Mark Witkowski: Yes, Patrick. Thanks for the question. As you saw, we had some nice operating cash flow conversion in Q3, and we will look to expand on that as we get into into Q4. I’d say, yes, the $300 million to $400 million of inventory is an opportunity there that we think as we get back to more normalized supply chain environments that we should be able to release at some point. I’d say our €“ the way to think about it normally is probably 60% to 70% of our EBITDA we’d expect to convert into operating cash flow. So as you think kind of going forward, if we can capture some of that inventory, there should be some upside to that conversion rate into 2023.
Patrick Baumann: Makes sense. And then last one is just kind of a mechanical question around the capital allocation discussion. Just curious how you go about evaluating potential share repurchases from a share owner that remains the largest holder and also as members on the board?
Mark Witkowski: Yes, Patrick. Obviously, as part of our governance, we’ve got independent directors, we’ve got independent audit committee. So to the extent we look at a transaction like that, we would obviously go through and apply the appropriate governance to any potential transaction there. But yes, I understand the question, but that’s how we’d look at that.
Patrick Baumann: Understood. Okay, thanks a lot. Best of luck.
Steve LeClair: Yes. Thank you.
Operator: Thank you, Patrick. We have our next question, comes from Andrew Obin from Bank of America. Andrew, your line is now open.
David Ridley-Lane: Good morning. This is David Ridley-Lane on for Andrew. I wanted to go in a little bit on the non-resi revenue strengthening. We did see some indicators suggesting potential future weakness in non-residential, like the Architectural Billings Index fell below 50 and ConstructConnect is forecasting non-resi starts to decline for 2023. Do you think you’re gaining market share? Is it a regional mix that you’re benefiting from here, something else to explain the non €“ strength in non-res?
Steve LeClair: Yes, David, I think what we’ve seen is that while there is been some pressure in a couple of areas in the East Coast and West Coast, we’ve really strengthened our position in the Sun Belt, certainly strengthened our position in the Midwest over the last several quarters. And I think that’s paid off in some share gains for us. We’re continuing to see a lot of work as well, too, which we bucketed a non-residential in the storm drainage world. So we shared a little bit earlier about some of the conversion of specs from RCP into polyethylene and other storm drainage products. We’ve been helping to lead that effort in a lot of areas are continuing to see prolonged growth there. So non-residential has been a real good mixed bag for us of a lot of different areas with fire protection products and storm drainage products, where we’ve been able to accelerate some growth there and gain some share.
David Ridley-Lane: Got it. And how does the macro backdrop sort of change the way sellers are thinking? Is potential residential weakness ahead of them making them more willing to transact? How are sellers thinking these days?
Steve LeClair: Well, I think we’ve certainly seen from an M&A pipeline, as you’ve just seen in this last quarter, we’ve had a healthy pipeline. We continue to do that. We’ve been able to tuck-in some great businesses, almost across the spectrum on us from a fire protection distributor to waterworks distributors, it continues to be a very robust and healthy pipeline. Sellers have been through quite a bit over the last several years between COVID between getting through this whole supply chain challenge and everything else that’s been encouraged and now you look at a potential €“ many are worried about what could happen with residential. It just plays well to our strengths as the acquirer of choice in the space, and we continue to see just a robust pipeline of opportunities for us and from the M&A front.
David Ridley-Lane: Thank you very much.
Steve LeClair: Thank you, David.
