Patrick Moore: Yeah, Adrian, I’ll follow up your long-winded question with a long-winded answer. No, I do want to unpack that a little bit. I’m glad you asked that question. And just as a precursor, great results out of remote. We’re seeing it as a win for doctors, patients, store teams, its driving incremental sales, incremental costs, and incremental profitability. As a side note, we will be even more profitable this year. As expected after being dilutive last year, Melissa talked about the benefits of remote for dark and dim and recover that. But that’s, that’s a big factor. We’re on track to set up another 200 this year, taking us to 500. And really, this kind of brings the first big initial phase two, a close, we still have future phases.
But there’s really a couple of things there. And we have now equipped two thirds of the states where we operate America’s Best. While there is opportunity remaining in some other states. And there are a couple of the larger states out there that we look forward to hopefully equipping one day, we are at critical mass now remote has become a really big factor in our site selection for new stores as well. So, this slowing is both natural based on what we’ve done thus far. But we’re also now kind of continuously monitoring state regulatory and navigating state regulatory rules, and looking for other states to open up. My own belief is that over time, telemedicine will become more and more normal and natural, but it’s going to it’s going to take a while.
And so as we look, as we’ve always said since earlier this year, as we clear the big initial investment phase of remote, we are looking to see about a turn of operating margin improvement, we have guided towards that happening in the second half of 2024, by the end of the second half of 2024 and still feel really good about that. So, pace is slowing based on good work, pace is slowing based on our confidence to take our model into each state which can have varying rules. But again, we monitor that super closely and we’ll be looking to take more states into remote, it just won’t be quite as broad scale and lumpy as this first big base.
Adrienne Yih: Okay, just a quick follow up to that. Is there an alternative technology or newer technologies that you’re testing that that you have not yet implemented?
Patrick Moore: In the states, it really comes down to? What do our regulatory bodies allow for a full health exam? And so we believe we have as good maybe the best remote exam out there in the market today. And so it’s probably less about us doing things differently, and more about us kind of navigating into those states and maybe even those states becoming a little more open to telemedicine.
Reade Fahs: Also fit as technologies evolve and new technologies emerge. And we are generally testing a couple of different things in the area of exam technology and who knows what will be invented, who knows what will be made legal, but we’ll be ready on both those fronts. And then remote sibling electronic health records. I think we are we’re saying by the end of next year all America’s Best will have electronic health records.
Operator: Thank you. Our next question comes line of Brian Tanquilut from Jefferies. Your line is open.
Unidentified Analyst: Good morning and great job on the quarter. You have [indiscernible] on for Brian. So. maybe it’ll kick off with a question on optometrist’s labor first, it’d be helpful maybe if you provide some KPIs help us understand how optometrist capacity has been trending quarter-on-quarter, things like adds, turnover and retention. And then also, as you continue to roll out remote, I know it’s still in early phases. But can you detail the impact on average productivity per commission, and then I have a follow up.
Reade Fahs: Good. So, while we’re not where we don’t quantify specific capacity levels, I think if we’re saying retention has improved for the second year in a row, that’s our recruitment is going to deliver a second record year and record new grads who tend to start in July and August. And then Patrick just went through the remote successes, those do add up to improved capacity.
Patrick Moore: Yeah, in terms of remote doctor productivity. We’re laser focused on continuing to improve that through really three key emphasis areas. The first is just the technological optimal alignment of supply and demand doctors to patients. Remote has introduced complexity into what was a simpler model for scheduling. We continue to improve on scheduling capabilities, we continue to improve training and feedback loops for doctors and technicians and store associates. And finally, a lot of time it comes down to the remote software, in electronic health record interfaces, we have teams that are continually making those more streamlined and fluid for doctors. So, our expectation is remote doctors will at least mirror the productivity of inline doctors. And again, in some theoretical manner, I’d see them going to surpass that over time.
Reade Fahs: But yeah, I certainly hope you’re taking away that we are pleased with our progress and capacity expansion, as we like to say, retain, recruit, remote. I think that is showing in our Q3 results, as we said positive comp transactions because we’re able to offer more eye exams and more exam appointment slots. And this remains our constant focus. And we’ll be now bringing that playbook to Eyeglass World.
Unidentified Analyst: Absolutely, and really appreciate the color and to switch topics a little bit on managed care penetration. I mean, clearly, that’s been trending really well throughout the year, as we look at this on a long-term basis read maybe if can you talk about, you know, where you think the high watermark is in terms of just penetration in the managed care population, as relates to your entire book of business. And I guess what it would take to get there?
Reade Fahs: So, we only publish our managed care penetration once a year because of changes in seasonality and the like. And so the last time we said it was a third of the business I – we’ve been repeating that it’s been very healthy and getting healthier throughout the year. Again I think what we what has been discovered is that by customers with some help from our marketing that we’re a great place to use your managed care benefits. And of course, there’s also the word-of-mouth side of that you you’re the same age care as your co-workers. And you tell them about your good experience and that snowballs from there. But I’m not sure there is a high watermark I think it will continue to grow. I think we are on a roll here. And so I don’t, I think when we publish our number with our at the end of the year, it’s going to be up nicely. And I would expect that to continue.
Operator: Thank you. Our next question we have line of Simeon Gutman from Morgan Stanley. Your line is open.
Simeon Gutman: Hey, good morning, hi everyone. Pace of openings for the go forward in terms of new units, is that commensurate, so you don’t have dark or dim stores? And then can you speak to you mentioned the new hires from this recruiting class? Can you talk about the prevailing the waves that you’re hiring at versus the prevailing wage of your system?
