Christian Schwab: Great. So Frank, on the $2 billion of bids that we have outstanding, last quarter, we kind of highlighted a funnel of $5.5 billion that we were looking at. Can you give us an update on — would you decide to bid on $2 billion of that $5.5 billion or are those still outstanding? Or I think you talked about 3 large transportation projects, a ton of work on the West Coast, and a bunch of still will work, as a quick reminder.
Frank Renda: Yes. So as far as the 3 projects, we’ve submitted on 2 of those projects in the Northeast. We’re still awaiting one. It pushed back a little bit, Christian. That’s the Connecticut River Bridge and it’s going to bid sometime in January now. On the West Coast, one of those projects was the Burnside bridge, and we announced that we were the low bidder on that on the CM/GC side. As far as total dollar values, those — that $2 billion and the $1 billion we referenced, those are projects that we’re shortlisted on. We bid a lot of other projects during the quarter that were not in that shortlist process. So as far as the $5 billion, that might have been over the next couple of quarters, but there is a ton of demand out there and the pipeline sure has not slowed down, Christian.
Christian Schwab: Yes. And just a quick follow-up on that, Frank, given kind of the ton of demand that’s out there, what do you think your — what is the capability of backlog over a 12- to 24-month time frame that you think you could support. Is it materially bigger than the backlog today? Any color there would be great.
Frank Renda: Yes. So we have a great talent pool. We have resources in the Northeast, Pacific Northwest that we’re waiting to deploy with some of the pending awards. We could be close to record backlog if a couple of those come through, but we have the resources. We’re vigorously training labor and to be able to grow the business. But we’re going to always continue to be disciplined and bottom line focused, Christian.
Operator: Your next question comes from Julio Romero from Sidoti & Company.
Julio Romero: Maybe did the Midwest bridge or the American bridge post any profit losses in the third quarter that were in addition to the gross loss taken in the second quarter?
Cody Gallarda : Yes. So there were some small movements on that job in the Midwest, Julio, none that were material enough to qualify for disclosure. That project continues to work towards completion, and we made a lot of good progress in Q3.
Julio Romero: Okay. That’s helpful. And then, Frank, you talked about the Burnside bridge work and the broadband work. Why do those projects not entered your backlog until you start working on them?
Frank Renda: So they’re CM/GC contracts, and it’s a newer alternative delivery method that we’re seeing more than in the past. And these projects are awarded based on the best value of qualifications, technical ability and experience. So you’re able to get in there with the owner and start negotiating and helping on the front end design in the planning stages. Cody, if you want to talk about…
Cody Gallarda : Yes. So Julio, we see some variation across our peer group on this, there is a potential on the CM/GC process that we get through the integrated design and constructability phases with the owners, but it doesn’t turn into a contract for one reason or another. It’s unlike — I’d say, unlikely that, that happens. You typically do see the — both of those phases being awarded, but we have not executed a contract for the construction phase, and that’s why we’re not including it in backlog at this time.
Julio Romero: Okay. That’s helpful. And I know the majority of your projects that you bid on are publicly funded. But just curious, given the higher interest rate environment, if you’re seeing any effect on the private funded side in regards to the projects you guys are bidding? And if that potentially shifts your mix — your customer mix even further to the public side going forward?
Frank Renda: Yes. As you mentioned, we’re probably 80% public, 20% private, and the blue-chip private clients that we work for. We’ve not seen a major effect. We’re bidding on quite a few projects that are in the pipeline, and it sure doesn’t seem to be slowing down. I think the reshoring effort, some of these manufacturers is really helping demand on the water side for us.
Julio Romero: Okay. Got it. And then just last one for me is just on the balance sheet. The secured notes you have that mature in ’24, just remind us how much that is from a dollar perspective and what’s the current fixed rate you’re paying on the ’24 notes?
Cody Gallarda : Good question, Julio. So we’ve got the maturities of notes in there. I have to go back and look at that. We — I don’t believe any of our equipment notes are an immaterial amount of our equipment that’s mature in 2024. There is a smaller number of some unsecured notes payable that do mature in 2024. And if necessary, we expect to sub-roll those for another term. The interest rate on those is currently a sub-5% and would be renegotiated at market rates.
Operator: Your next question comes from Adam Thalhimer from Thompson Davis.
Adam Thalhimer : I’m serious about getting back in the queue. I’m curious, the way The Street is modeling 2024. I wonder if that’s the right way to look at it because they’re modeling 15% revenue growth, gross profit of almost 130. I wonder if the gross profit forecast is right. So if you guys haven’t — with the M&P revenue coming off, I wonder if revenue is more flattish, but margins are higher?
