Thomas Barbato: Yeah, so I think Greg, I mean, if you think of the combined distribution business now, you know the rentals is 20%, 25% — 20% to 25% of the combined distribution now when we take what we had and add the Axiom business to it.
Greg Palm: And just remind us on the margin structure of rentals versus equipment sale.
Thomas Barbato: Yeah, I mean, we had — when we acquired Axiom, we had kind of disclosed it, you know the margins were 55% or better on the rental business, the combined rental business.
Greg Palm: Okay, great. All right, I will leave it there. Thanks. Best of luck.
Lee Rudow: Thanks, Greg.
Operator: Our next question is from Ted Jackson with Northland Securities. Please proceed.
Ted Jackson: Thank you very much and congrats on a very, very solid quarter.
Lee Rudow: Okay. Thanks, Ted.
Thomas Barbato: Thanks, Ted.
Ted Jackson: I’m going to go into some weeds, sorry about that, but I always do. You did — with the transaction closing and the money that you raised, I mean, it clearly wasn’t in the current quarter, you’re paying off the credit facility. So how much money did actually come in with the deal? I mean, I think, it was supposed to be 62 — I mean $65 million or so. And then last quarter, the credit facility was at $42 million, $43 million. So when I look at your balance sheet, you know, as we kind of think about that, how much cash is on your balance sheet? And am I correct be just take the, you know, call it, 65 and subtract out 43. And so with this and your debt is down by 43, and you know, and then the differential is on in cash on your balance sheet.
Thomas Barbato: Yeah, So Ted, it’s Tom, right. So we — the net proceeds were about $75 million, right, because we did the initial deal at $78 million.
Ted Jackson: Oh, yeah this deal, that’s right.
Thomas Barbato: And then there is another 10.5 under the greenshoe that was done, right. So we netted about $75 million. I’m going to talk around numbers, 50 of that went to pay off our credit facility. And we’ve got about $25 million net cash subsequent to the revolver being paid off. We’ve got about $4.5 million to $5 million of term debt that remains, and roughly 4% interest. So that will be the only interest expense we have until we kind of tap into that cash balance.
Ted Jackson: Okay. That was very helpful. Any chance you can give me just kind of the breakdown in services between service third party and freight, at least on a percentage basis, just to let me clean up my model?
Lee Rudow: Yeah, it’s in the queue, which we’ll be filing tomorrow. I don’t have that — I don’t have that off top of my head, Ted, I apologize.
Ted Jackson: That’s okay. Then with regards to going back into the margins, gross margins were really were fabulous. I mean, are we — when we — you know when I think about in particular on the distribution side of margins and you know the strength you had there. Is it just fair to say that you know, with the new mix in the rental business that, that’s kind of the new baseline for rent — for distribution margin on a go-forward basis?
Lee Rudow: Yes, I mean, when we — when we did the acquisition of Axiom and we said that we expected go-forward once we got kind of into steady state that the distribution margins would be in the 20% to 30% range. So we’re kind of already at the low end of that range and we still feel comfortable with that range for distribution in total.
Ted Jackson: And then on OpEx, I mean, you actually had some little better leverage in there than I expected. Just in terms of the different acquisitions and everything that’s happened as of late. How should we think about OpEx with regards to at least kind of like a step up from second quarter to third quarter and you know like kind of how I — how should we think about how that scales out as we go forward?
