Karen Holcom: Yeah, I think as we look ahead, Jeff, I agree, we had a really good performance this year with our cash flow generation, and we were able to improve our days. I think there’s still some opportunity as we look ahead, probably not to the magnitude of what you see in — or what we saw in 2023. So for example, if you think about where we were in ’22, we had high levels of inventory because of lead times from our suppliers. We were able to bring that down to a little bit better than our normal levels of inventory. But I think as we continue to drive the strategy, particularly at ABL, around product vitality, service, technology and productivity, there is still room for some improvement as we kind of drive that strategy throughout the business.
Neil Ashe: And Jeff, I’d love to take this opportunity to summarize kind of where I think we are from a performance perspective. Obviously, it’s hard to increase margins when sales are declining. We’ve demonstrated that we can do that. It’s also hard to make the kind of improvements that we’ve demonstrated and you highlighted from a working capital perspective, we’ve structurally improved the business. The strategy, as Karen outlined, has changed, both where we — how we operate and how successfully we can operate. So that makes us very comfortable with our continuing performance around margin and cash generation.
Jeffrey Sprague: Great. Thank you.
Neil Ashe: Thanks.
Operator: Our next question comes from the line of Joe O’Dea with Wells Fargo. Joe, your line is now open.
Joe O’Dea: Hi, thanks for taking the follow-up. I just want to circle back to the kind of sequential commentary. So it seems like if we run sort of normal seasonality out of the fourth quarter kind of revenue rate, we get roughly to the midpoint. I guess that also would seem to imply that you’re going from an environment where you were dealing with channel inventory rationalization that ends. And so arguably, there should be an uplift and maybe the incremental pressures that the macro is a little bit more challenging. And so just wanted to sort of touch on that dynamic again a little bit more. And then within that, I think a tremendous amount of focus on sort of verticals within non-res and so any additional commentary sort of on thoughts that you have around kind of verticals that would be stronger where you’re maybe paying a little bit closer attention to any potential softness.
Neil Ashe: Yeah, Joe, thanks for the follow-up. So again, we would like to provide you as much of a read through the macro as we can, but we can only kind of comment really on our performance. And so as it relates to that, as just to kind of reiterate, in the first half of fiscal 2023, we were burning through backlog. We have now returned to a more normal order and relationship between order and shipment rates, where our order rate is — it drives basically the shipments within the quarter, and we’re at kind of a 20- to 30-day lead times, so average lead time in the lighting business. So things are relatively back to normal. So on a sequential basis, that’s how you see the more traditional sequential seasonality play out. So as we look forward, I’d like to say we know more about the macro environment than others.
The advantage, but we — I don’t think we do. The advantage we have is that our portfolio on the lighting side really addresses the — wherever there can be growth in the marketplace. So the product vitality efforts that we have undertaken, the service levels we have undertaken, allows us to be strong in retail, strong in electrical distribution, strong in each of the categories, well positioned for infrastructure. So we are in the places where we can benefit from any changes in the lighting market. In the meantime, we’re comfortable operating at these kind of levels of market activity and continuing to deliver the margins and the cash flow that Karen effectively highlighted through the guidance.
