Kurt Hallead: Okay, I got you. Just picking on the manufactured products in aggregate, and I know Eddie hit up on some of these questions, but what I’m – I guess what I’m having a hard time squaring up with is – you referenced that looks like revenue in the first quarter will be – your revenues will be flat revenue on manufactured products. Right. And then you said you see slight revenue growth in 2024. So it almost infers that to see slight revenue growth, your revenue is going to have to actually be flat to down for the ensuing quarters through 2024. So I’m having a hard time kind of squaring that up.
Alan Curtis: Yes. Let me try and take this one, Kurt. It’s Alan. I’m looking at the rest of the year. Some of it’s going to be the mix of what we have from a revenue perspective. So the first quarter we do see being up on a mix issue. I think Rod talked a little bit about some of the storage that we have that is beneficial here in the first part of the year, as we saw last year. When we look at the whole of the year, though, I think it’s going to be turning more to a traditional manufactured products – product sell. and the margins that we have there in the back half the year. And then in the first quarter compared to the fourth quarter of last year, we talk a little bit about how we get steel tubes coming in at zero margins that bring the margin down in certain quarters, and then we perform the work the next quarter and margins go up.
I think that’s what you’re seeing some effect on here in the first quarter is we had revenues in the fourth quarter associated with steel tubes, and now we’re starting to produce those Umbilicals and we’re seeing more of the profit margin coming through.
Kurt Hallead: Okay, great. Just one follow-up. You guys have an enviable free cash flow generating position. I think, what, 16, the last 17 years or something, you’ve generated free cash flow. How are you guys thinking about potential shareholder distributions?
RodLarson: Thanks for asking the question, Kurt. We’ve been – I know that people are concerned about the first quarter being not as strong as we’d like, given the robustness of the year. And really the second, third and fourth quarters play out really strong. So we’re very confident. But we probably didn’t think that Q1 was time to initiate any sort of shareholder return. But we do have – I mean, we do have approval from the Board to do share repurchases. And – I think we’re going to be – we’ll at least be taking a hard look at it in Q2, but certainly for the remainder of the year.
Kurt Hallead: All right, that’s great. Thanks. Appreciate it.
RodLarson: Thanks.
Operator: Thank you. Next question will be from David Smith at Pickering Energy Partners. Please go ahead.
David Smith: Hi, good morning, and thank you. Just following on a little bit to Kurt’s last question and appreciate the answer on the repurchase authorization. But just wanted to ask about your thoughts on if and when we might see a more defined shareholder returns framework, if that might be in the cards.
RodLarson: I think that’s – what I said before, is probably. I don’t know if I can get a lot more color, but we do have that. I think we’ve kind of talked about where we want to be. We do want to initiate some sort of shareholder return program. We’ve discussed that with our Board. So figuring out when’s the right time to start. We’ve got a couple of growth opportunities. You saw that we’re lifting the CapEx up in the business, and we’ve talked about expanding the mobile robotics, but it doesn’t mean we’re going to shy away from trying to put in. And I think our first choice would be some sort of, like you said, programmatic share buyback program that we’re – we can go out and buyback some shares when the price is right and using the cash conservatively to get that program kicked off.
David Smith: Okay, I appreciate that. Quick follow-up, if I may. Sorry if I missed it, but did you give any color or details on the manufactured products backlog split between energy and other?
RodLarson: No, we didn’t. I think we gave some insights into the level of orders of intake on the mobile robotics side of the business, on the forklifts, and how it increased year-over-year. I think we’ve given some level of guidance that traditionally, those are about $250,000 per copy, plus or minus, depending on what all is ordered with each of them. So I think that should give some level of expectation. Yes.
David Smith: I appreciate it. Thank you.
RodLarson: Thanks, David.
Operator: Thank you. And at this time, we have no other questions registered. I would like to turn the call over to Mr. Larson.
Rod Larson: Thank you. And since there are no more questions, I’ll just wrap up by thanking everybody for joining the call. This concludes our fourth quarter and full year 2023 conference call. Have a great day.
Operator: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we ask that you please disconnect your lines.
