Matthew Bouley: Got it. Well, thanks Mike. Thanks everyone. Good luck.
Scott Barbour: Thank you. The next question today comes from the line of John Lovallo from UBS. Please go ahead. Your line is now open.
Spencer Kaufman: Hey, guys. Good morning. This is actually Spencer Kaufman on for John. Thank you for the question. Maybe the first one, net sales were down 8% year-over-year. Can you guys, kind of give a breakout of the contribution between price and volume on a consolidated basis? And what was the impact in the quarter from the destocking at Infiltrator?
Scott Barbour: So I think if you turn to our bridge, what is it there, Mike?
Michael Higgins: Page eight.
Scott Barbour: Yes, Page eight. So what’s the volume?
Michael Higgins: I think that’s your question around the earnings or around the revenue?
Spencer Kaufman: On the revenue side?
Michael Higgins: Yes. So I think when you look at the revenue, pricing was up on a year-over-year basis, drag in volume created that negative downdraft, which led to the down 8.
Spencer Kaufman: Okay. And any additional color on the impact from the destocking Infiltrator?
Michael Higgins: I would say it was relatively minor. It was over kind of by the end of October, early November like we communicated on the previous earnings call.
Scott Barbour: You know, most of that down in Infiltrator for the quarter was just the completions slowing down year-over-year, not a lot of destocking left in the third quarter. So it’s 90%.
Spencer Kaufman: Okay, that makes sense.
Scott Barbour: 90% is driven by those kind of completions of homes and all the stuff that they go into.
Spencer Kaufman: Okay. Appreciate that. And if we just look at the 4Q implied revenue guide of down 12% to 23% on a year-over-year basis and the adjusted EBITDA outlook of, let’s call it, $118 million to $158 million. That seems like a pretty wide range for just one quarter, particularly when you guys are already a month completed here. I’m just hoping if you could give a little bit more color on some of the puts and takes of getting to the high-end and the low range of those guides.
Scott Cottrill: Yes. No, it was purposeful, right? Obviously, sensitive to kind of the uncertainty in the dynamic market. With some of that resi weakness spilling over in the non-res, it just felt like the right thing to do to be prudent to have a little bit broader range. But I think the color that Scott gave earlier, January, the way Q4 unfolds for us typically is 30% of the quarter is January, 30% of the quarter is February, 40% of the quarter is March. So the context that we gave with January on the revenue side coming in largely as we expected gives us confidence, at least in the range that we’ve gone out with and where we are. But it was purposeful to leave it a little bit broader range right now and thought that was the best thing to do.
Spencer Kaufman: Okay. Makes sense. And if I could just squeeze one more in here. I mean you guys have talked about that you expect demand to be a headwind for the majority of calendar year €˜23. And you on the call earlier, you reiterated your margin targets from the Investor Day, but more curious on the sales side of it. You laid out the 10% CAGR, is that still on the table? And if so, what’s going to sort of cause the reacceleration in demand to get there?
