Bruce Young: Yeah. And certainly there’s a little caution with our responses. Well, the area that we’re seeing the most challenging would be light commercial that is more sensitive to interest rates and inflation and relying on more regional banks. Those projects have either been pushed out or shelved entirely. And so we’re waiting to see that come back. And then we believe as a as the economy improves, there are new projects that will come on in that sector that will give us opportunities for growth as well. But the infrastructure is growing. We’re seeing more visibility there. Residential has been very stable for us, and we see that continuing. The large projects are fairly stable. It’s just that that light commercial that’s causing concern.
Stanley Elliott: And can you talk about like a backlog business, maybe where it is now, how that change? You mentioned it sounds like the order environment and kind of the quoting activity is still pretty strong. But would also seem to imply that you’re working through some of the the existing book of business you’ve been building up.
Bruce Young: Yes, that’s right. And as you remember, about 50% of our business we can track is backlog. And that’s the larger commercial projects and the infrastructure projects, that really hasn’t changed. It’s the light commercial projects that are more difficult to track that we’re seeing the softness in.
Stanley Elliott: And could you talk a little bit about the restatement piece that you had in the US pumping business. Exactly what was that for? And remind us again why you decided to do it now?
Iain Humphries: Yeah, so every year, Stanley, we’re looking at the allocation of resources from across all the segments. So really the adjustment is really a true-up of those central resources that we have within our business and allocate them based on the business segment and growth and use of capital. So it’s really the update on the allocation that we’ve revised.
Stanley Elliott: And then lastly, what are exactly your plans for the buyback? And then you put some time frame around how long it extends out. I think it was March 2025, but you plan on being more active. Just any help from a context there would be great.
Bruce Young: Obviously, we continue to feel like our stock is undervalued. And some of the use of our capital is if we’re not using it to buy businesses or equipment, maybe the best use of the capital is buying shares at values that we think are reasonable for us.
Operator: The next question comes from the line of Tim Mulrooney with William Blair.
Tim Mulrooney: Bruce, Iain, good afternoon,
Iain Humphries: Hi, Tim. How are you?
Tim Mulrooney: Doing all right. Thank you. Let’s start with your your outlook here. It looks like you guys are calling for about 6% revenue growth at the midpoint. Can you kind of break that down for us between your growth expectations for US Concrete versus the the UK business and Eco-Pan?
Iain Humphries: Yeah. So on the organic side, if you look at the midpoint, it’s really 2% or 3% on volume and 29% or 3% on price. Quality beyond that is at the lower end of that range. And there would be an assumption that price and volume is on the flatter side. And on the higher end, we would expect to capture more share, more price, and more volume on the top end.
Tim Mulrooney: Is that the total business there or is that for the US pumping business specifically, Iain?
Iain Humphries: Yeah, that’s for the total business. What you can expect to see on the year-over-year change for the Eco-Pan and the UK business, Eco-Pan, as you know, has been growing north of 20% year over year. The first quarter was a little softer on that based on the volume of weather they had to deal with. Obviously we guided consistently to at least double-digit growth, and we would expect to continue that for the Eco-Pan business. And as you can see that the organic growth on the UK is continuing to move along quite a nice pace and to acquire the 20% year-over-year growth on. So that’s moving along as we would expect towards the back end of the year.
Tim Mulrooney: Okay. So no real change there. Continued strong growth in those businesses. And that Eco-Pan business, so I saw the revenue was higher, but EBITDA was a little lower. It sounds like from weather-related impacts. And would you expect margins to be up year over there for the remainder of the year? Or are there other factors at play here for Eco-Pan?
Iain Humphries: Yeah, the impact in Q1, it was really a downstream impact of where they’ve got weather. They’re less sensitive to it than the US pumping business, but not immune to that. So there’s a little bit softness in the operating leverage just from that downstream effect of labor utilization when there’s difficult weather.
Tim Mulrooney: Okay. So otherwise, though, you’d expect continued margin accretion in that business as we continue to build out density, et cetera?
Iain Humphries: Yeah, we would expect to continue to stand strong margins on the Eco-Pan business, yeah for sure.
Tim Mulrooney: Okay. Cool. Last one from me. I think I recall you talking on your fourth quarter earnings call about some undisciplined pricing from industry competitors, which crimp stability a little bit to take rates higher. Did you see that dynamic carry over into this quarter?
Bruce Young: We have seen some of it carryover, but it is improving as equipment prices go up and companies are doing quite as well as what they had in the past. We’re seeing them looking being more thoughtful about how they bid work as well. And certainly that helps us out as well.
Operator: [Operator Instructions]. The next question comes from the line of Avi Jaroslawicz with UBS.
