So, I wouldn’t say that that our visibility is great. It’s probably baked into the backlog a little bit on the equipment. But I don’t know that — I would call it more trickling visibility is still weak, but the anecdotal evidence of the type of conversations being had would suggest that it’s on its way.
Dave Storms: That’s very helpful. Thank you.
Operator: Our next question is from Steve Barger with KeyBanc Capital Markets. Please proceed.
Steve Barger: Thanks. Good morning.
Matthew Crawford: Good morning.
Steve Barger: Pat you said the $20 million received and the $25 million promissory note is a portion of the sales price for the aluminum business. Any more details you can provide on what that total sales price could be?
Patrick Fogarty: Yes, Steve. I really can’t comment right now. We’re in the middle of the process. And so I can’t comment and won’t comment until we have a definitive agreement in place. But to reiterate, the $20 million in cash and the promissory note was a portion of the anticipated sale price of the business.
Steve Barger: Understood. And this looks like it should be nicely deleveraging, which is great and you expect improving cash flow. I know you put the initial $20 million to the revolver. But with the bonds trading at a discount, is there any thought to allocating some capital to take advantage of that?
Patrick Fogarty: Steve, we historically have purchased the bonds. We expect the proceeds on any sale to de-lever the company and reduce our net debt. And we’ll be flexible to different ways to do that. But we agree it will be a deleveraging event and we’re going to give ourselves the flexibility to be open to reduce bank debt or buyback the bonds if there’s an opportunity to do so.
Steve Barger: Got it. Okay. And I know it’s not a done deal yet, but with — when that closes, Matt, what does your focus turn to? What becomes the next priority? I know you referenced a few things, but how are you thinking about this once that’s off your plate?
Matthew Crawford: Yes. No, that’s a great question, Steve. And what I want to articulate in opening comments and I did it, but thanks for the opportunity to revisit it. We haven’t stopped focusing on what we think are some of the great opportunities in the business. And to be honest with you, General Aluminum is a great opportunity. The reality of it is we can’t do everything at once. And with the growth we’re seeing across the business, and anticipate into 2023, we just can’t do it off. So, if you look at where we spent money last year, particularly in some of this exciting and unique forging capacity, which could play right into the prior caller’s question about infrastructure and so forth and defense. What we’re doing on the engineered fastener side, you know how much we like that business and adding capacity through the acquisition we did last year or incremental capacity, which plays right into electrification is awesome.
So, our first area of focus is going to be continuing to feed those parts of our business that will get an unfair share of our capital as we see them grow at super accretive margins. So, — and I would say that the other thing we’re focused on — again, we haven’t not been focused on it, but last year was about addressing supply chains and keeping our customers satisfied, we’re going to pivot back to the balance sheet. So, we’re going to give that an undue amount of attention this year in an effort to with or without the sale candidly to reduce our leverage and position ourselves well to continue to invest in these businesses. If we can grow over a couple of years approaching 20% with — or more, I’m sorry, more than that, 25% or 30% and do it in these kinds of products that bodes really well for our trajectory both in terms of margin and candidly, the kind of business that people should want to invest in.
