Budd Bugatch: Okay. And last for me, ERP are initials that sometimes get investors a little nervous. And you talked about the plan. Can you maybe give us some color as to the length of the ERP implementation and any particular — has it been decided which ERP you’re going to go with? And what kind of color can we get on that?
Dave Sylvester: Yes. Well, those three letters make management teams nervous, too, but that’s why we’re taking such careful effort to think about how we want to transform the business in advance of the implementation of our new ERP. So, we are just now going into the design-build phase, and we are targeting a go-live next fiscal year in the Americas, and then we’ll roll it to the International segments thereafter. What I’m really pleased about is the level of capability that — we’re staying with SAP, but we’re really pleased with the advanced capability that the new versions of SAP have. So, we believe we will have to customize the system much less. And we also have shown a high degree of willingness by our internal teams and working with our dealers to, I’d say, modernize and simplify some of our business processes to be more fit to standard, is the phrase that the teams use.
So, we won’t have to necessarily customize the ERP because either they’ve advanced the solution or we’re modernizing or simplifying our business process.
Budd Bugatch: Okay. Well, congratulations on the progress. It has been a tough couple of years for sure. And nobody wanted to go through that, but you’ve come through it, and the balance sheet just shows you a remarkable and a very strong position going forward. Thank you very much.
Dave Sylvester: Thanks, Budd.
Sara Armbruster: Thanks, Budd.
Operator: [Operator Instructions] Your next question is from [indiscernible] with Thompson Research Group. Please go ahead.
Unidentified Analyst: Hey, good morning. Been great color on the call so far. Maybe to dig in a little bit more on large corporates driving order, you talked about the increase in continuing business and the project side showing two quarters of growth now. What do you attribute this project growth to for the last couple of quarters? Can you give us a sense for what is spurring companies to finally pull the trigger on these projects? Is it moving office? Is it refreshing the existing space as workers come in more frequently? Just any drivers you see to boost the project business.
Sara Armbruster: Yeah. Excuse me, great question. And I think it’s all of the above. I think at broad strokes, I would attribute it to large organizations, by and large, recognizing that in-office, in-person presence together is really critical to the success of their business. And we know that that’s not, in most cases, going to look like the old days of the kind of 9:00 to 5:00, five days a week in the office. But I think now that we are, what, four years — past four years into the post-pandemic world, I think organizations are really seeing that, and they’re willing to make the investments to create the kinds of spaces and the kind of experiences that attract their employees and allow their employees to kind of work — do their best work.
So, I think, by and large, that’s what we’re seeing, and it continues to be a steady kind of drumbeat of little by little increasing investment in that direction. So, I think that’s really ultimately what’s driving the strength that we’re seeing in large corporates.
Unidentified Analyst: Okay. Helpful. And one question to carry that a little bit further. This project demand that’s getting better, is it broad-based across corporates? Or are there any certain sectors or geographic concentrations that maybe are flipping this to positive over the past couple of quarters?
Sara Armbruster: Yeah, it’s pretty broad-based in terms of sectors. So, we definitely see demand from across different types of verticals or sub-segments within large corporates. Geographically, at least here in the U.S., obviously, I think the West Coast, which we’ve talked about before, which has been a bit of a laggard all along, continues to be a laggard. But I would say, outside of that, we see pretty nice activity in multiple regions. So, it’s relatively broad-based.
Dave Sylvester: Yeah. It’s been a little stronger in the New York, New Jersey financial services side and a little weaker in the tech West Coast side. But I wouldn’t want you to think that there’s no business in tech right now either. So it is pretty broad-based. But it was — I feel like it’s a little correlated with some of those organizations that leaned in first a little bit more explicitly about minimum numbers of days in the office. So, as they got their people back, they started to restart their day-to-day business, which then started to spur some dialogue about project activity, which is now starting to show up.
Unidentified Analyst: Okay. That’s great color. And then, last one for me. Working capital was a great benefit to cash flow this year, even with organic sales down in the final three quarters of the year. With organic sales growth expected for FY ’25, can you talk about the working capital benefit to cash flow this year — I shouldn’t say, benefit, but impact to cash flow this year?
Dave Sylvester: Yeah. I mean, this year was largely about, I would say, managing our inventories down. We did have a few spots in receivables that we have been attending to, and feel like we have those in very good shape. Those were some markets that historically around the world have had very high DSO for us, and I think just about any industry. And we’ve addressed that and feel really good about where we are in those markets. But the big improvement this year was pulling inventory levels back to more of a normalized level after the build that we had in safety stocks because of the supply chain disruptions we had 18 months, two years ago. So, I think it’s more normalized. So, I think as we grow, you’ll see a growth in working capital, and it will be relative to sales. But if you look at where our kind of fourth quarter DSO and DII is, that’s about normalized and would be a good projection going forward for you to leverage.
Unidentified Analyst: Okay. That’s helpful. Thank you.
Operator: There are no further questions at this time. Ms. Armbruster, I turn the call back over to you.
Sara Armbruster: Great. Well, thank you all for joining, and we appreciate your interest in Steelcase, and hope you have a terrific day.
Operator: This concludes today’s conference call. You may now disconnect.
