Andy Wittmann: Yeah. Good morning. Hope you all are doing well. I just wanted to talk a little bit more about free cash flow here, Alan. It looks like — I mean I guess the question is, is the tax and interest rate that’s in your EBITDA bridge, are those reflective of cash numbers as well as the accounting numbers. And do you also see — is there a potential to have outsized collections in working capital in 23-year DSOs up a little bit. And so I just wondered if you thought there was an opportunity there because when I put it together, with the CapEx guidance that you gave here. If those GAAP numbers on interest and tax reflect the cash numbers, I’m getting free cash flow in the maybe $10 million, $15 million range. I was just wondering you would comment on those issues CapEx?
Alan Palmer: Yes, I’ll be glad to, Andy. In 2023, the interest in 2023 would be reflective of cash interest. In 2022, we had about a $2 million credit to interest expense, which was a noncash credit due to marking the swap to market. When we entered the new $300 million swap in June of this year, that’s going through other comprehensive income. So it doesn’t show up in that interest expense number that you’re looking at. So that would represent pretty much cash interest during that period. I think one of the things that you’re seeing, and Jule alluded to it in his remarks about the free cash flow, we’ve got a fairly substantial amount of capital expenditures in 2023 that are related to some long-term growth initiatives. Jule mentioned the liquid asphalt terminal, and we’ll spend $17 million to $20 million of CapEx in 2023.
And that will only be in operation for about five months. So as we’ve demonstrated when we purchased the one in Panama City a few years ago, it substantially adds to the margin profile. It doesn’t raise revenue very much. But in this case, since we’re constructing it from the ground up, it’s a pretty substantial CapEx. But our typical maintenance CapEx is still about 3.25% to 3.5%. But that amount over that includes that liquid asphalt terminal and some other growth initiatives that we’ve got out there that are adding a fairly substantial amount that will pay off in margin in future years and a little bit this year as well as revenue growth.
Ned Fleming: Yes, Andy, we’re at — this is Ned. By the way, happy Thanksgiving to you and your family. But we’re still at the beginning stages of being able to reinvest our cash flow in high-return projects, and we’re going to continue to do that as we grow this business. If you look at it, whether it’s a return on capital employed basis with the assets or you just look at it and as Alan just did with margins, we have a lot of opportunities to continue to grow and build this business through reinvesting cash flow in high-return opportunities.
Andy Wittmann: Yes. Fair enough. That makes sense. And then just for a follow-up here. Just on Blue Water. So you’re giving up a quarry, you’re getting cash and three HMA plants and the construction operation. I think I understood that all correctly. Maybe, Alan, what’s the net difference in revenue from this that you expect? It sounds like the HMA plants and the construction operations are expected to generate more revenue than you’re giving up. But what’s the net change on that transaction? Or anything else you can help us — tell us to help us understand how that deal worked.
Alan Palmer: Yes. The first year, the net change in revenue is about $15 million. We think that will grow because we’re entering a very dynamic market, we have a lot of opportunity as we do and most acquisitions that we make to grow revenue after that first year. But in 2023, the net change in revenue is about $15 million.
Andy Wittmann: Great. I’m going to leave it there. Have a happy Thanks Giving all.
