Ray Hatch: If your question was larger companies, Gerry, they take longer, is that what you are saying? I couldn’t hear you very clearly.
Gerry Sweeney : Yes. It is actually yes.
Ray Hatch: Okay. Yes. Well, it goes back to complexity, right? The larger the company, the more locations, the more waste streams, typically, the more — well, bureaucracy, I guess, that exists. So there is a pattern based on the size of the companies that larger companies take longer, no question.
Gerry Sweeney : Final question and then I will jump back to queue. Any competition popping up? Obviously, I mean, you mentioned one client that went away, but that was internalized, right? Completely understandable. But just curious if you are seeing any competition even on the fringes or what’s happening out there on that landscape?
Ray Hatch: We talk about that quite a bit, Gerry. And no, as you mentioned, just I appreciate you reiterating that. That lost client we talked about was strictly — they were acquired by somebody else, and they took it internally. So it didn’t have anything to do with us. And I should mention, I guess, that we have situations where our clients buying other companies and we get growth out of it too. So it happens both ways. But competitively, I haven’t seen a lot of changes. I have been watching to see if our price points going down, aggressiveness, that type of thing, with economic conditions changing. And I really don’t — we really haven’t seen anything to that effect. It is a very competitive industry, as you know. I think it has pretty much stayed the same. I haven’t seen a lot of changes.
Operator: The next question is from Sameer Joshi with H.C. Wainwright. Please go ahead.
Sameer Joshi: Good afternoon, guys. Thanks for taking my questions. Just on RWS, it seems that the revenue loss also played into this quarter. It seems $6 million less than year-over-year growth here. Is there any reason for that lost revenue or can you just shed some light on that?
Brett Johnston: Yes. I will take a little bit of that. So we have certainly — we have got the commodities that run through that business as well. So I would say a portion of that is certainly related to reductions in just overall commodity values. We did talk about the lost customer. So we got a portion of that in the quarter as well. And then, the rest is probably actually, it is probably related to some of the adjustments that were made throughout last year as well.
Sameer Joshi: Okay. Some of my other questions have been answered. But just checking on, I think on the last call, you mentioned double-digit growth in gross profit dollars and in adjusted EBITDA for 2023. Are we still on-track for that?
Ray Hatch: Yes. I mean, if you take out the exceptions that I think Brett did a really good job of laying out. I mean, we are there. But we are looking to continue that. The outlook is strong going forward, definitely strong going forward in future quarters.
Sameer Joshi: And then the last one, was there any further principal payments made to Monroe? I think in the last quarter around $2 million was prepaid.
Brett Johnston: No. We did not make another one subsequent to this quarter. We did talk at the end or in our Q2 earnings call that we had made one subsequent. So we did have a payment of $2 million within the quarter, but we talked about that one as being a subsequent transaction to Q2.
Operator: The next question is from Greg Kitt with Pinnacle Fund. Please go ahead.
Greg Kitt: Hi, Ray and Brett. I wanted to ask a question about Brett’s commentary. It sounds — if I got what Brett said correct, I think that Brett said, he expects sequential gross profit increase in the fourth quarter and expects something similar to Q2. And so Q2 gross profit was 13.5. Is the right way to interpret that statement that you think Q4 is around 13.5?
Brett Johnston: I think that’s kind of our baseline for just overall performance of the business, Greg. We talked about, we have got some opportunities and some growth coming in as well. In Q4 of last year, we talked about some cyclicality or some seasonality that came in, that can really vary customer-by-customer. So, there is a — we don’t have full visibility on how that’s going to impact Q4. But just in terms of strength of business, we certainly look at Q2 as being much more reflective of the continued sequential performance. And you can get there basically with the adjustments we talked about, gets us really closely in line with Q2.
Greg Kitt: Thank you. And I wanted to make sure that, I understood, how much of the adjustment was to gross profit in the quarter? I think that you highlighted $500,000 of RWS was a gross profit impact, and then was the $400,000 impact with the one fast-growing customer, was that also a gross profit impact? So was it $900,000 reduction to gross profit or was it more?
Brett Johnston: Yes, that’s correct. It is about a $900,000 adjustment to gross profit that we took in Q3.
