Jamie Willin : Got it. The curtailment costs that you have detailed of $8 million. How much of that has already been expensed, and how much will go into 2024?
Nancy Bubanich: Yes. Those have all have been expensed.
Jamie Willin : Okay. But there is still a little bit more to come?
Bob Humphreys: Yes. There is more stuff to roll out in the first quarter.
Jamie Willin : Okay. And on the inventory side of the business, when you are looking at $400 million of revenues, what is the optimal inventory that you should carry to operate efficiently?
Bob Humphreys: We should turn our inventory 2.5x a year, and we expect to be at about a two turn by the end of this fiscal year. In fiscal ’22, I believe, we turned our inventory about 2.4x. So obviously, that deteriorated dramatically as business slowed down and we have taken steps to improve that and it has been improving. And obviously with our manufacturing reset and eliminating facilities in Mexico that will allow us to better manage that, and we should be able to operate with less inventories, both in process and finished goods.
Jamie Willin : Okay. On the sale leaseback transaction, I assume it will close prior to year end. And how much of a gain are you looking to record from that?
Justin Grow: Hey, Jamie. This is Justin. So on the sale leaseback, we are looking at January for both of those transactions. So a second quarter event for both of those properties, hopefully. And looking at aggregate proceeds coming in of about $30 million to $31 million, about $31 million, $31.5 million.
Jamie Willin : Without much tax leakage?
Justin Grow: Without much tax leakage, that’s correct. We do not have those on the books for much at all. So not looking at a big tax leakage there.
Jamie Willin : Okay. And lastly on Salt Life, what is the outlook for new store openings over the next 12 months?
Bob Humphreys: So we have one more that will be opened in Virginia in our second quarter. We don’t have any other leases signed. So, we always are looking at locations and negotiating on locations, but there are no other leases signed at this time.
Jamie Willin : Okay. And one last on Salt Life. From the royalty payments you are going to get, you said you are going to — they’re going to be double in 2024 what they were in 2023. What other royalty arrangements do you have that you are receiving income on Salt Life?
Bob Humphreys: So we have the restaurants and we have [indiscernible] and then now we have the home furnishings.
Jamie Willin : Okay. And they will be first to be recorded in the December or March quarter, when do they begin?
Bob Humphreys: Yes. So, we record them each quarter as they come in.
Jamie Willin : Okay. And they are starting now. They have begun.
Bob Humphreys: Yes, they have been ongoing, but the new ones will be starting this fiscal year.
Operator: Thank you. There are no further questions at this time. I would like to turn the call back over to management for closing remarks.
Bob Humphreys: Well, thank you for your time and attention today and we will look forward to speak in just a few months and report on our first quarter results.
Operator: This concludes today’s conference. You may now disconnect your lines at this time. Thank you for your participation.
