One of the areas we differentiate ourselves on is that vitality, bringing new products to market. I think we just had an excellent lineup this year. We’ve launched a new diagnostics platform that’s selling well. Our power tool line up has been doing outstanding through 2023. And then our toolbox factory has been on the mend, so we are actually seeing movement of higher-priced items in this market environment, which I think has been encouraging to us. It’s hard to say exactly what 2024 will bring in this regard. So we’re watching it carefully. But at the same time, we’ve been pretty darn encouraged with the results that we’ve been getting in the marketplace. Anshooman, you want to add anything there.
Anshooman Aga: Yes, I’ll just add to your question about sell-through. So when you look at the fourth quarter, we were up about 5%. But when you look at the completed business of our franchisees, really the sell-through on a year-on-year basis, the average weekly completed business was up about 6%. So good sell-through, so it’s not an inventory issue that’s building up. So overall, a solid quarter, as Mark talked about, good product vitality that helped drive it with a healthy technician, but we continue to monitor the space.
David Ridley-Lane: And just a quick follow-up. I know that divestitures are going to throw off incremental margin calculations. But can you sort of bridge in from kind of 2023, how much restructuring cost savings are in that bridge versus kind of the core organic profit growth?
Anshooman Aga: There’s about $8 million of restructuring benefit in 2024, which is a carryforward from 2023. Yes, the portfolio shift does help roughly 50 basis points. But if you look at our drop-through on the ex divestiture part of the business on the growth, we’re doing about a 30% drop-through despite some higher R&D expenses as we continue to build out our leading position in Invenco and carwash business and Evolve.
Operator: [Operator Instructions] We have our next question coming from the line of Julian Mitchell from Barclays. Please go ahead.
Julian Mitchell: Hi, good morning. Maybe just wanted to try and understand sort of higher thinking about organic sales growth for the year and margin expansion across the three segments. — which ones do you think kind of lead growth or have the lowest margin expansion? Any sort of color around that, please?
Anshooman Aga: Julian. So I’ll start with that. So when you think of the three segments, let’s start off with Mobility Technologies. Mobility Technologies, we should have mid-single-digit to high single-digit growth in that segment. Operating margins will be flat to slightly up despite the higher R&D, this business has good drop-through and as it expands and grows that really helps us. The Repair segment, that should be a low single-digit to mid-single-digit growth. The operating profit margin is roughly in line with the previous year. And then our Environmental & Fueling business should grow about mid-single digits with higher margins and some margin expansion out there.
Julian Mitchell: That’s very helpful. And then just my second question would be around thoughts on capital deployment. How much leverage do you think or how much firepower do you have available for the year ahead? What’s the appeal of sort of M&A versus buybacks at you current price. And I think you have about $100 million or so of debt reduction dialed in for that interest guide. Is that the sort of maximum debt reduction? Or could there be more?
Anshooman Aga: Yes. Maybe I’ll start off, and then Mark will also chime in. So the debt reduction will probably be limited to the $100 million. As of now, we have a maturity of a term loan with $100 million left on it. So we’ll pay that off. From a leverage perspective, we said we’d have a leverage ratio of 2.5x to 3x at 2.8x. We’re squarely in that. So just maintaining our leverage in that range and then from a firepower perspective, obviously, we are a good cash flow generator and 90% to 100% free cash flow generation. We also did have the Hennessy sales proceeds, which came in, in January, little over $70 million. From a capital allocation perspective, we will be very disciplined as we have demonstrated in the past. We are very returns-driven. And we have — and we are patient, so just expect returns-driven focused capital allocation from us. Mark, do you want to add something?
Mark Morelli: Yes. I’ll just reiterate that, Julian, that we feel that we’ve really demonstrated a very disciplined approach on the capital allocation. And it’s something I think we think about a lot. We spend a lot of time thinking through the different avenues for this, and we’re extremely disciplined, very patient, with how we figure these things out. So we don’t feel in a rush to do M&A if that’s maybe where people might think. But we will have M&A part of the equation and bolt-ons when the right hurdle rates are met and the right strategy kind of plays out for us. So very strategy led on that. And then I think more of what we’ve done in the prior year. I think, has worked really well. So we continue to spend time on this, and I think you’re just going to see a very disciplined approach.
Operator: Our next question comes from the line of Rob Jamieson from UBS. Please go ahead.
Robert Jamieson: Good morning, congrats on the results this morning. I just want to focus a little bit on [indiscernible] Invenco. It sounds like the iNFX deployments for Shell are progressing. I wonder if you could just talk about the pilot programs that you mentioned. How does this play out from a timing perspective? Are these with like larger chains that are testing a few sites? And then how long does this pilot program last before it might convert into a win?
