Steven Ramsey: Maybe to continue the line of thought on end markets, some of the large rental companies have talked about local projects growing but at a more modest pace, while mega projects are ramping up. You talked about some of the highway work, state DOT funding that being strong. But curious how you think about the local more normal sized projects versus the large mega projects impacting your results this year?
Ryan Greenawalt : Steven, I’ll take that. We’ve historically tried it’s really difficult for us to delineate by market what’s kind of federally stimulated versus local demand. But I think what we’re seeing is there is a little bit of a — it’s not a pullback, but a lengthening of the sales cycle for kind of your general contract or with core product that is not true on the big visible highway type jobs. And I think we’re seeing one of the things that’s true is that labor utilization is the key to construction right now. You can’t stimulate something when everyone’s already got a job. You can’t sell a excavator whenever no one has an operator to put in the seat. And so any softening that we’re seeing, kind of the non-res, just general construction I think that you’re seeing that there is like this kind of pent-up demand for big projects that have been stalled by all the local demand.
And that’s the way that I would think. We always talk about it as innings to the cycle that we haven’t really been in a trough, we’ve been more in this, we keep adding innings to the game. And I think that phenomenon’s playing out with some of the pivot to larger type jobs right now.
Steven Ramsey: And then I’m curious on the complimentary service lines, curious how those performed in the fourth quarter and what is the outlook for that unit in 2024?
Ryan Greenawalt : Just so I have it, where are you are when you say ancillary service lines, I just want to make sure we answer your question appropriately. Define that for me.
Steven Ramsey: Sorry. More of the complimentary products, Scott Tech, PeakLogix, Baron, where those companies, how those are expected to perform in 2024?
Ryan Greenawalt : s Yes. I mean, PeakLogix, we’ve said that they and I think the whole industry, it was white hot. When we bought that business, it was that combined business, which is now PeakLogix, Scott Tech and Peak are now kind of combined one and the same but call it revenues of roughly, $30 million, $35 million combined back in 2020. That doubled more than doubled in ‘21 and ‘22. And in ‘23, we saw a bit of a pullback, these are larger projects that are probably a little bit more interest rates sensitive because they’re larger CapEx projects for our customers. And so if there is a part of our business where we do think that there was an impact of interest rates, it was in that PeakLogix business. What I will say is PeakLogix was part of the strategy and rationale for that deal was to take us from the JV to the varsity relative to just intellectual capabilities, design build and getting us into some customers that we otherwise would not have.
We’ve been able to do that. And so, judging Peak just kind of on its own without including kind of some of the synergies generated with our legacy material handling business probably isn’t fair. So we’re still very bullish despite ‘23 kind of being a down year for Peak. And we’ve got backlog. It’s taking customers a little bit longer to pull the trigger. We think that’s interest rate related, but that’s how that’s going. I will say Midwest mine, just to kind of round it out, I put that the a similar kind of ancillary projects. They’re in the aggregate space. It’s probably immaterial to our overall kind of revenue line. It’s performing very well. And we’ve definitely generated some synergies with customers or been able to get customers to recognize our capabilities in the larger quarries et cetera.
All still running fine.
Steven Ramsey: And then last one from me, your G&A as a percentage of gross profit continues to trend down on a total basis and in both material handling and construction equipment units. Is this expected to continue again next year, this cost discipline of G&A versus GP?
Tony Colucci: I’ve got some numbers in front of me, and I’m just going to read them out here. We — G&A, ex M&A and ex depreciation and amortization, Q2 $105 million, Q3 $107 million and then Q4 here about $111 million again ex M&A. That increase in Q4 is almost going to be exclusively related to the increase that we saw in equipment sales because we have commissions primarily and bonuses on those sales that impacted that line item. So I wouldn’t expect Q4 to be indicative of the go forward. Certainly, we’ve added some G&A because of the acquisitions. And the way that I think about G&A is a little bit more as a percentage of revenue or EBITDA or — I’m sorry, gross profit ex depreciation than I would just gross profit overall just because the rental business with so much depreciation in the gross profit line. So I think Q4 is a little bit of an anomaly there at the $111 million. We’d expect that to come down and kind of even out a little bit.
Operator: Next question is from the line of Steve Hansen with Raymond James.
Steve Hansen: I wanted to go back to your guidance. Not wasn’t too sure if it was aspirational or not, but I think you suggested you wanted to hold the line on equipment sales for the year. Maybe just a bit of additional color on there. The comps are difficult, I think, as you suggest but what is the guide assuming effectively on the new equipment side?
