Elliot Alper: Understood. And then maybe just last question then I’ll hand it over. I guess there’s been a lot of mixed reporting on the Chinese economy. I know you guys have location in Shanghai. I would be curious to get your thoughts on maybe the outlook or anything you’re seeing on the ocean bookings side in China. Thank you.
Bohn Crain: It still remains soft. I think we’re seeing a modest uptick in kind of orders from our customers. While at the same time, we’re also seeing some of our customers begin to pivot to either Southeast Asia or Mexico, which we’re all reading and hearing a lot about. So the volumes are anemic relative to historical levels, but we — but certainly, China is not going away, but it remains soft, and we would — I think as everybody on this call knows, right now, would typically be just the go-go time, we would be in the absolute height of peak season right now. And it’s muted as best and then we’re going to be in the Chinese New Year. So we’re not expecting any meaningful divergence from this kind of dampened ocean market. At least we’re probably looking to next year’s peak season in the next fall, to see what next fall looks like.
Elliot Alper: Helpful, thanks Bohn.
Operator: The next question comes from Mark Argento with Lake Street. Please go ahead.
Mark Argento: Hey guys, yes, just a couple of quick ones. One, I guess, the balance sheet is in fantastic shape. Are you starting to see any opportunities out there? Do you think we need a little more distress to set in before deals start popping, but any kind of overview on the M&A market right now?
Bohn Crain: Well, I think there’s — we’re certainly as engaged as we can be, and we’re hopeful that we’ll have an opportunity to get some things done here in coming quarters. At the same time, we’re going to continue to be kind of thoughtful in our approach. But I think there’s going to be a lot of opportunities. I’m hopeful there will be lots of opportunities that we can consider. The fact is, I think, at least a fair number of people in our space were had — were levered up and had their balance sheets geared at kind of higher earnings levels. And so as everything softened up, while they might have thought they were at 3x or 4x levered, they may now find themselves at 5x or 7x levered, which isn’t a particularly good place to be in the current bank market.
So there’s really just not as many folks out there that are actionable to do deals. And so we’re quite happy or appreciative to be in the position we are with the financial flexibility that we have. But at the same — but having said that, we still believe our stock represents a pretty compelling use or place for us to put our capital as we think about capital allocation. So while we’re looking at a number of things, and we would — we’re certainly ready to action if things line up right. Our feelings won’t be hurt if we’re continuing to buy in our own stock at what we think is a really attractive valuation.
Mark Argento: That’s helpful. And maybe, Todd, can you just remind me kind of what’s the typical conversion of EBITDA or adjusted EBITDA to free cash flow given the capital structure you have right now?
Todd Macomber: Well, I mean I think the best — if you’re trying to track it, I mean I think adjusted net income is a good proxy for the free cash flow. That’s probably the best metric.
Bohn Crain: Yes. I think the probably plus or minus — correct me Todd, but I think what he was asking for is effectively what are we going to be spending on CapEx, which is for us is largely technology. So I think plus or minus $5 million handle would be kind of normalized technology being capitalized.
Mark Argento: $5 million a year or over what period?
