Steven Sintros: Yes. I think in the quarter, compared to year-over-year, we’re still sort of flat, or maybe even up a tenth or something in merchandise, but compared to our expectations, we saw some benefit there. And to answer your question, I think clearly now we feel like we’re seeing that flattening, right? We’ve been growing. We started to see some early signs of flattening, and we really are seeing that now. And just as a reminder generally more than two-thirds of the merchandise is just regular replacement merchandise for existing accounts, and about a third is related to new accounts. So even with new accounts higher, yes, we’re seeing some benefits in that area, which are great to see.
Shane O’Connor: Yes, the only thing I’ll add to that is as we came into the year, we had sort of messaged that merchandise was starting to flatten. And we had indicated that maybe we were looking at 10 basis points headwinds during the year. Based on what we’ve seen through six months, we’ve obviously seen some flattening in the additional ads to our merchandise and service. Again, the way that we account for our merchandise won’t have as much of a meaningful impact on the current year, because we amortize that over an extended life. At this point in time, when I take a look at the year, I’m looking at merchandise being relatively flat or maybe a slight benefit around 10 basis points. But again, because of the way that we account for that, that trend will aggregate over time.
Andy Wittmann: Okay, that’s helpful. I guess I’m just going to ask one question maybe on the top line here, because I’m hearing some puts and takes. I’m hearing 10% increase in new account installs, which sounds like a really good performance year-over-year, and would otherwise suggest that maybe potentially, I guess the question is, do you think, can that lead to an inflection in your growth rate from here, just given that you installed a lot of new business in the quarter? And I guess, previously, you were kind of share you were talking about the revenue being maybe on the lower end of guidance. And so does the sales performance change that commentary or does the ad stop, are now more flat instead of positive like you were getting a year ago? Does that have an effect? I guess, ultimately, do you still like the low end of the revenue guidance or are you more positive this quarter given the factors that you saw play out?
Shane O’Connor: Yes, we’re probably right down the middle there, Andy. And I think that the guidance reflects that, right? I think all we did on the top line guidance was sort of narrow the range and shift it a bit to reflect the commentary we made last quarter. And I do think the impact of some of those things you’re mentioning, whether it be the impact of solid new account sales, price, ads reductions, all of those things kind of have us looking very much in the same place that we were a few months ago, I guess.
Operator: Our next question comes from the line of Joshua Chan with UBS.
Joshua Chan : Hi. Good morning, Steve and Shane. Good morning. On your Core Laundry margin, I guess even if you add back the 50 basis points of legal, it still seems that it’s down versus last year. And kind of could you help us understand then what drives margin expansion in the second half, because I think that’s what you need to get to your midpoint.
Steven Sintros: Yes. I can add some additional light there. I’ll start with saying that our second quarter from a profitability perspective is seasonally our lowest quarter because of certain items that annually land in that quarter. So if you take a look at our history, it usually is our lowest quarter. When you take a look at the year-over-year trend, some of the other things that are contributing to that margin headwind would be the acquisition of Clean, which accounts for about 20 basis points. We’ve made investments that we’ve talked about over the last year, primarily in the second half of 2023 and our corporate capabilities, which have contributed 20 to 30 basis points to that margin headwind. Energy was a benefit of 40 basis points.
And then there were a number of other items that happened within the second quarter, which contributed to some additional expenses, a lot of which were anticipated and originally provided for in our guidance. As an example during this second quarter we had two new facility openings and usually there’s incremental expenses that we incur as we get those facilities up and running and stabilized. There were certain selling incentives that landed during the quarter that were previously or in past years were timed in different quarters. And then there were a number of other items and timing items that happened in our second quarter that contributed to that delta of 30 to 40 basis points. Again the seasonality as well as some of these items were largely provided for in our original guidance and as we look throughout the remainder of the year, we are expecting that margin will trend northward of maybe our 2Q experience.
Joshua Chan : That’s really helpful color, yes, thank you for breaking that down. As my follow-up, could you talk about your CRM and now that you’ve had that for a while at least in the US, could you talk about the progress towards capturing any savings and what, how you expect those to trend over the coming years? Thank you.
