Craig Kennison: Okay, fair enough. And then just with respect to inventory, I think you talked about a situation where the whole industry had excess inventory. Where are we on the path to getting to what you might consider optimal levels of inventory of new units?
Mike Kennedy: Well, I mean, that’s a great question. I think for our company overall, overall our inventory is too high, and we look at it kind of from a day supply perspective. Now, it’s different brand by brand. So, and that’s what the team is working on. But as Blake mentioned in his remarks, because of some OEM line changes and because of just centralizing the ordering, getting more disciplined about managing our new inventory, we expect to take out about $60 million of new inventory throughout the year. So, that won’t come together until towards the end of the year. And so, that’ll put us in really, really good shape for the following year, Craig. And so, hopefully, that answers your question.
Craig Kennison: Yes. And maybe just on that last point, $60 million of inventory coming out, is there a way to say how much of that is coming from brands that you are choosing to exit versus brands you think you’ll continue to roll with?
Mike Kennedy: Yes, that’s a good question. We don’t have that information right in front of us. I would say it’s probably two thirds with existing lines and one third with lines that we’re exiting, yes.
Craig Kennison: Perfect. No, that helps a lot. Hey, thank you so much.
Operator: [Operator instructions]. The next question is coming from Fred Wightman of Wolfe Research. Please go ahead.
Fred Wightman: Hey guys, good morning. Just to follow up on inventory, is there a way to frame the mix of inventory as far as current and non-current products within sort of what you’ve reported, and then also maybe that inventory work-down target?
Mike Kennedy: Yes. Thanks, Frank. This is Mike. Yes, when you look at our aged inventory, I mean, we have very little – we look at model year 2022 and later, it’s very small. I mean, less than 3% of our total inventory. So, the team’s focused on obviously cleaning that up. A lot of OEMs just recently introduced ‘24s. so, a lot of focus and program support from OEMs on model year ‘23s that we’re working on, and that’s certainly going to be a key piece of the focus here in the selling season. And the good news about all this inventory management is now’s the time to address it because we’re going into the height of our season. Next four, five months, demand is pretty strong. And so, when the team focuses and gets it done execution-wise, we should have some really, really good results.
Fred Wightman: Makes sense. And then just thinking about – I know you pulled the annual guidance, but even for sort of the midterm outlook, what do you think the impact of potential rate cuts will be? What have you sort of assumed within those 2024 guideposts that you laid out, and how quickly do you think that rate cuts could potentially drive consumer interest or consumer demand?
Blake Lawson: Yes, in our modeling and in what we are looking at, we haven’t anticipated any – there’s no rate cuts in there. So, that would all be very helpful if – we would welcome it both from a debt perspective. It does make a big difference to us as well as from a floor plan interest perspective as well as to our consumer. I just think that psychologically it would be a lift to the customer and the riders to see that. But we haven’t baked that into anything in 2024.
Fred Wightman: Great. Thanks a lot.
Operator: Thank you. At this time, I’d like to turn the floor back over to Mr. Kennedy for closing comments.
Mike Kennedy: Thanks for your questions and interest in RumbleON. This is an exciting moment in our company’s history as we sharpen our focus on Vision 2026 by leveraging our scale to run the best performing dealerships in America, growing our pre-owned business, and allocating our capital to maximize our long-term per-share value. We constructed a powerful turnaround plan for the company, and we’ll be focused on the execution. Thank you very much.
Operator: Ladies and gentlemen, thank you for your participation. This concludes today’s event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.
