Min Cho: Excellent. And then finally, you had mentioned targeting larger projects. Do you have anything in backlog yet? Or if you could just talk about the progress that you’re making on those types of projects so far?
Matthew Lanigan: Yes. Thanks, Min. As we look at our forward pipeline, we are seeing a distribution shift towards larger projects. So we are seeing that start to flow through. And if we would describe that as backlog, then we are seeing a build in that backlog in those larger projects. So we feel like that focus is working for us.
Min Cho: Okay. All right. Great. Thank you.
Matthew Lanigan: Thanks Min.
Operator: And our next question comes from Bill Dezellem with Tieton Capital.
Bill Dezellem: Thank you. I’d actually like to follow-up on that last question, the pipeline of new projects becoming larger and ask why, what has led to that? Is that a function of what’s happening in the market? Or is that your own emphasis on those projects?
Matthew Lanigan: Yes, Bill, I think it’s a little bit of both. One of the things that we were coming into the T&D space, traditionally from our oil and gas markets, there was some concern that we would have the fleet capacity to service some of these larger projects. Over time, as we’ve invested in fleet and we’ve demonstrated our ability to service and meet the varying needs of those project types I think we have one more confidence with the project owners that we can execute and meet their needs. Moving forward, as we continue to invest in our fleet, we see that being even more so. So I think there’s a little bit of A, the projects are out there; and B, we continue to demonstrate that we can service them safely and efficiently and meet all of the requirements of our customers, which is helping pull through more volume in that space.
Gregg Piontek: Yes. And obviously, the more you penetrate this, it just improves your visibility, improves your stability in your overall rental and service operations.
Bill Dezellem: Great. That is helpful. And then continuing on the Industrial Solutions segment, what’s led to the strength exiting the first quarter? Is it as simple as project timing? Or is there something bigger that’s taking place there?
Matthew Lanigan: I think you nailed in the first bit there, Bill, it’s really just the projects getting underway. So I’d like to say there was more magic than that, but it really is just the way these things have timed out.
Bill Dezellem: I’ve given you the opportunity to take credit for Magic and you’re just going to set that aside.
Gregg Piontek: Yes. I think this goes back to why we continually emphasize the focus on the full year and TTM. Again, you do have these project timings resulted in quarter-to-quarter sort of swings, but they do balance out over the year. So…
Bill Dezellem: Okay. Thank you. And then a couple of questions relative to the Fluids business please. Are books still going out on the Fluids business? Or are those out? And now we’re in the next phase of the process?
Matthew Lanigan: Yes, Bill, I think it’s probably safer for us to kind of leave that one and just trying to revert to the script that we put forward, which is we’re moving forward in the process and optimistic about our conclusion in the first half.
Bill Dezellem: Okay. And then would you please discuss the swing factors with the Fluids operating income that led to it being up what, I think, $3-plus million on a $24 million revenue decline.
Gregg Piontek: Yes. Overall, it is more than anything. You’ve got the mix shift. And we’ve always – we’ve talked about the profitability of the business here International versus the U.S., which is historically the International has been a stronger performer. So you have that mix shift as well. We also had the benefit of the pricing. We had talked over the past year of the impact that we’ve had with some of the inflation, which we’re unable to push through contracts. We had to wait for contract renewals that’s continuing to come through to drive strength in the overall pricing. And then the last factor there is also on the U.S. side with the U.S. being a much tougher market landscape continuing to take cost out to offset some of the deterioration. So you put all those things together, and ultimately, it’s leading to a more profitable business than what it was a year ago.
Bill Dezellem: Great. Thank you both for the time and congratulations on a real solid quarter.
Gregg Piontek: Thank you.
Matthew Lanigan: Thanks Bill.
Operator: And we have reached our allotted time for our question-and-answer session today. I will now turn the call back over to the management team for closing remarks.
Gregg Piontek: Sure. That concludes our call today. Should you have any questions or requests, please reach out to us using our e-mail at investors@newpark.com. And we look forward to talking to you again next quarter. Thank you.
Operator: This does conclude today’s program. Thank you for your participation. You may now disconnect.
