Mark Peterson: Yeah, we’ve always maintained a proprietary funnel and process. That is continuing. I think whether or not something converts over the course of the year is still to be seen, but from a cash flow perspective, I think that we’re off to a really good start with $50 million. You know. I think last year in the first quarter, we were roughly flat and ended up at 230. So I think that from a cash flow perspective, we obviously in a great position. But, I think we’re going to continue to cultivate things on a proprietary basis and see when things convert, but I do think that we are going to continue to generate a significant amount of cash and so I think that all forms of uses of that cash are on the table. We’re obviously going to invest in our core business.
Continue to cultivate M&A. But, as we’ve talked about, we’ve got a buyback perspective that we’re going to continue to execute against and then we can review the dividends like we do every year. So I think, all in all, I think we’re in a really good spot, but we’re going to continue to work the funnel and then try to get some high priorities to convert at the right time.
Operator: Your next question comes from the line of Michael Halloran with Baird. Please go ahead.
Unidentified Analyst: Hey, good morning, everybody. We’ve got Pebs [ph] on for Mike. Maybe taking a different perspective on the performance in the quarter, obviously you called out the healthy drinking water, but if we look at the other three product categories; flow, safety and hygienic, is there any notable variance between the three to kind of get to the net number we’re getting to? And maybe if we can exclude the calling of revenue from that discussion, that would be helpful.
Mark Peterson: Yeah, look at this, it’s Mark. I think when you look at those other categories, there is not a meaningful difference in the quarter in the growth rates. So there’s a really to close systems, what they do to control environmental hygienic. When you back out, what we did as far as 80-20 flashers [ph] on a performance basis, there is not a material difference in the growth rates in those categories in the quarter. And we don’t expect that over the quarter to deviate very much either.
Unidentified Analyst: And then a quick clarification, Todd, when you’re speaking to filtration, are we speaking specifically the aftermarket tail in terms of the specific filter sale, or are we including the filtered units in that discussion when we’re talking about the filtration growth rate?
Todd Adams: Well, the filtration growth rate would be the discrete aftermarket replacement event. That’s the growth rate that’s well above double digits. The filtered unit would be in that high single digit to low double digit range on an annual basis, on a filtered unit basis.
Unidentified Analyst: Understood. Yeah, we’ve had a few questions on that. Appreciate the clarification. I’ll pass it on and get back in queue.
Operator: Your next question comes from the line of Joe Ritchie with Goldman Sachs. Please go ahead.
Joe Ritchie: Can we maybe just talk about your differences in your regional growth right now? I recognize that the skew rationalization is impacting the US, but it also looks like outside of the US, you guys are growing faster. So maybe just talk about what you’re doing to spur your BE, whether it’s your distribution strategy outside of the US to achieve what you’re achieving today.
Todd Adams: Well, when you say outside the US, we’re really talking about Canada and probably a little bit of Mexico from an LK perspective and again, I think it’s just a function of, we’ve gone through, created a new rep network. We’ve got some terrific reps in those geographies that we’re supporting really well. They’re winning in the marketplace. So I don’t think that there’s any magic to it. It’s just — it’s a small number, but we’re pleased with the performance and progress and we expect it to continue.
Joe Ritchie: Okay. No, that’s good to hear. And then I guess maybe just talking about the margin expansion and you took up the guidance for the full year. Can you maybe just give us a little bit more color on what drove the increase in the guidance? Is that, more pricing? Is it productivity? Like what specifically is making you feel better about getting a little bit more margin expansion for the full year?
Todd Adams: Well, I think, again, we came into the year, I think we tried to provide an outlook that we felt was going to be pretty durable. We had a list of things that we were working on, both from a synergy perspective and then some other things around supply chain that are going to be really important for us maybe a little bit this year, but more so next year. And we were just accelerated some of the progress into 2024. You thought you saw it read through really through gross profit in the first quarter. We see the same thing in Q2. We’ve done a terrific job with our sourcing teams to put ourselves in a great spot from a cost perspective over the balance of the year. And then the biggest thing is really just, we’ve got 2,500 people that have bought into continuous improvement.
And I think that you can’t underestimate that compounding benefit year day in, day out and that’s reading through in the first quarter. It will absolutely read through the course of the year and so, we’re taking it up just a touch as from what we see today. And then, we’ll revisit where we are in the second half. So I don’t think there’s any big news here other than, it’s sort of what we thought we could do for the year. I think we’re just sort of pacing ourselves in terms of what we communicate externally.
Operator: Your next question comes from the line of Nathan Jones with Stifel. Please go ahead.
