Jason Dies: So right, let’s be 100% clear, we’re not waiting on anything. We’ve been taking actions over the past year and certainly have redoubled those actions over the past four to six months to try to make a meaningful impact on the GEC business. What I will tell you again is we are looking for all of our ways that we have, all of the tools that we have at our disposal to realize the value of this business. And short term, it’s kind of along what I said at the beginning, right. We continue to focus on operational efficiencies. We’re going to continue to make sure that we’re driving volumes into our network. By the way, I would point out the fact that we’ve been successful in driving volumes into the network is a sign of the value that we provide to clients when we work with them.
Volume comes from clients, and the fact that we’ve been able to continue to deliver growth there, I think is a strong statement of the value we provide in the market. And then finally, we do have to get better on making sure that we are extracting the right value from clients for the services and offerings that we provide. So I don’t want anyone to have a thought that there is any sense of waiting or hesitation or that there is anything that’s needed to start to make progress on GEC. That said, it’s a lot of work. There’s a lot of things that we’re managing and juggling as we try to move forward. But I want to be clear, the Board has been nothing but supportive in me and in the GEC leadership team, as we look at our alternatives and continue to move the ball forward.
Peter Sakon: Thank you. On SendTech and maybe I missed that. You said that with the increased churn, if you will, revenue and EBIT to decline. Did you say how much decline you’re expecting in 2024?
Ana Maria Chadwick: Yeah, so let me take that. So we talked about three dynamics inside of SendTech happening. First, as we all know, and it’s widely stated, we have our meter population declining as part of the normal mailing decline. The second dynamic we talked about extensively is the shift. We issued our new product about five years ago. And we’ve issued more, but those now are coming for renewals. And we anticipate extending those leases for new term leases, but not having a new product to be put out. What that does is it shifts the timing of our revenue. And then the third dynamic is where we’re putting a lot of emphasis on our growth and shipping. When you put all of that combined, we do anticipate revenue and EBIT reduction.
What we’re working really hard is on the expense side, across the board cost and topics to keep our margins. This is a transition year, the way I think about it, and I anticipate that trajectory to be an important part of our 2024 as we grow from shipping out of that timing [ph].
Jason Dies: What I’ll say Peter on… Yes, I hi, Peter.
Peter Sakon: I would say if I rephrase my question, for Presort, you said that EBIT in 2024 is going to be slight flat to slightly up. SendTech you said revenue and EBIT will decline. And I hear you on the reasons why. My question was, what percentage of decrease in EBIT do you expect? Or what’s the magnitude of the decline for this very important segment?
Ana Maria Chadwick: Yeah, listen, we will not comment specific to each segment. But what I will tell you is the overarching statement that I made around our overall revenue being flat to a down into low-single digits, as well as EBIT margin, maintaining, gives you a perspective of the relative size that you have in SendTech inside of that envelope.
Jason Dies: Yeah, and when I’d say, Peter, I’ll just remind you SendTech by its very nature is a lumpy business, right? I mean, we deal with lease cycles, we deal with this IMI migration. SendTech in various quarters and various years tends to jump around more than just about any other business based on the lease cycles and equipment sales. You could have a quarter where you have a large equipment transaction, and that’s going to distort things. What I think you should be focused on is that we will continue to outperform the market in that business. And we are continuing to reposition that business for long term success. So while there might be pockets of different outcomes quarter-to-quarter, some will be better than others, the general trend is the same. We are repositioning that business, we are going to perform ahead of market and we are shifting that business into new growth spaces which provide us much opportunity going forward.
Peter Sakon: Great. My last question is regarding CapEx. Can you give us — or do you think that the spending this year will be the same allocation on a per segment basis? I heard you say that the amount will be the same, but will the same amount for GEC, SendTech, etc. And then how long is the typical payback period for your investments?
Ana Maria Chadwick: Yes, so let me take that. So overall around that $100 million level at the overall company will stay pretty steady. We will see a bit of a reduction in Global Ecommerce shifting that to the other two segments. In terms of the payback periods, one of the key priorities, and Jason talked about this in terms of our discipline, we are more and more focused not only on long term IRR, but on quicker paybacks. So as we are evaluating very thoroughly, all the investments that we’re making inside the business, we’re looking well into that less than two year payback, and at times, we’re really focused on the less than one year payback. So you’ll see more and more of that as we make our decisions here go forward.
