Joshua Chan: That’s right. That’s good color there. Thank you. And then my follow up. So I guess in the past, you’ve been able to do a good job of maintaining margins flattish to maybe even higher during downturn. You mentioned the flexible labor model. Could you talk about the ability to do that again in this downturn within B&I? What are the pluses and minuses of achieving that next year?
Scott Salmirs: Yes, I think it’s early to tell right now. We haven’t formed our ’24 guidance. But again, you hit it on the head with our flexible labor model. We are able to protect margins in each segment. And again I just don’t — I don’t want to come out and give margin guidance now. But again on top of — and I would say like on top of our Flex in the field. We also have the ability to do structural cost changes even on enterprise-wide, right? So we have — we still have plenty of labor. And I guess the grounding point is, we still firmly believe we’re going to be at 7.2% as our ELEVATE call in the future. So we’ve always said that it wasn’t going to be a straight line. And again I don’t think we could have predicted this massive structural change in commercial real estate. But even with that, we’re resolved to hit our 7.2%.
Joshua Chan: Okay. Great. Thanks for the color and thanks for the time spent.
Scott Salmirs: Thanks.
Operator: Thank you. The next question is coming from David Silver of CL King. Please go ahead.
David Silver: Yeah, hi. Good morning. I’d like to start with a couple maybe for Earl. But in this quarter, there were a couple of big positive nonrecurring items, the employee retention credit and the contingent consideration adjustment. So firstly with employee retention, is that $22 million number. Is that the sum total of all of the credit or will that be adjusted or could there be incremental credits coming in the future? And then secondly, if you could just talk about the adjustment to RavenVolt purchase price. It’s an incentive laden purchase structure that was established. And I think this — I asked this question last time when the adjustment was smaller. But is this the case where the revenues are a little light, the adjusted EBITDA?
Is this — and you mentioned the project delays. I’m just wondering if this is potentially an unanticipated benefit? In other words, longer term, the business retains its full value, but for the incentive period you know maybe you’re benefiting by some of these delays or permitting issues that you cited. So just some comments on those two, please.
Earl Ellis: Sure. Yes. So let me start with the question with regards to the ERC. So, yes, the majority of the credit has come in. We actually apply for all eligible credits. The majority has come in. We’ll probably maybe see some more trickle in, but nothing significant. With regards to the contingent liability, as Scott mentioned earlier, a lot of the — what we’ve actually seen within RavenVolt this year has been a result of the delays most notably based on delays in just permitting. So when you look at kind of like the first year, that’s going to result in virtually no consideration or earn-out for this year. Then secondly, when you look at the forecast going forward and then you risk adjust that from an accounting perspective than discount it, just from an accounting perspective, it results in a lower contingent liability.
Now having said that, the teams are more than ever committed and motivated to driving as much EBITDA and profit as possible. And so long-term, we are still very bullish and very optimistic in the value that this acquisition is going to create. One thing I do want to note is that when we did the deal model for RavenVolt, it did not assume and earn it. And it actually has a significant payback. So when you look long-term, I think it’s still going to be value accretive, and we see great opportunities long-term.
