Budd Bugatch: Hey, Dave, that’s interesting, because over the last couple of quarters and like last releases over the last year or so, you’ve talked about the backlog having a longer tail. Does that mean that the backlog is approaching a more normal timing now? You’re not seeing the same kind of level of deferrals that — in the backlog that you noted in the last couple of calls?
Dave Sylvester: I mean, the backlog is definitely changing. I think that’s in part linked to the improved supply chain environment that clients are feeling more confident in ordering with shorter lead times, because they’ve seen the improved reliability of on-time delivery. So, we’ve definitely seen some of that. And we had nice level of orders that we received in the quarter that we shipped in the quarter, and that felt a little bit like the good old days. It wasn’t like necessarily back to pre-pandemic levels or above pre-pandemic levels, but it was higher than we had been experiencing and it contributed to our results in the quarter.
Budd Bugatch: And you did talk about orders at least in the first couple of weeks of this quarter being above. Did you want to quantify any — what kind of rate of above are we seeing those orders?
Dave Sylvester: Well, we — I think in the release, we used the phrase modest growth, which I think you can assume is a low single digit growth rate. We included that reference because it was notably different than the overall decline that we had in Q1. And we also are starting to come up against easier comparisons versus prior year. I think second quarter of last year, I think, grew at 6% for orders year-over-year, whereas the first quarter of last year grew at 22%. But so we would expect to see this, and it’s nice to see it and it begin to play out.
Budd Bugatch: That’s good. And on the gross margin moving up ahead by 530 basis points, you [indiscernible] that the pricing and operational efficiencies. Can you parse maybe what — which is which? I mean, how much is — quantify those two differences?
Dave Sylvester: Well, we quantify the amount of the pricing, net of inflation. And if you do the math, that was clearly the lion’s share of it. But the others were notable enough to include in our disclosures. So we included them. And then the operational efficiencies, it was not only labor, but also some logistics favorability, which is nice. I mean, the logistics world was pretty messy for the better part of two years, and it started getting better over the last six months and we had some nice benefits in the quarter just from being able to get trucks on routes that we wanted and get them more fully loaded with some direct shipments as well. So, it — the efficiencies were not just labor, but logistics as well.
Budd Bugatch: Sara had noted, I thought, back in her comments about the fact that the trucks now, you didn’t necessarily need to go to a consolidation, extra step, and you were able to get product shipped directly. And you’ve had a very efficient way of tracking shipments to — from your facilities to customers and knowing pretty much what’s what and work with the timing. So that’s — that was interesting, and I thought that was a kind of a fascinating commentary on that. So overall, it feels like to me, like, the industry is kind of getting back to, like, this normal of some sort. Is that a reasonable imprints?
