Katie Fleischer : Okay, thanks for the color.
Operator: Ladies and gentlemen, we have 1 more question and that is from Patrick Baumann of JPMorgan.
Patrick Baumann: Hi, good morning. Just had 1 on really the fourth quarter and kind of what gives you confidence that November and December pick up from where October came in at. Is it comp-related or something else? I remember last quarter, you talked about like a counter-seasonal improvement you expected in the fourth quarter related to like, I think, mega project and maybe some end of destock or what have you. But with October starting slower, it seems like even though you’re expecting the fourth quarter to be down normally seasonally, you still need kind of November, December to pick up a bit from kind of where you’ve started the quarter. So maybe some color on visibility to that would be helpful.
David Schulz : Yes. Certainly, Patrick. So we do see the typical pattern where we, as we mentioned, expect our fourth quarter sales to decline sequentially. We typically see a step-up between October and November historically, and we have assumed that in our outlook for 2023 Q4. And then we would expect to see some moderation in the month of December. What gives us the confidence on our outlook is the project backlog and what’s expected to be released during the third or fourth quarter. So that’s how we modeled this one through. And again, our backlog continues to be at historically high levels. It’s moderated sequentially. But again, it’s really the timing of that backlog release which is informing our fourth quarter outlook.
Patrick Baumann: Okay. And then maybe if we could — my last question would be if you could just kind of dive into the commercial construction environment. It sounds like — well, it looked like sales bounced back a little bit in the third quarter, but your commentary around the fourth quarter was a little bit more muted. So what you’re seeing on that front and any color on kind of specific verticals within that would be helpful.
David Schulz : Yes. Let me start with the third quarter. We actually saw very strong growth from projects in the third quarter, and we continue to see some impacts to our stock and flow business. We called out some of the destocking back at the end of the second quarter. That continued in the third quarter. But our project business continues to be very strong. And it’s across a number of verticals within non-res construction. So from our perspective, it is still very heavily reliant upon projects. And we feel comfortable with how we provided our view of the fourth quarter relative to EES in total. It has been a challenging environment within certain end market verticals, including our construction business. But again, we’re confident that we’ve got the right value proposition going forward. And we’ve got actually an increase in our backlog year-over-year in EES.
Patrick Baumann: Okay, thanks for the time.
John Engel : Thanks Patrick. Okay. I think that clears our queue today and it’s a little bit before the 11’o clock hour. So let me bring the call to a close. And thank you all for your support. It’s very much appreciated. We look forward to speaking with many of you over the next two months as we’ll be participating in a number of conferences. First, the Baird Global Industrial Conference; second, Stephens Annual Investment Conference; and third, Citadel Securities Investor Conference. So we will participate in all three of those in the fourth quarter. And additionally, we have our date for our fourth quarter earnings release locked down, and it will be February 13, 2024. So with that, I know we have many follow-up calls scheduled. Thanks again for your support, and have a good night.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.
