We are thriving because of our people’s commitment, excellence and hard work and because of our field leaders’ discernment in choosing projects and managing risk. Thanks to them, we feel confident in our prospects for continued growth and strong profitability into 2024. Our #1 priority remains to preserve and grow the best workforce in our industry. We are grateful for their and your trust. I want to end by thanking our over 15,000 employees for their hard work and dedication. I’ll now turn it back over to Valerie for questions. Thank you.
Operator: [Operator Instructions] Our first questions comes from the line of Brent Thielman of D.A. Davidson.
Brent Thielman: Great quarter. Brian or Bill, I heard your comments that you anticipated margins sort of hanging around the range you spoke of the last few quarters. Any reason to think the margins would be down next year given this year’s really strong performance?
Brian Lane: Not really. As you know, Brent, you’re going to have margins move up and down quarter-to-quarter a little bit. But in the aggregate, if you look over the whole year, I think we’ll continue to perform at a very high level into 2024. Over 20%, as you know, is extraordinary, right? But the high teens that we’ve been hitting, I would anticipate continuing to hit that.
Brent Thielman: Okay. Okay. And then when you refer to a cash flow sort of headwind in the coming quarters, do you anticipate cash flow sort of getting back to that historic conversion rate? Or how are you thinking about that?
Brian Lane: So it’s — if you combine time period, that’s easy, we’re going to cash flow our after-tax earnings. We’re in an interesting situation now where we’ve collected hundreds of millions of dollars before we’ve gone out and done the work to earn it. There will be quarters at some point in the future, maybe middle of next year, but maybe not where we’ll be paying the guys doing the work we’ve already been paid for. So we could have some cash flow quarters where that has to be reflected in our cash flow. At the same time, we’ll keep making money on all the work we’re doing then. And so it’s hard to say where that will bake out. What we won’t continue to do is cash flow twice or double our earnings, right? So at some point, we will cash on average over a multiyear period, we’re going to cash flow our earnings, no more, no less.
So I don’t know, it’s fantastic news, right? Think about the position you’re in when your customers are paying you massive amounts early. But — and it’s really hard to — we thought we might start to see some of that slide this quarter. So we booked new orders and guys were ahead on their billing. So it’s — I don’t really have a lot of faith in our ability to guess which quarter. We’ll see some of that turn around because, frankly, our guys keep surprising us in doing better than we thought.
Brent Thielman: Hopefully, that keeps happening, Bill, but understood. I guess just on modular, could you talk about maybe the dialogue you’re having with key customers or new customers now that you’ve got some additional square footage in place still seems to be some folks that wonder if data center customer spending continues at the rate it has. Just curious any anecdotes you could offer there.
Bill George: So we are doing everything we can to meet the needs of a very large and very loyal customer that we feel like we’ve really had a great relationship with and we’ve done our best really to serve them. We have another similar large hyperscale data center customer that has given us some notable amounts of work over $100 million as they try to sort of learn about our capabilities and there’s certainly additional work for that customer that we’re already looking at on a very collaborative basis. Really at this moment, we couldn’t sell as much of that stuff as we can build. As you know, we’re in the midst of doubling our capacity. We’re not going to decide to go double it again or until we’ve successfully really done that.
