So I think that really bodes well for the opportunity for this business to perform better in an upswing. And I think that’s going to be as we see that happen, whenever it does sooner rather than later, I think we’re much better position now than we were a year ago to see operating leverage in that kind of a growth environment.
Jay Geldmacher: Yes. And I’d add and we stick – we indicated in our prepared remarks that the details behind a lot of the actions we’ve taken from a cost structure standpoint. And as you go through a cycle like this doing that is really important because then when you come out of the cycle that you’re in a really good position of moving up. And I think I’m sure and you know better than anybody and the rest of the folks on the line that as you watch the cycle, but it’s important for everybody to try to figure out, who’s got the best crystal ball on when the cycle does bottom out and things come back. But in the meantime, the things we have control of are the things that Tony and I just talked about there. So again the cost position, right, the execution, we’ve continued to highlight our new MPI and the importance of new MPI and velocity of MPI is super important for us.
And I think all those things together help us, as we kind of go through the cycle, I think we’ll significantly have opportunities on valuation.
Erik Woodring: No, that’s perfect. Thank you. And then just one question on clarification, maybe for you Tony is, the midpoint of your full year operating income guide was reduced by I think $10 million but you raised your EPS guide by about $0.15. If we take into account 3Q results, I think that means 4Q earnings relative to – prior to earnings comes up about $0.15. Just correct me, if that math is wrong. But my question really is I think $0.12 of that comes from – roughly $0.12 comes from the sale of Genesis. Where should we think about the remaining $0.03 of kind of EPS upside coming from? Is that another below the line item that we’re maybe not just considering? Just a point of clarification. And that’s it from me. Thanks.
Tony Trunzo: Yes. Erik, I’ll try to address that. Net-net, I mean obviously there’s a lot of moving pieces, right, with the sale of Genesis and some of those things. But net-net our outlook for the business in Q4 is a few million dollars better than what our original – what our prior outlook would have indicated. We ended up above our midpoint for Q3 and the guidance that we have now from an operational standpoint points to a few million dollars better at the midpoint as well. And I think that’s the increment. I’d have to do the math on the EPS. But I suspect that’s probably the increment on the EPS.
Erik Woodring: Okay. That works. That’s perfect. Thank you very much guys. Good luck.
Jay Geldmacher: Thanks, Erik.
Operator: Your next question comes from the line of Ryan Merkel with William Blair. Your line is open.
Ryan Merkel: Hey, good afternoon and thanks for taking the questions.
Tony Trunzo: Hey, Ryan.
Ryan Merkel: Hey, my first question just back to this outlook for repair and remodel and the turnover. Are your products tied more to housing turnover or there is this team out there that people can’t move because of high mortgage rates and home prices are high, so people are investing in their current residents. I’m just wondering if that’s something that you could benefit from?
Tony Trunzo: So, Ryan, you’ve highlighted two countervailing types of dynamics there. And it’s hard for us to tease out one compared to the other. But if you look at just the unit volumes of existing home sales, they are down by more than a third from peak to trough. There’s a lot of repair and remodel activity that happens by people, right, before they sell their homes or right when they purchase their homes. And that that significant decline I think it’s from 6 million to 4 million units annually plus or minus. We think that’s clearly been a headwind for us. Whether or not be, not moving trend has maybe helped a little bit in terms of people deciding to do projects on their existing house, I think potentially it has. But I think it’s probably significantly outweighed by the dynamic of just the drop in existing home sales.
