To help with this, we’re continuing to build out the strategy and corporate development team, and we’ll add more human capital to this department. This department reports directly to me, I’m leading that charge. I think it’s very important as we continue to move to diversify the company. But look, our goal with any inorganic opportunity we do in the future is to broaden our customer base, further diversify the revenue streams, and create a platform for revenue growth and doing all of this while maintaining a strong cash flow profile with good visibility on future revenues. So look, we’ll be very thoughtful in this in terms of fit and kind of financial profile when assessing any potential inorganic deal, but we feel very strongly the growth through inorganic opportunities can help us deliver the goals I mentioned.
We think it’s very important to continue to diversify the revenue stream and derisk the business. So we’re all over that. There’s even a more focus to get that done quicker, but look, we’re going — we’re not going to do something that’s not right for all the investors. So I think where we sit with the capital we have available. We’re set up pretty nicely over the next few years on the organic, inorganic side of the business.
Scott Schneeberger: Just real quick, a follow-up to that on the inorganic, should we be thinking something core to what you do already? Or will it be more the path of the diversification that you speak to?
Brad Archer: I think you can do both of what you just said, right? Something we already are very good at that diversifies us. And I’m not going to get into specifics here, but I’d just tell you kind of segments that were kind of circling around specialty rental. We already do that, right? There’s many different things in the specialty rental business that you can go and do that kind of fits in our wheelhouse that we’re very good at. We have some expertise at. So that’s one of the segments we’re focused on. Government services is another one that we’re focused on. So that’s kind of where we’re leaning into. We’re not going to not look at some others, but those are kind of the two. But to answer directly, look, we’re not going to get so far out of our wheelhouse that we don’t know what we’re doing.
We’re going to stay within kind of what we do really well, but it will — the things on the inorganic side definitely need to kind of hit those three buckets, right, broaden our customer base, further diversify the revenue streams and give us repeatable programmable growth, there’s no secret, right? The risk is our two contracts in the business. We think those are long term. They’ve proven they have been. So we’re very comfortable with those. But we also realize we need to continue to diversify that strength.
Operator: [Operator Instructions] We have our next question coming from the line of Alec Scheibelhoffer from Stifel. Go ahead please.
Alec Scheibelhoffer: So just to kick us off here. I was just kind of a 3-part question. I was just wondering if you could provide some details on exactly how the variable piece of the government contract works and if Trump wins the election, are you concerned about the utilization of the facility or the renewal of the 1-year contracts? And as a third part, can you just talk about the differences you see in under the Trump’s prior presidency versus Biden?
Jason Vlacich: Yes. So the variable revenue piece, again, as a reminder, it’s a small component of our outlook. We usually plan for very minimal amounts of that variable revenue contribution. As a matter of fact, our 2023 results include a minimum amount of that. It’s primarily based on the fixed minimum revenue commitments. Having said that, there is an element of occupancy-driven component associated with that. And there’s the bid band allocation as well. So anyway, it’s generally driven by occupancy levels, population fluctuations for the one-company miners, which is always going to fluctuate over the year. So therefore, we plan for very minimal amounts of that variable revenue.
Brad Archer: Yes. And let me take your elections question. History tells us to expect very little change if any, in our facilities. We have served many different administrations to date. And again, we just — we don’t see any — or anticipate any changes. I would also add, based on the populations we serve and the regulations and laws surrounding that, this also provides us with some surety around long-term use.
Alec Scheibelhoffer: And then just kind of shifting gears a little bit to your capital allocation framework in ’24. You commenced some of the share repurchases, as you mentioned thus far in 1Q ’24. Just curious how we should think about your capital requirements should you secure that through the contract with the government and just some of the moving pieces behind some of the inorganic and organic growth that you’re contemplating?
Jason Vlacich: So we’re obviously focused on growth, right? But the share repurchase program is still in play. It’s certainly something that’s an important consideration for us. We executed upon it. We’ll continue to evaluate that as an accretive allocation of our capital. But we’ll also continue to remain extremely focused on our growth initiatives both inorganic and organic, right? So we’re not losing sight of the organic pipeline. It’s very strong. We continue to focus on that. We’re pleased with the breadth of opportunities there. But as Brad mentioned, we’re definitely focused on our inorganic piece as well for the various reasons he’s outlined. And for the various reasons we outlined at the start of the call as well as in the earnings release and in past calls. So that’s kind of how we’re thinking about it. Again, that share repurchase program is in play, and we executed upon it, and that will continue to be an option for us as we move forward.
Operator: Our next question comes from the line of Greg Gibas from Northland Securities. Go ahead please.
Greg Gibas: I guess just a follow-up on another question. Jason, were you kind of saying that the lower end of the EBITDA guidance range assumes that targets only receiving that fixed component for the Pecos contract?
Jason Vlacich: No, not necessarily. There is some elements of the variable revenue component in there, but it’s minimal.
