Eric Dugas: Jim, just to — Eric, just to interject and make sure I was clear with the answer on Thompson. The $12 million incremental EBITDA, that’s what we’re kind of forecasting in the ES Services segment, there’s obviously also some incremental kind of corporate-related costs of $2 million to $3 million there. So you’re looking at a $9 million kind of all-in number from Thompson this year.
Mike Battles: And the Thompson team, I know they’re listening on the call, we’re actually doing a great job. The innovation is going very well. We’re really pleased with the early days in the Thompson acquisition. So we’re really excited by it.
Operator: Our next question comes from the line of Larry Solow with CJS Securities.
Larry Solow: Most of my questions have answered. I do have a couple. Mike, I am looking forward to the new scoreboard going up in the office too. Just a couple — I guess just a follow-up on the PFAS you mentioned sort of waiting for some regulatory stuff to come down. What — can you give us sort of a high level from where we stand today? What can we look for, I guess, it’d probably be more towards the end of this year or maybe in ’24 on the regulatory front in terms of milestones to kind of look for?
Eric Gerstenberg: Really standards we’re looking for, Larry, around remediation and what contamination in industrial and particularly contaminated soils that would set a baseline to get activity to begin to remediate down to those standards. That’s what we’re looking for.
Larry Solow : Any time line on that, that’s — is that a — that’s a 2024 event?
Eric Gerstenberg: Yes. We would hope that in 2024, we would see some strong movement towards those standards being set.
Mike Battles: So the regulatory EPA in December, but they said August earlier. So it’s been moved couple of point. So they are [indiscernible] probably we wouldn’t want to draw lines to stand, but what we’ve heard is kind of mid-December, but I heard mid-August a few months ago.
Larry Solow: Right. I think I heard late December too, and last, so I thought maybe that might push into ’24, but even so, hopefully, within the next 6 months or something, we get something, at least, right, some more clarity on it. Right. Okay. And then just a follow-up just on incinerated business. And obviously, you mentioned we’re still kind of running a capacity-constrained environment. Can you just kind of give us sort of a state of the union there? What — I know I think Veolia had a little more capacity this year. I don’t know if the other small guys are putting through some throughput improvements, but kind of where we stand there. It sounds like you guys are confident that you’ll have — that your increased volume will be filled pretty quickly. Just kind of what gives us that confidence? And I think you mentioned some potentially more closing captives there? If you can give us some of your update on that front, that would be great.
Eric Gerstenberg: Yes, Larry, a few items there. First, I’d like to clear up that Veolia has not been able to bring on early capacity this year. So that they’re the same time line we are, in fact, it might be a little bit longer than what we’re anticipating. Our pipeline working with our captive continues to be strong. The overall industry capacity continues to be very challenged, as this is why we’re investing in Kimball, while Veolia is investing. We think that capacity even with the coming on of both the plants, capacity will be tight, will continue to be tight in the years to come. The captive relationships that we have are outstanding. They are — everybody who has a captive is also a customer of ours, and we continue to work closely with them as they change their waste stream mix to be able to make sure that we are making adjustments with our plants to be able to support whatever captive closures may come.
Operator: Our next question comes from the line of Tobey Sommer with Truist.
Tobey Sommer : I wanted to start and maybe you could dig into and speak to what the right level of sort of ongoing corporate call growth there should be, you mentioned insurance a couple of times, maybe you could disaggregate some of the influences in the reported quarter year-over-year. And then help us understand an expectation for a trajectory over time going forward.
Eric Gerstenberg: Yes. Sure, Tobey. It’s Eric. I’ll take that one. So when you think about kind of the year-over-year growth that we saw, obviously, still seeing inflationary pressures on wages. And things — obviously, I think all companies are seeing that and we’re seeing it as well. So you see some increases there. You also see some increases from investments that we’re making in several of our technology platforms. So those are probably the 2 largest year-over-year. Going back to salary and wages. I think the team has done a great job kind of keeping corporate headcount very flattish throughout the year, absent the Thompson acquisition. So that’s how it would kind of bridge the year-over-year. I think as you go forward, we’re certainly trying to keep corporate costs as a percentage of overall revenue, I think kind of below that 5% range.
And then year-over-year, every year, we target $100 million worth of cost savings initiatives. Many of those are in the corporate area. We’ll continue to target those. But we usually target a 3% to 4% year-over-year growth rate on those.
Mike Battles: And just to be fair, Tobey, we continue to make investments in our people. We continue to drive — to absorb health care costs of our employees, which has helped drive turnover down — almost 40% down from the 2000 — voluntary turnover down, 35%, 40% down from the 2022 highs. And that really is a testament to us continuing to make investments in our people not just through better base wages, better benefits, better opportunities, better career opportunities. And I really think we’re seeing the benefit of that. As Eric talked about the safety stats, they talked about and how proud we have those and then has a direct relationship to us lowering voluntary turnover because we know in the first 6 months, first year, first deployment, that’s what injuries having. So we’re really proud of that. It’s not free to add these additional costs to our employees are really proud of what we’re doing there.
Tobey Sommer: So we’re, I don’t know, plus or minus 7 months post get together for Investor Day in Chicago area. What do you feel more comfortable about at this point over the time period you outlined? Is it the organic revenue growth or the margin expansion?
