Norman Rosenberg: Yes, it’s pretty much — I was going to say it. The way we sort of model that out is we have roughly 40% roughly gross margins on a blended basis, consolidated basis, and SG&A would be about another 20 points. We’re kind of there on the SG&A with the understanding that we’re going to take — we might take a step back before we take a step forward, but we’re pretty close. Where obviously we have more room to get to is on the gross margin side. But yes, we think structurally it is achievable. And I’ll just echo what Lee said, it’s definitely our goal. It’s surely going to be a matter of digesting some of these recent revenue gains and then taking that number higher. We kind of know where we do it and how we do it. It’s just going to be a matter of the timing of that growth curve on the top line that’s going to have an impact in the near-term on how close we get to that number.
Operator: Thank you, sir. The next question we have comes from Pito Chickering from Deutsche Bank. Please go ahead.
Pito Chickering: Yes, good afternoon, guys. So this model has evolved a few times in the last few years, starting off with COVID and the morphing into homelessness and then into the migrants. I guess how should we think about both homeless and migrants as a growth engine for the next few years? And can you talk about who we’re seeing the competition in those markets now, for example, for the board opportunity? What did the company won that contract?
Lee Bienstock: Yes. Hi Peter, I’ll jump in. So it’s still too early in terms of the Border Patrol contract. We’ll find out in the coming weeks and months who ended up winning that. But I just want to really mention — start off by saying in terms of that evolution that you described, we — our whole business, all of our segments, all of our customer base, our markets, we’re growing at the target rate we put out, even without the HPD asylum seeker contract. So that obviously has accelerated our growth, but we would still be growing at our target rate without that HPD content. So I want to make sure that I share that. And so I think in terms of the asylum seeker care, there’s a lot of transferable expertise that we’ve been bringing to that contract.
So first off, there’s a transportation component to that. And obviously, one of the largest medical transportation providers in the country. We utilize that, as I mentioned, those first paramedic BLS unit at the Port Authority where our transport teams — And we continue to use our platform to help the city scale the care for this particular population. We use the same logistics platform. We use the same tech platform. We use the same vaccine management platform. And we’re growing every single day our capabilities that we’re helping to provide the care for the asylum seekers but we’re also using that same exact — those same exact competencies for other contracts. As an example, you can imagine casework and behavioral health care that we’re providing at scale for asylum seekers is also applicable to patients of insurance providers and some of our other key customers.
So we continue to leverage the capabilities we have across all of our segments. There’s a common thread for all of the customers we partner with for all of the patients we’re providing care. We leverage all the same platforms, all the same technology. And so that has allowed us to scale very, very rapidly in those investments in our people and our technology that have allowed us to do that. And we apply that to a myriad of different patient populations. And so I just want to make sure that I shared that, and I think that’s a very key aspect of our growth and how we’ve been able to provide care for such a wide swath of patient needs.
Pito Chickering: And then one more on the cash collections. I understand the amount of guiding to or for recovery by the fourth quarter. But if you do sort of recover the cash or if you do sort of collect the cash in the fourth quarter, is it fair to think that you — they’ll pay down the revolver that you drew on? And then looking actually at those delays, how much of that is due to the sort of the real-time audit that’s being deducted? You were very clear saying there weren’t any disputes here, but when you’re getting real time audited, are you seeing any pushback from the state during that audit? Just thinking about the hotel rates pretty in food or accessing health care via telehealth or in-person?
Norman Rosenberg: So as far as your — the first quarter, on your point, I don’t want to take this into a corner. I mean it would make a lot of sense for us as we generate more working capital, more free cash flow for us to use that to pay down the credit line. I mean the credit line is not being seen as something that we want to have on a permanent basis. It’s something that we have there to give us some flexibility. So yes, clearly, we would pay that down as we could. As far as the other thing in terms of the impact of the real time audit, so here’s why I think the impact comes in, I think it’s a matter of the type of backup that is asked for on these invoices and it’s something that is being done in anticipation of the real-time audit.
There hasn’t been any other indirect impact audit. And that’s kind of an impact that tends to wane after time because once we get to a good rhythm with them in terms of the types of backup that we’re going to provide together with our invoices, then we just do it again and again as we go through the next month’s invoice and the next month’s invoice. So it hasn’t really had a big impact in terms of anything like that. It doesn’t mean that may sit on every invoice for longer. It really just means that they will have some more requests for backup sort of upfront than what we otherwise would have expected to provide. But that in and of itself is not really an issue for us.
Operator: Thank you, sir. The last question we have comes from Richard Close of Canaccord Genuity. Please go ahead.
Richard Close: Yes. Thanks for the follow-up. Just with respect to the backlog increase, and Lee, I appreciate your comments on the three channels, but is most of that increase in the backlog number that you provided, I guess, the $105 million increase, is that pretty much evenly split between municipalities in the government channel and then the health systems? Or how should we think about that split?
