Richard Dearnley: Good morning. Paul could you refresh my memory on what were first aid sales as a percent of sales in 2021?
Paul Driscoll: They were approximately 50% in 2021 and 55% in 2022.
Richard Dearnley: And then the square footage expansion in Canada is probably not a great deal of feat. Is that for the Canadian market, or is part of that for the US market as well?
Walter Johnsen: The expansion is in Canada and it’s for the Canadian market. As I mentioned in the conference call we’re getting increasing business, not only from organic growth through our First Aid Central business, but also the multinationals that operate in Canada that are taking our products, primarily from the US and would like similar products made in Canada, which would of course be in our factory and then ship there. So, it’s a combination of both. And First Aid Central has done a terrific job since we’ve acquired them.
Richard Dearnley: Great. Then the $4 million cost saving estimate out of supply chain, I would guess that comes largely into cost of goods. Would that be correct?
Paul Driscoll: Correct.
Richard Dearnley: Yes. And then the $5 million of just cost savings, how might that break down between cost of goods and SG&A?
Paul Driscoll: It’s a combination of both. It’s probably 60% cost of goods, 40% SG&A.
Richard Dearnley: Great. And then, Walter, in your discussion, in the notes, were you implying that SG&A would be down in dollars in ’23?
Walter Johnsen: I’m not sure, Dick. What I know is that, we continue to be facing inflation. So, I’m not sure about that. What I am sure about is, there’s a solid chunk of reduction in the spending, in the aggregate pool, but that over — the additional, I don’t know the answer to that. We’re also growing. So I…
Paul Driscoll: Because we’re growing, SG&A is going to grow as well.
Richard Dearnley: Well, that’s why I was — just looking at the words and saying, hmm is that — okay. Good. That’s logical. Okay. Thank you.
Paul Driscoll: Thank you.
Operator: Thank you. Our next question comes from the line of Peter Sidoti with Sidoti & Company. Please proceed with your question.
Peter Sidoti: Good afternoon.
Paul Driscoll: Hi Peter.
Operator: I’m sorry. It looks like Mr. Sidoti has disconnected by mistake. It seems there are no other questions at this time. I’ll turn the floor back to Mr. Johnsen for any final comments.
Walter Johnsen: If there are no further questions, this call is complete. We look forward to sharing the first quarter 2023 results in April. Thank you for joining us. Goodbye.
Operator: Thank you. This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.