Michael Smith: Yes. We had a few big expansions planned that have played out as expected. Last quarter, we talked a little bit about the launch of Rocco & Roxie into the Supplement space. Those points of distribution have played out as expected, and they were later in Q1 and will have a bigger impact in Q2 and the rest of the year. Our large bone launch under the Minties brand also hit our expectations and a little ahead of that in the quarter. And a couple other expansions within our flea and tick portfolio that all have played out as expected as these planograms, modulars for the kickoff to 2024 have hit the stores.
Bill Chappell: Okay. Great. And then one last one on Services. Any changes on kind of just the overall vet population in terms of hiring and — even for the mobile clinic side?
John Pearson: The key pivot for us is we’ve been really focused on the key wellness centers that generate the most income for us, and we’ve had success in landing vets in key locations that we need. But more importantly, we have a very healthy pet — sorry, vet population on the community clinic side. So, continuing to have on average around 3,500 in that population. As a reminder, kind of peak COVID timeframe is only at about 800. So, we’re really happy with how that’s climbed back up. And we’re seeing it in our cancellation numbers, which was called out by Cord. Cancellation numbers are as low as they’ve been back in 2019. So, really proud of the team and rallying there and getting the vet population back in.
Bill Chappell: Great. Thanks for the color.
Operator: The next question comes from John Lawrence with The Benchmark Company. Please proceed.
John Lawrence: Yes. Good afternoon. Thanks. Good quarter. Congrats. Cord, good to talk about following that last question. Just a little bit more on that Services optimization. Obviously, getting that sort of the fill rates and everything in that business better than what it’s been in the last couple of years. Can you dig in a little bit more of what you did to optimize that mobile clinic business? Is it all just stopping the absenteeism? What did you do that really optimized that — the mobile clinic business?
Cord Christensen: Yes. It’s across all the Services business, not just the mobile. It’s also the wellness centers that contribute. Like, when you close stores like we did, there’s going to be a pickup from underperforming stores. We’ve put a lot of controls and operational controls on all of the stores. We’re running more community clinics and they have a higher profitability and margin that they drive. And I think just in general, we’ve really made sure that as we’ve kind of got further and further away from all the closures that took place during COVID and all the cancellations to where we’re really solving for a lot of those problems, so you’re, you’re overcoming labor issues that we had coming out of COVID. We’re closing stores that were just never going to be great, like you said, and you add all those up together. And that’s why you’re seeing the margin improvements and the contribution going in our direction.
John Lawrence: Right. Thanks. Secondly, Rocco & Roxie, can you go back and talk about the plan when you looked at that acquisition? Now you’ve had it for a period of times doing extremely well. Is that the best example or a base case of how we should look at possibilities, how you extend the business and extend the categories going forward?
Cord Christensen: Yes. Thanks for the question, John. Look, we are — I feel like we’re running all of our brands and all of our categories in the same way. And we’re seeing great results across all of the business by doing that. Rocco & Roxie is a great example of when we make an acquisition that we have line of sight to very quick improvement in placement, you know, product extensions, and a number of ways to improve it. We’ve done it a number of times. Frankly, most of our acquisitions have been very similar to that. So I would say we’re very smart to find acquisitions that are great brands that we can then put our ability to really improve everything about it, whether it’s manufacturing, whether it’s efficiencies across just people, its store count, its products, you name it.
It’s just — it’s a great example. And yes, it’s done extremely well, and the team has done extremely well at getting placement for the extensions. And we’re seeing the brand, you know, really performing well across all channels right now. So, we hope, we hope to continue to do that across our existing brands, that brand, and all the ones that come in the future.
John Lawrence: And not to go too far with that, Cord, but would that be even — when you look at that example, it’s both top-line and bottom-line from — for the original strat plan. Is that right?
Cord Christensen: Yes. We’re ahead of our plan on the growth rate for the top-line. And, you know, we’ve said many times that we paid 8 times, 8.5 times trailing and expected to be kind of that 4% to 5% on a run rate basis within six months. And we’ve been ahead of schedule on both top and bottom.
John Lawrence: Great. Congrats, and thanks.
Cord Christensen: Thanks, John.
Operator: [Operator Instructions] And at this time, we are showing no further questioners in the queue. And this does conclude our question-and-answer session for today. I would like to turn the conference back over to Cord Christensen for any closing remarks.
Cord Christensen: I’d just first like to thank all the great people at PetIQ that keep delivering such great work, that deliver great results, and I just feel really, really great about how the Company continues to get better and better every day at what we do. And thank all the shareholders and analysts and everyone that show up and challenge us and we get to interact with as we talk about those great results. So look forward to talking to many of you over the next few days and definitely look forward to talking to you again when we get to the end of second quarter. Thanks for joining us today.
Operator: The conference is now concluded. Thank you for attending today’s presentation, and you may now disconnect.
