Vic Grizzle: Yes. Thank you, Kathryn. I think that’s exactly right. We are communicating that there is nothing that we have seen in the market that has materially changed our outlook for the year, for the first half and for the back half and for the total year. The markets seem to be fairly stable at this point, moving sideways, if you will, for the market that we have been experiencing for the last several quarters. And all indicators say that we are probably on track for a little lower economic activity in the back half. So, no change in our volume outlook and again, even in these – this softer condition, we plan to do a really good job on productivity in our plants and growing our AUV, making sure that we are more than covering inflation and expanding our margins. So, that’s the play we ran in ‘23. We have run it again in the first quarter, and we plan to continue on that in ‘24. Thank you for that clarification.
Kathryn Thompson: Thank you.
Vic Grizzle: You’re welcome.
Operator: Your next question comes from Phil Ng from Jefferies. Your line is open.
Phil Ng: Hi there. Thanks for the color around Kathryn’s question. I guess looking beyond the back half of 2024, with the ABI and Dodge data softening a little bit this year. And just given the lag in your business, is that a risk that could spill over to 2025 that we should be mindful of where volumes could take a step down, or you have seen pretty good bidding activity to help us to perhaps stabilization as you kind of look into 2025?
Vic Grizzle: Yes. The ABI is quite publicized, right. And we have said it for a long time. ABI is a weak indicator for our business really. It – but I would say, even within that, from a correlation standpoint, it’s kind of a weak correlator. But even within that, when you peel back the ABI, there is some mixed actually positives and negatives in that. And so we are not overly concerned about the ABI reading that came out in terms of our outlook for our business, not in ‘24 and certainly not into ‘25. We will keep an eye on it because it is an indicator. But we look at our bidding activity, the Dodge bidding activity, in particular and looking at that across the verticals, and of course, in aggregate as other indicators to look at the overall economic activity. And again, it was fairly flattish. So, it’s all kind of pointing to a very stabilized – a more stabilized market moving forward. That’s kind of what it feels like to us.
Phil Ng: Okay. That’s really helpful. I guess a question for Chris. I think in your prepared remarks, you said about 50% of the upside in EBITDA in your guide was 3form’s. Does that shake out roughly EBITDA margins in the 11% to 12% range? I just want to make sure I am thinking about it correctly. And when you think about that business longer term, what’s the growth profile under Armstrong’s watch? And what are some of the applications that product is typically used in right now?
Chris Calzaretta: Yes, it’s a good question, Phil. Thanks. Yes, so looking at EBITDA margins in that low-double digit range is kind of how we how we think about that kind of initially. And then obviously, we have been able to demonstrate shareholder value creation through, again, as Vic mentioned, through the integrating these acquisitions, bringing them on to the Armstrong platform and then driving additional value creation through top line and cost synergies. But to answer your question directly, yes, it’s initially in that low-double digit margin range.
Phil Ng: Okay. How should we think about – I am sorry. Go ahead.
Vic Grizzle: No, you go ahead, Phil. Go ahead.
Phil Ng: I was going to ask if Chris was going to miss the growth profile of this business in some of the applications that’s used.
Vic Grizzle: Yes, it’s similar. We think that the leverage opportunity, it’s a little larger size, right. So, we think it’s similar in terms of getting it exposed to more architect’s offices and service through our distribution network. We think there are some real revenue synergies on that business as well. It’s a well-established business, right. So, that’s another aspect of this business, which is a positive that we will be looking leverage as we bolt it onto the platform, the go-to-market platform of Armstrong.
Phil Ng: Okay. So, we should largely think of it as pretty comparable from a growth standpoint to how your AS business is growing currently? And I guess…
Vic Grizzle: That’s correct.
Phil Ng: And since it’s a larger deal for you, how quickly do you think you could bring some of these products on to your existing distribution relations? And is that – is there an opportunity to kind of leverage some of your products into the relationships they already have that you called out on the independent side of things?
Vic Grizzle: Yes. With their established network, there is reverse synergies as well with this well-established network that they have. So, we are going to be after it very quickly here. We are going to run the play that we have run at other – these other acquisitions. There will be a sense of urgency on the integration side to get everybody up to speed on each other’s products. And yes, we have a team on the ground today starting to process.
Phil Ng: Okay. Great. Appreciate the color.
Vic Grizzle: Okay. Thanks Phil.
Chris Calzaretta: Thanks Phil.
Operator: There are no further questions at this time. I will now turn the conference back over to Vic Grizzle for closing remarks.
Vic Grizzle: Yes. Thank you all for joining our call today. We are obviously very excited about the start to the year and the markets that we are in and how we are operating in the markets that we are in. And we are extremely excited about the addition of 3form to our portfolio and what it can mean for the entire business model by having this additional portfolio to leverage. So, thank you again. Look forward to updating you next quarter.
Operator: That concludes today’s call. Thank you all for joining. You may now disconnect.
