Joseph Armes: Yes. I would say Florida got hit by weather recently. We felt that a little bit. And again, in Florida, like in Toronto, we not only fabricate but we install product there. And so some of the construction sites were shut down for a while. But now I think it really is kind of a Sunbelt story for the most part, and then plus Toronto. Southern California has been strong all the way across to Florida. So those are not surprising, the stronger growth areas for us. We’re doing some nice work and picking up some business in New York, which has always kind of been a big target for us. But I would call it the Sunbelt plus in Toronto kind of a story at this point.
Julio Romero: How are bidding trends for the railings product line performing?
Joseph Armes: Yes, it’s interesting, very strong overall but that’s geographic as well. Toronto has been very, very strong. There are some — a ton of multifamily residential being built in the Toronto area and we’re getting our fair share, that plus some at this point, and so very, very pleased with that. Backlog is very strong there and that bodes very well. Again, Florida has been a little more spotty with some of the weather issues and some other things. But yes, the bookings in the backlog on Greco are up I think the most as a percentage just because obviously it’s off a smaller base, but their backlog has been very impressive.
Julio Romero: Really helpful. I appreciate you guys taking the questions.
Joseph Armes: Thanks, Julio.
Operator: And we do have a follow-up question from Jon with CJS Securities. Please proceed.
Jon Tanwanteng: Just wondering what you think is the most effective place to be putting your cash to work at the current moment.
Joseph Armes: The most, I’m sorry, attractive? Yes. It’s interesting, Jon. As I think about it, repaying debt is kind of our risk free rate, right. We can save 5%, 6% on an annual basis, just by paying down debt. And so everything else is, as you know, calibrated off of that on a risk-adjusted returns basis. So all the return hurdles have gone up. And so it’s become a little more challenging. Each opportunity has to be assigned a risk premium. And we think about everything from integration risk and all the other things that go into an acquisition. CapEx has got some execution risk, but less. And so we’ve always said that organic investments are going to likely be higher risk adjusted returns. So we would always prefer those over inorganic.
But as James noted, our high level of free cash flow generation says that we can do a lot of investing and capital has not been a constraint for us. Opportunities have been a constraint. Every once a while, we’re constrained by management bandwidth. But capital has not really been a constraint for us. And our cost of capital is low enough that when we find attractive returns, we’re willing to pull the trigger.
Jon Tanwanteng: Got it. Thank you for that. Just another follow up. In the current guidance for Q4, just wondering what you’re expecting to be the contribution from acquisitions you’ve closed?
James Perry: Yes. So as a reminder, Shoemaker won’t be acquisitions anymore as we look year-over-year. That will become organic now, because that was bought on December 15, 2021. So your acquisitions are the Falcon, Cover Guard and AC Guard, and those are smaller, so you have a little contribution from that. So majority of the 9% kind of fourth quarter growth that we talked about in the release and Joe’s comments is going to be organic. And how much of that is price versus volume, you’re still going to lean towards more being price at this point the way we see things. But as Joe said, as we get to the back end of the quarter, we’ll see what that brings us. But as we said here on February 2, we see that 9% growth with EBITDA of about 23% or so.
