Joseph Giordano: Hey, good morning, guys.
John Stauch: Good morning.
Bob Fishman: Good morning.
Joseph Giordano: I think most questions have largely been asked already. But just kind of curious like bigger picture, EPA comes out with regulations on PFAS. This is something that you guys were thinking about doing like potentially like an in-home product. I’m just curious how those kind of strategies, kind of how you weigh those against kind of the 80/20 and the simplicity and wanting to focus on things that you know have a real market? And how does that dynamic play out in your thought process for thinking about that?
John Stauch: I think it’s a great question. I think 80/20 helps optimize the current revenue streams you have, but it also needs to apply to your focus on what you think you can do to make a larger impact in the future and I think we’re getting better at choosing fewer, more impactful innovation projects. And I’m still behind what we’re doing with the whole home system that we’re working on. And I do believe that there’s a strong progress around that and the more awareness we get in water and homes, and the more people are concerned about what they’re consuming and drinking, I think that’s better for us. The reason I don’t get all pounding the table on the movements on the regulatory side is we just don’t see people running out right now to buy the current products that we have that actually create or solve the problems today.
So there has to be something else that occurs to get the consumer focused. And as you look at the longer term, I think we’re very energetic. I think the shorter term, we’re less optimistic that we’re going to see a shorter-term impact.
Joseph Giordano: Fair enough. Thanks guys.
John Stauch: Thank you.
Operator: Thank you. Today’s final question is a follow-up from Steve Tusa with JPMorgan. Please go ahead.
Steve Tusa: Hey, guys. Sorry. Just one last quick one. On the 2Q, do we just assume that basically that entire, call it, I don’t know, $25 million to $30 million that’s effectively from the transformation for the 2Q?
Bob Fishman: Yes. In terms of reading out, we’ve captured $4 million of the $75 million. And then — our view is that the remaining $70 million is fairly linear over the next three quarters.
Steve Tusa: Right. So that basically accounts for all the year-over-year profit improvement like roughly for the second quarter?
John Stauch: Yes. With Pools incremental volume growth being offset a little bit by the year-over-year impacts in Water Solutions, but you’re not far off.
Steve Tusa: Yeah. All right. Cool. Thanks guys.
John Stauch: Thank you.
Bob Fishman: Thank you.
Operator: Thank you. This concludes today’s question-and-answer session. I would now like to turn the conference back over to John Stauch for closing remarks.
John Stauch: Thank you for joining us. In closing, I want to reiterate our key themes. First, solid execution across our balanced water portfolio drove significant margin expansion for the eighth consecutive quarter. Second, we are reiterating our full year 2024 guidance which reflects confidence in our strategy while continuing to monitor uncertainty across the macroeconomic and geopolitical landscape. We are mitigating risk where we can and being more agile as we expect to achieve new performance records in 2024 and drive long-term shareholder value. Third, we are pleased with our progress on our transformation initiatives, which we expect to continue to drive strong margin expansion. And finally, we expect to continue to deliver value creation beyond the 2024 fiscal year. Thank you, everyone, and have a great day.
Operator: The conference has now concluded. Thank you for your participation. You may now disconnect your lines.
