Brian Andrews : Yes. I mean, obviously, you’ve got a number of things, a lot of moving parts. By far, I mean, if you look at free cash flow this year versus last year, I mean, CapEx is driving much, much higher. And then besides that, you’ve got interest expense as a very big factor. Just those two combined alone is over $200 million. The Cook termination fee, I mentioned that in my prepared remarks, that will be $50 million. So outside of that, you’ve got FX, depending on how far you look back tax has gone up and then you’ve got a few other working capital items. So, we’re definitely investing a lot in our business, a lot of dollars going towards infrastructure which is really mostly tied to capacity expansion, but do expect that free cash flow will improve next year versus this year.
Operator: Your next question comes from the line of David Saxon from Needham & Company. Please go ahead. Your line is open.
David Saxon : Maybe just a couple on the myopia management portfolio. MiSight was strong despite China. So how are you thinking about the recovery in that region for MiSight? And then Ortho-K, maybe can you give a little more color on what that realignment is and how long that impact lasts? Thanks.
Albert White : Yes, China MiSight — so we don’t have a big business in China. We just don’t do a lot in China. But what we do there, and certainly myopia management is included there has been, I guess, bumpy maybe as the word to describe it. We take a step forward and two steps backwards, it seems at times over there. So, I know personally, I get more optimistic about it because I’m starting to see some good stuff happen. And then all of a sudden, it slows down. So, I’m having a hard time reading it. Now again, I’m not a China expert. We don’t do a ton of business there. But at least for what we do there, our part of the business and the myopia management part of the business, it’s definitely fits and starts. So, I wish I could give you more specific detail on that.
I mean, we don’t have a lot built into our assumptions with respect to China. But I’m not sure how that’s going to play out. I will say that the receptivity to MiSight has been really strong around the world, and it’s been strong in China. I mean we’ve gotten really good feedback in China about the product. And I think the product is going to be successful. Now we did accelerate growth this quarter, which was great. We had a stocking order last year. So, we even hurdled that and still accelerated MiSight growth, and we continue to see some really nice success with MiSight as we start out the fourth quarter here. So, I’m definitely optimistic on my side and where it’s going on a global basis, including within China, a little bit more questioning what’s going to happen with Ortho-K.
We did have some portfolio realignment where we had to true up some products. We had a lot of products there. So, we had to do some products up and so forth. We should have a better Q4. As a matter of fact, I think we’ll have a pretty decent Q4. But again, it’s still bumpy. I mean we held the range of $120 to $130 million, right? We did 25 or 30 and 30. So we’re at 85. So that’s $35 million to hit the bottom of that range. So, we’re looking at sequentially at least $5 million more in our myopia management business. So that kind of gives you directionally where I’m thinking is you’re going to see some bounce back and some improvement. But I’m a little hesitant to get too excited about it just because it seems like we keep moving forward and stepping back there.
Operator: Your next question comes from the line of Stephen Litchman from Oppenheimer. Please go ahead. Your line is open.
Ron Feiner : This is Ron on for Steve. I just wanted to ask what was the contribution of price to CVI this quarter. And what are you guys assuming for the rest of the year?
Albert White : Prices helping CVI around in the low 2%. We would have that same amount kind of factored into fiscal Q4.
Ron Feiner : Okay. Do you guys have any like early thoughts on tax rate, interest expense, and FX impact for fiscal ’24 based on where things are at today?
Brian Andrews : Yes, Ron, the tax rate we’re expecting to bounce back to a sort of our organic tax rate of 15% pre-discrete. And outside of some commentary I gave a little bit earlier on just subject to the Fed and we’ll pay down some debt. And hopefully, we’ll see interest expense sort of flat to declining next year. I didn’t give any other sort of nonoperational commentary.
Ron Feiner : Okay, thanks, guys.
Operator: We have no further questions at this time. Al White, I’ll turn the call back over to you.
Albert White : Great. Thank you, and thank you for everyone joining today. I’m pretty proud of where we’re at right now. The business is doing really well. As everyone knows, we just posted really strong revenue numbers this quarter. And solid EPS numbers and our guidance is strong. So, I’m pretty optimistic about where we sit today and what the future holds. And I look forward to December and discussing in Q4 and definitely giving guidance for next year and talking about those details. So, thanks again, and look forward to hopefully seeing everybody during the quarter.
Operator: This concludes today’s conference call. Thank you for your participation, and you may now disconnect.
