Jim Nickolas: Yes, so our EBITDA obviously is expected to grow meaningfully. Some of that extra cash flow from the earnings will be deployed in capex. So capex is growing, we raised that from $480 million this year, it’s closer to $600 million next year. So that’ll be a part of it that’s of course helping with future growth. Beyond that, by and large, the rest of the capital should be, the cash should flow through and we will have available for deployment pursuing our priority list of acquisitions, upstream acquisitions first and then returning capital to shareholders.
Ward Nye: Mike, did we get you what you need?
Michael Dudas: Yes, thanks, gentlemen.
Operator: Thank you. Our next question comes from the line of Michael Feniger with Bank of America. Your line is now open.
Michael Feniger: Thanks for taking my question. Clearly a nice pricing year in 2023, building up 2022. Just curious, Ward. If you think that volumes stay in this plus two, minus two range, can that still support high single-digit, double-digit pricing in 2024. I know it’s early to think about 2024 already. Just curious what headwinds could lead to that price growth in 2023, rolling over in 2024 or conversely, what would still support that level of pricing as we go into exit this year into next year? Thank you.
Ward Nye: Michael, thank you for the question. And you’re right, it’s probably too early to lean too far in 2024. What I’ll remind everyone is this pricing in these upstream materials has always been very resilient, number one. Number two, we do not sell a discretionary product. These are products that people need. Number three, we’re a very small portion of overall construction. Next, much of the inflation contractors and others have seen on a percentage basis, particularly during ’22, we’re actually ahead of where we were because we protect contractors on bids. Obviously, we were going to be chasing that for a good part of the year, then we caught up with it towards the end of the year. Obviously, we would like not to be behind that again.
Part of what I’ve spoken to our team about is this notion of being in a position that we can look realistically and responsibly and at least two price increases a year. I indicated before that 13% to 15 %that we have for this year does not have in it mid-year price increases despite the fact that we’ve told our customers in letters that we will be looking at that at midyear. So I haven’t answered your question definitively relative to ’24, because at this point I simply can’t. But if I look at the building blocks that I believe you can look at and investors can look at and have a good way to think about it. I think the color that I put around that gives you a pretty good runway toward how you can put a notion towards it.
Michael Feniger: Thank you.
Ward Nye: Operator? Yes, go ahead.
Operator: Our next question comes from the line of Brent Thielman with D.A. Davidson. Your line is now open.
Brent Thielman: Thank you. Lot covered here. I guess just one, Ward. As If you look beyond the impact of sort of inclement weather this quarter, more from the view of what you’ve seen in the business during months where you’re able to get product out, how would you characterize the headwinds you’ve really seen from residential end markets so far. Is it already in the zip code of that 10% to 15% decline you’re talking about for ’23 or have you been surprised at the resiliency?
