Theresa Jang: At the end of the year, I mean we — I would say, at the end of the year, assuming no further acquisitions, which is kind of the way we approach our planning and our projections, we should see a gain to the lower end of the range. The equity offering we did in November, really did what we intended for it to do, because it gave us the additional capacity to fund that positions, while knowing that we had ZETCON and Morrison Hershfield, to fund in the first quarter here. So, we’re in really good shape. And so, as the year unfolds and cash flow, it remains a focus for us to turn over quickly. I would say, that we should be in the – the lower half of our range.
Yuri Lynk: Okay. Last one, just quickly, a bit of a nitty-gritty one. You do mention specifically, that you’ve included Morrison Hershfield, in your updated guidance, you don’t mention ZETCON. Safe to assume, that’s also in there?
Theresa Jang: Yes. So, ZETCON was included in the guidance when we rolled it out in December. And so incrementally, we now have MH in there, too. But yes, that definitely both our in our current guidance.
Yuri Lynk: That makes sense. Okay. Thanks, I’ll turn it over.
Operator: Thank you. One moment for our next question. Our next question comes from Jacob Bout with CIBC. Your line is now open.
Q – Jacob Bout: Good morning.
Gord Johnston: Good morning.
Q – Jacob Bout: I had a question on your organic growth. It was quite strong in the quarter. But when I look at infrastructure in particular, you were on the low single digit, I think was around 3% on a net basis. What happened there especially, as we think about the US? Was the organic growth, a little better in the US or — And then what type of improvement, are you expecting year-on-year specifically, on infrastructure organic growth?
Gord Johnston:
— :
Q – Jacob Bout: Okay. The second question just on mix. When you look at Infra, Water and Environmental Services building, are you happy with your mix right now? Where would you like to bulk up? And maybe just comment quickly on what ZETCON and Morrison Hershfield bring to the table?
Gord Johnston: Yeah, so happy — in general we’re very happy, with our current mix. I think that — so when you look at Morrison Hershfield, it’s primarily with a lot of expertise in the building segment as well as in transportation. So again, two core areas for us that will continue to move forward. ZETCON is very active also in the transportation space and primarily from a project management and construction management perspective. So roadways, bridges beginning to get involved in some of the electrical grid work in Germany as well. So again, all sort of the core activity that we’ve got and none of — neither of those on their own are really going to materially move our overall split between our various business operating units.
Jacob Bout: Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from Michael Doumet with Scotiabank. Your line is now open.
Michael Doumet: Hey. Good morning, Gordon, Theresa.
Gord Johnston: Good morning.
Michael Doumet: Good morning. Very impressive pace of organic hires. Just wondering if you could comment on the extent of the improvement in labor availability this year or now versus last year? And if you can comment on whether you’re looking to maintain that pace of organic hires into 2024?
Gord Johnston: Right. And so yes good question. A couple of things there. Firstly, we have really ramped up the pace of hiring over the last number of years, doing a lot of — and a lot of the hires interestingly are both — it’s a bit divergent. One is that the we continue to hire at the entry level in order to continue to fill out that portion of our demographic profile. So a lot of hiring at the new graduate level people in their first five or 10 years of their career. But one thing that we’ve seen evolve with the last couple of years, as we are continuing to get more and more of these large projects that we’re bringing in a lot of more senior staff as well, people with 30 35 years of experience and we’re becoming increasingly attractive to those folks also.
So we’re seeing labor availability. It’s tight out there no question. But our brand, the type of projects that we’re bringing to the table really is enabling us to continue with that hiring. And to your question about do we see that continuing? Absolutely. When you look at the organic growth numbers that we’re putting up our expectations or guidance for this year that will require continued hiring. And we — I wouldn’t say it’s easy, but we’ve been very successful of bringing this people on.
Michael Doumet: Great color. Thanks. Gordon. And maybe if I turn to the EBITDA margin in 2023 16.3% or 17.1% x LTIP. So about 80 basis points difference I guess between the two. And then if I look at your 2024 EBITDA guide, you’re effectively calling for a 40 basis points margin expansion. Just wondering what is assumed the LTIP what is assumed in terms of underlying margin improvement in 2024?
Theresa Jang: Yeah. So the way that we established our guidance is that we assume — we use the share price at the end of that reporting periods. So in this case at the end of December 2023 and we project our LTIP on that basis because — as you know you have no idea how your share price is going to move over the course of the year. And so, we don’t try to bake in any kind of guesses one way or the other. And so, as you think about our EBITDA margin from the 16.4% that we reported for 2023 relative to our guided range of 16.2% to 17.2%, that is all margin improvements. And that is incorporated into our current target and assumes a steady share price for our LTIP.
