Trevor Williams: I wanted to go back to the thinking on organic growth in 2024, and I know it’s early days, so it’s a rough sketch. But the 9% to 11%, that’s in line with kind of what historically you’ve shared for organic targets. But Ron, how are you thinking about what the right growth rate is for fleet specifically now, especially with Russia out? So at least in the near term, how you’re thinking about fleet within 9% to 11%? I think historically, it had been assumed to grow 7% to 9%, if you think you can get there in 2024 ex Russia.
Ronald Clarke: Yes. Trevor, good question. I’d say probably too early a set of days to give you a super good answer. I’d say that we’ve done more work as we started sooner around the Corporate Payments. And because that stuff sells and then installed later, there’s way visibility into the forward year, right? I kind of know what the backlog is as we head home for Christmas. So I think the big question of where we come out is, how much juice from the new, new stuff? So obviously, the baseline global Fleet business has been kind of low single digits the last few quarters. We obviously have 2 kind of big upsides around this new product line and new channel. And then obviously, this consumer piece, for example, like selling businesses parking.
So I’d say it turns on that. To me, the question is how far out and how much are we going to invest basically in trying to boost some of these incremental things to try to move that number up faster. And remember, with the vehicle combo with Brazil, you’re probably already at — between the international, Brazil and the U.S., you’re probably at 7% to 8%, so call it high single digits before you take a breath. And so the real push is going to be how much new, new do we layer on top of that. But as you can tell from my conversation, that that’s what we’re on and that’s what we’re going to really try to push. It’s the #1, 2 and 3 assignments of this company is to take that big business and reuse it and get it back to being fine and exciting and going somewhere, so that we have 3 businesses that people like instead of 2.
So I want you to hear loud and clear that that’s what we’re on.
Trevor Williams: Understood. And then, Tom, just a quick one for you. The Corporate Payment margins, it looks like we’re up a little more than 400 basis points year-over-year. I think you alluded to potentially some synergies coming through in your prepared remarks. Anything specific to call out there? I don’t know if there was some Global Reach expense synergies that came through. But that would be helpful.
Thomas Panther: Trevor, that’s certainly a contributing factor in terms of the synergies that we’re able to realize with Global Reach. We did a lot of heavy lifting over the spring and early summer to move on to one platform. We’re able to eliminate some of the back office costs, technology costs. That was a significant contributor. And then just the positive operating leverage within the business and just look at the structural dynamics of that business and how the 20% revenue growth against a relatively stable fixed cost base are just going to generate positive operating leverage and drive margins higher. So combination of synergies and structural components would be the things that contributed to that.
Operator: And your last question comes from the line of Kenneth Suchoski from Autonomous Research.
Kenneth Suchoski: Ron, maybe one for you. I wanted to ask about the spin-merge opportunity with a strategic partner. You’ve been CEO at FLEETCOR for 2-plus decades and built the business out over time. So how do you think about your day-to-day responsibilities in a scenario where there is a spin/merger? And I guess, where would your responsibilities fall under that new structure, which would be two separate entities? And then separately, are there specific assets within B2B that you would look to combine with, either by product, segment of the market or geography? Or is the play really to find overlap with another business and take out the cost?
Ronald Clarke: Yes. So that’s such a mouthful, Ken. So I’d say, first off, we’re not sure, right? We’ve been working at this, and we have a couple of attractive combinations. But I don’t want to leave this call where people think, hey, it’s a day to complain, and Ron is resting or something. So that would be point one. I’d say they’re possible, but I don’t want to handicap it beyond that. That’s number one. Number two is it depends on the structures again. So one of the structures that’s kind of interesting is this idea of us spinning assets into a private entity and someone else. And in that case, it would almost look to me like a FLEETCOR company where we have a minority investor, which we had that world before, so I’m busy thinking about that thing as I am today.
If it went the other way and we were to basically RMT it into something else that was public, I’d probably sit on the board and have a plan in advance of doing that, that we were clear on kind of where the thing was going. So to your point, to take something that’s super valuable, we and I have to be super convinced that it’s going to go on a path that makes sense, and it’s going to get results that will warrant a premium. So we are spending a lot of time on those social issues and talk about how that would go. But my comment to you is I think I and others would be super involved certainly early on in whatever combination we went forward with. We’re not going to just spin it and close our eyes.
Kenneth Suchoski: Yes. That makes a lot of sense, Ron. And then I guess, just as my follow-up, some of the — some of your payment peers have called out headwinds in their cross-border businesses. Specifically, they’re seeing more cross-border transactions being done in U.S. dollars rather than those payments being converted to local currencies. I guess, are you guys seeing any of those trends? And I guess, how much of a risk is that for the cross-border payments business within Corporate Payments?
Ronald Clarke: Yes. That’s a good follow-up. I’d say not much. I mean there’s a little bit of it when FX volatility kind of right softens and kind of where the dollar was, whatever, a few weeks ago. But I’d say it’s really on the margin. If you look at again what we’re printing there, it’s just — it’s the sheer volume growth, which is adding just more clients and more spend. And I’d say we’re generally pretty stable, with maybe a smidge softness to your point, here and there. And then remember, for us, the diversity in that business, right? So we originate, I guess, about 80% of all the business, all the revenue outside of the United States, right, so in Canada, the U.K., Europe, Australia. And so the geographic diversity in kind of the originating currencies also have a big impact.
So the — it’s a little bit of a hedge, right? One place is a little bit weaker, but then the counter-party is a little bit stronger. So I don’t say we’re immune, but I’d say we’re not seeing much in the way of slowdown.
Operator: Thank you. There are no further questions at this time. Ladies and gentlemen, that does conclude our conference for today. Thank you all for participating. You may all disconnect.
