Tim Mulrooney: So there’s a lot of moving parts here with first quarter expected to be stronger, second quarter is expected to be lower than normal. So I just want to ask it in a different way. Last quarter, you laid out a framework for 2023 of more than $4 billion in annualized revenue and 15% EBITDA margins. Is that still your expectation today?
Jeff Knudson: Yes, Tim. So you’re right. The first quarter guidance is higher than what we had thought. And again, that’s primarily driven from higher bill rates, and that’s what’s also driving our expectation for a lower Q2 and that higher than normal sequential decline, we talked about earlier. But given everything that, Landry just talked about with demand increasing in the second half, and we also believe that bill rates off of that Q2 level will follow a normal seasonal pattern into Q2, that if that normal seasonality plays out in the second half, we would see a path to that full year expectation that we laid out in the last call.
Tim Mulrooney: Okay. Thanks. The last few years, you’re €“ just building on that. You’ve provided an expectation where you think bill rates ultimately settle as you exit the year. What is your expectation for bill rates as you had to exit in ‘2023?
Jeff Knudson: They really haven’t. Because they were higher in the fourth quarter and the first quarter when we thought and then with that high single-digit decline into the second quarter, they’re still exiting the year with where we originally thought they would be. It’s just they weren’t there in the fourth quarter and the first quarter.
Tim Mulrooney: Okay. Thank you.
Operator: Thank you. One moment for our next question, and that will come from the line of Mark Marcon with Robert W. Baird. Your line is open.
Mark Marcon: Hey, good afternoon, everyone. With regards to just the fourth quarter, just the rearview mirror. You mentioned some credit adjustments with regards to Nurse and Allied in the operating margin for the fourth quarter. Jeff, what was that exactly, what happened?
Jeff Knudson: Yes. So there was just a reserve for credit losses or bad debt, Mark. There was one specific MSP accounts that we have concerned out. And then also just given the macro environment, we also took a slightly larger-than-normal general reserve for expected credit losses, and that impacted Nurse and Allied, primarily is what drove those dollars.
Mark Marcon: And that MSP account is a €“ one large one? Or is it relatively well contained?
Jeff Knudson: It’s relatively well contained. It’s not one of our larger accounts.
Mark Marcon: Okay. Great. And then really appreciate the forward look into Q2. That’s extremely helpful. Cary, Jeff, kudos to you for both disclosing what you’re seeing now as it relates to that. I mean, it does sound like a lot of that is basically the change in terms of the bill rates, and it sounds like basically in Q4 and Q1, the bill rates are higher due to certain specialties that are being utilized to a greater extent. What specialties are you seeing that, that our high bill rate specialties that were a little bit higher than expected in terms of utilization in Q4 and Q1? And why would that drop off more than usual going into Q2?
Jeff Knudson: Yes. So Mark, going into the fourth quarter, our expectation for bill rates is that they would decline in the mid-single digits. They ended up coming down 2% over Q3 levels. And then really, the higher bill rate specialties is a driver of why they increase sequentially into the first quarter and that’s really just about a number of urgent needs orders that we received that carried a higher bill rate that from a mix standpoint, drove bill rates up in the first quarter and then those will predominantly roll off by the end of the first quarter as we exit into Q2.
