Tyler Brown: Jim, first in aggregate, so I think you answered my question on baseline diesel. But what is the expected non-fuel unit cost inflation expected to be for this fiscal year that’s based in the guide because it feels very high? And then secondly, Ward, just given that supply chain issues have eased, it feels like the OEs seem to be improving deliveries, whether it’s yellow iron or trucks, and we have seen some par price disinflation. But basically, my question is, is there any building optimism that repairs and supplies could be a good story into ‘24 on the cost side, or am I maybe a little bit out of my skis on that? Thanks and sorry, for the double question.
Jim Nickolas: Sure. So, I would say that on the non-energy inflation front, high-single digits is what we are looking at for the rest of the year. I do expect that to taper a bit as we go into the year, into next year, and I would expect it to be lower next year, more closer to normal. But – and so from that perspective, there may be a tailwind. But the repairs expense that we are incurring this year, I wouldn’t view it as just for the quarter that is going to cause much of a comparison good or bad for next year, if that was the – if that was the answer to your question.
Ward Nye: And I think, Tyler, going back to your other question on supply chain and how that’s working. Look, we are seeing contract services up almost 10%. As Jim indicated, supply is up closer to 15%. So, do I think we could see some degree of moderation in that as we go into ‘24, the short answer is yes, I think we probably will. Has it been at what we feel like are unnaturally elevated levels over the last 18 months to 24 months, again I think the answer is yes. I think part of what our business has shown is a high degree of agility when we are faced with those to be able to come back and address them from a commercial perspective. So, I think we will continue to be able to do that. But I think to your point on are supply chains getting better, yes. Are we likely to see some easing in that dimension, probably so. Obviously, we will give you more detail on that as we come into ‘24, but at least those are some topside thoughts.
Tyler Brown: Yes. No, that’s good stuff. Thank you.
Jim Nickolas: Thank you, Tyler.
Operator: Thank you. The next question comes from Michael Dudas of Vertical Research. Please go ahead.
Michael Dudas: Good morning Ward, Jim and Jennifer.
Ward Nye: Hi Michael.
Michael Dudas: Ward, you and Jim talked in your prepared remarks, you have done a really good job of getting the leverage down and where your net debt ratios are today. And you have highlighted about portfolio optimization. So, where do you stand today relative to the optimization and looking at the pipeline for acquisitions? Is that something that might be a bit more pull forward as you look at some of the opportunities at the market that you need to serve, given you should be a pretty reasonable recovery in volumes and business as we move into ‘24 and beyond?
Ward Nye: But the short answer is I agree with you. Number one, kudos to Jim, the finance group and our operating team to find ourselves to a 2.1x leverage ratio. I mean that’s nice de-levering after what had been some of the largest M&A that the company has ever done. To your point on future growth, part of what’s attractive now about having a coast-to-coast business in markets that have been carefully curated by us and where we want to be is two things happen now. One, our aperture relative to bolt-on transactions has been opened considerably. And of course, bolt-on transactions, if you think about a return on investment, being able to get very quick synergies, that’s really the best type of transaction you can do. But here is the glory of it.
Almost any transaction we would do now is going to be a bolt-on, whether it’s a single site or whether it’s multiple sites. So, I think where we positioned ourselves tactically and strategically for future growth it’s actually very important. I will tell you, we are engaged in a number of what we feel like are very meaningful conversations today, separate and distinct from the dialogue that’s ongoing relative to our discontinued operations that I mentioned before. And the dialogues in which we are engaged are primarily, if not almost exclusively on the aggregate side. So, should you expect us to continue growing our aggregates footprint, absolutely. Will we ever surprise you, I think not, because we have largely said where we want to grow and why we want to grow there.
So, do we have an appetite for it, we do. And one reason we have an appetite for it, and I mean this is a complement to our team. They are good at it. They are good at identifying businesses. They are good at the contracting phase of it. And they are good at the integration phases of it as well. So, I hope to be able to tell you at some point in the year, some good stories that we can talk about specifically in the M&A. And by that, I mean the buy side and on the sell side.
Michael Dudas: Excellent. Ward, thank you.
Ward Nye: Thank you.
Operator: Thank you. The next question comes from Kevin Gainey of Thompson Davis. Please go ahead.
Kevin Gainey: Good morning everyone. It’s Kevin on for Adam.
Ward Nye: Okay.
