Mark Strobeck: Yeah. So thanks, Anthony. Growth that we’ve projected for 2024 is 100% organic, meaning it will come through a combination of both price and volume. We’ve been conservative in that assessment and putting out the guidance for 2024 as we continue to focus on optimizing our business commercially. So that’s what’s driving our current guidance. We’re not suggesting, at this point, what percentage comes from price, what percentage comes from volume, but know that it’s a significant mix of the two that drives that.
Anthony Vendetti: Okay. And then just in terms of the gross margin improvement, obviously, given guidance pretty far out into the future and it’s a significant improvement. You’ve already made significant improvements, and it’s more than doubling of the gross margin that you have for the full year, and almost the doubling of what you have here in the fourth quarter as you go out into the future. What gives you the confidence in that? Is it locked-in contracts? Is it clear efficiencies you see from your current business as well as the Evoqua acquisition? A combination of those things? Maybe just talk about the confidence in those out-year estimates.
Mark Strobeck: Yeah. I mean, so I think as everyone is hopefully learning, once we took over this business and determined that it was important for us to provide guidance, right, to the market as to the company’s performance, we’ve been very focused on accuracy and being able to successfully achieve that guidance. And we’ve done that now over the last two years. And so, when we look forward in 2024 and beyond, we’re applying that same level of diligence and accuracy in projecting out what we think is going to happen within this — with our business within the market. What gives us the confidence in our ability to do that is as you suggest, we have a number of customers now that have entered into long-term supply agreements with known economics associated with them.
The market dynamics over the last, call it, nine months have shifted favorably to Rockwell in that we are now in a two-company market. And so, that gives us, I think, also greater confidence around what the commercial opportunity that exists for Rockwell and the pricing that we’re able to achieve. And then finally, through the acquisition of Evoqua and other changes that we’re making within the manufacturing processes, right, we’re seeing a greater amount of efficiencies that are coming through, making our processes more automated that again become reproducible. So, the combination of all of those is what gives us the great — give us the confidence to project our business going forward. And we felt like given our understanding of all of that and our expertise now within the space that we felt like we could do that competently.
Anthony Vendetti: Okay. Great. And then just the last follow-up. I think we’ve discussed the trends of at-home dialysis and the trend moving towards that, even though it’s still a low percentage of the dialysis market. Can you talk about your plans to address that growing trend? And then, I’ll hop back in the queue. Thanks.
Mark Strobeck: Yeah. Thanks, Anthony. So, you’re right, we are certainly monitoring the changes that are going on in the dialysis market, and we are watching the at-home market begin to establish a meaningful presence of the overall dialysis procedures that are administered annually. It’s our belief that this is likely where the market is heading as technology is becoming much easier to use within the home, as patients becoming more capable of being able to administer these treatments at home. We think they’re probably likely a greater advantage in doing it in the home setting. So, we are — certainly believe that this is where the market is going, there’s going to be a greater presence of dialysis treatments that occur at the home.
We are working with companies that are focused in the at-home space, and are working actually on a product opportunity with the leading provider in this space. We hope to have something a little bit more to say about that in the coming weeks. But our concentrates can be used on all of the products that — and all the machines that are basically being used in the home setting. So, we’re perfectly set up to address that part of the market, especially as that market continues to grow.
Anthony Vendetti: Great. Thank you very much. Appreciate it.
Mark Strobeck: Awesome. Thanks, Anthony.
Operator: There are no further questions. I will now turn the call back over to Dr. Strobeck.
Mark Strobeck: Great. Thank you everyone for joining us on today’s call. We are extremely proud of all the progress we made in 2023 and we are excited for all that lays ahead for Rockwell. I want to personally thank all of the Rockwell employees for all of their hard work, where without them this progress we have highlighted here would not have been possible. We look forward to sharing our progress on future calls.
Operator: This concludes today’s conference call. You may now disconnect.
