So, again, that starts to give you a good sense of how that money is flowing through. Texas, they’re looking for FY 2024 to be another record year of lettings. That’s going to be at about almost $14 billion by the way, that’s up about 15% year-over-year. Their unified transportation plan for FY 2024 is expected to exceed $100 billion. Again, that’s an 8% increase. So, again, the federal funds that are flowing through are a big part of that. I’m particularly moved by what we’ve seen happen in Florida because again, the recent Florida 2024 budget increased to $17 billion. Again, that’s an all-time high, over what had been an all-time high last year. But again, as we think about what Florida is able to do because of what they’re seeing from IIJA you’ve got the move in Florida Forward Initiative that was announced in late Q3, that’s going to bring $4 billion from general revenue surplus into transportation in that state.
And even as we look at what’s going on in California, their recently passed FY 2024 budget includes $20.5 billion for CALTRANS and that’s still a 5% year-over-year increase from FY 2023. So, if we’re looking at where the states are, what they’re doing with their budgets, how they’re taking these funds that are also coming from the Federal government? It’s a pretty compelling story, as we sit back and look at it. Jim’s got a few things he wants to add as well Timna.
Jim Nickolas: Yes. Our volumes were down 2% for the quarter, but I’ll point out our infrastructure volumes were actually up 6%. So, we think those are — we’re seeing it’s coming through those infrastructure volumes.
Timna Tanners: Okay, that’s helpful. Thanks. And just one follow-up on all the M&A discussion. You’ve highlighted an appetite for bolt-ons — but obviously, you also highlighted that you have spare bandwidth or capacity, if you will, in your debt leverage. So, I’m just wondering for the right deal, are you willing to kind of tap the capital markets? Or is it still just kind of a priority for bolt-ons as you look ahead? Thanks.
Ward Nye: For the right transaction, we would certainly do that, Timna. And again, we’ve demonstrated the capacity if we’ve done the right transactions to bring down leverage very, very quickly in the organization. So, we’ll just have to look at them on a transaction-by-transaction basis. But the short answer is a lot of these, if they came along, you’re only going to see them once. And it again can be very opportunistic and sitting at 1.85 times levered today, even having done all that we will have done this year taking into account Frei and Bluewater. We’ve got a lot of dry powder right now.
Timna Tanners: Got it. Okay. Thanks again.
Ward Nye: Thank you, Timna.
Operator: Thank you. Your next question is from Michael Dudas from Vertical Research. Please ask your question.
Michael Dudas: Morning Jacklyn, Jim, Ward.
Ward Nye: Good morning.
Michael Dudas: So, following on the acquisition opportunities, just two thoughts. One, as you’re going through your plan to SOAR 2025 and maybe beyond, is there a percentage or a mix of aggregates that you’re targeting for the contribution for the whole company? And given that you’ve divested South Texas in a very efficient and cooperative manner with the purchaser, are there opportunities on the sell-side that, again, as you move to that mix target or where you want to be that could emerge over the next six to 12 months?
Ward Nye: Mike, thanks for the question. I mean, number one, if we look at where we’re going to be after the transactions that we’ve done, our 2024 pro forma gross profit mix would be at 77% aggregates. I mean, should you expect that number to continue to grow? The answer is yes, you should. But I would say this, too and I think this is so important to state. The cement operation that we have in Midland Texas is a fantastic cement business. It’s a long way from the Gulf of Mexico, we have our Southwest headquarters in Dallas. We’re the largest aggregates producer in Dallas. We’re the largest cement producer in Dallas. That business has just from my perspective, eye watering margins, we like the businesses that we have very much.
And if we’ve got the ability, desire, and capacity to go and grow our aggregates business, which we do, and take that number that I just gave you 77% push that to 80% and then beyond that, frankly, you should expect us to do that. If we go back through the way that we’ve long described ourselves, we’ve said we’re aggregates-led, with strategic cement, with targeted downstream. I mean those are, again, very well-conceived, well-thought out adjectives before each one of those businesses. And what you’re seeing us to this year is totally consistent with an aggregates-led business and building a business that can outperform through cycles and we think that’s so vital to what we’re doing. And that’s part of what’s so important about also this value over volume philosophy that we’re bringing to our business.
So, yes, you should expect to see that aggregates number continue to go up. And again, that’s very consistent with the pipeline that we’re looking at today.
Michael Dudas: Thank you, Ward.
Operator: Thank you. Your next question is from Keith Hughes from Truist. Please ask your question.
Ward Nye: Keith are you there?
Keith Hughes: Can you hear me now?
Ward Nye: Now, we hear you Keith. Yes sir.
Keith Hughes: Okay, sorry about that. So, a question on cement and the remaining cement business for 2024, what kind of price volume expectations do you have in the guide?
