Scott Patterson: Yes, Daryl, it’s — I would say it’s even the opposite of what you might expect. It’s very, very competitive for acquisitions across the board right now, and maybe I would say even more so than it was six months ago. All our markets are very attractive to PE firms. And in general, I would say they’re active right now. Certainly, Roofing is consolidating quickly and very competitive. We’ll be participating in that consolidation and differentiating ourselves from private equity. And restoration continues to be a consolidating space and also very competitive. So the multiples, if they did dip, it was for a short period of time. And any solid businesses are very attracting double-digit multiples right now for sure.
Daryl Young: Got it. Okay, and then flipping to the residential side and just sticking on the commercial construction team and multifamily, I think new construction starts are multi-decade lows at this point. So just curious, can you refresh on what percentage of your organic growth has been coming from new developments and the outlook there?
Scott Patterson: Yes. we do — these developments, obviously, are in the queue in terms of permitting and approvals for years and years and years and construction, depending on the type of development you have. It’s always been a stable component of our growth. And I would say our backlog of pending developments is pretty solid relative to history. And — but as you suggest, I think there’s going to be an air pocket here in terms of ground level planning around new developments, which will impact us maybe three, four, five years out. And — but it’s hard to say. We don’t see it yet. Let me say that.
Daryl Young: Got it. Okay, that’s great. That’s all from me. Thanks very much, guys.
Operator: And thank you. And one moment for our next question. And our next question comes from Tom Callaghan from RBC Capital Markets. Your line is now open.
Tom Callaghan: Thanks. Good morning, guys. Maybe just following up on Daryl’s line of question there. Just in terms of the M&A pipeline, Jeremy, I know you mentioned earlier in your remarks there that the outlook for ‘24 is basically consistent with what you mentioned in Q4. Does that include — would that encompass kind of the comment around that low-teens revenue growth guidance potentially looking a little more similar to ’23? Should the M&A tuck-in pipeline continue to present themselves and you execute on it?
Jeremy Rakusin: Correct. Yes, I said at the end of — at our year-end call in February that we would have low teens revenue growth with the Roofing Corp acquisition and any acquisitions we had already completed but not any other unidentified or closed — non-closed transactions in our pipeline, that would be additive and could get us back to a similar all-in growth level that we had in ’23 versus ‘22, correct.
Tom Callaghan: Understood. Thanks and then maybe just switching gears on the Roofing Corp of America. I know it’s still very early days there. But just curious, from your perspective, any insights in or things that you’re seeing in terms of the competitive environment thus far in that line of service?
Scott Patterson: No, nothing that — nothing new that we didn’t see or understand through our due diligence exercise the — as I said a few minutes ago, certainly, it’s competitive. It’s a very fragmented market. And there are a number of different platforms, private equity-sponsored platforms that are out looking to add to their platforms to talk under acquisition. And so certainly, it’s active on the acquisition front and very competitive. The team that we partnered with, we’re very positive about. Everything we’ve seen to-date is exactly as we had hoped and expected it would be in terms of the branches and businesses we have, the partners we have, the operating capability. So nothing on the day-to-day competitive environment in terms of your specific question, it’s more around the acquisition activity.
Tom Callaghan: Thanks, Scott. I’ll pass it back.
Operator: And thank you. And one moment for our next question. And our next question comes from Tim James from TD Securities. Your line is now open.
Tim James: Thanks, and good morning. My first question, just returning to Century Fire for a minute and your expectation for growth to slow, to what are still actually relatively strong levels, but slowing from what you’ve seen in recent quarters. Can you talk about how much of that, if any, is pricing related? Is kind of inflation that’s still keeping coming through and you’re able to pass that through? And how much of it is actual volume growth, if there’s even a way to kind of characterize it that way?
Scott Patterson: Our pricing at Century, I think, has been — for the most part, it’s been stable the last — certainly the last year. There was a run-up leading into ‘23. Steel pricing was increasing and certain other inputs, labor, of course. And that helped — that certainly helped drive organic growth in ‘23. It’s the pricing year-over-year change that we’re seeing currently is minimal, if that was your question.
Tim James: Yes, that’s helpful. So the slowing growth that you’re anticipating is really just a function of sort of macro conditions and sort of normalization from what we’re just incredibly strong results last year and early this year.
Scott Patterson: Yes, I think that’s right. There was a run-up last year. And again, as I said, earlier, really firing on all fronts continue to. But their organic growth, it’s not possible to sustain that. And in Q1, it was just north of 10%, which was — will take all day long, but starting to settle back and normalize.
Tim James: Okay. You mentioned earlier the pool maintenance was an area in residential that you’re not looking to grow. I think you mentioned just some — due to some of the staffing issues. Are there any sort of verticals or parts of that business that do look particularly attractive for putting capital to work for whatever reason, whether it’s maybe more appealing staffing opportunities or other factors that make sort of better opportunities for growth in that business?
