Kevin Steinke: Great. Thank you for all the insight there. Nice job on the cash flow and the financial leverage ratio, that didn’t spike up as much or didn’t you really move as much as I thought it might based on, that amendment to your credit agreement you had executed. So, what — how should we think about leverage and cash flow as we look to the second half of the year, and relative to the covenants you have in place, for the remainder of this year?
Mike Koempel: Sure. Yes, Kevin, I’ll say, we clearly exceeded our expectations in the first six months, as we talked about really starting last year, really focused on inventory in particular and cutting back on purchasing that we felt would drive improvement this year and clearly we see that happening. But we’re obviously really satisfied with how we ended the first six months. I think there’s still room for improvement in the balance of the year, not to the magnitude, obviously, that you’ve seen the first ix months, but inventory levels while we’re making progress, still have more progress to go for the balance of the year, particularly in Healthcare. So expectation is to still make some, I’d say, modest improvement balance of the year, and and obviously with the improvement that we’ve made in terms of working capital and the reduction of debt and the improvement of our leverage ratio, where we’re feeling more comfortable about our covenant position going forward.
Still have work to do to hit, what Michael and I would say is our target net leverage ratio, which is to be [2.5] (ph) or lower, that will take some time, but we’re obviously feeling, more positive as we move forward.
Kevin Steinke: Okay. Well, that’s good to hear. So you mentioned, some customers in Contact Centers pulling back on the number of agents. And, I know you’re implementing some price increases that offset some higher labor costs you had seen in that segment. What’s the status of pricing there? And, does the fact that there’s maybe less demand for agents currently take some of that pressure off of labor costs at least in the short-term?
Michael Benstock: No, I’ll jump in on that. And then Mike, can add again. We’re not seeing — we had a few clients who decided to reduce their headcount, and we haven’t lost clients, which is always a good thing. Our expectation, Kevin, is when there’s more clarity to the future and when things do turn in the corner, from an economic standpoint, that we’ll get those seats back. In the meantime, that was not contemplated that we would redo the kind of headcount reduction that we did with these few particular customers during Q2. And obviously, that affects our growth overall for the year. And, so that’s the first part of it. I wouldn’t say that there’s a that there’s a lesson demand for new customers and new agents in the places where we operate.
In fact, I would say near shore is as robust as it’s ever been. But, when you have close to 300 seats that you’ve cut back, in a single quarter, but you’re not going to see revenue from those for the remainder of the year, it does impact you. We’ve tried to redeploy many of those people into other seats that we have won. And we have won a fair amount of seats. So, we haven’t had to really cut back our headcount that much. It’s just — it’s one offsetting the other instead of having growth, we’re just basically, had to temper our expectations with respect to growth right now because of that.
Kevin Steinke: Okay. Thank you.
Michael Benstock: Mike —
Mike Koempel: You covered.
Michael Benstock: Okay.
Kevin Steinke: Okay. Good. Thanks. I had just one last about Healthcare Apparel. You mentioned some positive early results on the, direct-to-consumer initiative and maybe just talk more about how that’s trending and how you think that could play out and potentially contribute to the second half of 2023?
