Scott Stember: At the sell-in – sell-through was was essentially the same as sell-in.
Nicholas Pinchuk: Must be the same. Yes.
Scott Stember: Okay. Got it. And then just last housekeeping question I saw the corporate expense up five plus million. What was that related to?
Nicholas Pinchuk: Pretty much stock-based compensation was a lot of it and part of that is, okay, I think we’re doing a little better this year than last year and just a basic year. But also, after you put several years together of good if you go back and look at our numbers, they’re up, up, up, up. You know, you are talking about quite a bit of getting – point OI margins to start, it starts to work its way into the long term incent this as well. So, you’re starting to see some of that play out in that situation. There are other things drifts and drafts here, but that I think for government work, that’s it.
Scott Stember: Got it. That’s all I have. Thank you.
Nicholas Pinchuk: Okay.
Operator: Thank you. And our final question today comes from Luke Junk with Baird. Please go ahead.
Luke Junk : Good morning. Thanks for taking the questions. A couple of margin related questions for me at the segment level. First one Nick, just if I look backwards in the tools group, there’s just been a lot going on there in terms of material inflation, supply chain, product, mix that’s been variable and it seems like those are things that could settle down into next year. And I guess I said that against what’s already been a step function change in profitability in the tools group. Do you see any key offsets or risks that we should be thinking about going into next year maybe normalizing price increases versus just building off of where the tools business is now and sort of a normal margin progression into 2024?
Nicholas Pinchuk: No. I don’t – I look, I think this time material wasn’t a major factor. Tools group is sort of over that, you know. And so I don’t think you’re going to see that. I think the tools group is just on a good – what, what you eat. But by the way, all the – lot of the things you mentioned, like product mix and all that that wasn’t on it. It’s all every quarter there. Here’s been like this, every quarter is like that. They’re always a mix of things that happen in the tools group. So we just simply try to balance them so they drive things upwards. This quarter, we got a nice dollop of good margin business. The hand tool business is pretty good. And by the way, when you take a customer connection and you solve somebody’s problems, that’s why I try to talk about those two things.
When you get the glow plugs out in a substantially shorter time, people want that and you get your margins for it. It might seem arcane, but that’s the kind of stuff that gets you money. When you provide them a triple flex ratchet, where they can use three different things that are having problems getting around them, they will pay it for it. And that kind of stuff works for us. So most – I think one of the things that’s been driving our margins in this period and all the periods has been a relatively robust product activity. Now, one of the things that did happen, I think fairly is during the pandemic when supply change started to be a problem, we were focusing on our engineers on substitution somewhat and took away new product capacity, because the engineers, we only have so many engineers, some of them are working on trying to find components that you can actually source, so you can deliver.
But now that that’s all over, we can turn the engineers on new product again. So the machine starts rolling at full speed. So we feel pretty good about this actually going forward.
Luke Junk : Thanks. And then just a follow up on RS&I, just thinking about mix in that business. So maybe I’m reading into this too much in which case, tell me if I am, the under car equipment, that’s been growing strong double-digits for going, three years now just slightly lower growth up high-single-digits this quarter. I’m just thinking of sort of the mix of growth here between the software businesses in under car equipment and to what extent we might see more of that software mix shine through going forward. Thanks.
Nicholas Pinchuk: Well, I don’t know. I mean, I think we’d like to see the software mix go up. I mean I think you’re going to see that software is up nicely. I mean Mitchell 1 had a better, nice quarter. Mitchell 1 had a great quarter, people or the repair shop owners or managers, or whatever they and we see that building there. So we think we got that on with some great new adjustments and we got more coming. You got the diagnostics business, which will which will I think as we move forward new offerings will drive that business. And – but undercar equipment is lower – is lower profitability, but in the context of relativism they are I don’t know, I believe at all-time high in profitability for them. So when you compare year-over-year, you’re getting a positive margin contribution from those guys.
So what we have here, I mean, I think the way forward is somewhat what you’re talking about, the way forward for RS&I is more software, but also we believe we can raise the margins in things like the equipment business. Because we have been doing it and they’re at an all-time high now and going upwards. So we see those to be the two, I guess factors in that situation. So that’s where I see. So I think pretty good things. But look, RS&I with good sales and equipment with good strong sales and equipment that what were they, 24.3% up 130 basis points, that’s not shop liver. So they seem to be able to keep improving, go back and look at the results. They keep going upwards. I think that’ll continue.
Luke Junk : Okay. Yeah, I’ll leave it there. Thanks for that comment on the equipment margins. That’s helpful, Nick.
Nicholas Pinchuk: Sure.
Operator: Thank you and ladies and gentlemen, this concludes our question and answer session. I’d like to turn the conference back over to Sara Verbsky for any closing remarks.
Sara Verbsky: Thank you all for joining us today. A replay of this call will be available shortly on Snap-on.com. As always we appreciate your interest in Snap-on. Good day.
Operator: Thank you. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines and have a wonderful day.
