Andrew Keegan: Yeah standalone EBITDA. It’s so based on 8% kind of midpoint for, what we’re guiding for the segment with just over $50 million of expected standalone cost. It’s going be in that 4.5% range is what you would expect for FY 2024.
Q – Jim Chartier: Okay and then you mentioned at press release, thought to maybe double that next year, what’s kind of the confidence in your ability to do that? And then, in addition to the cost saving plan outlined, what would be the drivers, behind that significant growth?
Andrew Keegan: Yeah. So there are a few things. I mean, so we are certainly confident that we can accomplish this goal. I think you’re right, the 25 to 30 is a big component of that or what we’re doing the project savings, promotions that we just talked about as well, not having those repeated because we do expect promotions, but they’re going to be at more historical normal levels and with inventory that is at the lower price that we expected. So those items between the promotions coming down to more normal and the supply that we already expected with freight reductions and the those high-priced inventory items that will have moved through will get us the remaining amount of that difference from the 25 to 30 to the doubling that we’re talking about.
Q – Jim Chartier: Okay. So you don’t need any meaningful revenue growth next year to achieve that?
Andrew Keegan: Revenue growth would not be the necessary. This is going to be more on the cost to get to that level. We do it. We will evaluate the revenue and where we expect to grow, but given the new innovations and whatnot that we’re working through and the fact that Q4 is going to start the organic growth that’ll be assistance on the top, basically of that.
Q – Jim Chartier: Okay and then any plans to reinvest, any of the GEAR Up savings into parts of the business?
Andrew Keegan: The $100 million is the net that we would expect EBITDA to move by. We are fully expecting that we are going to be reinvesting. So there will be portions of the savings that will be going into reinvestment, but that is the net number that we would expect our EBITDA, which is going to get us to that mid-teens long term, but the reinvestment is very important aspect for our business between marketing and the innovation of R&D to really grow these business and see that organic growth that we’re fully expecting, that is going to be a key component of it, but we are communicating the net to make it as easy as possible.
Q – Jim Chartier: Okay. Great. Thank you.
Operator: Thank you. [Operator Instructions]. We now have William Rita of Bank of America. Your line is open.
Q – William Rita: Hi. I just have two. The first is now that you’ve had a little more time since the announcement of the divestiture, has there been any chain change in the plans with regard to repaying the bonds, do you still plan to repay them before closing? And do you know if this is planned to be a call or a defeasance have you given that any more thought.
A – Gary McArthur: Thanks, Bill. That so we have had a little time. As we said, the vote would be in the end of March/April time period. So it likely will be a redemption of the bonds, not a call, on the April premium. So that that is still the expectation, until then we haven’t had any other discussions on anything earlier than that being done at this point.
Q – William Rita: Great. In terms of the commentary about what’s going on with Revelyst and inventory levels in your different channels. Is it just elevated inventory and destocking that’s going on with regard to the kind of soft environment, or how is sell through of those products?
A – Gary McArthur: So no. POS is down as well. So it isn’t just that inventory. POS is down. It’s, but what we’re seeing is beyond the POS being down, the sell in isn’t even keeping up with the POS. So there is still a gap between those items. That POS is down, but it’s slowing on how compared year-over-year that isn’t as down as previously was, but that’s more that it started last year at this point in time. So we’re just seeing that it’s stabilized at some level. So it is continuing to be down on POS, which is why part of what’s promotional, it is going to be for Q3 to push through the inventory. We need to increase some of that POS, which is why the promotions are a little bit higher than they would be normally to drive that in the holiday season.
Q – William Rita: I guess one follow-up on that. The POS being down, much of that do you think is being driven just by constrained consumer budgets versus changes in behavior that may be causing people to participate less than some of these activities post COVID.
A – Gary McArthur: I think it certainly is a mix that there are constrained budgets, but the consumer in – in these discretionary type of activities is a little bit lighter, but I think they’re making some decisions to do other items. The participation in general in the outdoors is still high. We are still seeing solid participation in elevated levels above the pandemic time or pre-pandemic period. So long term, we’re still confident that this is going to return to you growth from where they have been here over the last few months or even year, but it is, right now, constrained on that and it’s hard for us to point exactly what is driving what, but there certainly is a mix of that.
Q – William Rita: Yeah. Understood. Okay. Cool. That’s all for me. Thank you.
Operator: Thank you. [Operator Closing Remarks].
