Keith Hughes: Okay. And then just a big picture question with the move up in rates in the last month or so. Are you getting any reports from your builder customers, how that’s affected orders inflecting down notably? And any kind of intelligence would be helpful.
Robert Buck: Yes, Keith, this is Robert. So production builders are pretty positive. They talk about the buy down and the rates and that kind of less than 6 being the magical number, so they’re still very active in those buy-downs. And they’re pretty, I’d say, optimistic for growth in 2024. You’ve seen some of their public announcements. Some of them are doing a nice job with new community counts, those types of things. So, production builders, I’d say optimistic. I’d say, the smaller private builders, you’re kind of talking more of a flat environment and some of the impact for them. So I think you can probably expect to see production builders continue to grow. And maybe some of the other smaller builders, more of a flat outlook for the future.
Keith Hughes: Okay. Thank you.
Robert Buck: Thank you.
Operator: Thank you. Our next question comes from the line of Rafe Jadrosich with Bank of America. Please proceed with your question.
Rafe Jadrosich: Hi, good morning. It’s Rafe. Thanks for taking my question. I wanted to ask on the fourth quarter guidance. If I look at the midpoint, sales are sort of being guided to flat year-over-year, which implies a slight decline organically, which is the slowest growth of the year or the worse of any growth of the year despite what would be kind of the easiest comp. Are there incremental headwinds are parts of the business that are softening as you’re starting to see the single-family business improve? Can you just help us understand the fourth quarter guidance, kind of relative to your industry expectations?
Robert Kuhns: Yes. Yes, Rafe, this is Rob. So I think the — if you take that midpoint of the guide and you kind of break it out between residential and commercial, it’s basically going to be flat for both in the fourth quarter. Commercial, definitely, as we’ve talked about and we talked about in the last call, the second half of the year, definitely a little tougher comp than the first half. So, nothing alarming going on in the commercial side. Normal seasonal slowdown in the fourth quarter, nothing above that. And then on the residential side of things, right? If you think about of last year in the fourth quarter, the single-family side, we were still benefiting from the backlog of work that was out there. So, if you look at the Q4 completions of last year, right, and you compare those to the Q3 starts that just happened, right, that we’ll be completing here in the fourth quarter, they were about 5% greater than what we felt.
So, that’s really the volume slowdown we’re projecting there year-over-year.
Rafe Jadrosich: Got you. Got it. That’s very helpful. And then in the quarter, in a softer single-family environment, you’ve still been able to maintain pricing. And obviously, the margin performance was really strong when completions are down. Can you just talk about your ability to hold prices as builders are trying to solve the affordability issue? Are you seeing pushback at all from the builders in terms of pricing? I know there’s another price hike which manufacturers are trying to push through here. Like how do you think about maintaining margins, pushing price in an environment where builders are trying to keep the cost of construction down?
Robert Buck: Yes, Rafe, this is Robert. It’s a constant discussion with the builders around those points. But I think as you’ve seen some spikes and stuff, they value the service that we bring. They value the labor that we have on a consistent basis for them where we can handle those spikes. And if you take the time of year where big builders are going through their closures, their year-end closings, and they can have 60, 70 units become available at one time. That plays to our strength, has been able to move labor around and materials and assets and stuff. So, it’s a constant discussion, but we do believe they value what we bring forward. And so I think from that perspective, our team has done a nice job with pricing and continuing to show that value to the builders.
Rafe Jadrosich: And one more just quick one on SPI, if I can fit it in. Can you just talk about the timing? I thought previously, you were expecting the fourth quarter. I could be wrong. I think you said it was going to be 2024. Just — where are you in that process? And what’s your best guess on when it closes?
Robert Buck: Yes. So, we’re saying 2024. Things are progressing well, continue to work going through the regulatory process. But as we all know, it’s a new regulatory process, takes a little longer, but we’ve been through it before, and we’re just work in a normal — the normal process, as you would expect there. So, we say 2024 with the holidays and everything coming up, that’s fully what we expect.
Rafe Jadrosich: Great. Thank you.
Robert Buck: Thank you.
Operator: Thank you. There are no further questions at this time. I would like to pass the floor back over to management for closing remarks.
Robert Buck: Thank you for joining us today. We look forward to talking with you in February to share our Q4 and full year results. Thank you.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
