Jasper Bibb: Thanks, that makes sense. And then just was hoping to get an update on what you’re seeing for expense growth on labor and fleet related costs in the quarter?
Todd Schneider: Jasper, good question. Certainly, labor is an important component. We want to make sure that we’re providing attractive wages, competitive wages. And we’ve spoken on previous calls that we were not flat-footed when it came to the wage inflation that I’d say North America has seen over the past few years. So we’ve been in a good position and we like where we are from that perspective. And here’s what’s really exciting, is we have, I mentioned earlier, our Six Sigma teams, our engineering teams, they’re helping us to automate certain items to bring transformation technology to portions of our business, whether it’s SmartTruck or plant efficiencies, that allows us to mitigate that subject as best as possible. And so we’re investing and have invested for years in those organizations and it’s paying off in — and what we’re seeing with our total labor costs as we manage through and make sure we’re still in a really good spot to be a competitive and attract the very best people.
Operator: And our next question comes from Ashish Sabadra from RBC. Please go ahead, Ashish.
Ashish Sabadra: Thanks for taking my question. I just wanted to focus on the Google partnership. I was wondering if you can provide an update on that front. I believe you’ve already migrated your SAP onto the GCP. And how should we think about those benefits that you may have seen in the quarter, but also benefits as we go forward? Thanks.
Todd Schneider: Good question, Ashish. I would characterize — well, first off, we have a great relationship with Google. You’re correct, we did migrate to the Google Cloud platform and I would characterize it as we’re in the early innings there. And so we certainly hope to maximize our relationship and put our employee partners in a position to provide more value and to be as successful as possible. Because we believe there’s tools that will be available to us to provide more value to the customers and to put our people in a better position to provide that value which makes them more successful. So early innings, but we’re optimistic about where that can go.
Ashish Sabadra: That’s a very helpful color. And if I can ask a quick accounting clarifying question. So in the balance sheet, the uniform and other rental items and service that’s moderated sequentially quarter to quarter, I was just wondering if you can provide any color on what’s driving that, is that better efficiency or any color on that front? Thanks.
Mike Hansen: Yes. Todd talked a little bit about how we are working on all pieces of the business, but certainly one of those is inventory, and he touched on a little bit of garment sharing. So you can think about when we improve garment sharing, for example, we don’t need to inject as many new garments into that in-service inventory. So the more sharing means better utilization of our existing in-service inventory, and it means we don’t have to add as much into the in-service inventory from new purchases. That’s one of the areas. Certainly, though, there are others like improved sourcing as well. Volume growth, as Todd said, remains really strong, and so what we’re seeing is some nice offsetting of the volume growth with some of these initiatives.
Operator: And our next question comes from Stephanie Moore from Jefferies. Please go ahead, Stephanie.
Stephanie Moore: Hi, good morning. Thank you. I wanted to continue the discussion on the pretty impressive margin front for the quarter. I appreciate the color in terms of kind of discussing the route optimization, the merchandise management, Six Sigma, the likes. But maybe if you could provide a little bit of color of your major initiatives, which ones you think are kind of still in the early innings, or we could kind of continue to see some more improvement or accelerated improvement? And then maybe taking it a step further, what is next for you guys, in terms of other areas of opportunity that haven’t been as major focused yet? Thank you.
Todd Schneider: Good morning, Stephanie. From our strategic initiatives that we’re focused on how can we impact our business in total, certainly our material costs, our energy, our labor. And Mike referred to earlier, our energy spend is down 40 basis points. That’s not all just price. That is, those initiatives that we referred to earlier, the material cost is — our two largest costs are material costs and labor. So we’re very focused on driving efficiencies in all those areas, because to Mike’s earlier point, we love the volume growth, but we don’t want to sacrifice margin because the volume growth is so robust that we’ve got these strategic initiatives to extract these inefficiencies out of our business. And I wouldn’t speak to any one in particular that it’s in the earlier innings or the others.
We’ve got a nice runway forward for doing that. A little bit of that is our culture, is that we’re constantly trying to innovate and push ourselves to be better. So I think you’ll see that continued. As far as acceleration, it’s built in. We’re constantly doing it. So I think we’re focused on those incremental margins and this is an important component of making sure that we can hit those numbers.
Mike Hansen: Yeah, the only thing I might add is we’re certainly in the very early innings of technology and we believe there’s a nice runway there. Todd talked about just the recent migration to the Google Cloud and that creates a foundation for us to do some interesting things moving forward.
Stephanie Moore: Great. Well, thank you so much.
Operator: And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead, Scott.
Unidentified Analyst: Hey, good morning, it’s [Daniel] (ph) on for Scott. Thanks for taking our question. Could you please speak to the outlook for uniform direct sales and fire protection as well as some perspective on the margins for all others going forward please? Thank you.
