Luke McFadden: Understood. Thanks so much.
Steven Sintros: Thank you.
Operator: Our next question comes from line of Andrew Steinerman with J.P. Morgan. Please proceed with your question.
Andrew Steinerman: Hi, Shane. I just want to confirm something that I think is pretty clear, but I just wanted to confirm it. In the 2024 guide, when you point to the lower half of the range, I think that’s just for revenues and not for EPS. I think for 2024 EPS you’re still pointing to the whole range. I just wanted to confirm that. But could you also update us on what you’re assuming for interest in 2024? You’re kind of given the first quarter benefit and you can imagine what I really want to kind of point to is like, what are you embedding in terms of the margin progress through the year and what gives you confidence in that margin outlook?
Shane O’Connor: Yes, so — actually, can you ask the first part of the question again? I’m sorry.
Andrew Steinerman: Okay, so it’s a multi-part question. Sorry. So the first one, I just want to confirm when you point to the lower half of the range for the guide, I think that’s just a comment for revenues and not a comment for EPS. In other words, I think when you say lower half, you’re talking about revenues and for EPS, you’re still pointing to the whole range.
Shane O’Connor: Yes, yes. Sorry about that. No, that’s correct. The comments about lower half is just top line related. We are still pointing to the full range from an EPS perspective. From an interest perspective, you take a look at my interest income in the first quarter. It largely benefited from about $2.1 million in the first quarter. Subsequent to that, my expectation is that, the interest income I’ll realize sort of be Q1’s run rate exclusive of that $2.1 million, so about $1 million worth of interest income per quarter.
Steven Sintros: And, Andrew, I think the second part of your question, which was alluding to the confidence and sort of the back — the rest of the year’s kind of margin outlook, given everything that we’ve been saying here is, the one comment I’d make to that, Shane alluded to it to some extent with respect to what we’re seeing on merchandise. But I think in general, when you look across all of our costs, unlike the last couple of years where there was a lot more deviation and increases we were seeing across our cost base, we are seeing more stabilization there, right? Obviously, merchandise is a big piece of that. From a labor perspective, it’s consistent with what you read out there. It’s still a challenging labor environment, but certainly not as challenging in terms of staffing, pressure on wages, and so on.
That doesn’t mean those costs have retreated, but the confidence in them over the next few quarters is higher than in past couple of years when we were going through a lot of inflation. And the energy, Shane talked about as well, is a helpful item that we’ve modeled in.
Andrew Steinerman: Perfect. Thank you.
Steven Sintros: Thank you.
Operator: [Operator Instructions] Our next question comes from the line of Kartik Mehta with Northcoast Research. Please proceed with your question.
Kartik Mehta: Thank you. Good morning. Steve, you’ve talked about maybe what’s happening in terms of [indiscernible] and maybe some customers extending payments. But if you look at just overall at your customers, how would you assess the health of those customers and how do you feel about their ongoing viability? Any changes?
Steven Sintros: No, I wouldn’t say that when we look across our customer base, we think that there’s any sort of weakening of overall financial viability and how we look at that. So no, I think stable in that area. I think my commentary was more just around, probably a normal amount of caution given the environment for their businesses and their growth outlooks and so on and so forth as we look over the course of the year.
Kartik Mehta: And Shane, you talked about obviously energy hopefully benefiting you for the rest of the year, assuming things kind of stay where they are. And I know previously you were able to put in some fuel surcharges because of fuel prices. Are those surcharges still in effect or is that part of maybe some of the pricing dynamics that you’ve talked about?
Steven Sintros: So this is Steve. We did take a step back in the energy surcharge last year at some point. Right now we’re sort of holding even. We sort of have a schedule that we’re looking at. I do think that lower energy price does put some pressure, not just on the surcharge, which is a relatively smaller amount at this point in the grand scheme of things, but customers sort of pushing back on general price increase and new account pricing and so on. So yes, I would say indirectly what you’re saying is true that the lower energy prices is part of, I think, the pressure on price.
Kartik Mehta: And then one last question. I know you’ve been inquisitive at least last year, and you’ve looked at acquisitions. I’m wondering if you’re seeing any change in the environment in terms of pricing or maybe what people might be willing or not willing to do?
