Faiza Alwy: Yes, hi, thank you, Todd. So I wanted to follow up on both the first aid business and the fire business. You touched on the first aid a little bit, but curious on what’s driving the acceleration, if you could expand on that, both on first aid and fire. And then as we think about your outlook, do you expect this level of growth to sustain looking ahead? And, I know in fire, you talked about an SAP implementation that was happening in this fiscal year. So maybe is that helping the top line? Has that happened? How should we think about margins going forward in that business?
Todd Schneider: Good morning, Faiza. Thanks for the question. We really like the fire business. It’s the only business we’re in where you legally have to have it. So there is, I’ll call it double negative, no program market. Everyone is a programmer. But we are able to cross-sell very well into that market. We’re using various technologies that Mike referenced to make sure that we’re positioning our partners to be more successful, meaning we use SmartTruck technology in all of our businesses, and that helps us. But we’re getting leverage from our growth. And the growth is attractive. And we think it’s – there’s certainly — running a business isn’t linear. So there will be ebbs and flows, but we like the long-term outlook for the fire business.
That being said, as you mentioned, we are going through an SAP implementation. We certainly — we haven’t even implemented at this point, so we haven’t seen any benefits just yet, but we’re optimistic about how that can help our business over the coming years.
Mike Hansen: Maybe I’ll add two things to the fire, and a little bit of first aid too. The market opportunity in those businesses is really large and our expectation as we’ve talked about is that those businesses will continue into the future near that double digit type of a place. Again, the market opportunity is really large. One last comment on the SAP, we’ve not started it. And so as we get into that, which is likely going to be more about next fiscal year, we may see a little bit of pressure in the fire segment because as you can imagine, when you turn — when you start to go into an SAP conversion, you don’t get benefits overnight. It takes a little bit of time. So we’ll have some additional costs in ‘25 and certainly then setting up really nice benefits into the future for that business.
Faiza Alwy: Great, thank you. And then if I could just follow up on the macro environment, you made some comments in response to a previous question around just you’re being prudent and there is some uncertainty. Just given sort of how well you are doing [with no programmers] (ph) and the momentum you are seeing in sort of these other businesses, I’m curious if you can give us a framework in terms of how we should think about the impact of macro on your business.
Todd Schneider: Well, I’ll start, Faiza, with, our history has been we grow certainly in multiples of GDP and employment growth and you hit it. We are able to sell into no programmers. Even when they’re not, let’s say, adding people, we can take pressure off of them by managing programs for them. So our new business effort is always really good. But certainly, if we see turns in the economy, we’ve got to adjust potentially. If we see our customers start to reduce their number of people, we’ve got to adjust. And so it is prudent for us to sort of think about that as we look into our guidance and into the future of the business.
Faiza Alwy: Understood, thank you so much.
Operator: And our next question comes from Seth Weber from Wells Fargo. Please go ahead, Seth.
Seth Weber: Hey, good morning and happy holidays, guys. I wanted to just go back to the clean room discussion for a minute. If there’s any way to frame how we should be thinking about that, new facility openings, and are those facilities higher CapEx relative to a traditional facility? Is there any way to combine facilities or I’m just trying to get a better understanding of this opportunity and what the investment might be for Cintas going forward? Thanks.
Todd Schneider: Yeah, Seth, thank you for the question. As you know, that’s a segment of the uniform market. As I mentioned earlier, it does seem more companies over the last decade or so have higher cleaning quality requirements, so we think there’s a tailwind there. As far as the CapEx required for a facility like that, you can think of it as very similar to a uniform facility. The only difference I think that you may want to think about is, it serves usually a larger geographic area than we would with a traditional facility. And the reason being is we only have so many of them and they have to cover the customer base. So as a result of that, we do cover a larger geographic area for — out of each of those facilities.
Seth Weber: Okay, that’s helpful. Is there any way for us to think about how many of these facilities you might be opening over the next couple of years relative — I mean I saw the press release for the Wisconsin facility, but is this order of magnitude ones and twos or could this be much bigger going forward?
Todd Schneider: Yeah, Seth, I wouldn’t — you’re not going to see ones and twos coming out every quarter or every year based upon the size of the market. So it certainly won’t be anywhere near that pace. But it will be paced based upon the demand from the marketplace. If there’s more and more customers that are interested in it, then we’ll be prepared to meet that demand.
Seth Weber: Okay, that’s helpful, thanks. And then maybe just a quick follow up on the direct, it’s nice to see the direct sales business turn positive again in the quarter. Is there any color on whether that’s coming more from the service side of your customer base, more of the manufacturing side, and any just detail there or is it just kind of across the board?
