Customer projects that have been on hold or deferred, those will continue to benefit us. We think, we have a lot of runway left for continued improvement on the margins. And like I said in last quarter’s call, remember, our EBITDA was 12.2% for the quarter and we do have some efficiencies that we’re able to gain through our peak seasons versus our slower seasons. Q2 and Q3 are slower seasons. It’s seasonally affected cold weather, weather in general, that type of thing. Construction slows down, remodels slow down. So our efficiency and our ability to manage margin is a little bit more impacted. But you can see that, even in our slower quarters here, Q2, Q3, we are into Q3 now, but Q2, we are still able to extract those opportunities and extract improvements.
I think there is still a lot of runway left in front of us.
Jim Galeese: Amit, Jim Galeese here. Just to build on what Jim said, what gives us confidence is, the improvement is not being driven by one certain item, but there is multiple factors contributing both from a commercial lever as well as the operational lever. Commercially, starting with where we play and then our ability to effectively price manage our projects. And then secondly, operationally sourcing from supply chain, Jim mentioned with material input costs, the impact of new products, design savings, labor productivity. So we track all of those very closely and there is a lot of greens. It gives us confidence that, our improvements, which now have been improving quarter-on-quarter for quite some time, we are confident in our ability to sustain that and build on that because of the multiple levers contributing to the improvement.
Operator: Our next question is from Leanne Hayden with Canaccord Genuity.
Leanne Hayden: Hi, everyone. This is Leanne Hayden on for George Gianarikas. Just a couple of questions from me. Can you just discuss any bottlenecks you might see in the supply chain, for example, permitting or equipment like transformers or any potential bottlenecks you might be seeing?
Jim Clark: Yes. Leanne, thanks for calling and tell George we missed them. I will say that, supply chain has become very predictable for us now or much more predictable, I should say. Issues like permits and other suppliers are still variable and still exist out there. I’m sure there is nobody on this call that doesn’t follow the industrial markets that understand the challenges around switchgear and things like that. None of those canceled projects, so to speak. They just disrupt the timing of them. And I think where we are right now is, we are just comfortably in that uncomfortable spot. Although those disruptions still occur, I would say, they are much more stable and they are more reflective of the pace of the business we have now.
So I don’t want to say that, there isn’t any impact from them and I don’t want to say that, somebody couldn’t give us a surprise. But I would like to say that, within that environment, we are very comfortable now. It’s just a protracted in a longer environment. But it doesn’t result in massive disruption to project schedules, as it had in the past and it doesn’t disrupt the customer’s commitment moving forward.
Leanne Hayden: And then I believe this was touched on briefly in transcript, but could you share or update us on your thoughts around M&A and how the target pipeline is looking at? Have your accretion parameters changed at all? Any updates in that realm would be great.
Jim Clark: Yes. I mean it’s frustrating to me that I can’t disclose everything that we are engaged in or talking about or that we came close to or any of that type of thing. But I would categorize it as this. We are very actively involved. We have looked at a number of projects. We want to make sure they are good fits, from a business perspective obviously and a cultural perspective which we highly value here and anything we are looking at in terms of an acquisition. We are in a very good position financially as you noted. As you’ve all probably noted, our leverage ratio now is 0.4. We’re in a very good position there. We have very good financial partners. And we have discussed and we have plans, if we needed to do something that required beyond our current access.
So, all of those things are lining up. In general, I feel the market is more active right now in terms of potential opportunities. I think that a lot of the pricing, the expectations from sellers is better normalized, if you will. But the competition is still very fierce. Financial buyers are still out there. They are still willing to accelerate the multiples paid and things like that. So, we find ourselves in a very competitive a process, but we find that we’re engaged in more opportunities now. So, net on net, I would say we are very encouraged and I am very hopeful that we will be able to advance something certainly within the next year, if not sooner.
Operator: Our next question is from Rick Fearon with Accretive Capital Partners.
Rick Fearon: Hi, Jim and Jim, and congrats on another solid quarter. Yes, just a really impressive uptick in your gross margin and I know improvement in that scale doesn’t come easily. So, just interested in hearing what some of the levers may have been to achieve this increase, especially on the Lighting side?
