Ryan Sigdahl: Good, good. Maybe staying on that last topic. Last quarter, you were targeting to be debt-free by year-end. Now, it sounds like Q2 next year. I guess, what are the puts and takes to shift that up?
Deana McPherson: Yes. We said by year-end would be April, right. So, we’re being cautious. We are planning to make sure that we’re providing that information to you right now. It could — it could be April, it could be December. We’re being cautious and we have done share repurchases. We’re looking at that authorization is still out there and we’re going to play it by year and make sure that we protect our balance sheet, but also make sure that we’re doing right by our investors as well.
Mark Smith: Yes, I think there’s obviously some range in there, Ryan. And so I mean, the — it will be some time — it’s not materially changing I guess is what I’m trying to get to, you know. So, we said before, it was going to be April, which is the end of our fiscal year, it will be within a couple of months of that, if it’s not April.
Ryan Sigdahl: So, it sounds like it’s more a reallocation of capital potentially. You bought some stock back, potentially leaning in there versus a change in the underlying business and cash generation of the business, is that right?
Deana McPherson: Right.
Mark Smith: Yes. It was a very good assumption. Yes.
Ryan Sigdahl: Good. Maybe switching over to gross margin. So, getting back to the low-30% target for Q4, is that sustainable into next fiscal year, given Q4 you have the greatest production days which helps you from an operating leverage and absorption standpoint? So, I guess, is that sustainable or is that — how much of the benefit in Q4 from the higher production and versus other factors that are maybe sustainable into next year?
Mark Smith: Short answer is, yes, it’s sustainable into next year. And the reason is that this year you got to remember, we’ve built a lot of inventory as we — as we kind of came towards the move and any other tailwind of a surge always gets a little bit of natural inventory build internally. So, our production rates have been artificially suppressed this year while we brought that inventory down. Next year that production — those production rates will be back to normal and, we do anticipate some — also some efficiency gains from the new facility in Tennessee. So I’ll tell you, the Q4 numbers that we’re looking at right now also include of just a little bit at the beginning also some continued dual costs, so there’s still even in that 30%, it’s got some headwinds associated with it. So, the short answer to your question, is that — is that sustainable? Absolutely.
Ryan Sigdahl: Great. Thanks, Mark, Deana. Alright. That’s it from us.
Deana McPherson: Thank you.
Mark Smith: Thanks, Ryan.
Operator: Thank you. There are no further questions at this time. I’ll hand the floor back to Mark Smith for closing remarks.
Mark Smith: Alright. Thank you, and I thank everyone for joining us today, and your interest in Smith & Wesson. I hope everybody enjoys Merry Christmas. Have a safe and happy New Year. And we look forward to speaking with you all again next quarter.
Operator: Thank you. This concludes today’s conference. All parties may disconnect. Have a good evening.
