Todd Schneider: I’m certainly happy to start, Mike. Regarding — Heather, good morning. And regarding M&A, so it’s an important component for us. You certainly cannot pace M&A. So they kind of come as they do, and it takes two to dance. And — but I can tell you the two that we announced this past quarter are great businesses first off, really good operators, really attractive businesses. In the case of the one in Kentucky, it provided us with some needed capacity in that region of the country. In addition to the added capacity, we were able to absorb that volume into seven of our facilities. So some really nice synergies allows us to, as we’re closer to the customers, to spend more time with the customer and less time driving.
So that’s important to us. In the case of the acquisition in the M&A in Pennsylvania, we did not acquire any additional capacity. But in that case, we were able to absorb it into 16 of our facilities. So again, attractive synergies, more time with the customer, less time driving. And in those cases, we also then get to talk to our new customers about the broader breadth of products and services that we have. So we think it’s — overall it’s very attractive. As I mentioned, it takes two to dance. You can’t pace it. But in this case, these were two really attractive businesses, great operators that really made sense for us.
Mike Hansen: Maybe a couple added points. As Todd said, these are great acquisitions, and we’ve had a handful of them this fiscal year. Each of the two that Todd talked about is less than $20 million in annual revenue. The $17.4 million that we gave you in our prepared remarks includes the impact of those. But keeping in mind, we’ve made acquisitions all year long, and so that fourth quarter impact would include all of the acquisitions we’ve made throughout the last 12 months. Just something to keep in mind as you’re thinking about our fourth quarter.
Heather Balsky: Thank you. Appreciate it.
Operator: And our next question comes from Andy Wittmann from RW Baird. Please go ahead, Andy. Hello, Andy. Is your line muted?
Andy Wittmann: I’m sorry about that. Mike, I just want to build on that last question where you were commenting on the M&A contribution. Is there any — in your fourth quarter guidance, is there a change in your fundamental outlook for the company, recognizing that it is up now somewhat on these two — somewhat larger acquisitions that you did? And then as an addendum to that, was this 60 basis points or $45 million legal settlement that you just talked about, was that included and considered in your initial guidance? Or are you absorbing that and still able to raise your guidance here?
Mike Hansen: Yeah. So, Andy, I already forgot your first part of the question. What was your first part?
Andy Wittmann: First question is, does your fundamental outlook for the business unchanged?
Mike Hansen: Yeah, yeah.
Andy Wittmann: Is your fundamental outlook unchanged for 4Q or is there a change…
Mike Hansen: Yeah. I apologize. No, as Todd talked about, our market remains very large, the momentum in the business remains good, the adoption remains good, and the guide for the fourth quarter is right where we want to be in terms of sort of the stated profile of growth that we want to have. And so, all of that put together with not really any change in customer behavior would mean, no, continued performance like we’ve seen, and we continue to like the momentum of the business. As it relates to your second question, the 60 basis points, that was not contemplated in the initial guide from the beginning of the year and that was simply absorbed through — well, in this third quarter, the 60 basis points simply absorbed.
Andy Wittmann: Okay, thank you. That’s all my questions for today.
Operator: And our next question comes from George Tong from Goldman Sachs. Please go ahead, George.
George Tong: Hi, thanks. Good morning. Can you provide an update on the external selling environment, including how client budgets and sales cycles are performing?
Todd Schneider: Yeah, I’m certainly happy to start. George, good morning. We haven’t really seen much of a change in sales cycle as far as our — the interest in our products and services remains good. We’re always continuing — we’re continuing to invest in new products and services. Tweaks, I guess, certainly to them to make it as attractive to the prospects and the customers as possible. But we’re not seeing a change. Momentum continues to be good. Outsourcing still resonates and we’re seeing, as I mentioned earlier, the no program market is still really, really large. And we’ve become pretty darn proficient at presenting to those prospects to help them run a better business. And we help them with all the products and services we provide. And as I mentioned, it’s not always new money. Usually they’re spending something. It’s just redirecting it to us to do it better, faster, smarter, cheaper type thing.
George Tong: Got it. That’s helpful. And then separately, can you talk a little bit about your focus verticals, including healthcare, how much additional runway is there for these focus verticals to serve as a tailwind to organic revenue growth?
Todd Schneider: Yeah. So, George, so it’s in our internal growth. So it is helping us — that focus is helping us to organize around the customer and provide the products and services that they want. And that has been a good strategy for us over the past number of years. So we like all the verticals we’re in. We find them very attractive. Whether it’s healthcare, hospitality, education, state, local government, business, it’s all attractive and we’re organized around it and our value proposition is resonating with them.
Operator: And our next question comes from Tim Mulrooney from William Blair. Please go ahead, Tim.
