Laurie Hough: Yeah. So Regional is seeing, the mix shift that we are seeing more broadly across all of the plants.So where last year they had higher prices, their prices are coming down as well just due to the mix shift in the monthly payment price point that the customer is driving.So we do expect ASPs to come down just generally sequentially from the second quarter to third quarter and probably stay in that range for the next few quarters, as we work through that leveling of mix.
Phil Ng: Okay thanks a lot.
Operator: Thank you. Our next question comes from Mike Dahl with RBC Capital Markets. Please proceed with your question.
Q – ChristopherKalata: Hi. It’s actually ChristopherKalataon for Mike.Just to follow-up on the Regional, discussion, now that the deal is closed, is there any more specifics you could provide on terms of expected unit contribution in next quarter and into 4Q, just given the additional color you have now?
Mark Yost: Chris, thank you for the question. We don’t break out Regional separately in terms of the guidance I think they are wrapped up in our overall statement of how we see the third quarter shaping up.
ChristopherKalata: Got it. Understood and then just maybe shifting towards the many changes in your core customer dynamics following the move up higher in rates. Have you seen a change and order trends, in the last month or two, how financing environment has shifted in response to the move higher, have spreads expanded ad any color you could provide on the health of the core and which consumer today, relative to a few weeks back and the financing changes?
Mark Yost: Yes. Thank you, Chris.I think I’m actually fairly confident in the consumer right now. You know, we have seen, like I said, one thing I look at very directly is the fact that our unit volumes and our order rates have picked up 20% sequentially and like I said earlier, I think 250% year over year, and that’s without incentives. So think that we’re seeing that drive to affordability.We are seeing customers look for a better alternative and we don’t really have to drive huge financial incentives to capture that customer base. So I think that outlook is shaping up very well for us in terms of that.Our customers right now are seeing probably, we’re seeing rates probably the best rates we’re seeing right now for channel are about 8.5%.
I would say the average is probably closer to 8% to 9%.If they’re poor credit, they are in the 10% to 11.5%. So, but it’s a great spread right now. In some cases, 50 basis points to 100 basis points we are seeing for channels, which is very competitive in the marketplace today.So it’s a great value for our consumers.
ChristopherKalata: That’s it. Thanks for taking the questions.
Operator: Thank you. We do have a follow-up question coming from the line of Greg Palm with Craig-Hallum Capital Group. Please proceed with your question.
Greg Palm: Yeah. Thanks for taking the follow-up. Can apart from the, excluding this purchase accounting, will Regional’s gross margins be accretive or are they kind of in line with kind of that mid-twenty’s gross margin.I forget whether you have talked about that before, but, maybe you can remind us?
Laurie Hough: Yes, Greg, they’re a little bit lower. So we’ve got to work on bringing in the synergy capture over the next couple of years to bring that up.
Greg Palm: Okay. Got it. So maybe that’s part of the mix shift as well.And then just thinking longer term, I know Laurie, you mentioned kind of getting back to mid-20s, but why wouldn’t it be higher, whether it’s in that kind of 26% to 27% range that that you were talking about previously or even somewhere in the higher 20s, just under more normal capacity utilization levels.You mentioned the synergy capture. It just feels like, but I just wanted to maybe flush that out a little bit more if I could?
Laurie Hough: Yes, Greg, the 26% to 27% is still certainly doable. At normal capacity levels and obviously as volumes increase, there’s some upside potential there too.So we see it in that range, 25 to 27, whatever.
