Joshua Chan: That’s great. Thanks for the color and thanks for your time.
Operator: Your next question comes from Justin Hauk with R.W. Baird.
Justin Hauk : Good morning, everyone. I wanted to — I guess, my first question, maybe a follow-up on Andrew’s question, just on the implied revenue growth, the 7% in 2024. And maybe you can kind of pull out the puts and takes, but that’s coming off of a 12% you just did here in ’23, that was off of already a really strong 10%. 7% is more, I guess, kind of in line with kind of your long-term historical organic growth. And so — maybe you can just give us the puts and takes. Is it all pricing that accounts for the delta because it sounds like your new business and retention and kind of existing sales are all still very strong? So I’m just trying to understand the moving pieces?
Todd Schneider: Thanks for the question, Justin. I’ll try to answer and see if Mike wants to expand upon it. So when you think about our growth, Q4 growth was around 10%, which is really nice growth, especially considering a strong comp of last year of 12.7%, which was our strongest growth of the year, that year. So if you compare that 10% to the — I’ll call it the top end of our guide or in the mid-7s to higher 7s, you can think of that as really pricing returning back to closer to historical levels. And as I mentioned earlier, the reason that we see this as appropriate and is we’re seeing an easing of inflation. And we saw that — you can see that in the drop in the cost of energy that we’ve seen, the benefit we received in Q4.
And as I mentioned earlier, also you saw it in the CPI report yesterday and the PPI report today. So — and as you appropriately said, I mean, we’re guiding towards a more historical type of growth volume growth is really good still. Pricing will return closer to historical appropriately so. But all that being said, we will still have — we’re guiding towards incremental margins and operating margin expansion. So pricing is a lever, but it’s not our only lever available to us in order to expand margins.
Justin Hauk: Okay. No, that’s helpful. I mean that’s I guess, kind of what you were implying, but I wanted to clarify that, that was kind of the magnitude of the change. I guess the second question, just on the insurance cost increase, and maybe SG&A as a percentage of revenue in general, how much of an impact was that in the quarter? And then is that kind of a run rate headwind that you’ll face next year? And the reason why I ask is, obviously, you’re implying margin expansion here, but your SG&A as a percentage of revenue is still pretty low versus kind of pre-COVID levels. And so just trying to understand how much structural SG&A leverage gain you have here versus returning to more of a normalized level?
J. Michael Hansen: Justin, because we are self-insured, those claims can — they can kind of move up and down throughout the year. There’s nothing that we would say is structural related to that. It’s just a product of being self-insured. We ended the year at 26.9% in SG&A, that is, gosh, a couple of 100 basis points maybe lower than pre-COVID in the last few years, and you’ve heard us speak about this. Look, we’ve worked hard to get it to that level, and we don’t want to get back to historical levels. So our expectation is we’re going to continue to find ways to better leverage SG&A, particularly G&A to make sure that it contributes to our margin expansion into the future. So we’re going to continue to work hard to look for opportunities to bring it down and do not expect it to return to those higher 20 places that we were in pre-COVID.
Justin Hauk: Great. Okay, I appreciate it. Thank you.
Operator: And we’ll hear next from George Tong with Goldman Sachs.
