Operator: Thank you. Please standby for our next question. Our next question comes from the line of Ken Herbert with RBC. Your line is open.
Stephen Strackhouse: Hey, John and Sean. This is actually Steve Strackhouse on for Ken Herbert. Congrats on the strong quarter. Just a couple of quick questions starting with Trax. How are you thinking about the cost synergy capture with that opportunity? And then now that you’ve acquired Trax, what is your view on maybe further M&A that you might be looking at for FY ’24?
John Holmes: Great. Thanks. Appreciate the question. First, with respect to Trax, we are not really focused on cost synergy at this point. This is really a growth play. As we mentioned earlier, we believe that can help grow Trax’s revenues by funding further development of their products and services and by opening doors for them around the world with a larger customer base, government included. So we really view this from a synergy perspective around growing revenues of Trax. And then similarly on AAR side, again, over time, as we develop Trax and work in cooperation with their customers, we think this could be a unique channel to market for our traditional products and services, which would in turn grow our own revenue. So really, it’s a revenue synergy play with track.
And then thinking about M&A, as you heard from Sean, we think about capital deployment first organically; second, inorganically M&A and then third, returning capital to shareholders. We are very encouraged right now by the pipeline of M&A opportunities that we see. We have been following many assets for many, many years. Trax is an outstanding example of that. We’ve been working with them and thinking about this deal for really about 10 years, and it’s great to get it over the finish line. There are other companies out there that we expect to come to market here in the next — in the medium term. And with the balance sheet strength that we have, provided that it fits the portfolio and the value makes sense, we’re in a great position to act.
Stephen Strackhouse: Awesome. And then maybe just one follow-up from there. We touched a little bit on you spoke in the prepared remarks and a few of the questions. But as you look at some of the asset acquisitions, where are you seeing some of the buying opportunity? Is it with engines, maybe airframes and how is that pricing trending for the available feedstock?
John Holmes: I would say first part, we are seeing it in both categories, individuals on their own as well as whole airframes that come with engines. And so we have seen more packages come available in the last couple of quarters. And we expect to see more material come on the market. And again, we’re in a very strong position to act on that. With respect to pricing, I wouldn’t want to comment on that element just for competitive concerns, but we are encouraged by the assets that we see coming available.
Stephen Strackhouse: Awesome. Thank you. Thanks guys.
John Holmes: Great. Thank you very much.
Operator: Thank you. I’m showing no further questions in the queue. I would now like to turn the call back to management for closing remarks.
John Holmes: Well, that’s great. Thank you very much, everyone for your time and attention, and we look forward to talking to you next quarter. Thank you.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.
