Jeff Hammond: Okay, great. And then just back on this Manitowoc Ice tough comp issue, can you just talk about — I think you called out a lot of the success and the synergies. But just, what’s been going on with backlog drawdown and order rates there to kind of think about this tough comp dynamic? We’re also kind of picking up in the channel that commercial food equipment and some other markets are maybe starting to see more normal growth as well.
Bob Fishman: Yeah. I would say backlogs have returned to more normalized levels. Just as a reminder, Manitowoc grew roughly 30% in the second quarter, will have grown or did grow 20% in the third quarter and for the full year, Manitowoc will be up roughly 20%. So they’ve had a very strong year. To John’s point, when you look at the CAGR from 2019, that’s sitting at roughly 8%. So we do expect a more normalized year next year as we bump up against 2023’s 20% growth. But overall, the business remains very healthy. The end-to-end approach in terms of going to market is resonating well. So very confident in the Manitowoc business.
John Stauch: And Jeff, your data points are right. This isn’t a sustainable growth level for our ice business. I mean, when you’re mid-to-high single-digits, we would have hoped that, that is a more linear growth rate that we get to and obviously, we’re going to satisfy the demand and make sure that it’s a Manitowoc Ice machine that someone is putting into their restaurant. So it gives us the ongoing service and relationship with that customer. But this is not normal as we’ve said all year.
Jeff Hammond: Okay. Appreciate it, guys.
John Stauch: Thank you.
Operator: Our next question will come from Andrew Krill with Deutsche Bank. You may now go ahead.
Andrew Krill: Hey, thanks, good morning, everyone. Want to go back to the Pool pre-buy. I think you might have said you’re expecting like a modest pre-buy this year. So just any more insight you can give on that and maybe try to like quantify how it’s tracking versus more normal years. And just to clarify, are you assuming that as part of the 2023 guide or would that be incremental to the Pool sales guidance? Thanks.
John Stauch: No. It’s all included in our current view of what our business will do in Q4. And just to remind everybody, what we try to do is level-load factories to make sure that we’re not taking down our shipments in any one quarter beyond the level of our employment groupings. So we’re obviously encouraging the channel to buy ahead of next year’s pool season through discounts that we offer in term extensions, right? We’re now at a level that we think is prudent for us and that’s where the modest early buy is. And as you know, the channel would take more if they are incentivized more to take it. And if they don’t, then those become standard buy orders in the next year. And so that’s always what the forecast is reflecting.
And we have to do it in our economic best interest. Our channel partners do it in their best economic interest. And right now, we feel our guide is the best reflection of what we’d say a more normal seasonality and a more normal early buy, which would set us up nicely for a 2024 growth year.
Andrew Krill: Got it, thank you. And just for the 4Q guide and the implied margins for the total company and marked a pretty meaningful step-down sequentially. I think historically you’ve been more flattish from 3Q to 4Q. And I know it isn’t necessarily a normal year but just seems a little, perhaps, conservative, especially with the cost actions starting to come through. So maybe if you could unpack that and if like any segments in particular you think the margins are weaker than normal for 4Q. Thanks.
Bob Fishman: What we implicit in our guide is significant ROS expansion versus last year’s Q4. When you look sequentially, it does come down, but a lot of that does reflect some of the seasonality that, that is returning back to more normalized levels. So overall pleased with the ROS expansion in Q4 versus last year’s Q4 and it will be the momentum we need exiting the year.
Andrew Krill: Thank you.
John Stauch: Thank you.
Operator: Our next question will come from Joe Giordano with Cowen. You may now go ahead.
Joe Giordano: Hey, guys, good morning.
John Stauch: Morning, Joe.
Joe Giordano: I wanted to start on margins and keep it there for a sec. I mean, not — probably splitting hairs a little bit but Pool margins went below 30%, I think we were kind of talking about 30% being like a new floor and you’re close enough where that’s still like a valid statement. But just from here into the fourth quarter into next year, that 30% kind of feel good still as probably kind of a bottom level?
John Stauch: I’d say yes on the second part of your question and I think delivering the margin that we did despite the year-over-year decline in volume is what I’m most proud of the team having accomplished. And yeah, I mean, I do think we’re splitting hairs. I think they’re directionally in a really good spot as a business model and obviously getting growth from here is going to leverage up nicely.
Joe Giordano: Okay, and then similarly on Water Solutions, I think you were talking about — like the commentary coming out of last quarter was that the margins were going to step down pretty decently sequentially in the third quarter because of the deliveries that Manitowoc did in 2Q and the opposite happened, right? It went up sequentially. So how should we think about margins there? I know Manitowoc is still delivering at a high level, but how should we think about sequential margins there and the sustainability of this, like, 22%, 23% level there?
John Stauch: Yeah. I would remind you that Water Solutions has a residential component and systems businesses and they also have the commercial water solutions. When we mix towards commercial, we’re going to have a lot higher-margin profile. And what we’re really doing is being very selective on the products that we’re offering on the residential side. And we try to mix up that business. And so a lot of the decline in the revenue was on the residential side. And that actually helped the overall mix of the business to the positive.
