Ryan Connors: Got it. Very helpful. Thanks for your time this morning.
Steve LeClair: Thanks Ryan.
Operator: Our next question comes from David Manthey from Baird. Please go ahead.
David Manthey: Yes. Thank you. Good morning guys.
Steve LeClair: Good morning.
David Manthey: Mark, flat to up low-single digits, just so understanding that clearly, I believe you are talking about market volume growth there. And if you could just give us a little bit of color in terms of what informs that outlook, understanding it’s preliminary, but is this discussion with your larger builders, some visibility in the municipalities’ fiscal year budgets? How do you build that up?
Mark Witkowski: Yes. Dave, thanks for the question. So, we got you back. Yes, as we look out into 2024, Dave, it’s really all those factors. We look at large amount of external data sources, which is important for us. But we have a large volume of internal data that we look at from bidding activity that’s likely to produce results into 2024 and then a lot of discussion with our local teams that are looking at and talking to their customers about what to expect for 2024 and then obviously, also comparing those expectations relative to the numbers that have flown through in 2023. So, it’s a lot of different sources that we are looking at there. I would say we always place the most reliance on the internal data that we get from our teams and that we track, which really helps inform us for like we talked about, at least at this stage, what to expect for 2024, but we do plan to update everybody on that in our call here for the full year of ‘23 on next quarter’s call.
David Manthey: Got it. Thank you. And second, a little bit more of a broad question here. Could you talk about technology and how important that is relative to your long-term outgrowth versus your competition?
Mark Witkowski: Yes. I would say from a technology standpoint, a major driver of our business is productivity and effectiveness of quoting our customers. That’s really the starting point. We had laid out a lot of that technology in our Investor Day presentation. And then we have a number of tools available for our customers to really drive some stickiness from our perspective with those customers that just make it easy to do business with us. I would say less so from a driver of revenue growth or e-commerce related. While we have capabilities for that, that’s really not a driver of majority of the revenue that we have as a company. So, really I think as it relates to being more productive, getting in front of our customers faster than our competitors and then having technology that drives stickiness with tools like online advantage and others that really provide that stickiness is how we think about it from a technology perspective.
David Manthey: Perfect. Thank you.
Steve LeClair: Alright. Thanks Dave.
Operator: Our next question comes from Andrew Obin of Bank of America. Please go ahead.
David Ridley-Lane: Hi. This is David Ridley-Lane on for Andrew Obin. At the Investor Day, the slide on the bridge to the 15% EBITDA margin goal included a 30 basis point decline in fiscal ‘24, given some of the gross margin normalization, given you are raising fiscal ‘23 EBITDA margin by about 55 basis points, should we think about that as being more like an 80 basis points to 90 basis points decline in ‘24, or are some of these margin improvements, sustainable, i.e., is this sort of a timing impact, or have you been sustainably outperforming your plan on gross margin?
Steve LeClair: Yes. David, thanks for the question on that. I would say we have definitely been pleasantly surprised with the gross margin performance throughout 2023 and definitely, the pricing stability that we have seen in the market has helped drive some of that. So, while we are seeing some low-cost inventory catch up with market prices, stability of pricing, I would say, has provided better results than we had anticipated early on when we kind of laid out the gross margin normalization. There is still risk and we will watch that while prices are stable, that can put some pressure on margins. So, we are still guiding towards gross margin normalization in Q4 and some of that spilling into 2024. But if we can keep executing on our gross margin initiatives, we are going to be in a good position to offset as much of that as we can and hopefully minimize what that impact looks like in these out years.
David Ridley-Lane: Got it. I mean I guess another way of asking it, you have talked, I think in the past about 100 basis points to 150 basis points of one-time gross margin benefit. Are you thinking now more closely to the 100 basis point piece of that range?
Steve LeClair: Yes. David, I have just said, I think with the pricing stability that’s resulting in better margins than we had anticipated. I wouldn’t say we are ready to update range yet of expectations, but definitely something that will be a focus as we lay out our kind of more detailed planning for 2024 on next quarter’s call. But I think you can gauge from my comments that at this point, we are pleasantly surprised with how that’s come in here for 2023.
David Ridley-Lane: And if I could sneak one more in, you did mention sourcing optimization has been helpful. I am just thinking all you, your peers, everyone is destocking. So, I am wondering if some of the benefit there is suppliers, have suppliers offered any incentive to take product, right, because if all the distributors are destocking, the suppliers are seeing lower orders, right? So, are you seeing any of that kind of incentive activity?
