Mark Hernandez: So, I will take the first part of this and then, Nick, you can answer. What we anticipate is working on continuous flow operations so that meaning that our performance is consistent quarter-over-quarter, that should yield our ability to continue to pay down debt. Our disciplined operations is focused on just that, so that we don’t have variation in quarter-over-quarter performance going forward. So we anticipate that the debt paydown will continue at this rate or higher based on our how we are performing going forward. Nick, you have anything to add?
Nicholas Vlahos: I think you summed it up well, Mark.
Mark Hernandez: Okay.
Ernie Hawkins: Next question, Mark mentioned four pillars on which Eastern strategy and deployment are base. Please remind us what those principles and the most important elements are.
Mark Hernandez: So the four pillars I mentioned earlier in this call is disciplined operations, making sure that we do everything every day to run our businesses, looking at every dollar, capturing every dollar and selling all our products in a timely fashion. That’s Pillar one. Pillar two is capital utilization allocation, looking at how we spend our capital within our businesses and trying to reduce it to become more efficient company, and secondly, is that we are investing our capital, our CapEx in projects that have high rates of return and return value to Eastern. Our third pillar is strong commercial business focus. This is where we are working with our customers and the relationships that we have with customers, like I said earlier so that it’s mutually beneficial.
We don’t want to take advantage of anybody, but we also don’t want people to take advantage of us. So we will get — we are going to price appropriately and we are going to have be good stewards of our business going forward. And then, lastly, if we do the first three correctly and we have been is value added in acquisitions. We will move forward our value-added acquisitions in 2024. Things that make sense for us that can allow us to vertically — further vertically integrate our businesses and reduce our cost structures with the hopes of growing the business, not the hopes, with the intention of growing the business so that we can further add on a larger acquisition in the future.
Ernie Hawkins: Thanks Mark. Do you expect further growth in gross margin in Q4 and beyond?
Mark Hernandez: Yeah. Like I said, the pricing initiative and the customer resetting was completed in the third quarter. However, the impacts of all that work haven’t fully been implemented this year and that’s purely on legacy products that are going to flow through in the next quarter and into beginning of next year. I just want to keep in mind that our new products, the third stuff that we are quoting today has a different standard by which we are quoting and the businesses that we generate from those new programs are at a significant increase of our gross margins going forward.
Ernie Hawkins: Okay. How much of the improvement and gross margin came from a normalizing supply chain environment and lower raw material prices versus the pricing actions that we have been taking as a result of the new program?
Mark Hernandez: I would — to put a number on, I would say, 90% came from the resetting of our commercial relationships and 10% was fixing the costs — the logistics costs and dealing with raw material going forward. So we have transitioned ourselves and we are in a much better position going forward to not get — not stumble on macroeconomic conditions with our customers going forward. Okay. All right. Thank you, Ernie. Operator, are there any questions on the conference call?
Operator: Yes. We did have one question come in. [Operator Instructions] And our question that we have in queue is coming from Ross Davisson from Banneton Company. Ross, your line is live.
