Frank Lonegro: Hi. Thanks, Garik. Appreciate that. And good question on the inventory. We will re-evaluate where we are when we get to the end of Q4. A lot of that’s going to depend on the outlook on the market plus a lot of the things that Julian added in for 2023, the momentum that we have, the greenfield etcetera. So, we will re-evaluate at that point in time. But we are entering a period of, I will say, more normalcy than we have been in the last couple of years, and that allows us to be a little bit more surgical in terms of what we buy when we buy, how we buy. In terms of the pricing, obviously, we mentioned in the remarks that quarter-over-quarter, we are continuing to see the average selling price increase. So, even though we destocked by $160 million quarter-over-quarter, you didn’t see that come through on the pricing side. So, we continue to believe that the environment is a good foundation for us.
Julian Francis: And Garik, I will add, overall, the manufacturing side is still relatively tight. It’s not an allocation as it was across the entire industry 6 months, 12 months ago. But in general, again, the market fundamentals are sound. The market is actually still very good. It’s far from being a free-for-all out there. It’s a very constructive market for us to sell into today.
Operator: Thank you. Our next question comes from the line of Philip Ng with Jefferies. Your line is now open.
Philip Ng: Hey Julian. Hey Frank. Congrats on a really strong quarter. Julian, can you give us an early look on 2023? You kind of alluded that you expect demand to be likely down. Can you kind of size that up for us? Is that like a mid-single digit declines? And any color on how you are thinking about between some of these markets, right? I mean commercial, it sounds like you have gotten a little more upbeat. In a declining demand backdrop, how should we think about decremental margins and your ability to kind of ratchet back any of your costs if you need to? Thanks a lot.
Julian Francis: Appreciate that. Yes, look, I mean like I said, we believe that we would expect to see the market decline marginally next year. In terms of breaking that out, certainly, we would expect the new residential markets to be impacted by mortgage rates and the decisions of the builders going forward. We continue to believe that the majority of our business is non-discretionary R&R. And that applies to both the residential side and the commercial side of the business. We continue to think that the commercial construction market will continue to unlock. We think it will be, I don’t know, flattish. We, could that be up a little bit, it could be down a little bit, but it will be flattish across the commercial construction market.
But again, we believe that the underlying themes here are still strong. In terms of incremental margins, we continue to believe we will grow. We will continue to grow our business. We think we can continue to execute on Ambition €˜25. So, we are not really thinking about decremental margins on this right now because we believe we can grow volume. We believe that the addition of Coastal is constructive. We will add another year of maturity to the 15 or so greenfields that we will add this year. We will continue to add another lot of greenfields next year. We believe we can add another about the same number next year as well. So, we continue to believe that we are going to be presented with opportunities to grow. And we continue to believe there will be acquisition opportunities, and we still think that there will be opportunities for us to improve our productivity at our branches as well.
So, we remain confident in our ability to grow despite maybe a little bit of a weaker market that we think that will present us more opportunities.
