Kyle White: I know a lot has been talked about M&A, but I’m just curious, just given the fact that you spent quite a bit on acquisitions this last year, do you have the appetite and internal firepower to complete another outsized year of acquisition in 2023? Or should we expect it to be relatively subdued as you work to integrate some of those deals last year?
Worthing Jackman: Good question. Remember, after our dividend, we still have almost $1 billion of free cash flow to fund M&A. And so we’re not constrained from a balance sheet standpoint to do another outsized year. I mean if we just — if an average year is $150 million and, let’s say, we do $150 million to $200 million of acquired revenue this year, that’s probably us spending about $0.5 billion. And so we still have another $0.5 billion left over for anything that might come along to put that number above 200 or to apply for other purposes. And so I think we’re blessed to have the flexibility given the strength of the business and the cash flow generation and the growing denominator in EBITDA, that also brings leverage down to remain flexible for any opportunities that come.
Mary Anne Whitney: And to that point about balance sheet flexibility, we ended the year at a little over 2.9x debt-to-EBITDA. And if we’re kind of in a normalized environment, we just do an average amount of year deals, then we’d expect that leverage to just dynamically delever, come down to about 2.5x over the course of the year.
Kyle White: Got it. That makes sense. And then on pricing, just what’s been the reception, the customer reception to kind of the pricing environment more recently or compared to pre-pandemic levels? And then on that, it seems like the industry has been very disciplined on pricing front since the pandemic and over the past few years. Do you see any signs that this discipline will carry forward maybe such that you could see a step change in pricing behavior for the better over the longer term? Or do you just view this all as a byproduct of the inflationary environment we’re in?
Worthing Jackman: I think it’s a byproduct of an inflationary environment. It’s a byproduct of kind of some of the companies that live on lower margin, having much more pressure on wages given the wage profile that they had going into the pandemic to support that kind of low pricing. Obviously, CapEx dollars are up. And so the pricing umbrella is there because of cost pressures, because of declining commodity values, wage pressures, et cetera. To the extent that inflationary — inflation does go down to 2%, 2.5%, 3% next year. I certainly expect that pricing should step down with it, right? I mean it’s — just because you can do 10% price doesn’t mean you should be doing it in a 3% environment, right? And so I certainly expect that as we think about a longer-term spread to inflation as inflation comes down, we’ll maintain our spread and exceed that, but we’ll step down as inflation steps down, too.
Operator: Next question will be from Stephanie Yee, JPMorgan.
Stephanie Yee: I wanted to ask at what point would you consider share repurchases as part of your capital allocation perhaps this year?
Worthing Jackman: Sure. Well, as you know, last year, we spent, what, about $425 million on share repurchases. And so we’re opportunistic. And so it’s — we maintain authorization to repurchase up to 5% of our shares annually. And to the extent we dip our toe in the market again, it remains to be seen. But look, acquisitions are always a higher and best use of our excess capital. And so it’s first and foremost, direct it that way.
