Cindy Miller: Yes. No, I think the velocity cross-selling and the engagement with customers has been great. I’ve got — I’ll let Cory White, our Chief Commercial Officer, jump in on that as I don’t know anybody who’s been more engaged with customers this past year than Cory. So any updates, Cory, in terms of where the customers are?
Cory White: Yes, great question. Very early days. I think at this point, more to come on this as I think you’re aware that the new ERP system has provided us the opportunity for the first time to actually see the full spectrum of customers that are utilizing our service on both sides of the house and the overlap. So very early days in our evaluation and our opportunity to drive growth in that area. But we’re excited about what the data is providing from a go-to-market perspective. So more to come on that. But a lot of lessons learned, very early days in our utilization of the ERP system. So just one added tool in our quiver.
Operator: Thank you. One moment for our next question. And our next question will come from the line of Kevin Steinke from Barrington Research Associates. Your line is open.
Kevin Steinke: Good morning. So I apologize if I missed this, but you gave the impact of commodities on the adjusted EBITDA growth in 2024. What are you assuming for the commodity impact on organic revenue growth in 2024? And is that baked into the 3% to 5% organic revenue growth target?
Janet Zelenka: Yes. So it’s baked into the 3% to 5% organic revenue. That’s basically a flow-through from the top line down to the commodity impact, driven mostly by the fuel surcharges and the sorted office paper price.
Cindy Miller: Yes. And one thing I think that is important for — we talked last quarter about when — are we still facing headwinds in terms of that comparative with the RISI rate. And just to let everybody know, Q1 of 2023 from a RISI perspective, paper was still up over $200. It was about $225. Q2 of 2023, paper was around $186. So with it right now being around $140, $145. Q1 is where we see a good bit of comparison headwind. But certainly, we see an opportunity to continue to grow and as customers still show demand. And then Q2 is, let’s say, a $30 to $40 headwind, a little different. But we’re confident that when we get to the second half of the year where, if you remember, Q3 of ’23, paper was averaged around $146, Q4 is around $139 or $140, much more normal averages for the past 15 years.
That’s where we believe we’re head-to-head pretty much even in terms of where paper is. So we see the commodity more as a first half, if you will, Q1 a little bit more than Q2 type of situation.
Kevin Steinke: Okay. Thanks. I mean, the reason I asked that is that presumably, if we put commodities on an apples-to-apples basis year-over-year, then you’d be targeting organic revenue growth faster than 3% to 5%. So I was just trying to get a sense of the magnitude?
Cindy Miller: Absolutely. You bring up a great point. We’re very proud of the efforts from top line and bottom line that people fought through to really try to mitigate as much as they can, something that was as much a headwind that we faced as we did. And I think it just shows the resilience and the dedication of the team here at Stericycle and I think the continued commitment with the relationship with the customers that we have as they continue to depend on us. So very, very pleased with that in spite of the fact that numbers didn’t necessarily look fantastic. in terms of that top line. But facing that $50 million, that was a big deal for the group.
Kevin Steinke: Okay. Thank you all. I will turn it back.
Cindy Miller: Thanks, Kevin.
Operator: Thank you. I’m not showing any further questions at this time. I would now like to turn it back to Cindy for any closing remarks.
Cindy Miller: Thank you, Victor. So to everyone listening on this call, we appreciate your interest in Stericycle and your shared excitement for our future. Thank you all very much.
Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect. Everyone, have a great day.
