory levels. We are confident in the level of inventory that we have to support our ongoing revenue and growth plans. So I think a 7% decrease is — we’re comfortable with that. Now related to the interest expense question that you had, we are in a position where we had a we had renegotiated our credit agreement. And with that, we entered a hedge for our LIBOR-based debt. That LIBOR-based debt, as soon as we cross the 1.8% threshold, we started receiving counterparty payments for that hedge that we have in place.
So in the third quarter, we received about $400,000 of interest payments from our counterparty, and we continue to expect to receive that through fourth quarter. And as long as the interest rate stay where they are or continue to increase, we do expect to see a benefit on our interest expense line.
Operator: Our next question comes from the line of Anthony Chukumba from Loop Capital.
Anthony Chukumba: So in terms of the remote exam initiative, thanks for the update on that. At what point do you think that we start to see the benefits in the P&L? Because it certainly seems that particularly given the staffing issues that you’re having right now that, that’s a pretty compelling initiative. So at what point do we start to see that benefit?
Patrick Moore: Again, Anthony, it’s Patrick. This year has been launched year #1. We have a project team. We have equipment installers. We’re covering that cost. And I think that as we get beyond this first year where we’ve talked about a little dilution, we’ll get to next year, and we’ll see positive P&L impact from that. We’ve rolled it out to 300 stores. It’s enabled there. As those stores need it, we can turn it off and turn it on. So as we’re kind of working through our plans for 2023, we’re certainly expecting P&L benefit next year. As we look at individual stores or markets or groupings of stores, as I think we said in the past, “Hey, look, we see really nice productivity impacts coming off those stores where they are — they’ve got the equipment in.
