Vijay Manthripragada: The other — yes, Tim, sorry, just to add to that. The other point that is worth noting here in the context of CTEH given that this is likely to come up, not just with you but with your peers. They’ve done a really nice job bundling Montrose capabilities, right? So kind of some of the air monitoring and remediation work that the rest of the platform brings to the table, which has had a positive impact on their performance. And so a lot of credit to that team where this is not just an episodic response portfolio anymore. It’s much broader than that. And so next year, Allan and I will work to separate the pure response part of that business, because the rest of it is much more sustained and predictable, if that makes any sense.
Tim Mulrooney: It doesn’t make sense. It makes me wonder if that $75 million to $95 million is even relevant anymore Vijay, if you’re growing another part of it that’s what’s variable or is it perhaps structurally higher than that. I know you’ve already raised it from $55 million to $65 million at the IPO.
Vijay Manthripragada: Yes.
Tim Mulrooney: Now we’re talking about $75 million to $95 million. Perhaps it’s even different, we can take into that more next quarter.
Vijay Manthripragada: Yes. Yes, I think we’ve got some great news. The team deserves a lot of credit on that. And so we’ll separate that out and be a little bit more transparent with you as we begin to forecast 2024 for you.
Tim Mulrooney: Look forward to that. Thanks guys.
Vijay Manthripragada: Thanks, Tim.
Allan Dicks: Thanks. Tim.
Operator: Thank you. The next question comes from Jim Ricchiuti with Needham & Company. Please go ahead.
Jim Ricchiuti: Hi. Good morning.
Vijay Manthripragada: Hey, Jim.
Jim Ricchiuti: My question — how are you guys doing?
Vijay Manthripragada: Good.
Jim Ricchiuti: Good to hear. Matrix. Wonder if you could talk a little bit about how the integration is going. And Allan, you may have given it and I apologize if I missed it, what the revenue contribution was while I assume we’ll see it — we see it in the Q, and maybe some color around the adjusted EBITDA margins in the business? And then maybe lastly just relating to that question about the implied Q4 guidance that Tim just had, it’s a little bit wider range not a whole lot than you normally do. And I’m wondering if some of that might be due to the seasonality of the Matrix business in the December quarter.
Vijay Manthripragada: Yes. Why don’t I start with the first part of that question and then Allan can talk about the contribution, and then we can talk about the range, Jim. So, the Matrix integration is going really well. If you recall that business at acquisition was around $75 million of revenue and 4.5%-ish EBITDA margins. Those margins have been nicely accreting up on the back of the team’s efforts, not just with integration but with pricing discipline, higher utilization and operating performance. And so, we’re looking forward to sharing a case study with you and others about how well that’s been going in the very near future. We are well on track to achieve our goal of mid-teens or higher EBITDA by the end of next year.
So the short answer is going really well. It is a seasonal business. But if you look at it on an annual basis, it’s going to be a really nice year-on-year comparison, 2023 and 2024. Why don’t I let Allan answer kind of the numbers part of that question and then we can jump to the range.
