Turning now to the balance sheet. On March 31, 2024, our total liquidity was in excess of $80 million, including $47 million of cash and additional availability under our credit facilities. Total inventory at March 31, 2024, was $687 million compared to $707 million at the December quarter. We are comfortable with our inventory position and expect to continue working our inventory levels down throughout the remainder of the fiscal year. Now turning to our outlook, we are maintaining our fiscal 2024 guidance. We are cautiously optimistic about the demand environment and feel we have reached a level of stabilization around pricing and margins. However, fluctuations outside of seasonal trends could push us to the lower end of our ranges. We are still anticipating same-store sales to be up, low to mid-single digits, and we expect adjusted EBITDA to be in the range of a $130 million to a $155 million and adjusted earnings per diluted share to be in the range of $3.25 to $3.75.
To conclude, we are pleased with the progress we have made towards our strategic objectives. We are sticking to our proven playbook in positioning OneWater for success in any environment. This concludes our prepared remarks. Operator, would you please open the line for questions?
Operator: Thank you. We will now begin the question-and-answer session. [Operator Instructions] At this time, we will pause momentarily to assemble our roster. We’ll take a question from Drew Crum with Stifel.
Drew Crum: I wonder if you could comment on your expectations for gross margin. 24.6% reported in the quarter was only down 50 bps versus 1Q. Should we anticipate this leveling out further in the second half? And assuming that’s correct, what would be the drivers?
Jack Ezzell: Yes, I think that’s right, Drew. I think we plan on seeing boat margins — they feel like they’re stabilizing. New boat sales were just ever so slightly less than last quarter, pre-owned fluctuated a little bit with the mix between brokerage consignment and in trades. And so I think that largely drives our margins. So, I think as we move forward, we’ll expect to see them kind of in that mid-20% range.
Drew Crum: And then Austin, you mentioned in your preamble, the close of the Garden State Yacht Sales acquisition. What are your updated thoughts concerning M&A for the company? What are you seeing in terms of valuations? And just give us a sense as to what your appetite is to do more deals in this environment?
Austin Singleton: It’s time to get back to doing deals. We’ve got a lot of stuff we’re looking at, and we’re going to get back to some sort of cadence similar to what we had during COVID or pre-COVID as margins have kind of — the 2 things that we were — have been concerned about over probably the last 12 months has just been where the margins stabilize at? What’s the new normal? And then this inventory glut that’s out there. Margins seem to have stabilized. And so that gets everything kind of where we want it to be. This quarter that we just finished was kind of the last what we felt the COVID hangover quarter was. So when you look at a trailing 12, you kind of got all that COVID noise baked out of it. And then from an inventory perspective, there’s still some challenges out there, but we’re encouraged.
The manufacturers have been really good over this whole time doing great for — from a promotional standpoint, they’re continuing to do that, and they’ve also backed off of production and a steadfast with that. So what I’m hearing from Wells Fargo is everybody is doing what needs to be done to get inventory right at model year change as we go into the fall. So those 2 things kind of were — I wouldn’t use those as our excuses, but those were the things that we were waiting to kind of get to where we were comfortable before we got into really pushing on the M&A side. That’s there now, so it’s time to start doing some M&A. And we look forward to it. I’ve been kind of bored. So we’ll be back at it shortly.
Operator: [Operator Instructions] The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
