Kevin Krumm: Hi Steve, this is Kevin. I will take a stab at this and then Russ can add anything that makes sense after. I would say when you look to the back half of the year, backlog in our U.S. life safety business, and then he talked a little bit about backlog in our international business, that has held up and continue to become healthier. And frankly, on the U.S. life safety side, we have continued to add to it. So, we feel really good on the safety side about the backlog as we head into the back half of the year, and so that’s reflected. And I said earlier, – so that drives projects work, as you may know or I think as you know. And so – and I said earlier on the service side of the business, those businesses have continued to perform very well and as expected in the first half of the year, and we expect that to continue in the back half of the year as well.
Where we have been shrinking the backlog and getting, I will say, a smaller but healthier backlog is in the HVAC business and the specialty business. And what you will see in those businesses in the back half of the year as well will be – that we should see a return to growth. It will be low-single digits, but we should see return to growth in those businesses as well in the back half of the year. And sort of the combination of all that, we don’t guide at a segment level, but the combination of all of that really is what’s driving that improvement in the back half of the year. You asked about seasonality, that obviously doesn’t impact growth rates so much, but just more sort of volumes. What we generally see in our business because it’s predominantly a Northern Hemisphere business and some of the work we do or a lot of the work we do is outside, especially in specialty, is our two largest quarters from a revenue standpoint in any given year are going to be the second quarter and the third quarter.
That’s going to drive sort of growth on a fixed cost base. So, those are generally going to be our two largest margin-performing quarters as well. And then off of Q3, we usually step down sequentially into the fourth quarter, a lot of it weather related.
Steve Tusa: Yes, that makes sense. And then just one last one, how is – I would assume if you are disciplined on these projects, that price is holding up relatively well. I am not sure if you touched on it on an earlier question, but any color on like in the – I know price in terms of like flat organic, maybe not be that relevant, will have kind of small numbers. But in the back half, are you counting on any price running through?
Kevin Krumm: Yes, absolutely. So, we think about price the following way. We have pricing that we pushed through on the service side of the business. We expect that to be margin enhancing as it relates to services I would say in the first half of the year. Roughly that price number has been around 3% on our ongoing or recurring service revenue stream. We expect that to continue in the back half of the year. With respect to projects, we look at that sort of more as price pass-through. We don’t anticipate that being a significant driver because we should annualize through that in these summer months, which is really where we started to see pricing come down last year. So, we should be through it. In the back half of the year, there should be a significant impact on our growth rate, positive or negative from the price pass-through.
Steve Tusa: Great. Great color. Congrats on the execution and congrats on the deal as well. Thanks.
Russ Becker: Thanks Steve.
Operator: Your next question comes from the line of Ashish Sabadra of RBC. Your line is open.
David Paige: Hi. Good morning. This is David Paige on for Ashish. Thanks for taking my question. I just had a quick follow-up on the pruning or the project selection. How much more of that do you feel like you need to do until the business or the customer base is, I guess where you want them to be ultimately? And then one more just following up on the price or the price-cost, it looks like – I think you mentioned that raw material costs or commodity costs are going to be lower, what’s the tailwind there for the year? Thank you.
Kevin Krumm: I will answer the last part first, which was on the price pass-through. We don’t expect there to be much of a headwind or tailwind as it relates to our organic growth rate from pricing through. And I would say, generally, on the project side of the business, we are really just trying to accommodate sort of the material costs run up and pass it through. So, we don’t think it’s going to impact our growth rates and it shouldn’t be a tailwind, if you will, on margins either.
Russ Becker: I can handle the pruning component of your question. I would tell you that for the most part, the pruning work from a customer selection perspective, number one, will never stop. But some of the real disciplined pruning that especially that we are – that you are seeing in our specialty and HVAC businesses, really is Kevin’s earlier remarks, is really kind of will go – continue through the second quarter, and you will see that backlog become healthier in that kind of component of it going back to more of a growth mode. You will see that in the second half of the year. Internationally, it will probably continue more through the end of this year from some of our customers and a lot of that has to do with the fact that we had some 3-year contracts that we had to honor, if you will.
