Mark Hernandez: I stated in earlier earnings calls that our aspirational target is to get to 30% gross margins and that is a stake in the ground of what we hold ourselves to. The LIFO adjustments are things that are, I kind of call them outside of operational control. So we’ll continue to take those adjustments as they come. However, from the operations side, we do believe that there is significant opportunity to grow our margins. We’re not giving up on pricing, but as we have new products come to market, obviously, we’re going to position them with focused commercial business strategy that yields us a gross margin that is acceptable to us and that we deserve. And then on the second piece, that pulls our whole point towards vertical acquisitions or CapEx investment that improves our ability instead of paying outside services companies or direct material companies to produce products that we are able and capable of producing ourselves through capital allocation or through mergers and acquisitions on the vertical acquisition side.
We are very active in that space right now. And we see that there is a significant opportunity to get to that 30%, which is the first hurdle that we are trying to achieve.
Ross Davisson: And I guess just a quick follow-up on that, I mean, just to put a finer point on it. Is the LIFO adjustment in this quarter like a pretty meaningful piece of what allows you to hit that 26.8 or is it not? Like I’m just trying to get a sense of magnitude like should we not be surprised if when we don’t have that in Q1 presumably there’s a big step down?
Nicholas Vlahos: It won’t be as a meaningful impact in the future.
Mark Hernandez: Yes. I was just going to add, as a percentage of gross margin, it’s not as significant as the other opportunities that we’re pursuing.
Ross Davisson: On the backlog, I understand it was up year-over-year, but it was down sequentially and I don’t remember sort of the seasonality pattern you usually see. Is the decline from Q3, is that just seasonal? Is that the past due backlog that you talked about or yes, the past due backlog going down? Is it something else like I just want to double check if there’s anything else that I should take away from the backlog ticking down like that from Q3?
Mark Hernandez: I have a lot of experience in commercial vehicles and Q3 tends to be the strong quarter for most of our commercial vehicle customers. And they focus on production to get units off of the assembly line and then they focus the fourth quarter on getting those units out of the factories to recognize revenue. So it would make sense and there is less working days in the fourth quarter. So there is not a need for to order parts to start up in 2023 as companies try to rationalize their expenses to improve their earnings. So it has a little bit of a cycle to it, but I didn’t see it as significant as it has been in the past in my career.
Ross Davisson: And then just on the revenue, just to close it out here, I was, if you think about sort of some of the things you’ve worked through in 2023 with, the normalization in orders as your customers stopped through sort of stocking, having a buffer inventory, if you will. And also what you said about the truck OEMs not able to grow. Are we at the point now where those headwinds like on a quarterly basis are gone? Are you still kind of anniversarying some of that as you go into 2024, if that makes sense? I’m just trying to get a sense of like you obviously have a headwind as you kind of normalize in 2023. I’m curious does that headwind persisting in 2024 just because of timing or are we sort of through that?
Mark Hernandez: I would answer it this way, Ross, is that the headwinds aren’t increasing. They’re actually kind of stable and that’s primarily driven by interest rates. With the falling of interest rates, we see that these headwinds will drop significantly because commercial vehicle the smaller commercial vehicle consumers will be able to better position to replace their trucks. So I think it’s, what I would say right now, it’s not increasing. The headwinds are steady and we see positive signs through macroeconomic factors that it will continue through 2024 to 2025.
Operator: [Operator Instructions] As we currently have no further questions, I will hand it back to Mr. Hernandez for any closing comments.
Mark Hernandez: Okay. I’d like to say thank you for joining us today. We are confident in our strategy, which brought consistently improved results in 2023, provides an excellent foundation for the future. We are looking forward to giving you an update on our progress after Q1. In the meantime, if you need additional information, please reach out to us. And thanks again for joining us today.
Operator: Thank you. This concludes today’s conference call and you may disconnect your lines at this time. We thank you for your participation.
