Faiza Alwy: Great. Thank you so much for that. And then you mentioned pricing. I believe it was in the context of B&I, but just curious how you’re thinking about pricing from here. Has anything changed? Are you able to take higher pricing? I believe there were also some union contracts that maybe were slated to renew this year. So just talk a little bit about sort of pricing and the dynamics between pricing and labor cost.
Scott Salmirs: Look, we remain as disciplined as ever on recovering pricing, right? We’ve said in the past we’re recovering 75% to 80% of the increases that we’re seeing on wages. And, so far for this year, we’re seeing a little bit of a tick down on the wage growth, which is a really good sign. And also, a significant amount of collective bargaining agreements has been settled over the last few months, and where they’re coming in is actually reasonable as well. So it’s not like we have to go back to clients and ask for 7% or 8% increases, which is really nice for us, right? So we feel like we’re in a good place. And just to round out the conversation files, I will tell you, so much of this is also cultural, right? Getting your teams to understand that we have to capture these price increases because we’re working hard out there, we’re providing value, and when wages are going up for our teammates, they have to be passed along to the clients, and it doesn’t hurt the fact that our clients are seeing that in their businesses as well.
So to make a long story short, we remain disciplined on capturing price increases.
Operator: Our next question comes from the line of Joshua Chan with UBS.
Joshua Chan: Hi, good morning, Scott, Earl and Paul. Thanks for taking my questions. I know that you don’t guide to revenue, but you had pretty good results in B&I this quarter. You won that contract in ATS. Aviation continues to be strong. Does it feel like your revenue back job is getting a little bit better than expected compared to a couple months ago, if you could just kind of talk about that?
Scott Salmirs: No, I don’t think we have a dramatic change right now. I think we’re asking you guys to channel us what we’re feeling here, which is one quarter down feeling incrementally more confident in how we guided and where we see the business. And it’s almost like kind of detoxing the risk associated with B&I. And you mention B&I. And I think there was like an overhang out there. Like how bad could this be? Could this be worse? You read in the papers every day that the world is coming to an end when it comes to commercial real estate. And we’ve been consistent in saying we didn’t think that was going to happen. And especially when you look at ABM where we focus on Class A properties, which, again, even in the media, it’s validating that tenants and B&C properties are gravitating to A properties, right?
So we feel super confident that between the asset class that we’re focused on Class A and the fact that we have this flexible labor model and if a client goes from five floors to four floors, we do have the ability to release the staff on that fifth floor and maintain our margins. And you’ve seen that come through even in this quarter where we held or even raised margins. So we’re feeling really good.
Joshua Chan: That’s a great color. Thanks for that, Scott. And I guess if I can ask about technical solutions, you mentioned that there will be quarter-to-quarter about EBITDA, at the same time, margins should improve through the year. So could you just kind of frame for us what the margin trajectory could be like over the next couple of quarters as we take a look at ATS?
Scott Salmirs: Yes. Look, I think on a high level, if you look historically at ATS, it’s always been like a 35%, 65%, first half, back half story. And a lot of that has to do with seasonality, right? Because we recognize revenue and profitability when we turn a wrench. And it’s tougher to turn wrenches in the winter, where it becomes hard in education when kids are in school. So it’s typically a back half story. So you’ll see the trajectory of margins and revenue happen in the back half of the year, just like it always does. So we don’t give margin guidance, but it’ll certainly be stronger than it is right now.
Operator: Our next question comes from the line of Jasper Bibb with Truist Securities.
Jasper Bibb: Very good morning, guys. On the Elevate initiative, I think you said targeting B&I and M&D migrating to the ERP platform in 2024. Does that represent like a faster pace of deployments than you anticipated going into the year? And if everything goes to plan there, where do you think you’d be by yearend as far as realizing the targeted cost saves from Elevate? Thanks.
Scott Salmirs: Yes, no, thanks for the question. So you’re absolutely right. The next deployment of our OCF, Oracle Financial Cloud, is scheduled for early next fiscal, and that will include both B&I and M&D. That’s pretty well on pace with our plans, so no change from a scaling perspective. And then, as we mentioned, to kind of like derisk the deployment, we’re actually going by IG by IG. So we anticipate that shortly thereafter, we’ll actually be able to incorporate our legacy Able business into that, and then subsequent to that will be Aviation and our Technical Solutions. So everything is on track from both a spending perspective as well as the benefit case.
Jasper Bibb: Okay. Understood. I just wanted to get your updated thoughts on capital returns, the last quarter you bought back, I think 4% of shares at $41, stocks around that level now again, but didn’t buy back any shares in the first quarter. So just how should we think about share repurchase and capital return over the balance of the year?
