Andy Tometich: Yes. So, I would say first of all, we’re really pleased with the progress that we’re making and what we saw in previous quarters and in particular in the first quarter. Our end goal remains the same, to be back into those high teen levels for EBITDA. And the pace of that will be determined by a number of different factors, but that is our objective.
Arun Viswanathan: Thanks.
Operator: Thank you. . Our next question comes from line of Jon Tanwanteng with CJS Securities. Please proceed with your question.
Jon Tanwanteng: Hi, thanks for taking my questions and congrats on a really nice quarter and improvement in the gross margins. If I could ask, Andy, for you to put your macro hat on. Where do you see the biggest risks in the coming quarters? I mean, assuming that we might potentially be heading into a broad recession, even with that, it seems like there’s automotive, aerospace, onshoring, infrastructure tailwinds that may not really abate so much, even in that case. China looks like it’s going to improve. Europe was already a trough. What do you see as actually coming off in case we hit some more headwinds here just at a broader level on that kind of standpoint?
Andy Tometich: Yes, Jon, thanks for that. I mean, just building off of what I’ve already highlighted, what we are seeing is actually improvements. As I’ve highlighted, I think we’re optimistic about the improvements that could come in China. We believe that Europe is a bit more resilient now and could be a little bit uneven going forward, but some of the previous headwinds are starting to mitigate, and we’re still seeing resilience within the Americas. So, based upon our interactions with customers and what we see, that’s why we still have some cautious optimism that things will continue to be beneficial.
Jon Tanwanteng: Could you give us a real-time update as to what’s going on in the ground in China today? Are you actually seeing a pickup now or is that still on the come, number one, and then number two, in Europe? Are there more mill restarts ahead of us that could help you improve sequentially?
Shane Hostetter: Yes. I mean, the real-time update I would say, Jon, is we see just order patterns improving, as I think about that side. And we think it might ramp up as I think about the back half. So, we’re cautiously optimistic, as Andy mentioned beforehand.
Jon Tanwanteng: Okay. Shane, one for you. Just, you’ve had some nice free cashflow in the quarter I think, which was not seasonal for you. What’s the expectation for the rest of the year? Did you just pull in some working capital recovery, or was there something else going on? Help us understand what your expectations are just going forward with the cashflow and maybe debt paydown and other use of those capital.
Shane Hostetter: Sure. Thanks, Jon. Yes, so as you mentioned, we generated pretty good operating cash flow in Q1, with slight working capital outflows, which really just mirrored the growth in the quarter, as well as some increment in cash conversion, as we continue to manage safety stock on hand, which was a bit higher previously due to ensuring some supply. As I look ahead, I think we will continue to have some working capital outflows to support our growth, but nothing like we’ve experienced over the last two years. Therefore, as I said today, like Q1, I would expect our operating performance should generate a good amount of operating cashflow, slightly offset by important capital investment in the quarters to come. And from a cashflow perspective, where we would use this, we were able to delever in the first quarter from 3x to 2.7x.
