It’ll probably be around half that this year, which is still fairly strong, but not what we’re used to. So hopefully that gives you more color.
Faiza Alwy: Yeah. Thanks, Scott, for that. And then just a quick one for — on your interest expense guide, are you assuming any debt pay down and just talk a little bit more about your capital allocation? I know you’ve talked about the share buyback, but is any sort of debt pay down are you thinking about that at all?
Earl Ellis: Yeah, it anticipates marginal pay down in debt. And so if you think about, we have a term loan that amortizes probably about $30 million a year, and then we’ll use some of the excess cash to pay down a bit of the revolver, but nothing material in that. When you look at our leverage of 2.3 times, we feel very comfortable there, and we’re looking to maintain that level of leverage into next year. When it comes to capital allocation, our plan is still consistent. We’ll continue to invest in our organic growth through the ELEVATE program, investing in talent, et cetera. And again, based on our strong projected cash flows, relatively low leverage, it continues to provide us with the flexibility to allocate capital, whether it’s to M&A opportunities or returning back to shareholders.
Faiza Alwy: Great. Thank you so much.
Scott Salmirs: Thanks, Faiza.
Operator: Thank you. Our next question comes from the line of Andy Wittmann with Baird. Please proceed with your questions.
Andy Wittmann: Great. Thanks for taking my questions, guys, and good morning. I guess I just want to understand the quarter a little bit better, particularly in the Technical Solutions segment. And so for Earl, so you talked about how there were several close-outs in the quarter. Oftentimes, but not always, close-outs are basically accounting adjustments when projects that you’ve been working on come in better than expected after you finish them, and then you recognize a whole bunch of revenue and basically almost 100% profit against that revenue in the quarter. Is that what you mean by saying — by attributing the revenue growth year-over-year significantly to that kind of performance or were you saying something different? I just want to make sure we’re clear about what you’re saying on the project close-outs and how that contributed to revenue and profits.
Earl Ellis: Yeah, no, I think you got it spot on, Andy. There were a number of projects that closed out, and as a result of that, you’re actually able to do your final billings. Any holdouts that you actually had, you’re now able to capture that. And in the quarter, that amounted to about $2 million. When we talk about the profitability in Q4, remember, Q4 is a seasonal business, and typically back half with Q4 being our largest quarter. So keep that in mind, that by no means would be a run rate into Q1, which we know typically would be a lower quarter than others.
Andy Wittmann: Okay. But your revenue growth was like $11 million, $12 million in the quarter for Technical Solutions, the gain was only $2 million. I guess it sounded like the other, whatever, $9-ish million of revenue might also be attributable to the close-outs. Is that true or not? Sorry, trying to understand that.
Earl Ellis: No, that would be the regular — if you think about on RavenVolt, where throughout the first half of the year, we actually had delays on certain battery storage projects as we’re waiting for not only inventory supplies, but getting a lot of the authorizations finalized. So we actually were able to close out on a number of those deals in Q4 and as a result, you’re seeing the revenue and the associated profit.
Andy Wittmann: Okay, that’s helpful. And then, Scott, just on the B& I segment, I guess you mentioned in your press release or your report here, your slide deck, you talked about kind of diversification. I just want to make sure I’m understanding what you’re saying there as well. Is that meaning you had the good entertainment and sports and diversified in that way from, I don’t know, I just call it the traditional janitorial services or is there some other dynamic there that we should be aware of, that you’re referring to in diversification?
Scott Salmirs: Yeah, no, that’s a great question. Yeah, it’s partly that. It’s partly we have a little healthcare in there, but more importantly it’s an engineering segment. So if you think about, especially with the Able acquisition, where between Able and the legacy ABM, we had a lot of stationary engineers, and that’s about 25% of our business is just engineering. And that doesn’t change with office occupancy or density. If you have eight engineers in an engine room, whether you’re 80% occupied or 95%, that’s really not going to change. And we have parking in that segment as well. And that’s been relatively stable since we’ve come out of the pandemic. So that moderates the janitorial, which is the piece of it that becomes more variable.
So when, I guess Andy, I’m so glad you brought up this question, because like when we look at B&I, we want you to look at that as just purely janitorial and having all that kind of variability, so to speak, based on density. Because the truth of it is, it’s so mitigated by, again, the engineering specifically.
