Alex Fuhrman: Hey, guys, thanks very much for taking my question. Andi, it sounds like you’re pretty optimistic about your customers return to the office plans. There continue to be a lot of really negative headlines out there about office occupancy in North America and expectations for next year. Can you help us bridge that gap a little bit? You’re obviously on the front lines here of the return to the office. Do you think some of the headlines out there are maybe getting it wrong or are too pessimistic for next year? Or is it possible that maybe your large multinational customers are returning to the office perhaps faster than small and medium-sized businesses? Just trying to better understand what you’re seeing and how that squares with some of the headlines that are out there?
Andi Owen: Yeah, funny. Alex, actually I think there’s a little bit less headlines than there were about six or eight months ago, but I think every market is a little bit different. But what we’re hearing and seeing as we sit and speak with our customers in the contract market is that there’s a lot more momentum around getting people back together, for all the reasons that you see in the press as well. So we’re seeing people come to us with, instead of, hey, we’re thinking about, they have ideas about what they want to do, they have plans to bring people back to the office. So I think the key here is flexibility. I think return to office is absolutely picking up. I think, as John said, there are markets where we see much more momentum than others in the US. You would agree with that, John, but certainly momentum is building. What would you add?
John Michael: I would add that a lot of companies are downsizing their real estate portfolio, but going to smaller spaces really triggers project activity for us. So even though from an overall commercial real estate perspective, there’s a lot of headwinds, the movement within the commercial real estate creates activity for what we do and what our dealers do. So whether that’s moves, ads and changes, or new workplaces to reflect new ways of working, it creates demand. And I think our clients realize that the real estate has to work harder than ever in order to attract people back into the office to make the social connections that they can’t get working remotely or hybrid. And that’s really our focus, is helping them figure that out.
Alex Fuhrman: Okay, that’s really helpful. Thanks, guys. And then you guys have done a really good job of growing EBITDA so far this year — in a year when revenue has been down pretty significantly. How should we think about kind of your margin profile heading into next year? Is it possible that you could continue to see further gross margin increases here, even if revenue remains kind of at current levels or at a certain point are you going to need revenue growth to resume in order to start getting earnings continuing to move higher?
Jeff Stutz: Yeah, this is Jeff. I think we still have a little bit of room I believe in some of the more recent pricing actions. But I think you hit on a key point and that is at some point and I don’t think we’re too far off from it. We do need to see some top-line growth to drive leverage in our manufacturing operations. I think that the retail team is doing a really nice job. We talked on the prepared remarks about assortment expansion and some of the newness. I think we’ve got some real opportunity there to drive some margin rich products into that business and growth. But within the contract business in particular, I think our margin profile is at some point going to be reliant on top-line growth for meaningful, further expansion.
I mean, our teams are constantly working on VA/VE type initiatives to drive efficiencies. They’re really good at it. We expect it. We plan for those every year. And so I think there’s a window here where without top line growth, we still can show some improvement with that, plus some of the pricing that we still have in place. But at some point history would say you’ve got to have that top line moving. The good news is, as we’ve said, we’ve got growing optimism that that’s coming.
Alex Fuhrman: That’s terrific. Thanks to all of you very much.
Operator: Your next question comes from the line of Greg Burns of Sidoti and Company. Your line is open.
Gregory Burns: Good Afternoon. Can you hear me this time?
Andi Owen: Yeah. Hi, Greg.
Gregory Burns: Okay, great. So I just wanted to, I guess, touch on the kind of the relative strength in the retail segment or I guess the better than expected. It was definitely stronger than I was expecting, given some of the macro headwinds facing the housing market. So can you just talk about specifically what do you think you’re doing right to drive market share gains there and then also on the profitability of that segment? Is that sustainable what you put up this quarter or there is some kind of one-off type of items that were driving the operating margin this quarter?
John Michael: Yeah. Hey, Greg, I’m going to start very briefly and then I’ll turn it over to Andi and Debbie. But I wanted just — I want to say, no one-off items in the quarter. I mean, this was — what was great about this quarter is that, it was just really awesome to see the team deliver a real clean, kind of high quality quarter of profitability. So there’s nothing notable in terms of one-offs. And I don’t know, Debbie, if you want to unpack that any further?
Andi Owen: Yeah, I would give kudos to the team this quarter and for the last year, Greg, and really knuckling down and delivering strategic execution and they really did that this quarter. But again, no one-time, this is well done. Why don’t you add Debbie?
