Bill George: Well, it’s productive capacity. Both of those two companies have more work available if they can take it the revenue ranges we put in is the amount that’s supported by their current backlog, it wouldn’t be surprising if they did a little more. They can’t do orders of magnitude more because there’s a time space mass problem with the number of people. But certainly, virtually every acquisition we’ve done within a couple of years was bigger. So we’re hoping that happens again.
Brian Lane: But they’re really good companies.
Bill George: Now one of the things we don’t push people revenue, right? We push them for — they could do frankly, close to half the time as of a year or two ago, I took a look. Companies shrunk the first full-year we owned them, close to half the time they were smaller, the first full-year we own them. But without with almost — I don’t think with any exception, the third full-year we own them, they’re noticeably bigger. So hopefully, that could keep happening.
Jean Ramirez: Got it. Thank you so much for the additional comments there. Appreciate it.
Bill George: Thank you.
Operator: And thank you. [Operator Instructions] We have a follow-up question. And our follow-up question comes from Alex Dwyer from KeyBanc Capital Markets. Your line is now open.
Alex Dwyer: Hi, guys. Just one more if I can squeeze one in. So the free cash flow conversion in 2023, I’m just doing the math, it was 175% to net income. Do you have any sense of like where this could shake out in 2024. Like should we be expecting something lower than 100%? Or just any thoughts on visibility and cash flow conversion this year?
Bill George: So that’s a really hard question because you have to predict the timing. So we have two things going on. One, we have really, really good payment terms on almost all of our work. And that is — we’re overbuilt at unprecedented built et cetera, et cetera. But the big different thing that’s going on right now is just when we take these modular orders, we have the right to receive advanced payments when we accept the order. So we have significant amounts of money that are being paid to us sometimes a year in advance of when the work will be done. So it’s very, very hard to predict when those orders will come in. I will say — we just had big orders in the fourth quarter. So some of that money was collected in the fourth quarter.
Some of that money will be — still be collected in the first quarter. So we’ll start the year off in a good position. And then I believe sometime, maybe later this year in the third, fourth or first quarter, the next quarter or two where our cash flows are less than our earnings. But I will say this time last year, I thought the same thing and the orders kept coming and we stayed ahead. So that’s why it’s so hard to predict because when my board asks me that, I just tell them, let’s just enjoy this.
Operator: And thank you. All right, thanks. And I am showing no further questions. I would now like to turn the call over to Brian Lane for closing remarks.
Brian Lane: All right. Thanks, Justin. I really want to, once again, thanks all of our amazing employees. It’s a great industry, and we really appreciate everything everybody does in this organization. Thank you all for your interest in Comfort Systems. I hope everyone has a terrific weekend and look forward to everybody soon. seeing everybody soon. Thank you.
Bill George: Thanks, everybody.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
