Jose Manuel Daes : Yes. Well, like I said before, anything that we get next year for vinyl is new. I mean, we have a lot of people line up, and they’re very happy with our product, with our service, with the relationship. Let me give you an example. Somebody in Orlando I mean, one of our clients buys around $500,000 a month in aluminum, then he buys around $1 million a month from vinyl suppliers. So we’re ready. He wants to turn everything to one vendor. And like him, there are many, many, many clients that we actually have today that buy very little for us. Now, on the other hand, we have nobody north of Orlando, we are not selling to anybody now. So let’s say in Jacksonville, Tallahassee, Panama City, that’s only in the Florida. And now, with the vinyl we compete in New York, New Jersey, Carolina, Texas, all these things. And we see, I mean, everyone is really excited about our vinyl line, because we never had vinyl.
Stanley Elliott: Perfect. And then, kind of pivoting back to the inventory piece understanding it’s not cash. Did something happen from the beginning of August to now, to where you had to have the revaluation? I am just curious, since most of – it sounds like most of the cost of goods there were purchased and in the second quarter.
Santiago Giraldo : No nothing happens then. We ended up having more inventory that blew through the Q3 than originally expected. And again, this is more function of the functional currency. So I’ll give you the exact numbers when we buy the inventory, the peso was at about 4,700 per dollar. But when you cost it out, 30, 45 and even, , 60, 75 days later, the average for the quarter was 4,000. So, all of a sudden, you have a non-cash impact of 15%, 20% just by function of running more dollars through the P&L, because the dollar weakened during that period. But it was more a function of dimensioning how much inventory was going to impact Q3 and ended up being more than we had expected. But as we said on the call, it’s essentially all kind of worked out in Q4 should have very little of that.
Stanley Elliott: And then, lastly, nice to see the repurchase activity. What are the plans for completing that? And should we think about potentially – pardon me, the Board upsizing that at some point given where the share price is today?
Santiago Giraldo : Yeah, we certainly feel that there’s an opportunity there and we still have 60% of that original approval available to us. So to the extent that we continue to see opportunities to execute, we will. As we said, our cash flow generation the way that we’re projecting now that a lot of the CapEx is out of the way should be very strong. And we certainly think that this is a good way to return cash to shareholders especially at a today’s prices.
Stanley Elliott: Perfect. Thanks so much.
Santiago Giraldo : Thank you.
Operator: Our next question comes from Julio Romero with Sidoti. Please proceed.
Julio Romero: Hey, good morning. Thanks. Hey. Hey, good morning. I guess, my first question is just for Jose Manuel. On the order delays, what are your customers saying in terms of maybe why the banks stopped lending and why the financing dried out for a little bit? And are those project delays, at least partially driven by customer hesitation, customers reworking projects or changing their projects help at all?
Jose Manuel Daes : No. Julio, actually the main reason for the delay is, is that they increased the percentage. The banks increased the percentage that they have to have under contract in order to release the money before 2008 was 20% to 30%, after 2008, it was 50%. And now, they’re asking for 60% to 75%. So, all the projects that are ongoing today are going. That’s on the commercial side for condominiums. Now, on apartments, which are for rental, since the interest rate went up, they are more careful to the numbers meet the demand, and the payment for interest. So, all that has been clear to most of the projects. Like, we haven’t had any cancellation. We had postponed. – postponements and everything looks good. And like I said, for next year, both sides are going to be moving.
Julio Romero: That’s good color there. I appreciate it there. And so it sounds like higher lending standards from the banks. And I guess, just really what I’m trying to get at is, are the customers – are the higher rates and higher hurdle rates, I guess causing customers to have any sort of hesitation? Or any sort of second thoughts or reworking or anything of that nature in terms of their projects? You mentioned no cancellations, which is good but just a little more color on the demand front if I could?
Jose Manuel Daes : The demand in South Florida or I refresh – the demand from Tampa, Orlando down, if somebody knows still high. The cancellations has been or they postponed by clients have been on the lower end. And we don’t serve that much of that market. But to my surprise, wow when I ask the developers who are they selling to? Who is the largest buyer is Mexico and Brazil. So that’s good. There is a lot of Mexican is coming here than before travel to Texas and it’s so now in California. And on the other hand, I learned from the track homebuilders the production homes that they have of the sales at a 100% cash. A lot of people retiring in Florida they have the cash. And they don’t want to take 8% in perfect. So they might keeps up. I mean, a steady going up. And also, you know, what’s surprising, anything above $3.5 million is what is selling the most. Now that’s good. I mean a lot of windows in those buildings.
Julio Romero: Great, great. Great color there. And then, just last one for me is just on SG&A. Santiago, you mentioned, SG&A was low to lower shipping and commission expenses. Is that kind of a one-off thing. How do you expect SG&A to trend in the fourth quarter?
Santiago Giraldo : That was part of it and then, we made the comparison to non-recurrent settlement charge in the Q3 of 2022, Julio. So, you have to also incorporate that in there. And obviously, with more installation, the flip side of the lower gross margin is that you don’t have transportation cost on installation, right? So, the expectation would be that SG&A for next quarter is much more in line with Q3. So, we’ll be able to offset some of the variables that are impacting gross margin by having lower SG&A. But for modeling purpose, it would be similar to Q3 as for what Q4 should be.
