Haitham Khouri: It really doesn’t mean anything for us, Josh. We – the last thing I think we want to be doing as a company is commenting customer by customer and contract by contract. So we’re not going to do it today, and we really never going to do it. That said, no, those comments have no impact on our business. From a competitive share perspective, listen, you heard my comments in the prepared remarks. On the one hand, we feel really, really, really good about our business. I will put up our people against anybody in the world, I will put up our product against anybody in the world, I will put up our service against anybody in the world, and I am very confident in spending lots of time with our customers that they agree with that assessment.
Second thing I will say is we really do believe that only the paranoid survive. And if there is any glimmer of risk anywhere in our business, competitive or otherwise, we are going to take it super, super, super seriously. So, we feel good about ‘24, but we are also ever vigilant.
Josh Spector: Okay. Thanks. I have no questions, I will leave it there. So, I will jump back in the queue.
Operator: [Operator Instructions] Our next question is coming from Brian DiRubbio from Baird. Your line is now live.
Brian DiRubbio: Good morning gentlemen. Couple of questions for me, just first off, Kyle, I think you mentioned that 2024, you will see a working capital benefit. Can you give us any sense of how much of that inventory is in Fire Safety versus Specialty Products?
Kyle Sable: Sure, Brian. Just given the size of the relative businesses and where we are at right now, the bulk of the inventory that we see here is going to be in our Fire Safety business. As far as the impact that it’s going to have this year to our free cash flow, it’s really hard because it depends on both the severity and the timing of the fire season, but we wouldn’t have called it out if it did have potential to be meaningful.
Brian DiRubbio: Okay. And are you going to manage that aggressively this year, or put another way, you are going to reduce operating rates to make sure you get that benefit?
Haitham Khouri: Yes, when you think about our business, the first focus for us is always 100% of the time, we need to have retardant available to deliver. So, I just want to start by saying there is no scenario where we would ever endanger that priority. That said, yes, listen, we have talked about this several times now. This is a focus for the company and for us to really work through that inventory. We are going to need more of a fire season than we saw last year. If that materializes this year, we expect we will see a benefit from inventory.
Brian DiRubbio: Understood. And then final question for me, earlier this month, the U.S. Forest Service released a record decision about how they want to attack wildfires on national forest lands basically calling for using more water and less toxic suppressants – sorry, retardants. Just sort of any thoughts on how that can affect your business overall, I think one of the comments they made in the ROD was that it impact about 20% of the land-based system?
Haitham Khouri: And Brian, I just don’t know the report you are referring to and I am sitting in conference room here with a big swath of our management team and none of us know the report un are referring to. Our product has been – just for its work, our retardant products have been developed in true partnerships with our large customers, very consultatively over many, many years and undergo, we have our customers are environmental conservation first and foremost. Our products have got through rigorous testing and blessing by them, and therefore, there is something collaterally consistency in sort of the premise of your question, but let’s follow-up offline, and we are glad to read anything out there.
Brian DiRubbio: Yes. I will send you a copy of the report. It was posted on their website, the U.S. Forest Service website in early February, I think it was February 2nd, sort of detailing how they want to change their approach. I will pass along so we can follow-up offline.
Haitham Khouri: Okay.
Brian DiRubbio: Great. Thank you.
Operator: Thank you. Next question is a follow-up from Josh Spector from UBS. Your line is now live.
Josh Spector: Hey guys. So, I just wanted to ask about the international growth in retardants. Are there specific markets or products you would call out that helped you in the fourth quarter? And I am just wondering if that’s any read of any flow-through of wins, etcetera, for next year, or something just within this fire season in those countries for this quarter?
Haitham Khouri: Yes. I will answer the second part first, which there is really no read-through from Q4 into Q1, not to say that Q1 is going to be particularly mild or severe, just the events that led to good retardant sales in Q4 were further – were pretty idiosyncratic and don’t say much about what Q1 of ‘24 might look like. As far as markets that were strong for us, Australia was solid for us in Q4, not particularly unusual, but it was a good market for us as were a couple of markets in South America.
Josh Spector: Okay. Thanks. And just a follow-up on the working capital part of it, I guess if I look at where you ended, working capital looks like it’s about 50% of sales. Historically, it’s closer to maybe 25%. I guess very rough math, if your sales are flat, should we think about getting that working capital percentage down to that historical level as about the right framework? And I guess if you were to grow sales, do you actually get a working capital benefit or you just grow into that, just curious on those two points?
