Chad Beynon: Okay. Thank you very much. Nice quarter.
Kimo Akiona: Thanks, Chad. Appreciate it.
Operator: Thank you. Our next question comes from Barry Jonas with Truist. You may proceed. Barry your line is open. Please ensure that you are not muted. The next question comes from Jeff Stantial with Stifel. You may proceed.
Brad Boyer: I think we had some issues with the last question.
David Lopez: Jeff, is that you? Hello?
Jeff Stantial: Yes. Yes, can you hear me?
Brad Boyer: Jeff? Go ahead. You’re live.
David Lopez: You’re live. Yes, go for it, man.
Jeff Stantial: Perfect. Great, great afternoon everyone. Maybe starting off with the, on the slot side of things more so on the leasing, Kimo you had some comments there, suggesting the pace of installs is likely going to continue here into 2023. Can you maybe break that down into premium as well? Can you think about where you’re at in the J-curve? Conversely maybe, having already realized some of the lower hanging fruit, do you kind of expect similar momentum or similar pace of sequential growth to continue on the premium side as well? Just kind of on backing that further would be helpful. Thanks.
Kimo Akiona: Yes, I mean, I don’t want to dive too deep into the pool there, Jeff. But I mean, like we commented, I think overall true net placements should continue at a similar pace across all of the areas in slots. I think obviously, we commented that we do still see really good momentum in premium, so I think again, without getting too deep into the pool, I think we’ll just leave it at there.
David Lopez: Yes, I mean, I think the good news is, we’ve got good momentum. Our initial launch of premium has gone very well here. We’re confident not only in that, but we’re confident and our ability to continue to deliver games. We think, we’ve got some good ones on the wave, but we’re really more focused right now and what’s out there instead of promising things that haven’t happened yet. So, we think we’ve got not only the games, we’ve got the right premium cabinets, but we also have seven studios cranking away and we’ve got some interesting things like maybe some high D non-premium that will mix in there as well. That’ll be pretty fun once it comes out. So, without getting the specifics, we think we’ve got a nice lineup and good momentum.
Jeff Stantial: Great. That’s helpful. Thank you. Then moving on to capital allocation, Kimo you talked about free cash flow sort of ramping from here as the year progresses, now that leverage is, we’re still moving towards longer term targets, but making a lot of progress, Kimo, can you just kind of walk us through the priorities for capital allocation?
Kimo Akiona: Yes, I mean, I think, it’s consistent in what we’ve said in recent quarters, right? I think, as loud as we could make it on this call, including in like David’s prepared remarks, right? We are so focused on deleveraging. So, I think, when you look at capital allocation strategy, we continue to support R&D, like we commented. I think one important thing to note, right, is we will continue to grow R&D, but as it relates to the rate of the growth in R&D this year will be less than last year, is one thing we wanted to highlight there. But, we’ll continue to invest internally and then after that, I think the sole focus will be on deleveraging and generating incremental free cash flow. That’s like our number one priority.
Jeff Stantial: Great. That’s helpful. Thank you both. I’ll pass it on.
David Lopez: Thanks. Have a good day.
Kimo Akiona: Thanks, Jeff. Appreciate it.
Operator: Thank you. We have a question from Barry Jonas with Truist. You may proceed.
Barry Jonas: Hey guys, can you hear me okay now?
