Todd Schneider: Well, Heather, it’s a great question. I’ll start. Mike, feel free to chime in. We’re — there’s various reasons why a prospect would turn into a customer. Going from a no programmer to a customer. One of them is, hey, where we’d like to outsource it, because we’re not very good at it or we’re not — we don’t have — we’re struggling to staff and we’re struggling to find people to manage this. So, that still continues. But there’s other reasons. It might be, we don’t like the image that we’re portraying. We don’t like the lack of identification. We don’t like the lack of compliance. You can provide them, and we know that they’re hygienically clean. So, there’s many different motives. One of it might be, hey, we can’t staff, and we need help.
And we still see that, frankly. And it allows our customers to focus on what’s most important to them, taking care of their customers, their patients, their guests, whatever it is, instead of having to manage through these various programs.
Mike Hansen: Heather, the no programmers is still — we get — more than 60% of our new business comes from no programmers. Your reference to the pandemic might be, we did certainly, in the early days of the pandemic, see an increase in personal protective equipment and things like hand sanitizer. Those have normalized back to what we would call normal and ongoing levels, so that might be the only change that we had, and back to normal.
Heather Balsky: Thank you. And then, on the margin front, we’re just kind of curious, when you think about — you talked earlier about opportunities for efficiencies and further route productivities, when you think about the source of those savings, how much are just organic Six Sigma efforts, how much is coming from your SAP, and are there still G&K synergy or opportunities that you’re kind of benefiting from? Thanks.
Todd Schneider: Heather, it’s a good question. We don’t really discern the difference between our Six Sigma team, our Engineering team and our Technologies. They all have to work, be orchestrated appropriately to get the efficiencies, so — and that’s exactly what we’re doing. So, everybody has to be involved. And that’s what produces the great results. As for G&K, yeah, we’re — we now — we’re I think about six and a half years since we acquired, if my math is correct. So, yeah, I wouldn’t say that there’s anything left on the bone there.
Operator: And your next question comes from Andy Wittmann from RW Baird. Please go ahead, Andy.
Andy Wittmann: Yeah, great. Thanks. Good morning, and thank you for taking my questions. I guess, I just wanted to ask on the outlook a little bit here, Mike. The second half total revenue guidance is in the 7% range at the midpoint against an organic 9% quarter here. So, a degree of deceleration. I guess that was implicit in your previous guidance as well. But just thought maybe give you a chance to elaborate a little bit more on that, talk about what you’re seeing in the macro, if that’s just you guys being kind of your normal prudent approach, or if there’s something that we should be considering?
Mike Hansen: Andy, I’d lead with it’s our normal prudent approach. And when you think about where we are, we’ve talked a little bit already about growth is still good, momentum is good, and so we like where the business is going. The range for the back half of the year does — certainly does imply a little bit over 7% at the midpoint, a little over 8% at the high point. We like that range. The cadence is good for us, as you know. But, look, as we look into calendar ‘24, there certainly is a little bit of uncertainty as to what the new economy may bring, what the Fed movements may bring, and so we think it is wise to be prudent as we look out.
Andy Wittmann: Great. That’s my only question for today. Have a Merry Christmas, guys.
Todd Schneider: Thank you, Andy.
Operator: And our next question comes from George Tong from Goldman Sachs. Please go ahead, George.
George Tong: Hi. Thanks. Good morning. Earlier you mentioned that business momentum was good. Volumes were robust in the quarter. Can you provide more color on overall customer budget trends and customer sentiment, and any changes that you might be seeing in the sales cycle?
Todd Schneider: George, we — good morning, George. We — forward-looking, as Mike said, there’s always — we’re not trying to prognosticate exactly how our customers will react to the turning of the calendar year, but we’re not seeing any change in sales cycles, and we haven’t seen a change in our customer base and they’re — how they’re reacting to what’s going on in the marketplace. So, it’s kind of business has been consistent, and it’s more what Mike referred to the turn of the calendar year. And we’ll see how businesses react coming out of the holidays.
George Tong: Got it. That’s helpful. And also you mentioned cross selling was good in the quarter. Can you elaborate more on cross selling trends that you’re seeing, in which areas you’re seeing most amount of bundling or upsell, cross sell from?
Todd Schneider: Yeah, George. Cross sell is — it’s an important component of our growth, and the nature of it is we’re having good success across all of our areas of our business. We’re blessed to be in a position where our customers, fortunately, they really like us. They like our relationships. We have people in their businesses on a really frequent basis, mostly on a weekly basis. So they — and we have — so that means we have eyes, ears, and minds in their business and we can help. And it doesn’t matter to us what a customer might lead with, whatever they’re interested in, but then we will quickly pivot and we can help them in many ways. So — but just the nature of the size of the rental division is such that because there is — are so many customers there, there’s plenty of opportunity for our First Aid and Fire business to cross onto that just because of the numbers there.
