Ross Davisson: Hey, Mark. Hey, Nick. Thanks for taking the question. I just kind of continuing on the theme of gross margin, maybe just more high level. Is there anything about this quarter’s gross margin figure, which was great to see and clearly shows your strategy having effect? Is there anything about it that we should interpret or had a sort of a one-time benefit, like any catch-up or anything like that that would make this level of gross margin unsustainable, notwithstanding other changes that might be happening?
Mark Hernandez: Well, Ross, when we undertook this, we went through the pricing side and the commercial reset of our relationships. That is a one-time foundational pillar that we have built on. But we are going to build on that going forward with the new programs that we do launch. So I don’t think it’s a one-time thing. One thing that help us with the gross margin that probably is a one-time is the resetting of our supply chain. Clearing out the precautionary orders that were — with our bottlenecking our inventory levels and reducing our operations ability to return earnings to our company. So we will move forward with that. That’s a one-time thing, but it’s small in comparison to the other commercial aspects that we are doing and then the future growth of new programs and how we are pricing, how we are positioning ourselves going forward will add other values.
Now on the cost side, we are going through all our costs, because material expenditures are the single largest item that we expense and so we are going through a rapid analysis of what our cost side is and seeing if we can do more — do better with the One Eastern strategy for all our direct material procurement and our indirect material expenses.
Ross Davisson: Got it. Okay. Okay. So it sounds like, the rate — I mean, clearly the rate change can’t stay the same forever, I get that. Like the level you are at. There’s nothing super unusual it sounds like. There’s no reason to believe it can’t be sustainable. Is it fair summary?
Mark Hernandez: Yeah. We are always trying to move forward. I mean, I have an internal objective of 30% gross margin. Will we ever get there? I don’t know. We are going to try though and with the pursuit of that aspirational target, we hope to not backslide and always move forward with our gross margin actions.
Ross Davisson: Got it. Got it. Thank you. And then just on the backlog, you talked about the increase year-over-year. It seems like an even bigger increase sequentially about $14 million. Can you remind me, is that — is some of that a seasonal effect or is that showing us some sort of a little bit of a rebound happening in sales potentially?
Mark Hernandez: The way I look at it, Ross, is that, it’s a rebound, we did — the middle of the year, we saw quite a bit of softening or delayed in orders coming in and now with the program launches — they haven’t changed the end dates of these program launches. They basically snow plowed a lot of the demand and that’s what we are seeing with the building of our backlog, because they are releasing orders to us, because they haven’t changed their launch dates. We see that as a positive going forward into 2024.
Ross Davisson: Got it. Okay. Well, that’s encouraging. I mean, you mentioned — just one more thing, I mean, you mentioned the fears of a deep recession put to rest and sort of be an encouraging sign going towards the end of the year. I mean, truck manufacturing does seem like it’s held up really well, auto — motor vehicle seems a little bit more challenging. Any else you can say about sort of the current environment in terms of what you are seeing with your customers?
