These investments include broadband and alternative power buildouts, as well as solutions to address the aging infrastructure. We believe we are in a strong position to capitalize on this demand, with the most comprehensive product lineup in the industry. For golf, we expect a continuing strength in rounds played and overall interest in the game to support healthy course budgets and drive strong demand. We remain extremely well positioned in this attractive market as the only company to offer both equipment and irrigation solutions, and as the longstanding market leader in both. For municipalities and grounds, we anticipate continuing prioritization of green spaces and interest in zero exhaust emission products supported by healthy budgets.
Our deep relationships and growing suite of no compromise of sustainable solutions position us well to serve this market. For snow and ice management we expect a more subdued pre-season selling-in as lack of late season snowfall has left channel inventories at higher levels relative to last year. Having said that, our strong presence in the Midwest where snowfalls were better is expected to provide some offset.
Exmark: Moving to the Residential segment, we are watching weather patterns along with consumer confidence and spending preferences. We’re also watching how the current environment affects channel inventory levels. While the accelerated demand of the pandemic has normalized, we expect this segment to continue to benefit from regular replacement cycles driven by the non-discretionary nature of our products. Importantly, we also expect the benefits from our refresh product lineup, expanded channel and strong brands remain a competitive advantage for the long-term. While we anticipate and plan for a range of macroeconomic outcomes in the near-term, we believe our organization is well equipped to deliver positive results in this environment.
We have a long track record of managing through economic cycles and weather patterns with agility and resiliency and expect continued benefits from our growing scale and broad portfolio. Our record performance here today demonstrates these benefits and our adaptability. We offer inbuilt solutions that perform necessary work with regular replacement cycles in attractive end markets. These factors, along with our talented team and best-in-class distribution and service networks, give us confidence in our ability to grow our market leadership over the long-term. We believe we remain well positioned to drive value for all stakeholders in both the near and long-term guided by our enterprise strategic priorities of accelerating profitable growth, driving productivity and operational excellence and empowering people.
On that note, I would like to thank our employees and channel partners for going above and beyond every day to support our customers and deliver great results. You are the key to The Toro Company’s success. I would also like to extend my gratitude to our customers and shareholders for your continued support. With that, we will open up the call for questions.
Q – Samuel Darkatsh: Good morning, Rick. Good morning, Angie. How are you?
Rick Olson: Good morning, Sam. Good. Well, how are you?
Samuel Darkatsh: I’m well. Thank you for asking. A couple, two, three quick questions if I could. First off the sequential commentary around backlog obviously is very encouraging. Could you talk about what you’re seeing with respect to cancellation rates, both in absolute terms as well as relative to 1Q and year end if you could, Rick?
Rick Olson: Yes, good question. I did have a chance in factious within the last 24 hours to circle back through and check on cancellation rates. We’re seeing an extremely low level of cancellation rates. That’s really not been a factor and really, I mean, the great news is we are seeing additional output from our factories, and perhaps maybe the better news is the demand is coming in even more strongly, so we’re, we’re exceeding in some respects our output from our factories. But the demand coming from the professional businesses, underground, specialty construction, golf and grounds has been outstanding. So it’s done more than we expected,
Samuel Darkatsh: So even though it’s an a absolute terms extremely low no take higher in cancellation rates sequentially from last quarter?
Rick Olson: No, no.
