George Holm: Yes. All of our businesses, the third quarter is typically the lightest revenue quarter. But if — also a big impact too is, tobacco is really declining at a pretty heavy rate right now which, all in all, is not a bad thing. It’s not a big margin producer. But it certainly has a big impact on the top line. And I would say that’s probably it. Our national account growth, where I mentioned, I think it was 2 calls ago, by fiscal third quarter, we’d be running growth. I’m not so sure that’s going to happen. We’ve played out from an account standpoint exactly. I mean, exactly as we had wanted it to go but there’s some real softness in that account base. So that’s probably a little bit of it too.
Operator: And we’ll take our next question from John Heinbockel with Guggenheim.
John Heinbockel: So George, I want to start with why do you think independent case growth is less than new account growth, right? And within the context of that, your thoughts on salesperson bandwidth and capacity, right? Because they’re doing a lot more volume than they did 3 years ago. Where are we on that? And do you think, you need to grow the sales force faster to see a pickup in independent case growth?
George Holm: Well, I think that the biggest thing in the accounts growing faster than the case as part of it may be — we have a — I think, we always have an emphasis on new business but we’ve had a little bit more of one than typically because we’re finding that at the customer level, that we’re doing, on average, less business than we were doing the previous year, this is on average with our customer base and independent. Yet we’re selling them slightly more SKUs than we used to sell them. So that just shows that the volume down at the account level. Now January, a lot of the improvement was new accounts but we also had improvement in penetration within the accounts. We actually were positive in the month of January. And that’s why I think, part of our increase has been due to the Omicron in the previous year.
Then as far as salespeople, we have made big investments in the last couple of quarters. I had mentioned before that we’ve kind of gotten behind. Right now, our percentage increase in number of salespeople is the most we’ve had in several years.
John Heinbockel: Okay. And maybe for Patrick. Given your closeness with Vistar, right? So Vistar profitability, at least this period was several hundred basis points above, right, where it’s kind of been running. Your thoughts on the source of that? And then where do you think, right? It looked like it was settling in maybe in a 5% to 6% range which was higher than pre-COVID. Is that still sort of where we’re settling at? Or maybe it’s higher than that now?
George Holm: No, I’m going to go ahead and take that. John, just because needless to say, Pat has been very busy the last quarter.
John Heinbockel: Okay. Yes, sure. Go ahead.
George Holm: Our return on sales or our EBITDA margins in Vistar has always been more volatile than us, as a company. And I’ve explained this before but I think I should do it in a little bit more detail. We have parts of our business in Vistar that have very high case cost. Very low gross margin very low expense ratios and low EBITDA margins. We have parts of our business that are low case cost. They are high margin, they are high expense ratios and they are high EBITDA margins. Then we have our pick and pack business, where there’s a lot of eaches out of those, particularly the 3 distribution centers totally dedicated to that. And that is high margin, high expenses, high EBITDA margins. Then we have a fulfillment business which we feel we’re going to show some real growth in a couple of quarters with.
