Matthew Filer: Yes. Mike, this is Matt filer. So the 22% revenue decrease that we saw in the quarter. As you mentioned, industry is down across our end markets, about 21%. Our net organic impact is down 3% and then acquisitions had a positive 2% impact. And if you break down that organic impact, pricing is down 5% and pure organic growth is up 2%.
Michael Swartz: Awesome. Thank you so much.
Andy Nemeth: Thank you.
Operator: Our next question is from the line of Noah Zatzkin with KeyBanc Capital Markets. Please proceed with your questions.
Noah Zatzkin: Hi. Thanks for taking my question. Most of my questions have been asked and answered, but just hoping you could provide some color on how you’re thinking about M&A in the current environment and valuations. Thanks.
Andy Nemeth: This is Andy. Yes. I think, again, as we talked about from a liquidity perspective and a leverage perspective, we feel really good about our positioning right now to be able to actively look at and evaluate acquisitions. Our pipeline continues to be full, both organically and we are getting deal flow. Deal flow has actually slowed down from external participants, but the deals that we’re cultivating, which we are constantly doing on the organic side continue to be there. And as we look at valuations I would tell you that valuations are stable from our perspective. I think as we look at modeling where everybody — where the disconnect today is that on a normalized run rate basis with valuation expectations is really kind of just the gap that’s there today.
But as we look at our model and we look at where we’re at and the businesses that are attractive to us, we feel like we’re in a really good position to be offensive if we want to here with the liquidity position that we’ve got and as well the leverage position. So we’re going to take advantage of opportunities that pop up, but we are also actively cultivating acquisition targets as well.
Noah Zatzkin: Thank you.
Operator: Our next question is from the line of Craig Kennison with Baird. Please proceed with your questions.
Craig Kennison: Good morning. Thanks for taking my question. Many have been addressed already, but I wanted to circle back on content per unit. Came in a little above where we had anticipated, but I know it’s an LTM metric. And I’m wondering, as you look into 2024, what’s a reasonable expectation for content per unit in RV and marine specifically?
Jeffrey Rodino: Yes, Craig, this is Jeff. We feel like in through the fourth quarter and into the first part of the next year, our content per unit is going to remain relatively flat from where we are. There will be some pricing movement in a few areas, maybe down and some up. But certainly, some of the increased market share we’ve been able to gain is going to offset anything that we see in the pricing.
Craig Kennison: And that flat as a comment relative to your Q3 experience?
Jeffrey Rodino: That’s correct.
Craig Kennison: Okay. Great. Thanks. And then again, looking at 2024, I know it’s early, but just — what are some of the puts and takes as you consider the margin profile of your business? And if you can comment on whether labor rates are at all impacted by some of the UAW contract or any other pressures that are facing that environment.
Andy Nemeth: Yes. Craig, I think as we look out into ’24, again, we feel good about our cost structure today with where we’re at. We actively partner with our customers from a pricing perspective as commodities move up and down and work very well with them in partnership from my perspective. So as we look at those, that component, the labor side of the business is very stable for us. We’ve got a great core group of labor, talent out there that is doing a fabulous job that is flexible and nimble. So we feel good about that. I think as we just look at the model today and where we’re stabilized and looking out in the future and positioned. I think we look and say, okay, we’re in a good spot. We can flex up very quickly and leverage off of that.
