Joe Enderlin: Got it. If I could ask one more looking to the guidance for 2024 EBITDA margin relatively flat with 2023. Can you maybe talk about your conviction in returning to a double-digit margin or can you maybe bucket out why this is more of the long term indication for EBITDA margin? Thanks.
Nathan Iles: Yes. So, we did guide flat as you noted and a couple of things to keep in mind one Jim talked about the new DC that we’re putting in and there will be some higher costs related to that in 2024. We also have factoring costs that remain elevated. And so while we’re certainly working on pricing and savings initiatives that continue year in and year out, 2024 will be flat. And we would expect as we always talk about in the long term to improve the bottom line incrementally each year sometimes to 10 20 basis points maybe a little bit more depending on what’s going on. So, we would expect that improve long-term, but 2024 flat.
Joe Enderlin: Got it. That’s very helpful. Thank you guys.
Eric Sills: Thank you.
Operator: Thank you. We’ll go next now to Bret Jordan of Jefferies.
Bret Jordan: Hey good morning guys.
Eric Sills: Good morning Bret.
Nathan Iles: Good morning.
Bret Jordan: Could you talk a little bit about sort of the price contribution to growth in 2023 and maybe what you’re expecting for 2024, are you getting any price relief for your factoring expense I guess specifically?
Eric Sills: Yes. So, we were able to push through some pricing in 2023 and so on. So, yes, some of the growth that we did see it was that more so than units if that’s where you’re heading with it. And as we head into 2024 nothing specific to report we are continuing to look for pricing opportunities. It is a competitive market out there and so we do have to work closely with the accounts to get everybody to understand what’s happening to the cost structure, but we are continuing to work on it.
Bret Jordan: Okay. And I guess you talked about the auto plus bankruptcy last year, but is that — is the — is that channel or those who picked up their market share underperforming in your mix? It was that the issue you face on a year-over-year basis or just? Yeah, I guess, that’s the question.
Eric Sills: Yeah. I think I package it differently than that Brett. It’s not that they’re underperforming. But when you have a large distributor that goes out, it’s going to take awhile for the channel to absorb that inventory. There’s been a lot of store closures. There’s been a lot of duplicate locations that are being worked through. And so I spent the first six months of 2023, at basically zero revenue position as they are unwinding the bankruptcy. And that was a big hurt in the first half. The second half once it went to its new owners wasn’t like flipping a light switch and it went back to normal. There was a lot of consumption that needed to happen, and we see that continuing. It’s really hard to track it, because now it does just kind of get lost in the mix. But no it has not fully recovered and we could see that really taking a while for it to shake out when you have a book of business and add as many locations as that, that need to get absorbed.
Bret Jordan: Do you see any sort of spread between the — and I guess the health of the WD market in general versus other larger players? I mean other potential issues out there as far as distribution are customer changes?
Eric Sills: Yeah. We believe that, if I understand your question, you have a lot of different accounts out there from the large national retailers to the more regional warehouse distributors. Many of them are still very healthy, well-capitalized, investing in the business and they’re going to do very well. Will there continue to be ongoing consolidation in that space? I think that’s a natural progression in a mature market. We’ve seen that over the last several years whether they’re acquiring each other or being acquired by the big guys. And I guess the good news for us is that we do tend to do business with all of them. So as those consolidations happen we tend to fare okay.
Bret Jordan: Okay. And then, I guess the last question a large National Retailer and Engine Management that went private label. Have you seen volume any volume return there or are they still primarily privately label?
Eric Sills: We believe that they are still largely Private Label and we watch them and what their strategy is in the marketplace. And I guess that’s all I have to say about that.
Bret Jordan: Did that give you that number share gain as a result of that shift for you?
Eric Sills: I believe that there was a few years ago when that — when it first happened and we really went arm-in-arm with our other trading partners to go after that share at the installer level. We’re quite confident that we did pick up a lot of it, because these were these were installers that we’re looking for our brands and they were available in the market. We just need to point them to that. So I do believe there was a pretty substantial market share shift at that time and a share shift that we’ve been able to retain or that our customers have been able to retain.
Bret Jordan: Okay. Great. Thank you.
Eric Sills: Thank you.
Operator: [Operator Instructions] And gentlemen, it appears we have no further questions today. I’d like to turn the conference back to you Mr. Cristello, for any closing comments.
