Jerry Revich: Hi. Just pulling together what you shared in your preliminary comments double-digit pricing growth, flat volumes, embedding call it high single-digit COGS per unit growth. I mean, that essentially gets you to roughly $200 million of aggregate profit growth 2024 versus 2023 which is I think probably consistent with the consensus growth expectations for total company EBITDA 2024 versus 2023. So I know you’re not providing your full 2024 outlook here, but it does feel like you’re giving us the pieces to get the consensus EBITDA numbers with probably higher profitability and lower volumes than what folks expected on a bottom on basis. Is that fair? And any other puts and takes that you would add?
Ward Nye: Yes, I think, that’s relatively fair. And if you think about it Jerry I think that’s what we did in Q2 and I think that’s what we’ve done in Q3. I mean I think part of what you’re seeing is the world can go through different degrees of economic turmoil and this is a business that continues to be very steady very durable in all forms of markets. So I don’t disagree at all. I’ll turn it over to Jim in just a moment so he can add if there are any particular things that he wants to make sure he calls out. But one of the things that I think is worth noting Jerry, I mean, did energy help us this quarter? Absolutely it did. But I think part of what’s so striking to me is even if we did not have the energy tailwind that we did this quarter we would have set new records this quarter anyway.
And I think it’s so important because I know what you’re looking for those puts and takes I wanted to go ahead and address that one upfront because, while in the quarter that was powerful. It would have been a very powerful quarter even without that. Jim anything you want to add?
Jim Nickolas: Yes. No it’s just that the cost inflation continues to moderate slightly still elevated compared to historical levels. But again as we’ve demonstrated this year, we expect it to happen next year pricing growth exceeds cost inflation. So we do expect margins to expand next year.
Jerry Revich: Super. And can I just follow-up the downstream businesses you folks are executing really well this year how much of that has been because of a helpful move in diesel and liquid asphalt versus what’s sustainable in the new portfolio particularly on the ready-mix side post the divestiture?
Ward Nye: Yes, Jerry, thanks for the question. I would say several things. One if you think about our ready-mix business it’s almost uniquely in Texas and Arizona. And those are two very good markets. And one reason that they’re good is look you’re in New York if you look at your window you’re going to see asphalt streets and when you get to the bridges you’ll have concrete bridges. If you’re in Texas you’re writing on concrete roads and concrete bridges and you’re building things structurally with concrete as well. So those markets tend to be more durable from a supply perspective because again you’ve got that really non-cyclical or often countercyclical infrastructure market that will place some meaningfully in in our ready-mix business.
And clearly ASP was up 20% in ready-mix. That helped a lot but frankly volume was up very modestly. And again Texas is 80% of our volume in ready-mix. Now alternatively, if you go to HMA give you a sense of that’s going to be full year probably about nine million tons. So it’s a fairly notable business. Now practically speaking, it’s in three places. It’s in Minnesota, it’s up and down the Rocky Mountains and it’s in California. And what we saw there was ASP was up 6.7% because liquid wasn’t moving as much. But the fact was Q3 was an all-time record of almost 3.9 million tons for us in asphalt. And keep in mind asphalt’s going to be about 95% crushed down. So from our perspective that’s a very attractive business, particularly, in Minnesota where as you recall Jerry it’s largely an FOB business.
So it’s truly a material business for us there. And of that nine million tons, Minnesota is going to be a little bit over $3 million of it. So at least those are the quick puts and takes that we’ve got on that. Jim anything you want to add on that?
Jim Nickolas: Yes. I mean, obviously, the bitumen pricing costs did help the asphalt pay business. improve margins. It wasn’t wholly due to that of course. But on the ready mixed side I would say was very, very little additive from the lower energy costs. So hopefully that answers the question too just rounding out what Ward provided.
Jerry Revich: It does. Thank you.
Ward Nye: Thank you, Jerry and take care.
Operator: Your next question comes from Anthony Pettinari with Citi. Please go ahead.
Anthony Pettinari: Good morning.
Ward Nye: Good morning, Anthony.
