Jay McCanless: And then could you talk about what Champion’s actual retail, owned retail store count is now versus where it was a year ago?
Laurie Hough: We have 73 sales centers right now versus, gosh, I cannot remember, 31.
Mark Yost: 30.
Laurie Hough: 30? Okay. Somewhere in that range.
Jay McCanless: And then, Mark, you said earlier in the call that fiscal fourth quarter is going to be flat and I didn’t know if that’s flat sequentially flat year-over-year. Maybe you could give us some more commentary on what you and Laurie are expecting in terms of revenues as well as gross margin for the fourth quarter?
Mark Yost: Yes. So expecting, Jay, that sequentially revenue should be flat sequentially, really driven by the price mix coming down a little bit as Laurie mentioned. Little bit of weather challenges, we’ve had flooding in certain regions, some frost delays that have idle plants for handful of days or a week in various areas for our shipping laws that will halt shipping. So that will be played into that driver for the quarter. So, I expect kind of flat sequentially. And as far as margins.
Laurie Hough: Yes. We expect margins to come down sequentially, Jay, because of the things I mentioned earlier, price mix as well as the purchase accounting for regional increasing a bit as we sell through more units. And then the opening of the new idled facilities, previously idled facilities.
Jay McCanless: Yes, that was actually going to be my next question, Mark. Since, a lot of the southeast was an ice rink for at least a week during January. Is that going to have an impact on volume sequentially? And do you think you’ll be able to capture some of the volume that you missed in January as we get through the rest of the quarter assuming the weather doesn’t get in the way again?
Mark Yost: Yes. I think we can catch up some of the volume there that from the ice rink factor that you just mentioned Jay. It’s really more flooding and or if there’s frost shipping laws that go into effect towards the tail end of March. The flooding is really what will push out the orders and delay things for a quarter or two. So if there is a tremendous amount of flooding getting things set and finished in the field, it will be delayed by weeks, if not months. And so, flooding is probably more of the factor that we’d be looking at than even the ice rink. I think we can catch up most of the timing of the floss that have happened throughout parts of the Southeast.
Jay McCanless: And then the last one I had, it sounds and correct me please if I’m wrong on this, it sounds like the average selling price for Regional is probably higher than Legacy Skyline and that’s I’m assuming because they’re being sold at retail, but why is there a negative gross margin differential versus what you were selling at Legacy Skyline?
Laurie Hough: So their mix of wholesale and retail is definitely more concentrated in retail. So their average ASP on a consolidated basis will be higher, because of that mix between wholesale and retail. And the margins are just generally they’ve just been generally lower. We do have the $10 million to $15 million of synergies that will help bring those up to our Legacy Skyline Champion margins.
Jay McCanless: And then input costs, OSB prices, other things, what are you seeing on that front? Anything we need to be concerned about or watching there?
Laurie Hough: No, we’re seeing some inflation probably coming into the spring summer selling seasons, but we’re keeping a close eye on it Jay, and passing that information on to our plants and they make the final pricing decision, based on the competitive environment in their region.
Operator: This concludes our question-and-answer session. I would like to turn the floor back over to Mark Yost for closing comments.
Mark Yost: Thank you for your attention and we look forward to continuing this journey of success together. We look forward to updating you on our progress during our fiscal year-end earnings call in late May. Thank you and have a good day.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
