David Wilson: So we do have an organic sales growth, Steve, year-over-year at the midpoint of guide. And I think that we expect that we’ll continue to see positive developments throughout the quarter. We do have a shrinking past due backlog, as I mentioned before. And so we’ve been able to address those backlog challenges that we’ve had. And what that’s done is it’s driven backlog down. And I mentioned in my prepared remarks that as we work with our customers and get them into a more frequent ordering pattern and we become more competitive with our lead times, we believe that there’s opportunities to gain share. And that helps us to drive demand into the business. But that does have a periodic impact on this quarter. But we feel good about the progress we’re making in those initiatives. And so that should trend well as we go into the next year.
Gregory Rustowicz: And just to add on, Steve, so at the midpoint, it’s kind of mid-single-digit growth for the company.
Stephen Ferazani: When we think about, and I’ve asked you this in previous quarters, now we’ve seen four out of five quarters with book-to-bill under one. You’re going to lap Montratec in May. How comfortable are you that you can get sales growth post-lapping Montratec, given where you are?
David Wilson: I mean, we certainly feel good about the quarter that we’re in. And we’ll be coming back in the May timeframe with our guidance for fiscal ’25. But we do remain encouraged with the momentum. And our order funnel remains really healthy. We’re in active discussions with our customers. I mentioned the channel diversification initiatives, the opportunities to gain share, and the self-help work that we’re doing. This isn’t all about a growing macro. It’s about opportunities for us to compete in the landscape that we compete within and do that effectively. And so we remain optimistic about the future.
Stephen Ferazani: Thanks for that. Last one, just on debt paydowns. I know Q4 is, and you’ve got sort of guiding for it being the big quarter for cash flow. Any reason you wouldn’t ramp up the paydowns?
David Wilson: Which we have, and we will continue to do so, Steve. So we started the year with guidance of $40 million, roughly $10 million a quarter of debt paydown. And we’ve ramped that up. We’re going to be at $55 million for the year with what we expect to do in Q4. And if we can do more than that, we will. But I think what’s an interesting fact here is that for the fiscal year, we’ll have paid down about half of the purchase price of Montrotech. Right? We paid roughly $110 million for it, and we’re going to pay down $55 million of debt. I think that’s a very impressive number.
Stephen Ferazani: The 67% of debt’s hedged. What does that mean as if we get the rate cuts in 2024?
David Wilson: Yeah. So we’ll benefit from the rate cuts for sure, and for a third of our debt. And, as the capital markets improve, there’s always opportunities to even do better. And so we’ll look to see what we can do there as well.
Operator: We have reached the end of the question and answer session. I would now like to turn the call back to David Wilson for closing comments.
David Wilson: Great. Thank you, Rob. And thank you, everyone, for joining us today. Our team is executing and delivered double-digit sales and operating income growth in a dynamic environment. This reflects the significant progress we’re making with our transformation and our proven playbook for growth. We’re pleased with the momentum that we have entering our fourth quarter, powered by a diversified platform and an improving competitive position. We remain a strong cash generator which enables us to reinvest in our business and de-lever the balance sheet, unlocking further cash flow potential. We’re confident in our ability to deliver long-term profitable growth and enhance shareholder value. Thanks for your interest in Columbus McKinnon, and have a great day. This concludes today’s conference. You may disconnect your lines at this time, and we thank you for your participation.
