I know you said you still think we are a year or two off from the peak in the current spending plan. But what are the scenarios you see out there and particularly focusing on what are the risks in the business, because certainly, listening to the call today, it seems like there’s very few things keeping up at night, but there must be some risk factors and specifically related to the election and maybe the budgetary situation?
Steve Burdick: Well, I am glad that we are not on a video conference today, because you would see a very tired worn out, Dan. Well, what keeps me awake at night and has got me awake, coming up to even tomorrow, because it isn’t signed yet is the dysfunction with the U.S. Congress and Government shutdown. We were sitting there in September. It was going to be a shutdown. They extended it for six weeks, which is until tomorrow. At the beginning of this week, it’s — I think that through the media, it’s — there’s no way they can come to any agreement and then these suddenly come to a bipartisan continuing resolution. But until it’s signed, I am not sleeping. And so what makes me feel uncomfortable is the dysfunction with the U.S. Federal Government and shutdowns.
Now do I have a plan for what I am going to do when that happens is Tetra Tech. Yes, we are going to make sure that our clients have funded us for more than 30 days in advance before it gets shut down. So we do all these sorts of things. But records are made to be broken and not just our financial performance, but the amount of time the government shutdown, who knows if 35-ish days is the new high. Maybe they are going to go for the gusto and go 60 days and I will sleep over that. I really do. I will tell you, any time there’s disruption on these, it makes me feel very uncomfortable and so that is some of the areas that I pay a lot of attention to. Unfortunately, it’s not something other than my boat as a single individual to vote for people that will be collaborators and move things forward.
So those are things that do make me feel pretty uncomfortable. I guess I say lose sleep on it, but that would be true. It is a high level of concern. I will say that outside the U.S. Federal Government, I thought you made a great point in that 40% of our revenues are now outside the U.S. So we are much more diversified. So I will say, a sneeze by the U.S. Government may give us a cold, but it’s not going to be terminal for us. So I — things aren’t perfect here, we are not immune from the upside. We do look to be optimistic with respect to not just our words, but our actions to be prepared for multiple contingency plans on different scenarios, but there’s no doubt the Federal Government. I would say that some would comment, let me just go to on the flip side, with the government, though and you did mention this is the volatility of Tetra Tech stock during an election year.
This goes all the way back to the, I think, it was the Roosevelt era a long, long time ago, it was 100 years ago almost. And it’s during election year, a chicken in every pot. So during an election year, politicians are not looking to say, I want to become more fiscally restrained. They are not saying, I want to spend less and take away your bridge or I want to take away your short protection or I want to take away whatever your individual project in your jurisdiction might be. Typically, election years are the opposite, which are, I have more gifts for you to garner additional support for both. So I would say the volatility kind of runs around that level of perspective and we can look at it. Maybe they have different priorities, the Republicans, Democrats, but one might want to build one item for border protection and someone might want to build items for water and environment.
But I haven’t seen even under the most stringent proposal, either side say I want less.
Ryan Connors: Good. Well, that’s good color. I appreciate it. Thanks for your time today.
Dan Batrack: Hey. Thank you very much, Ryan.
Operator: Thank you. Our next question comes from the line of Michael Dudas with Vertical Research Partners. Please proceed with your question.
Michael Dudas: Good morning, Jill, Steve, Dan.
Dan Batrack: Good morning, Michael.
Jill Hudkins: Good morning.
Michael Dudas: Obviously, given what you talked about with your growth in the business and certainly the opportunities internationally and it seems like evidence that the RPS simulation has gone quite well and probably can really kick into gear in the next 12 months to 18 months. How are you thinking about as you reset and recapitalize on the balance sheet, it sounds like you will be paying down further debt with the strong cash flow. How do you think about going forward relative to your historic kind of tuck-in smaller type acquisitions versus the opportunistic RPS? What do you see over the next couple of years, is it kind of in between, just opportunistic either way, I want to share how you are taking through that as you kind of meet some of these pretty aggressive markets that seem like you need your services for quite a few years?
