Katja Jancic: Thank you. And then is it fair to assume that CapEx spending will stay elevated over the next few years given that there is a desire to continuously invest in growth?
Karla Lewis: Yeah, Katja ,we’re actually in process on our 2024 CapEx budget now and we’ll be giving that number in February on our call. But as I just alluded to we do see continued opportunity from our customers especially with a lot of the really positive things in the market right now with the different government stimulus and the activity we expect there as some of the suppliers expand capacity we’re able to work with them to get some opportunities there. The reshoring near-shoring is real and that all provides increased opportunity for us. And we’re fortunate to have our folks execute the way that they do that we have the strong cash flow and the balance sheet to be able to support our customers and continue to invest. So we don’t have a number yet, but we do anticipate a healthy budget next year because of the opportunity we see.
Katja Jancic: Okay. If I may one more. Karla, you mentioned the acquisition pipeline is solid. Can you talk a bit more is there an increase in willingness of these companies to sell? What are the valuations you’re seeing?
Karla Lewis: Yes. We’ve seen a flow. I think it’s probably increased a bit more with the more traditional types of service center companies over the last nine months or so. There were some opportunities that came to market in peak periods that it appears deals did not get completed. So we’re seeing a few of those come back around. So we’re expecting more reasonable expectations in our view on valuation. Reliance we were very consistent on how we value companies looking at a normalized pre-tax income number for the long-term going forward and we value from that. We continue to do that. And do believe that we should be closer in expectations with some of those sellers, but not all sellers were expecting to be paid off of the peak.
The good companies that we acquire have been in this business for a long time. They understand that there are different cycles we go through and look at and understand our approach to the valuation that we expect to continue to be able to acquire more good companies and we’re excited with what we see out there.
Katja Jancic: Perfect. Thank you.
Kim Orlando: Thank you.
Operator: There are no further questions at this time. I would like to turn the floor back over to Karla Lewis for closing comments.
Karla Lewis: Great. Thanks again everyone for joining our call today and thank you to our big Reliance family out there for all that you do every day. And before we close out the call I’d like to remind everyone that we’ll be in New York City in mid-November presenting at the Goldman Sachs Metals and Mining Conference and we hope to see many of you there. Thank you again to all of you for your continued support of Reliance.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
