Unidentified Analyst: Hi. This is actually John filling in for Seth. Congratulations on the strong quarter. Just maybe quickly on the insurance and claims, could you give us some more color on really kind of how the headwind progressed in the quarter, as well as how we should think about the cost going forward this year? Thanks.
Ken Krause: Certainly, can do that for you, and appreciate the comments. Insurance and claims has been a bit of a headwind here for a period of time, I believe going back to last year. In the third quarter, we talked about that. This year, when we look at the experience in insurance and claims, there’s two aspects to that experience. One are just higher insurance premiums. As you know, we had poor experience last year. And so, unfortunately, we saw that come through with higher insurance premiums in the first quarter. That’ll carry through for the remainder of the year. The second part of it is, we continue to see just some unfavorable experience in that area. We’re ramping up our focus on behavioral-based safety across the company, and ensuring that we’re making the right investments in the areas that’ll help improve our performance in that area.
But it’s an area of focus for the company, and we continue to focus on driving some improvements. Unfortunately, we do feel the negative impact of a tighter insurance market, however.
Unidentified Analyst: Got it. That’s great color. Thank you. And maybe quickly, just as we think about the cadence of residential, especially with advertising and customer acquisition spend ramping in the second quarter for the kind of peak season, can you just give us a sense at a high level how you’re thinking about the kind of pacing of residential? And would it be fair to assume we could kind of see an acceleration from these levels, or are you thinking more of a kind of steady-state, high single-digit on an organic basis? Thanks.
Ken Krause: It’s hard to provide an estimate on that as we think about the next quarter or two. However, we feel like the investments we’re making in our people, in our technicians and our sales folks, the focus we’re making on cross-selling and driving cross-sell and a wider share of wallet with each and every individual customer, is paying off. And we feel very optimistic and bullish about our opportunity to continue to grow our position with our really important residential customers into the future.
Jerry Gahlhoff: Yes, this is Jerry. I would add, we’re in a really good position to take advantage of strong demand in the marketplace as it’s there. So, we feel strong about our position to be able to capitalize on the potential for growth in the market, so.
Operator: The next question comes from Grant Slade from Morningstar. Please proceed with your question, Grant.
Grant Slade: Hi, Jerry. Hi, Ken. Thank you both very much for the additional detail on the Fox acquisition. It’s very helpful. Just a point of clarification, however, if I may. I was just curious, the $18 million to $22 million in EBITDA contribution for this year, does that include the full extent of cost synergies that you’re expecting to realize from the deal? Or are there perhaps further synergies we should be expecting in 2024 or later? And I guess if so, the quantum of those and the timing would be helpful, if you’re able to share that detail with us.
Jerry Gahlhoff: Yes, thank you for the question. We feel like that’s – when we think about synergies and we think about integration as we started the call, we certainly are taking a pragmatic approach with respect to synergies and synergy capture. We do think that this business will be accretive to our margins in the next two to three years. But the first year is all about getting in and trying to understand what makes the business so valuable. We don’t want to move too quickly, but we also don’t want to move too slowly. But we do feel like that $18 million to $22 million is our best expectation or estimate of what we can deliver on the acquisition this year.
Grant Slade: Great. Thank you very much.
Operator: Thank you. The next question comes from Aadit Shrestha from Stifel. Please proceed with your question, Aadit.
Aadit Shrestha: Hi, good morning. This is Aadit from Stifel. Thank you for taking my questions, and congratulations on the strong quarter. So, my first question is just really the Fox Pest acquisition. How should the annual $90 million to $ 100 million in sales, how should that be allocated across the lines of businesses? And what are the drivers that would get you to $100 million versus that low end of $90 million? What are you actually building in?
Jerry Gahlhoff: Why don’t you handle this, Ken?
Ken Krause: Sure. Yes. And so, when we look at that business, the breakdown is highly focused on residential. A large percentage of that business is resi sector. And so, that’ll come through our residential segment of our business. We feel like that $90 million to $100 million would probably come into our business very similarly to how our business is reported. So, Q2, you’ll see a ramping from Q1, and then Q3 you’ll see a further ramping. That’s just the seasonality of our business. We feel like there’s opportunities to drive some outsized growth there, but I also feel like this $90 million to $100 million is a very realistic estimate, and is reflective of the growth trajectory, strong growth trajectory that the business is already on. And so, we feel like it’s very realistic in achieving that $90 million to $100 million this year as we think about the remainder of the year.
John Wilson: Ken, if I may add, this is John Wilson, but if I may add, retention is critical. And so, that’s why with these acquisitions, we don’t go into looking to rock their world and go so carefully on the integration and/or assimilation. But Fox continuing their current path on the way they retain their customers and retain their employees, which is important to keep in those customers, will determine whether we get to the $100 million versus the $90 million.
