Dan Schlanger: Let me take the first one on leverage. Our target leverage is around 5x debt to EBITDA. We understand that given the spending of capital over the course of 2024, along with some of the non-cash reductions that are going to reduce our – our non-cash impacts that are going to reduce our EBITDA that our leverage will tick-up a bit. But we believe that over time, the growth in our business will allow us to naturally de-lever back to our 5x and believe that we are in a good shape to do so. I wouldn’t talk about a maximum leverage at this point. I don’t think we need to talk about it that way. What we want to do is maintain somewhere close to our 5x. And then when we take above it, like we have recently and we will continue to in 2024, have very good line of sight and how we can bring it down with good capital management and good operating performance, which is what we think will happen.
Tony Melone: Dan, why don’t you answer the pacing of the leasing, and then I will circle back on the operational efficiency question.
Dan Schlanger: Sure. On the pacing of leasing, it’s generally level loaded through the year. Like we said, we believe the level of activity in 2024 approximates what we saw in the back half of 2023, and we think that will remain relatively consistent. There is a little bit, as is typical, that is back-end loaded. There is a little bit more in the second half than the first half typically when we see these, the leasing, mostly because our customers act that way. They spend more money in the second half of the year than we do in the first half of the year. But it’s nothing that I would speak to would cause a significant change in pacing of leasing activity in 2024.
Tony Melone: Thanks Dan. Regarding operational efficiency, the move to – with COOs of P&L responsibility, obviously, is a step that I feel will improve our line of sight on the efficiencies needed in each segment. And I think that in and of itself will allow us to drive efficiencies. In addition to that, there is a – the work we did in 2023 in the middle of the year with consolidations that – it’s important to distinguish that from the consolidation that you are referencing that we reversed. Those are complete. The benefits of those were in the 2023 results and will continue and flow through into our 2024 results as well. So, we feel very comfortable with the achievement of those efficiency initiatives. When I looked at the consolidation that had been planned for the end of 2023 and early ‘24, if you recall, we did not identify specific savings.
And quite frankly, those savings were more longer term in nature. So, the guidance we provided for 2024 and the efficiencies that we needed, I feel strongly that those efficiencies can and will be gained irrespective of our decision to cancel the consolidation that was previously announced. So, I don’t have any concerns in terms of achieving the efficiencies we need with respect to the change in that consolidation plan.
Batya Levi: Thank you very much.
Operator: The next question comes from Richard Choe with JPMorgan. Please go ahead.
Richard Choe: Hi. I just wanted to follow-up on the backlog for small cells. Is that still being added to, but the overall level should come down given the higher build base that you are having for 2024? And then I have a follow-up.
Dan Schlanger: Yes. We – the short answer, Richard, is yes, we continue to add to our backlog. It’s just in small increments at times, and there is not – because we want to make those kind of rounded numbers, we won’t always announce everything we do. But given the size of the orders that we got from specifically T-Mobile and Verizon, we are working through those – that backlog with those customers, and that is the majority of the work that we are doing, and that is the majority of the 50,000 node backlog that we have currently. So, we do anticipate that as we deliver the 16,000 nodes that we expect to deliver in 2024, the backlog will come down based on that – moving them out of backlog and into revenue generating, which is actually, we think a very good thing.
Richard Choe: And then given the transition and strategic review period, is there potentially a shift maybe to allocate more capital to towers in terms of builds or acquisitions, or is that something that you have largely stayed away from and will continue?
Tony Melone: Yes. Richard, I think all options were on the table. It’s a strategic review. I don’t think – I think it will be premature to conclude that we would do or not do anything specifically in terms of capital allocation. I think it’s all fair game, and we will be informed by the review, will be informed by just opportunities in the marketplace.
Richard Choe: Great. Thank you.
Dan Schlanger: Okay. Operator, I think we have time for one more question, if you don’t mind.
Operator: Our final question today comes from the line of Eric Luebchow with Wells Fargo. Please go ahead.
Eric Luebchow: Hi. Thanks for taking the questions. So, just I know you said all options were on the table, but just wondering at a higher level with fiber solutions and small cells, is there any possibility you could consider divesting fiber solutions while retaining your small cell business, or are they more or less married together where it’s very hard to really split them apart from one another?
Tony Melone: Eric thanks. I think it’s – it would be pure speculation on my part. I think as I have said, all options were on the table. I would not dismiss any option or would not suggest any option is more likely than another at this point in time.
Eric Luebchow: Got it. And as you look at fiber solutions and small cells, I guess do you think there are ways you could operate the business more capital efficiently without sacrificing the future growth of the business, or does that just kind of naturally come from your improvement in the mix of co-location nodes versus anchor tenant nodes? Thank you.
Tony Melone: I think we can improve how we operate the business and without impacting the future growth prospects, yes.
Eric Luebchow: Okay. Appreciate it. Thank you.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
