Sima Sistani: So I mean I don’t believe that AOMs have had a meaningful impact on our business thus far. The number of people actually — people using such medications, particularly GLP-1s was relatively low in 2022, again, limited availability, injectable formulation, significant financial expense. This is about an opportunity we see for the future. Again, a lack of holistic care to partner with these medications and we have — because of our lifestyle programs that you mentioned, because of our behavior change program, our nutritional signs, we have an ability to service these members alongside our program, helping them prioritize nutrient-dense foods, managing against muscle loss, understanding that these medications may be, in some cases, a lifelong commitment and these are areas where Weight Watchers can provide guidance, support and ensure that members weight loss journeys are done in a healthy, sustainable way.
And I actually think that this is right alongside of our messaging. We’ve always been the science backed solution. And as we noted, this is where the science has advanced. And I think that again, when the science advances, so should we in the same way that we started to update our food algorithm to take into consideration, saturated versus unsaturated fat or fiber-rich food, this is the evolution, the understanding in a lot of ways that those who are struggling with obesity. In some cases, those obesogens are biological factors, there are genetic factors and willpower alone isn’t going to get you there. So, it’s a real opportunity to lead the discussion to help people manage the dietary issues associated with these drugs. And honestly, I think members, they have those who — for those who medically qualified, they were right to know what the — what their options are, how it works and if they choose to take a clinical intervention to ensure that it’s administered responsibly and managed over the over the course of their membership.
Michael Lasser: My follow-up question is on the leverage situation. Do you have any covenants or other conditions that need to be met over the next few quarters in order to trip any contractual obligations that you have with your debt.
Sima Sistani: So, we came into 2023 with $178 million on our balance sheet, access to our revolver. And even with this acquisition, we have ample liquidity to meet our operating needs and to service our debt. And the debt itself is very favorable and with very limited covenants, but we don’t expect any issue with.
Operator: The next question is from Jason English with Goldman Sachs. Please go ahead.
Jason English: A couple of questions. First, the first quarter revenue guidance of $235 million, what is the Q1 end-of-period subscriber count that, that revenue figure is based on?
Heather Stark: We expect 4 million end-of-period subscribers at the end of Q1.
Jason English: Thank you. I’m sorry if you gave that number earlier. The restructuring — you ran through a number of restructuring initiatives on the call. Can you give me — and I apologize, I lost track a lot of it. I’m sure there’s more I can get back out of the transcript, but what is the total cash outlay for restructuring and also, you walked through a few specifics on the deal. What’s the cash outlay for the acquisition this year as well?
Heather Stark: So, I’ll speak first to the acquisition question, Jason. The total cash outlay in the current year is $39 million in cash.
Jason English: And then the restructuring cash outlays for this year?
Heather Stark: It’s approximately $36 million in the current year.
