Cody Gallarda : Yes. So, that backlog burn off or that RUFO liability burn off, that 44% is what we’re projecting over the next 12 months, subject to the permitting issues, time delays, project delays that we also mentioned. Brent, I’d like to give you a little bit of a different color perhaps on a related note, but to give a feel for the reduction in top line revenue. When you look at what M&P’s contributions have been where it was once nearly 40% of our backlog several years ago, it’s shrunk down to about 12% now. The M&P business line had revenue in 2022 of $244 million with a negative margin as projects were completed of $32 million. And year-to-date, being $95 million with a $59 million loss as disclosed in the Q. So there’s certainly a component of that reduced top line volume that we’ll have to replace in our other end markets as we pick up new awards, to Frank’s point, and the timing around those awards can slide from one quarter to the next as we’ve discussed.
Brent Thielman : Okay. Yes, I guess just the last one, Cody, just on — looks like you made some changes to the capital structure subsequent to the end of the quarter. Maybe you could just talk through that, how that gives you sort of adequate liquidity for what you need to do going forward? Just would be helpful to hear those changes.
Cody Gallarda : Sure. Yes, thanks Brent. So we disclosed in the subsequent events about our refinance of equipment term notes. This was just taking existing term notes that were a little over halfway through their amortization life and taking advantage of the equity, the significant equity that we have in our PP&E. So normal cadence for us, as you’ll see financing and refinancing equipment because we do have a significant amount of consistent, dependable value in our construction equipment.
Brent Thielman : Got it.
Cody Gallarda : Was there any component of that, Brent, that I didn’t answer?
Brent Thielman : No, Cody. I’m sure we could talk offline, but appreciate the update.
Operator: Your next question comes from Julio Romero from Sidoti & Co.
Julio Romero : Good morning, Frank and Cody. I appreciate the color you guys gave on the historical M&P business, but was hoping for some more granularity into how much that business made up recently? Maybe what percentage of sales and profits didn’t M&P make up in 2022, either from a dollar perspective or a percentage of sales and profits?
Frank Renda : Yes. Julio, thanks. Let me, I guess, repeat to clarify those numbers for 2022 and year-to-date 2023. M&P in 2022 was $244 million of revenue with a negative margin of $32 million. That was entirely within our Transportation segment in both periods. And year-to-date, it was $95 million of revenue with negative gross profit of $59 million. So you can take that and that will get you to those numbers you were looking for.
Julio Romero : Okay, got it. Really helpful. And I guess, you mentioned you locked in prices with vendors now for some of the materials for the M&P business. But as far as the other costs that you’ve estimated within that $49 million, I guess, just how would you have us think about the confidence in that number fully capturing the potential variable costs?
Frank Renda : Yes. Good question, Julio. We do feel confident. We look at all known and estimable impacts and take that assessment on future work. The nature of these being firm third-party price commitments. We feel very good about those, capturing what the increased material and delivery cost will be for this third-party provided material. And that area of additional recognized future costs being booked in Q2 made up predominantly all of that $49 million charge in Q2 for MMP.
