Rob Saltiel: Yes, look, we — we’re going to look at various capital allocation strategies and we’re a big belief that — big believers that growing our business is important to shareholders as well. Obviously, any M&A that we would consider or undertake has to be really thoughtful and absolutely accretive to the story and to the financials of the company. We’re big believers that if you can get scale economies in a business that, that is certainly a really good way to gain market share and also to have some synergies right out of the gate in terms of cost reduction, but — and then opportunities potentially to expand the scope of services that we provide, those kind of things are fair game as well. But I don’t want to get too far ahead of ourselves in terms of saying that we’ve got a very, let’s say, well-developed M&A plan around particular acquisitions.
We continue to look at the market and see what makes sense. Again, it’s going to have to be a high hurdle for any significant M&A to really make our cut, because we’re really conscious of the fact that we’ve got, you know, to do right by our shareholders in terms of making sure that they share in the bounty that we’re now developing through all this cash generation. So I would just say, stay tuned on that. And as and when we see deals that make sense for this company, we’ll certainly be happy to share those thoughts when they’re developed.
Chris Dankert: Understood. Well, best of luck on ’24, guys.
Rob Saltiel: Great. Thank you.
Operator: Next question. Tommy Moll with Stephens Inc. Please go ahead.
Max Kane: Good morning. This is Max Kane on for Tommy. I was wondering if you could provide us with any additional color on gross margin seasonality for ’24 and whether or not you’re expecting margins to be sequentially higher in 1Q?
Kelly Youngblood: Yes. Well, Max, we guided that we thought for the full-year average, we feel comfortable that we can maintain the 21%-plus margins that we’ve been enjoying for seven quarters in a row now. So we’re pretty proud of that fact. I think in Q4, we had elevated margins of 21.9% that was really strong. We had some good sales, some bulky line pipe sales that came in at high margins that helped prop that up higher than just the normal kind of low 21% range. I think in Q1, you won’t see a 21.9%. It is going to moderate from that level, but still be above the 21% — 21 — call it, low 21% type range is probably what we’re thinking. But again, for the full-year, we’re proud seven quarters in a row. We’re going to keep that trend going.
The one that really works against us there is the line pipe margins. There has been deflation over the last year or so that we have to deal with. But we’ve been focusing on product mix and the higher margin product categories to offset or help offset the impact that we see in line pipe. Also, with the double-digit growth that we’ve had in the international business, that is a nice tailwind for us because the international business has accretive gross margins compared to the company average. And so, we feel like everything’s pointing in the right direction to keep that trend going at 21%-plus.
Max Kane: Okay, great. Yes, thanks for the color. And, yes, you’ve already covered the rest of my questions, so I’ll go ahead and turn it back. Have a nice day.
Kelly Youngblood: Thank you.
Rob Saltiel: Thank you.
Operator: Thank you. I will now turn the call over to Monica Broughton for closing remarks.
Monica Broughton: Thank you all for joining our call today and for your interest in MRC Global. We look forward to having you join us for our first quarter conference call in May. Have a great day.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time, and thank you for your participation.
