Susan Lynch: Right. So we’re kind of targeting about 3.6x by the end of the year and then getting lower in 2024. Our midterm target is to get between 2x and 3x. And as you saw us pay down the second lien and then use some cash here in the first quarter to restructure that debt into a lower cost of capital. So we’re doing as much as we can as fast as we can to pay down the debt. And this — I’d like to say we’re very happy with the new structure in all the banks that supported us in refinancing our debt.
Brian Gesuale: Great. Thanks so much.
Operator: The next question comes from Ken Herbert with RBC Capital. Please go ahead.
Ken Herbert: Good afternoon. Chuck, I just wanted to start off when you think about INDOPACOM and the growth you saw through ’23, does the guidance assume sort of a run rate on this low 50s on a quarterly basis for ’23? Or is there growth off sort of where we’re exiting ’22 implied in INDOPACOM as part of the outlook for ’23?
Chuck Prow: Yes. I would say that for — first of all, Ken, how are you doing. Yes, I would say that we’re going to see a modest increase in INDOPACOM throughout ’23. As I’ve indicated, we really like our INDOPACOM pipeline here over the next 18 months. So I continue to see for the next couple of years. INDOPACOM being a driver of growth for us and I was out there the week before last, I guess, it was now. And the opportunities are real. The opportunities are emerging and we’re going to continue to invest in different ways to make sure that we are prepositioned in the areas that are most closely aligned to where our clients’ needs are going to be.
Ken Herbert: That’s very helpful. Thank you. And as I think about your comment on sort of a 40%, 60%, is that the right framework as well as we think about the adjusted EBITDA in ’23? Or do you maybe even see a little bit more of a pronounced second half ramp on the EBITDA side?
Chuck Prow: I would start with the 40-60, maybe a little bit more pronounced. You could be like in the 38-ish or something. But the 40-60 has been a good guide still and for us in recent years. And Mike will continue to stay focused on what that exact mix will be.
Ken Herbert: Okay. That’s great. And just one final question. As we — just to follow up on some of your comments on the fiscal ’24 defense budget outlook and sort of the path between the request and when it gets put in place at the end of the year. Does the guidance assume a sort of a structured maybe three month CR for the — into the end of calendar ’23 for fiscal ’24? Or how have you specifically sort of thought about risk around timing of appropriation of the fiscal ’24 budget?
Chuck Prow: Well, as we indicated in our prepared remarks, I mean, we have such a high coverage of our 2023 revenue based upon contracts we already have in hand. And point two, as you know, we are so heavily focused on alignment to the O&M budget. We really didn’t have a significant impact from any delays in the budgetary processes this year. I will say, however, getting back to my earlier questions — answer to the question, but I should say that, that does impact actual new awards, right? So we’re fortunate and blessed to have that coverage 90% revenue coverage this year, 2020 and 2023. But again, that really is a ’23 comment, and we’re going to have to look at closely as we move into ’24.
Ken Herbert: Great. Thanks Chuck. Really nice to enter the year.
Chuck Prow: Thank you. We appreciate it.
Operator: The next question comes from Joe Gomes with NOBLE Capital. Please go ahead.
