Mig Dobre : Understood. Then the final question and the guys before me were asking about margin I will ask about margin as well. When recognizing the fact that you have a lot of backlog in this business and obviously the supply chain like you said has gotten better. As we think about the fourth quarter, is it sort of reasonable to expect that revenue would be a similar level as Q3 or maybe better? And if that’s the case do we continue to see this trend that frankly you’ve put up for like five quarters in a row here of continued sequential improvement in margin? Q4 versus Q3? Thank you.
Jeff Leonard : Well, I’m certainly hoping so, Mig. And as I said Industrial could normally tick down a little bit in Q4 but I don’t think it will this year because of the behavior of snow removal. Our snow removal business is in uncharted territory in terms of size scale volume and profitability and it hasn’t begun to hit the stride yet to be candid with you. So we’ve got some new products that we get in a nice margin on. We’re the only player in the market with those products and I think we’re really doing a good job capturing a nice bit of the share in that space. And we do supply the complete plow truck including the chassis. We didn’t always do that. That was a recent change in our strategy about a year ago. I think you and I spoke about that this time last year Mig.
That’s really playing out very well for us. So I think so. I think we can set another record in the fourth quarter. I never guarantee anything but I think Industrial has got some room to run here then. As I said they’re not out of gas from either a sales point of view or a margin point.
Mig Dobre : Super. Thank you.
Jeff Leonard : Thanks Mig.
Operator: [Operator Instructions] Our next question comes from Tim Moore with EF Hutton. Please go ahead.
Tim Moore: Congratulations on the impressive continued execution and it was really nice to see that backlog hold up when the overall sector backlogs are rolling off from pretty much broad-based. But my first question is about Industrial Equipment. It had a consecutive very large sales growth jump at 23%. Richard I was just kind of curious if there’s any way to quantify or parse out maybe half that 23% growth was from the supply chain catch-up with the chassis and not as many subcomponent shortages? And if the other half might have been from just higher broad-based demand for the end markets? Any thoughts to maybe how …?
Richard Wehrle: Yes, I think your latter comment is definitely there. I think probably the biggest thing that we continue to feel very comfortable with is our chassis deliveries. We’re on consignment on all of our chassis deliveries and that has really worked out extremely well for us. The component pieces the component parts it varies, but it has really improved a tremendous amount since Q1 of this year. Q2 got better, Q3 is even better. So I think the key to those is making sure that those come in, in a timely fashion and we don’t have to wait. That takes care of a lot of our under-absorption problems that we’ve been having in the past. And I think you remember we had that conversation in Q1, which is what really hurt us there. But overall it’s moving in the right direction. We just need to keep that consistency moving forward. And we should continue to see those margins going up.
Tim Moore: Great. Yeah. That’s helpful. And …
Jeff Leonard: Tim it’s Jeff here. I want to add a remark to that if I could. The growth of our rental fleet in vacuum trucks has also been constrained by chassis supply. We’re now starting to receive enough chassis that we can start really building that fleet again which will help us from a profitability point of view and a sales point of view. So that’s a very important change in sort of the cadence of industrial. That’s been constrained very harshly by the chassis supply situation. And if you go back and look at the value of our fleet over the last couple of quarters, it’s been really flat. So I’m optimistic now, we’ll start to get that fleet growing again. And that will help us from a profitability point of view.
Tim Moore: That’s a great point on the fleet. Just maybe switching gears to in-country production. Are the European plan expansions on track maybe for the UK and France? And do you plan on doing some expansion in Indiana or any where else?
Jeff Leonard: The UK expansion is going very well. We’re slightly ahead of schedule there right now. We were just discussing with our Board this week a further expansion of our Vacuum Trucks Facility in France and we’ll be making a fairly sizable investment there as well. So I think the timing of that is going as expected from our point of view. The Indiana plant doesn’t need a lot of CapEx. It’s already bigger than what we need for Dixie Chopper. but we are starting to accelerate the transfer of other products into that plant now because we do have a workforce available there. That hasn’t really played out in our financials yet Tim. I think you’ll start to see that late Q1 and early Q2 of next year.
Tim Moore: Great. That’s really helpful. And maybe just switching gears on a topic that hasn’t maybe come up in a little while it was your electrification and hybrid launches seem to be more of a 2024 story. I think a lot of it seems to be driven just by the world changing and noise [Indiscernible] in cities away from diesel and fuel. Is there any kind of sneak preview you can give us? Some more penetration maybe of the hybrid Timberwolf Chipper or the small Nite-Hawk Sweeper or The Gen 2 Mantis or any type of other launches coming out next year? Or innovations?
Jeff Leonard: Yeah. The official market introduction of Gen 2 Mantis is happening in Q4. That was held up by the supply of the engines. There was an engine certification process needed by the EPA that we finally got complete so those engines now can be tagged as compliant. We have them in our hands. They can be tagged as compliant. And we could start shipping so that’s beginning to ramp up. On the Sweeper side, there’s only a handful of electrified chassis coming out of the Daimler Organization for next year.. But we’re getting most of them, which is a really pleasing sign of the relationship that we have with Daimler. So I think that’s probably a back end of 2024 issue, when you’ll start to see those going to market and meaningful numbers.
The Nite-Hawk hybrid is just being introduced now. The reception has been tremendous to that. Really, really good. And we also have a hybrid version of our leaf vacuum trucks. It’s been very well received in the market. So, I think you’ll start to see us actually putting a bit of product on the streets, let’s say second quarter next year. That’s how I think this will play.
Q – Tim Moore: That’s helpful, Jeff. My last question is just Richard pointed out, and we’ve been watching the terrific free cash flow and the debt deleveraging and a very clean balance sheet. I mean it’s very impressive. That Royal truck acquisition seemed like a nice bolt-on. It adds on around maybe nearly 3% to your annual sales. Do you see — as you look out maybe the next few quarters, do you have a preference on doing maybe a few more of those bolt-on acquisitions in the funnel? Or do you think that you would be ready to maybe do a larger strategic acquisition a couple of quarters out?
Jeff Leonard: We’re ready to do a larger strategic acquisition right now. We just haven’t found the right thing. So in the meantime, we’re back to doing what we do. We’re just making a steady diet of smaller things. We’ve got a couple of others in the pipeline, that we’re very excited about and as I said we were very, very patient with Royal. I remember, when I was still running the Industrial division when I met the Royal folks for the first time years ago, so it was nice to see that one come. But there’s a couple of other tuck-ins like that that we’re in kind of the middling stages with that I think we’ll see play out early next year. So, we’re just kind of doing what we do in there waiting for something big, but we like to become available.
