Steve Barger: Appreciate the detail on some of the actions you’re taking in the near term. On the last call, you suggested earnings would have maybe a 40% first half, 60% second half weighting. As you think about it now, should we be thinking that’s more 25-75, or what do you expect for an earnings cadence for the year?
Adrian Downes: I think that’s more realistic given the performance in Q1.
Steve Barger: The 25-75?
Adrian Downes: Yes.
Steve Barger: Okay. And Lorie, you’ve had to deal with some tough operational conditions for a while. You’re obviously taking actions to address that. For 2023, what is — can you just talk about your priority list? Is it really fixing gross margin first? Is it driving syndication activity or market share? And then second part to that question, maybe you answered this to some degree. But longer term, what do you see as the key to driving shareholder value creation? What’s that message that you’re pushing to the team?
Lorie Leeson: We’re trying to steal our thunder from April, Steve. You all make secrets right now. I think — I would say, yes, my number one focus is improving our gross margins getting to that steady margin that I know that we can do. And then we will look to how we’re optimizing the services side of our business, which — the biggest piece of that is leasing and figuring out how we do that at a modest pace, balancing it with our customer needs for — on the syndication side and the operating lessor side, this is something that Greenbrier has done for years. We have been able to manage relationships with a wide variety of customers and do this in a way that I think can be beneficial for our shareholders as well as for our customers.
So it’s not going to be a revolution. It’s going to be an evolution of how we’re going to continue to build off of the foundation. Looking at some of the investments that we’ve made over time are where we have value tied up on the balance sheet and how we can either get that — those investments on our balance sheet to generate better returns or to offload them and focus on the things that are our priorities.
Steve Barger: Got it. Thanks. And I’m sure you’ll talk more in April about all that. In terms — for the near term on the gross margin, what is the biggest bucket of value creation or margin expansion? Is it optimizing the manufacturing or the internal fabrication capacity? Is it just footprint? How much does mix play into that? Like what levers are you pulling first to drive that near-term outcome?
Lorie Leeson: I think definitely, it is the supply chain and in-sourcing some of those vital components that we need to make certain that we are managing those costs. Bill Krueger, who is now running our manufacturing operation has been working closely with the teams on the ground to really think through if we have certain capacity within our operations, are we utilizing our capacity to its highest potential and for the most vital components? And really thinking through that a lot more strategically, particularly as we’re building a broader range of products that requires a broader ability to provide those subcomponents.
Steve Barger: Do you think you have the manufacturing capacity, the process equipment that you need or would this require investment in machinery to be able to in-source some of that?
Lorie Leeson: It will take some modest investments, but that’s part of what’s in our guidance right now.
Steve Barger: That’s in the CapEx right now. Okay. All right. Thanks.
Lorie Leeson: Thank you, Steve.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Justin Roberts for any closing remarks.
Justin Roberts: Thank you very much for your time and attention today. If you have any follow-up questions, please reach out to us at investorrelations@gbrx.com. Have a great day. Thank you.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
