Larry Hilsheimer: In Q3. So November — I mean Q4 of our last fiscal year. So yes, November was a big downtime month.
Adam Josephson: Got it. Okay. And that was kind of — and what you’re saying is that trends in now are similar to what they were in November?
Larry Hilsheimer: Yes. We don’t — it’s not — we don’t see it as significant in the coming months.
Adam Josephson: Got it. Okay. Just on Lee Container, you mentioned that it’s a platform deal. It’s going to make the business less cyclical. Can you just talk about how much of that business is industrial versus consumer? Is it an entirely different customer base for you? Just give us a little more detail as to where these jerrycans and small plastic containers are sold? Again, is there any customer overlap, et cetera?
Ole Rosgaard: Adam, there’s a considerable amount of similar customers or customer overlap, but primarily, the business is within the agrochemical markets, where the jerrycan you produce in that market they’re pretty sophisticated. So it’s not a commodity market. That’s the biggest element. Then you have, on the consumer side, a very small element of jerrycan that goes into things like in the pits and cat sad and that sort of thing. And then you have a growing pharma market as well, which we do like, and that’s also part of our strategy to expand into those markets. So ag is a growing market. You will see food shortage as we go forward in the coming years. We like that. Pharma is a growing market for us as well, and we like that as well. So all in all, you will see this acquisition help us being even less cyclical.
Larry Hilsheimer: Yes, the relative share of ag business in Lee is significantly higher than in our current business.
Matt Leahy: Adam, about 15% of that business, you could call pure industrial, which serves like the lubricants and oil petrochem, fuel additives, market. But outside of that, it leans more to those segments that Larry and Ole highlighted.
Adam Josephson: Thank you. And Larry, just one last one, if you don’t mind. Back to GIP. So — the segment’s EBITDA had been running around $300 million for a number of years. And then in fiscal ’21, it went up to, call it, $450 million, and it was similar this past year. And obviously in ’21, you had that onetime steel benefit. Last year, you didn’t have that, but nonetheless, you were able to hold profitability at that same level. Can you give us any sense of what you think normalized EBITDA for that segment is? I assume you think it’s higher than what it used to be pre-pandemic of around $300 million a year, but I also assume you don’t think it’s $450 million either given the onetime benefits during the pandemic. So any thoughts you could give there, I would appreciate.
Larry Hilsheimer: Yes. And just, I mean, during the pandemic, our EBITDA was — in fiscal ’20 was $320 million. The growth really happened through ’21, which, yes, there is still ongoing thought pandemic for sure. But it’s way clear to $450 million than it is to $350 million. I would tell you that. I mean we think it’s clearly north of $400 million on a going basis. We have a significant hit built into our guidance this year because of the combination of the dramatic decrease in steel cost and volume deterioration. I would tell you, in our fiscal ’19 Investor Day, I stood up on the stage and told everybody thought we were in an industrial recession. I’ll tell you, it feels like that right now. I mean it’s talking to our customers across all of our spectrums, everybody’s volumes are off.
And so I know there’s a lot of economists think they see a recession in the latter half of next year, that might be when the consumers start running out of the money that was handed out to them by the government. But right now, you’re seeing — we’re seeing it in the industrial space. But the good news for us is, like I said, we’ve modeled all that out, and we’re still going to have a great year.
Adam Josephson: Perfect. Thanks a lot Larry. Best of luck.
Operator: Thank you. I’m currently showing no further questions at this time. I’d like to hand the conference back over to Matt Leahy for any closing comments.
Matt Leahy: Thank you, everyone, for joining today, and have a happy holiday.
Operator: Ladies and gentlemen, thank you for your participation today. You may now disconnect. Everyone, have a wonderful day.
