Kimberly Scott: So there are a couple of things. And George, it’s good to hear from you. Thank you for your question. There are a couple of things related to new business that we are focused on right now. And the first one, as I mentioned, is that we did expect a continued acceleration in revenue generated per sales teammate, and we’re not seeing that ramp occur to the degree that we had expected and planned. So that’s the kind of the first thing that has changed, is that ramp was supposed to continue to happen. You all might recall, I talked a lot about measuring revenue dollars per sales head count previously, and we’ve been monitoring that on a regular basis. So we have visibility to that, and we have been expecting that to continue to move upward and ramp to the degree needed to deliver the numbers in the back half and that ramp is not happening.
I talked about the need to improve the sales tools and enablement, recruiting and training and all the things that we need to do to help our sales teammates be more successful. We’re doing many of those things and we will continue to do those things to make sure that we get that rate up. But that is one of the key things that has happened as it relates to the sales ramp. As it relates to our decision to moderate pricing, we also have great visibility that I’ve dug into quite deeply around why are customers choosing to leave Vestis. Many are choosing to stay and we’re grateful for those loyal customers, but we’ve done a diagnostic around those that are leaving. And for those customers who are choosing to go elsewhere, we are finding that there is a very actionable set of root causes here around service experiences related to our procedures, not our teammates.
Our teammates are doing an awesome job, but related to how we are delivering the load on time and incomplete loads. So those are the things that we’ll be addressing in order to return to a higher level of pricing over time.
Operator: Thank you. Our next question comes from Michael O’Brien with Wolfe Research.
Michael O’Brien: Hi good morning guys.
Kimberly Scott: Hi, Michael.
Michael O’Brien: One quick one here. So you mentioned that the shortfall or the service shortfalls are incremental. They’re not related to the route optimization efforts that you guys put in place and talked about in the Analyst Day. My question is were these shortfalls falls longstanding or are they related to the spin that you’re a new company now and there’s an issue there? And if they are long standing, why haven’t you guys caught this before the separation?
Kimberly Scott: So they’re not related to the spin, so I’ll be clear about that. I mean, I guess you could always say that there is a transition period where things may be changing, but not for us as it relates to service. This is really about adherence to our service processes. And we’ve had service processes and procedures in place for a really long time. What we’re seeing is that we need to better follow those, but also provide the teammates with better tools. And so as I come into this business and evaluate how we’re measuring service efficacy, I found it very odd that we did not have telematics in our fleet. That’s a very normal thing that you would have in a B2B route-based business. But we were not using telematics to make sure that we are delivering to customers on time and also that we are following routing efficiencies.
So we’ve put that telematics in our trucks, and we expect very quickly that we’ll begin to use those insights and that data from telematics to shore this up and to make sure that we’re delivering on time and that we’re where we should be, when we should be. So a lot of these things have been in the company as an underlying opportunity for some time, but we’ve been addressing some of them as well. So the telematics is a great example of that. But I can also tell you that I have gone incredibly deep into this business over the last 6 months since we have spun out and particularly over the last few months since our COO left the company, and I have gone very deeply into evaluating these root causes at the grassroots level down to our market center.
And I’m just finding great opportunity to continue to improve. So I think this is about going really deep into the bowels of the business and understanding what levers we can pull to make Vestis even better, and that’s what we’re doing.
Operator: Thank you. We have time for one more question today. Our final question comes from Scott Schneeberger with Oppenheimer.
Scott Schneeberger: Thanks very much. I Appreciate it. I guess I’ll make it a quick one for you, Rick. Working capital management, very strong. It sounds like inventory management as well, you’re trending very nicely year-to-date above your — what you had said at Investor Day as far as free cash flow conversion to EBITDA. How is that going to look in the second half of the year? And it sounds like you’re anticipating using your strong cash position for debt reduction. Are there any other considerations for use of that cash?
