Trey Grooms: Got it. Thanks for taking my questions.
Peter Jackson: Yes and probably the only thing I’d throw in, the only thing I’d throw in there, Trey, is that it does correlate to some degree the starts, right? I mean, yes, they’re still using it and they’re not going away from it like Dave was saying, but we don’t want to somehow argue that Truss is going to maintain its volumes when starts are down there. There is a correlation there, but we are seeing growth, we’re seeing secular growth, and so that’s certainly a strong area for us, and I think you heard it in my comments, right? So fourth quarter value-add, we were still favorable even though starts were down more than 16%.
Trey Grooms: Yep. Got it. Makes sense. Thanks for taking the question. I’ll pass it on. Good luck.
David Rush: Thanks Trey.
Operator: Thank you. We’ll take our next question from Matthew Bouley with Barclays. Your line is open.
Matthew Bouley: Hey, good morning guys. Thanks for taking the questions and welcome Dave to the earnings call. So first question on, you know, still kind of seeing that gross margin above 30% for the Q1 guide. When we look at the midpoint of your scenarios of that kind of 10% to 11% EBITDA margin for the year, what does that imply about the gross margin beyond Q1? How quickly does it normalize and any color on sort of commodity versus non-commodity gross margins as well would be helpful? Thank you.
Peter Jackson: Thanks, Matt. The storyline for that gross margin number continues to be one of good progress. We’re pleased with what we’ve seen so far, but certainly an open question in terms of where it gets to. So as you highlighted, things have stayed strong in the gross margin line. It is beginning to retrace what we’ve discussed in the past, right, beginning to normalize as the supply chain normalizes. We certainly have performed well. I mean our 30% to 32% gross margin guide for Q1 is certainly well north of what we’ve said historically is our normalized roughly 27% plus gross margin. We’re continuing to see really nice performance and mix up from the value-add component of our business, which we hope for and which we’re expecting.
But as the year progresses, we do anticipate that continuing to trend back towards a normalized level. You know, we’re pretty optimistic about what that looks like, but for now I’m not ready to provide any real guidance in terms of the full year.
David Rush: Yes, the only other thing I’d add Matt is, part of how we’ve managed margin is actually through some of our cost improvement initiatives around manufacturing. We’ve actually improved our board foot per man hour by 22% since the merger. That productivity in Truss allows us and will allow us to compete effectively for share even in a challenging environment. So we’re kind of going at it from all angles and trying to maintain the margin the best we can.
