Flavia Pease: I can jump in. So yes, the DSA backlog was sequentially down. I think we talked about $150 million still about 12-months, as Jim pointed out. And the gross bookings were still above one times. So we are not going to finesse the specific number, but gross bookings still above. And as Jim pointed out, with hopefully cancellation normalizing, we expect net book-to-bill will improve marginally when that happens.
Maxwell Smock: Yes, understood. Had to give it a shot there at the gross bookings. Maybe just a quick follow-up for me. Given the back half guide, can you just talk about when you need to see demand trends at the meat segment start to improve in order to hit the midpoint of your guide for this year? You had that comment in the deck about how at the top end of your financial guide. You assume demand trends will begin to modestly improve later this year. But just wanted to clarify your assumptions for when the management start to pick back up at both the low end and the high end of your guide and how that maybe differs by segment.
Flavia Pease: Yes, maybe I will start Jim and you can add. Max, we are not going to comment on the timing, to your point, by each of the segments and when precisely would that have to happen to get the bottom and the top end of the guidance. I think suffice to say, at the top end of the guidance, as we pointed out, we expect the main trends to marginally improve through the year. At the bottom end, it is more of the seasonal improvement that we tend to see. And I think at that top-line. And I think I made a comment about Q1 being a low point and talking about the drivers of that. And just to clarify, it is a combination of both tax, corporate and the ramp-up of our restructuring benefits that will together add about $0.25 of EPS.
So the timing of it, it is probably going to defer depending on business. We have fast portfolio of different businesses that have different drivers. So we are just providing you a top and bottom for the total company. Jim, I don’t know if you want to add anything else.
James Foster: I mean I think that was fine. I mean we are quite confident that we are going to see a sequential improvement in top of the bottom line throughout the year. Some of that has to do with the comps of last year. Some of it has to do with our assumptions. I went through a bunch of those with the first question I answered business by business. There are some subtle things that are improving. There are definitely some subtle things that are improving in the marketplace, in the M&A space and with the capital markets. Look, the one thing that you should all keep in mind is that there is – there would be and there was enormous demand for our services. The preponderance of our clients have to do the work externally. They have no internal capacity.
Their portfolio is quite full and robust given the lesser of modalities that they have to work on. And so our clients are holding back. Our clients have reprioritized. The clients have good drugs sitting on the shelf. So our clients are clearly very frustrated by that. And so I think we think that we get to the point where they are more comfortable spending because they have greater access to capital. The demand should improve nicely. Is it going to improve overnight in one-month, one quarter, I don’t know, but we do think that it will sequentially continue to grow when we have seen this before. We have several of our businesses where the work does come in and go out very, very quickly, particularly Discovery and Biologics, and we have others that we have very close relationships with the clients and the pricing is all fixed.
And so the ability get a slot is quite straightforward. I’m so optimistic with our guidance so optimistic that the demand comes back. Yes, it comes back, it is only when. It is a little bit murky to call, but we are calling it as best we can given decades in the business given the fact that we talked to thousands of clients every week. Given the fact we actually we have a very good understanding of the competition and what the strengths and limitations are. So yes, we would be very surprised if anything happens to change the slope of growth. Obviously, there are exogenous things under our control, but the things that we see that are within our control or that are already in sort of calculated in our guidance, it is unlikely those things will change.
Operator: And we have time for one more question. We will take our last question from Dan Leonard with UBS.
Daniel Leonard: I just wanted to clarify, are you seeing any of these improved external indicators in the biotech market translate into increased inquiry activity or RFPs in DSA – and if you are not, what would you expect any lag to look like if there was a sustained capital markets recovery in biotech?
James Foster: It typically doesn’t turn on a dime. I mean we get asked this question a lot. And of course, we live lots of different I hate to turn cycle, but lots of different sort of funding time are in biotech. I think the biotech companies have increasingly gotten very careful about the way they are spending money. Having said that, as I said in the last question, I do think that they will spend more aggressively and more boldly if they have a sense that access to capital is easier and will be sustained as opposed to something that is going to be lumpy. I wouldn’t say that we have seen any dramatic change in the slope. I mean, we watch our bookings and we watch the proposal in bookings very closely. We obviously, as we talked about earlier in this call, very, very interested in cancellation and slippage levels, which I think are we are hopeful that those will come down.
I mean the fact that we have a 12-month backlog, I think, is a positive. And as I said earlier, if that were to turn into a six or nine-month backlog that would be fine as well, so there is a lot of work out there, a lot of interest, limited competition and cautiousness across the board with our clients who are just like we have to hold off until we have a better understanding of where we are going to have better access to the capital markets. And there is certainly some – at least some early indications that, that is around the corner. You can see in our guidance, we believe we are going to see that at the latest in the back half of this year. And that will obviously be meaningful to, I think, most parts of our business and should accelerate our growth rate.
We do have sufficient capacity, certainly physical capacity, and we are trying to manage our headcount according to demand. So I think our headcount is in good place. So as the work comes, we will be able to comment at.
Operator: Thank you. I will now turn the conference back over to Todd Spencer for closing remarks.
Todd Spencer: Thanks, Shelby, and thank you all for joining us this morning. This concludes the conference call.
Operator: Thank you. That does conclude today’s Charles River Laboratories Fourth Quarter and Full-Year 2023 Earnings Call. Thank you for your participation and you may now disconnect.
