So as we go into the back half of the year, it’s a heavy comp that we have to go up against. We believe our partners are going to normalize in the back half of the year, which is still a great place for us to be. It’s just not the place where we were a year ago when you had the pandemic and all that pent up equipment and everything came in. So that’s what we’re using to set the guidance.
Michael Doumet: Understood. And then maybe just flipping the cost. If I look at the SG&A, I mean, look, you’ve been on a flat trend for several quarters here. How much more can you do with this cost base? Or has the rationalization kind of run its course here? Or is there maybe more you can do either way, depending on whether you want to support more volumes on it or rollover costs?
James Kessler: Yes. Let me just answer that by just from a philosophy that we have as a leadership team. We are never going to stop managing this business effectively and efficiently. It’s core of what we do every day. It’s part of what our directors, our vice presidents, our extended leadership team. So we are never going to stop of how do we optimize this business. Right? And that goes to margin expansion, that goes to SG&A management. It is what we’re building in the culture. So we’re just never gonna stop. So I really don’t have an answer of a start and stop. We’re going to be diligent and constantly look to make sure we’re as efficient as possible.
Operator: Your next question comes from Maxim Sytchev, National Bank Financial. Maxim, please go ahead.
Maxim Sytchev: Hi. Good afternoon, gentlemen. Jim, just one question for you, if I may. I mean, given the context and the difficult of completing IAA, what are your thoughts regarding the size of any potential transactions and sort of the need to do that? And where it will be the most accretive, whether strategically or financially? Thanks.
James Kessler: Look, it’s a great question and again, we’re very focused as a leadership team on the business that we have, the verticals that we have and look, all the verticals that we’re in right now, we love the margin profile and the financial outlook of each of them. Right? So as we think about what we want to do in the future, and Eric talked about this, as we think about the future, we know there are certain places where there are holes on the map, right, that would fit in nice with us as we think about the future, if that’s M&A, but right now, we want to make sure we’re driving the business that we have, we’re running it effectively and efficiently and we’re always going to be opportunistic of what fits in for us, but right now, we’re so focused on running this business and running a very profitable effective company and that’s where our focus is right now.
Operator: Your next question comes from Steve Hansen, Raymond James. Steve, please go ahead.
Steve Hansen: Hey, guys. Just a quick follow-up. The one thing that struck me as interesting on the inventory rate was the sequential improvements. I know it’s down year-over-year, but on a sequential basis, we saw a nice improvement. I mean, you described that business as still being competitive in the broader landscape, but how do you feel about the sustainability of that sort of high single digit rate?
James Kessler: Yes. Look, I think we’re going to just go back to the same guidance that we’ve been given quarter after quarter. Look, it’s a competitive market. Sometimes the deals go in your favor, sometimes they don’t, right? And each time a deal is different depending on it’s Canada, the U.S., international, who we’re competing against, we’re in this to grow share. We have the best data to make the best decisions of where to use that data. So the guidance that we kind of said that low to middle historical end, I think is still a place where and we’re expecting, but I think there’s going to be times when you see what you saw this quarter where it’s going to look like that, but look, I think we’re in the best position for any of these competitive deals with having the rails and the data and analytic tools that we have to make the best decisions and we’re very confident that it’s a place where we can compete and be successful at.
Operator: There are no further questions at this time. Please proceed.
James Kessler: Alright. Hey. First and foremost, I want to thank the RB Global team for everyone’s hard work, dedication, commitment to our customers and over delivering on those commitments. Thank you so much for your hard work, and I just want to thank everyone on this call. Thank you for your confidence in RB and we look forward to talking to you the next time. Thank you so much.
Operator: [Operator Closing Remarks].
