If you look at Q1, Q2, Q3 and Q4 of fiscal ’22, we actually claimed closest to the goalpost with the quarter we just reported despite all the headwinds. The reason I’m super bullish and why I think you should own our shares and buy shares at today’s level is because I’ve tried to tell you, and I guess the market doesn’t seem to price in the fact that HHI is going to close. But I’ve tried to be very transparent that in the event that for some unlikely reason, HHI doesn’t close, we’re going to collect cash of over $0.5 billion this year. So that’s over $12 a share, guys, in cash that we’re going to collect here in less than 12 months. So that’s — I don’t think that’s horrible. And that gets our leverage back down to $5 or less. My base case, which is the highest probability based on the information I have today, is that we’re going to close HHI and collect $4.3 billion and completely redo our capital structure.
And so if you do the math and you take a market cap of south of $2 billion and you close HHI, you’re buying Pet EBITDA at somewhere around 4 times EBITDA. And I think that’s wildly attractive as a shareholder. But I get it. Until we close HHI and we delever the balance sheet and buy back stock, I’m in a show-me phase. But I think we are a very deep value security, and we have numerous catalysts on the horizon. And so I’m actually really excited to put ’22 in the rearview mirror and steer us to a much healthier and much profitable — more profitable 2023.
Jeremy Smeltser: Yeah. And I would add, Peter, I just think as you look at the outlook for continuing operations, I always think about at the start of the year, what are my variables on topline? And what are my thoughts on variables on the bottom line? And as we enter fiscal ’22, clearly, we experienced significant increased cost as the year progressed versus what we expected. That, by definition, I mean, I’ve got $120 million of capitalized variances on my balance sheet at 9/30. That means that my costs were $120 million per inventory turn higher than I expected. That’s a huge number. As we enter ’23, I feel very differently. Our current costs are lower than what’s on the balance sheet right now and are more stable than they were a year ago, with the exception, obviously, of the currencies that I talked about for the businesses that are buying from Asia and selling in pounds and euros.
Then you move to the topline. I mean, obviously, again, Home & Garden, HPC, in particular, we experienced significant declines in topline versus what we expected as we started the year. As we enter this year, for appliances, really, the challenges in that market started in April, May, based on what we heard from our retail customers. And so they’ve kind of been in a darker place from a consumer demand perspective for a while, and we’re essentially assuming a fairly consistent level of consumer and customer demand as we go through the year. We’ve done the same thing with GPC. In Home & Garden, we really have to use our experience, based on 20 plus years in the business for the team, to figure out what level of moderate recovery we can see after what is the worst weather year that they’ve ever had.
