Bryan Fairbanks: I don’t expect it will be flattish. You can back into it with the SG&A guidance where we talked about 15% to 16%, but being at the higher end of that part of the guidance and back into a number for the fourth quarter.
Rafe Jadrosich: Okay. And then, I mean, there’s been a big step-up on SG&A this year, it seems like it’s been effective in driving the demand and sell-through. How do we think about the level of spend that’s appropriate going forward? And as we go into next year, do you think that the 2023 run rate is the right level?
Bryan Fairbanks: I think we’ll continue to leverage SG&A. We’ve talked about that before as one of the driving opportunities for our EBITDA improvement over time. I don’t see that we’re going to be looking at 40, 50 basis type leverage on a 40 — excuse me, 40 to 50 basis point annual improvement. But that 20 to 30 type level, absolutely.
Rafe Jadrosich: Got it. Okay. And then just one more quick one. Can — would you be able to talk about the sellout trends that now that railing is becoming a bigger part of your business and you’re focusing more there, how did the decking sellout trend versus railing? Did one outperform the other? Or both of them in that mid-single-digit range?
Bryan Fairbanks: Both of them were in that range.
Operator: The next question comes from Michael Rehaut of JPMorgan. Please go ahead.
Michael Rehaut: Hi. Yeah, good afternoon. Thanks for taking my questions. So first, I just want to make sure I heard you correctly from before in terms of 4Q into 1Q. It looks like from like 2015 to 2019, there was a seasonal move of about $40 million to $50 million of higher sales in 1Q versus 4Q. Are you saying that we should expect it to be a little greater than that due to that month shift maybe by another $15 million or $20 million? Is that the right way to think about it? Just want to make sure I was understanding you correctly.
Bryan Fairbanks: I think the more important part is we’re a bigger company today from those years that you’re looking at. So yes, the number would be higher. But the model really hasn’t changed where it’s extremely important that, that inventory gets pre-staged in the marketplace before the season really turns on during the peak seasonal months.
Michael Rehaut: Okay. Got it. Got it. And I guess just secondly, talking about the attachment rates for railing and the opportunity there. And obviously, you also have some additional capacity that you’ve turned on over the last couple of years. Is there any way to think about whatever the market baseline would be in 2024? What do you think those additional opportunities — either from ramping up your sales efforts on the railing side or just pursuing additional opportunities through your additional capacity to build your channel or other channels, any way to think about what the growth opportunity might be above the market next year?
Bryan Fairbanks: We’ll talk more about next year as we get into the end of the year call. But I think when you look at over the longer term, inclusive of the — our Investor Day of a 12% top line and growing our EBITDA margin by 500 basis points through 2028, that’s inclusive of that railing and decking growth.
Operator: The next question comes from Kurt Yinger of D.A. Davidson. Please go ahead.
Kurt Yinger: Great. Thanks and good afternoon, Brian just wanted to start off on sell-through. When you talk about the mid-single-digit growth, is that based on sales out of two-step or more reflective of kind of point of sale at the dealers and retailers themselves? And then as we kind of think about the full year guide of $1.09 billion in sales, we think about some of the sales being pushed into Q1 of next year, is kind of a realistic kind of full year sell-through number kind of in that $1.15 billion in sales? Is that a reasonable starting point as we start thinking about 2024?
Bryan Fairbanks: We’ll talk more about ’24 on the next call. Related to the sell-through specifically, it was really kind of consistent, I guess, I would say, between the sell through and the quarter level, so not necessarily at the Trex side. It — that takes out any movements that you would have in inventory.
