Michael Benstock: It’s also – I’m just going to add a couple of lines to that. There’s – particularly in the healthcare side of our business, which carries a lot of our inventory and most of our pain last year was in working really hard to reduce that. But there’s an awful lot of turmoil in that business right now. Positive to us, the competitive landscape is getting smaller. We’ve had major competitors file bankruptcy. We’ve had turnover of CEOs in multiple businesses that compete with us and that are really just still trying to figure out what they’re going to do. I think there’s an opportunity for us to take greater market share. And so, we’re going to respond to that as necessary on this timely basis as we can. And that could include not only being aggressive from a sales standpoint, but having to support a slightly higher level of inventory than we’re currently supporting.
Mike Koempel: And Dave, I’ll just add one more thing. And that would be, again, this would apply to the healthcare business. I think, as we move forward, the mix of the inventory is better as well. So we’re introducing new product into our offering from our new design team. So, we’re excited about not just the fact that the inventory is leaner, but also that the mix is with newly developed product entering the market.
David Marsh: Got it. Got it. That’s helpful. Just one last question. Again, just on the balance sheet, because I think that it really deserves a lot of call-out and a lot of opportunity for some fanfare, if you will. You guys achieved a 40% year-over-year debt reduction from pre-elevated levels down to $84 million. As you go forward and you generate free cash flow, can you talk about priorities for cash flow? Will it be continued debt reduction, perhaps revisiting of the dividend maybe for an increase, or perhaps maybe share versus or something of that nature?
Mike Koempel: Yes. Dave, we’ll certainly continue to, I’d say, in a way, chip away at the debt. You can see in the first quarter, we reduced our revolver by another $3 million. So as we generate additional free cash flow, we’ll continue to pay some debt – some portions of that debt down as we move forward. In terms of the other ideas you mentioned, whether that’s the dividend or previous question was around M&A, those, of course, are all things that we discuss with our Board, and we’ll continue to evaluate the merit of other uses of those cash as we move forward as part of our capital allocation strategy.
David Marsh: Great, that’s all for me. Thanks very much, guys.
Operator: The next question is a follow-up from Kevin Steinke with Barrington Research. Please go ahead.
Kevin Steinke: Thank you. Yes. Just one follow-up. I wanted to ask about just the improving market conditions you referenced, and specifically in Branded Products. Certainly, still some macroeconomic uncertainty out there around interest rates, et cetera, but this may be kind of the overall tone you’re hearing from your customers, and maybe they’re just becoming more comfortable operating in this sort of environment.
Michael Benstock: Yes. We’re seeing some pretty positive signs and increased spend with our clients and our prospects. There’s still quite a bit of uncertainty due to higher interest rates, upcoming elections. Clients continue to be somewhat apprehensive, Kevin, about fully opening up their budgets due to the economic and political uncertainty, but let’s put what you said in the past. None of this is really an excuse for not growing our sales. This is a huge market, a $24 billion market that we have a very, very small share in. And so, we have loads of market share to take from our competition and who we believe is not generally as well positioned as we are to do so. So, we can’t use customer sentiment or economics as an excuse for not growing our business. It might grow at a slower pace than it would in a robust economy, but it’s going to grow because we’re going to continue to take market share.
Kevin Steinke: Okay. Thank you. That’s helpful commentary. Appreciate it.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Michael Benstock for any closing remarks.
Michael Benstock: Thank you, operator. We very much appreciate everybody being with us today. 2024 is off to a strong start. Our entire team, as you can well hear in our voices, is energized about the opportunities ahead. We look forward to meeting with investors at the many upcoming conferences that we’ll be doing, and we’ll keep you posted on our progress as we move through the year. As a reminder, you can find our latest investor presentation, which was just completed, on our very updated website, also just completed. Stay safe. Please don’t hesitate to reach out with any further questions, and thank you, as always, for your interest in SGC.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
