Chris Daes: Just to give you an example, in the month of May, we’re going to invoice more than we invoice in the month of February, March, and April together in vinyl and in June, we’re supposed to invoice more than we did in May, April, March, and February. So, it is improving by the minute. But obviously, Jose tried to explain before is that, once we complete the line, we’re going to see this exponentially go up and we’re going to be invoicing several million dollars a month. So, that’s what we’re working for. That’s what we’re shooting for and we’re getting ready for it. We have already installed some windows, some projects and they look really good. I mean, they are comparing to the previous windows they were buying and ours it looks stronger, wider, better. So, we are really happy and we see a good future ahead of us.
Julio Romero: Very helpful. You talked about the two new distributors signed in, I think, Sarasota and Florida and then the new distributor in Northern Florida as well. Just talk a bit about what’s the early feedback from those distributors? And also how would you have us think about the ramp of additional distributors throughout the year?
Jose Manuel Daes: Those distributors are ready to order. But like I said before, we don’t have a complete line and it’s difficult for them sometimes to go into a job and then they have nine different products and we only have seven and the only two are busy. They rather wait until we have the complete line to really ramp up so they can go for only one product and don’t have to mix in one house because it doesn’t look good. That’s what they said. That’s why, I’ve been telling you and we know and we feel it that, the next two quarters are going to be great, I mean, the end of the year and 2025 is going to catapult crazy with the wider line because people like the look, people like that is much better than what we see on the competition and we have a better glass composition. So, it’s a win-win situation. We just have to wait a little bit.
Julio Romero: Okay. Understood. Last one for me is just on, I appreciate the outlook scenarios you gave for ’24 and how to think about each one. You gave us the vinyl revenue for each scenario. Just curious how much is embedded for showroom revenue relating to your legacy aluminum product in those scenarios.
Santiago Giraldo: It’s kind of in line with what we had originally estimated. We are still just kind of ramping up and the hold-up on the ramp-up is the full development of the products for those markets. We’d be talking maybe around $10 million for the year out of those geographies. But also remember that we’re shooting to sell vinyl in some of these other places as well. So, it’s not exclusively aluminum windows for you to model, right. Some of that is going to be interchangeable.
Julio Romero: Perfect. Just one more, if you can remind us how much the showroom sales were in 2023, just to think about the year-over-year?
Santiago Giraldo: No. Still not material. I mean, that’s still complete upside year-over-year. It wasn’t more than a couple of million dollars. So, if you look at a percentage basis, it’s going to look like a huge increase. It’s just on a nominal basis. It’s still ramping up.
Operator: The next question comes from Jean Ramirez with D. A. Davidson. Please go ahead.
Jean Ramirez: Hi. Thank you for the time. You have kept gross margin guidance low to mid-40s across all scenarios. Aside from anything or what you’ve mentioned during this call, what sort of drives the confidence of keeping around this guidance during the second half? I just want to hear some more color around that.
Santiago Giraldo: Just to clarify, we’re not baking in low to mid 40s in all three scenarios. If you look at the different ones, we’re talking about low to mid 40s on the base case, mid 40s on the upside. So, I just want to clarify that. Where it’s coming from is essentially a lot more operating leverage as you move through the year. As we’re ramping up, the residential orders that we’re seeing in March, April, if that is sustainable, all of that is going to improve the mix as well because it’s more manufacturing revenue. So, you essentially have operating leverage and better mix. But again, just to clarify, we are saying mid-40s on the upside case, low to mid-40s on the base case. So, in any event, based on what we know that is coming as far as revenues, we’re seeing a step-up from what you saw in Q1.
Jean Ramirez: Thank you for that. And so you said a ramp-up in residential. What about commercial? What is the outlook look like there?
Santiago Giraldo: Growing as well. I mean, you have more visibility there based on the schedule of the projects that you are about to deliver on. So, there shouldn’t be much more volatility as you will see on the spot nature of the business on the residential side like you already have a schedule of products that you’re supposed to be delivering throughout the rest of the year and the way that we’re modeling this out is sequential growth throughout until year end.
Jean Ramirez: Thank you. And just going back to the guidance, the EBITDA bridge sort of indicates around $11 million decline related to mix and price. How much is related to mix and how much is related to price?
Santiago Giraldo: Are you talking about the Q1 or are you talking about, because when you’re talking about guidance, we didn’t provide an EBITDA bridge for that.
Jean Ramirez: Just the full year?
