Neil Ashe: Yeah. So just for — just a little bit of historical context as we kind of recreate FY ’23, obviously, we burned through backlog through the first half of our fiscal 2023. We talked extensively through the remainder of the year at how lead times have compressed, and that’s led to the destocking you referred to. We’re now getting to a more normal relationship between order rate and shipment rate. So we’re starting to — and that’s what I was alluding to in the answer to Tim’s question, we still — we’re comfortable operating in this environment. So I think what we are experiencing now are macro lighting trends. And unfortunately, we’re in a period where people are just buying less lighting and lighting controls. I’ll also highlight, though, that as Karen pointed out, the Intelligent Spaces Group continues to grow mid-teens.
So the portfolio of the business is expanding. At the same time, in both the Lighting business and the Spaces business, we’ve been able to layer in margin despite the decline in sales at ABL.
Joe O’Dea: Got it. And then on the cash side, I think another year of solid cash generation. You did less on the buyback side. You ended with cash in a pretty strong position. And so just any commentary around what you might be seeing on the M&A pipeline side of things? Or is it kind of as you’re monitoring may be a little bit choppier environment, the bias to hold a little bit more cash, how we should think about buyback posture in 2024?
Karen Holcom: Yeah. Thank you, Joe. You’ll see in the presentation that we’ll post — we’ve talked about some of the assumptions that reflect our cash priorities for next year. So our cash — our capital allocation priorities are going to be the same. First to invest in our current businesses for growth. Second, to invest in M&A. Third, to maintain our dividend. And fourth, will be share repurchases. And so at this point, we’ve repurchased about 23% of our shares since we started at the beginning of fiscal — fourth quarter of fiscal 2020. And so we’re looking at this upcoming year about $40 million to $60 million in share repurchases is what we would expect, and you’ll see that in the presentation. And then, Neil, do you want to comment on?
Neil Ashe: I’d just add a couple of things, Joe. First is, obviously, we have done, I think, a very — an outstanding job of generating cash. So through layering in margin and aggressive management of our balance sheet and working capital, especially on the lighting side, we’ve demonstrated the ability to generate a significant amount of cash. Our priorities, as Karen outlined, are — remain the same. We want to grow our business. And so — but when the market presents us with opportunities, we will take advantage of those opportunities to repurchase shares. We’ve demonstrated since we’ve been here over the last 2.5 years that when the stock goes down, we buy more and when the stock goes up, we buy less. And — but our focus and our priorities are in the order and Karen mentioned them.
We want to grow our current business and we want to grow the platform through acquisitions. And we feel good about our opportunities in all of those. On the acquisition side, our priority is the — is to continue to add to our Intelligent Spaces Group. We think that there are very interesting and in some cases, meaningful opportunities to expand there. And so that’s where we’re spending the most of our time. But we are also open for business on the lighting side to other specific opportunities.
Joe O’Dea: Great. Thanks very much.
Operator: Our next question comes from the line of Chris Snyder with UBS.
