Andrew Wittmann: Okay. Thanks for the commentary, guys. Have a good day.
Scott Salmirs: Appreciate it.
Earl Ellis: Thanks.
Operator: Thank you. The next question is coming from Sean Eastman of KeyBanc Capital Markets. Please go ahead.
Nicholas Breckenridge: Hey, guys. This is Nick Breckenridge for Sean today. Yes, I just wanted to sort of ask more about some of those prepared remarks you made, Scott, particularly that comment about how the CRE conditions are going to flow through in the model in ’24. Just if you could give more color into the sort of how that labor market tightness would that improve visibility on the out-year margin trends with just being sort of less, I mean, less occupancy rates are going to drive. I mean, maybe less more, I guess, more flexibility. Could you just provide more color on that, please?
Scott Salmirs: Sure. I mean, look, I think the foundation of our B&I segment is the fact that we have this flexible labor model. So I’ll just put it like simplistic terms, right? If a tenant’s got five floors in the building and they go down to four floors, what happens the staff on that floor that gets vacated, we’re allowed to release that staff, right? So that’s how we end up protecting our margin through this is because we have this flexible labor model. So we think — we think there’s some positive trends, believe it or not, in terms of people coming back to work. But there is still this macroeconomic environment that’s happening and clients are taking less space. So we are going to see contraction on that demand side. But again, we love the fact that we have this flexibility on the cost side. And that’s the key to B&I. And that’s why B&I has always been so successful through the years.
Nicholas Breckenridge: Awesome. Thanks for that. And then just one more sort of follow-up around ATS. Just sort of going forward and assuming that everything starts to flow through in terms of projects getting sort of taken out of backlog sort of the BES coming back is — would you say you’d have more visibility onto ATS getting a sustained positive growth trend on the op income line. And would that be fair to say?
Scott Salmirs: Absolutely, absolutely. As we look out over the next year or two, ATS we see going back to what it’s historically been over many years, which is top line double-digit growth and bottom line double-digit growth there as well. So this is one of our most exciting segments and will continue to be so.
Nicholas Breckenridge: Awesome. Thanks, guys.
Scott Salmirs: Thank you.
Operator: Thank you. The next question is coming from Marc Riddick of Sidoti. Please go ahead.
Marc Riddick: Hey, good morning.
Scott Salmirs: Good morning.
Earl Ellis: Good morning.
Marc Riddick: So a lot of my questions have been answered. I was sort of curious as to whether you can sort of give us a bit of an update as to maybe some of the opportunities that you might see in the acquisition pipeline, valuations that you’re seeing and maybe sort of your appetite as far as if there are some things out there that might make sense in this environment?
Scott Salmirs: Yes. One of our biggest opportunities is our capital structure, right? I mean we’re at 2.3 times leverage. So we have plenty of powder not only from an M&A standpoint, but share buyback from our dividend standpoint. We have a lot of levers to pull in ’24, Mark, which we’re excited about. And the M&A pipeline probably not as robust as it was a couple of years ago just because of the financial markets, right? But we still have a pipeline there is stuff that we’re working on, and we’ll update you as that happens. But thankfully our capital structure and our strong free cash flow is one of the accelerators for ABM as we move forward.
