Operator: [Operator Instructions]. Your next question comes from the line of Joanne Wuensch with Citi. Your line is open.
Joanne Wuensch: Good morning and thank you very much for taking the questions. As I’m running through my model, it looks like you have about somewhere between 50 and 70 basis points of operating margin expansion, mostly coming from gross margins. Just curious if I’m looking at this the right way? And if so, if we go back to sort of a pre-pandemic operating margin, is that the right way to think about the world? Or is just the business and the model has changed so much since then?
Joe Dziedzic: Good morning, Joanne. Your question was specific to fourth quarter or forecast, I’m sorry.
Joanne Wuensch: No, for 2024, sorry.
Joe Dziedzic: That’s okay. 2024. So 2024 at midpoint on the adjusted operating income were up 91 basis points at midpoint that I think it was commented earlier that that’s operating profit growing 1.7x as fast as the sales growth rate. That’s our 2024 guidance. We’re still driving towards the profit growing twice as fast. And so this is above-market sales growth with margin expansion, and the 91 basis points is the midpoint of our guidance. And referencing back to kind of pre-pandemic, that is still slightly below where we were pre-pandemic. And the biggest driver of that has to do with the direct labor attrition and the supply chain disruptions that we experienced heavily in 2022 and even throughout 2023. And the good news is more than half of our sites now, their turnover is back to pre-pandemic levels or better.
We’re confident that we’ll keep improving that throughout 2024. We’ll work out those inefficiencies from before the pandemic, and we’re confident that we’re going to get back to and exceed the margins that we had pre-pandemic.
Joanne Wuensch: Thank you for that. My second question has to do somewhat with — sort of looking at the two segments in the two sections of CRM and Neuromod, if I’m doing my math correctly, in the fourth quarter, one segment probably did better than the other? Is it a comp issue? Or is it something else we should be thinking about? Thank you.
Joe Dziedzic: Sure. So in cardiac rhythm management and neuromod, neuromod continues to grow very strongly, driven by the emerging PMA customers, we’ve talked a little bit about on this call. Cardiac rhythm management has actually grown very strongly throughout 2023. And at some point, it’s going to revert back to its more historical levels. Our view is that there were fewer procedures during the pandemic and the staffing shortages and hospitals in ’22. We saw very strong growth in the early part of 2023. And we think what you’re seeing with the fourth quarter is cardiac rhythm management reverting back to a more historical low-single-digit, while neuromodulation continues to grow at a very strong level, driven primarily by non-spinal cord stim, the other emerging therapies and neuro with our emerging PMA customers.
Joanne Wuensch: Terrific, thank you very much. Have a great day.
Joe Dziedzic: Great, thanks Joanne.
Operator: There are no further questions at this time. I will turn the call to Andrew for closing remarks.
Andrew Senn: Great. Thank you, everyone, for joining the call today. As always, you can access the replay of this call on our website as well as the presentation that we just covered. Thank you for your interest in Integer and that concludes our call today.
Operator: This concludes today’s conference call. We thank you for joining. You may now disconnect your lines.
