George Holm: That’s a good question. I think the supply chain is strengthening pretty quickly right now. I think, we learned a lot going through COVID. It was a fine-tuned supply chain, particularly when you got to perishable product. And when something that, that’s that fine-tuned gets disrupted, it gets disrupted overnight and it takes a long time to correct. And as I said, our Foodservice is getting pretty close to normal. One of the issues with our fill rate in Vistar and Convenience, is that many items just weren’t produced any longer. And the customer continues to order it and we’re seeing many of those items come back online. We’re also seeing that suppliers that were in both the retail and the Foodservice business and maybe bigger in retail and they had all they could due to pack the product, really discontinued many Foodservice items and didn’t have the level of attention to it.
And as a percentage of the food being eaten is swung back greater and greater towards Foodservice, we’re seeing those people come back online. I will say it’s hard to go running back when you’ve had to find other sources but they are coming back. So I would call the supply chain is something that’s not there yet but we’re seeing really good improvement. And number of items — by the way, that’s something that we follow real close by distribution centers, the number of items that they sell on a weekly basis. And most of our companies are still selling less items to availability but it’s improving at a pretty quick rate.
Joshua Long: That’s helpful. And maybe bigger picture, when we think about just contextualizing the holistic strength of the business, in terms of case growth new company — new customer wins and adds, it’s impressive. I imagine there’s also a good bit of investment that happens behind the scenes in terms of capacity warehouse, not just on the sales force side. Can you talk about that and maybe where — how you feel like you’re positioned to sustain or support continued growth at these levels going forward?
Patrick Hatcher: That’s a good question. And as we talked about just in the last 6 months, we’ve invested $98 million in CapEx. And when we talk about our priorities, that’s really the number 1 priority is to continue to invest in the capacity of the business to help it grow. As we just mentioned, another priority is to also reduce leverage. But the number 1 use of our cash, is going to be continuing to invest in the business and given the results of the 3 segments and their strength, we’re going to continue to do that because they’re doing some really nice job of generating some really solid growth.
Operator: We’ll take our next question from Carla Casella with JPMorgan.
Carla Casella: It’s Carla Casella from JPMorgan. You made some good progress paying down revolver this quarter. I’m just wondering if there’s any — I mean, contemplated in your kind of leverage and targets going forward. Is there any thought that you could be out of that facility by year-end or a target of when you want to be out of that facility kind of given the high cost of rates today?
George Holm: Thank you for asking it because there’s a couple of things I wanted to share. As we mentioned in our comments, because we use interest rate swaps, there is a portion of the ABL that is floating but because we’ve swapped 76% of our total debt is fixed and the ABL is at a very attractive rate of LIBOR plus 125 bps. So yes, interest rates are certainly going up and we’re watching that very closely and the portion of our ABL that is floating does move up accordingly. But we’ve done a really good job of managing that interest expense — so there is no expectation at this time that we would be looking to retire that facility and we’ll just continue to manage the interest rate environment the best we can with those swaps.
Operator: We’ll take our next question from Peter Saleh with BTIG.
