Shane O’Connor: No, it’s — interestingly enough, it was related to Mexico, but unrelated to that one we disclosed in the filing. This was a separate one from, I don’t know, three or four years ago, maybe more, that was able to be resolved, and therefore we were able to recoup the interest. But the other one is still out there and sort of pending.
Steven Sintros: Yes, usually when you have those tax disputes, you owe money and those higher interest rates are somewhat punitive. When you’re actually getting money back, they disproportionately benefit you too. So that was our experience in the quarter.
Andrew Wittmann: Thank you. Have a great day, guys.
Steven Sintros: Thanks, Andy.
Operator: Our next question comes from the line of Josh Chan with UBS. Please proceed with your question.
Joshua Chan: Hi, good morning, Steven and Shane. Happy New Year.
Steven Sintros: Happy New Year.
Joshua Chan: Hi. I was wondering if there’s any conclusions that you can draw from, I guess, the accounts that you’re losing or walking away from versus the large account that you’re winning? What’s causing the losses and what’s causing you to win the large account specifically?
Steven Sintros: Yes, great question. I mean, at the end of the day, I sort of alluded to, as we sell our value proposition, go into accounts, sell them on the right program with the right products for those customers. We sell on our process, we sell on our procedures, our ability to execute. At times if those accounts feel like they haven’t been receiving the service that they want, it provides an opportunity. I mean, the same goes just quite frankly if we lose an account. Again, it doesn’t all fall into one category when you lose a piece of business. Sometimes it’s strategic, like I mentioned. Sometimes it can be lack of execution by the route driver if we’ve had more turnover and sometimes it can be that — an account is going out to bid and they get a very competitive offer and we struggle to match that offer.
So it’s really, on both sides, it’s execution, it’s selling our value, it’s continuing to provide consistent service and showing that we can, as I talk about our vision, be recognized as the service provider that’s going to be the best for those customers. So, I know it’s a little bit of a generic answer, but the devil’s in the execution on both sides.
Joshua Chan: Yes, that makes a lot of sense. Thanks, Steven. And then I guess if I can follow up on this specialty segment, I was under the impression that this quarter things would be a little bit weaker than what you showed because of the nuclear dynamic. So I was just wondering if the full year could be a little stronger than what you had previously guided based on just the strength this quarter?
Steven Sintros: I think right now that is somewhat true. We probably have the full year a little bit ahead as to where it was before. We do still expect the rest of the year to show some drop-off and not to necessarily replicate some of the strengths in the first quarter. There was some sort of one-time things in the first quarter that sort of buoyed it a bit. Again, that segment’s made up of the two sub segments, the clean room and the nuclear. The clean room continues to be very consistent. And as we talked about in our last earnings call, we do expect kind of the nuclear slowdown based on some reduction in business with some of our Canadian customers. So we still expect that trend. But right now in the model, the full year does have that segment a little bit ahead of what we had guided, but still below last year’s profitability.
Joshua Chan: Perfect. Thank you for the color and [indiscernible] rest of the year.
Steven Sintros: Thank you.
Operator: Our next question comes from the line of Tim Mulrooney with William Blair. Please proceed with your question.
Luke McFadden: Hi, good morning. This is Luke McFadden on for Tim. Thanks for taking our questions today.
Steven Sintros: Absolutely.
Luke McFadden: So your first aid business had a nice start for the fiscal year, has performed well for several consecutive quarters now. Should we still expect to see that business inflect into positive profitability by year end? And how should we think about the cadence of profitability as we move through fiscal 2024?
Steven Sintros: Yes, look, for the full year, we think that the division can be around break even. So we do expect a little bit of a pickup in profitability over the course of the year. We’re still at that point in our investment in this division where it’s more about expanding the breadth of our service offerings and/or our geographic offerings I should say or coverage. And over the course of the next couple of years, and we’re starting it this year, we really are starting to focus more on filling out the customers with the products and services, filling out the routes with more density. And that will start to turn the profitability. But for the most part, our guidance for the full year has us in that sort of treading water around break even.
Luke McFadden: Great, very helpful. And then if I can follow up with just one more. I know you provided just a bit of color on kind of how early year conversations have been going with customers. But maybe just as a follow up to that, are there any of your end markets that are showing particularly outside strength or weakness as you’re looking at them today?
Steven Sintros: No, I wouldn’t say so. I think that as we kind of look at metrics and wearer levels across the country, there really aren’t any particular pockets that jump out. Something I’ve been watching is we’ve had a couple of decent years in the energy sector and that continues to be pretty solid as long as oil prices hold up. But no, I wouldn’t say we’re seeing any particular geographic or industry driven trends that are worth noting.
