Tony Aquila: Yes. So I gave you a glimpse into the fact that we’re now in an allocation phase and allocation also is connected to deposits, right? And these are sizable in nature approach with our customers. In addition to that, we believe the market is starting to realize our strategy that we announced a long time ago, as I mentioned, and that will obviously help. I always tell the team in terrible markets that are trading below par, it’s not about — it’s not just about price of your shares. It’s about the volume and liquidity of it. And we have great liquidity and we have a strong base that is growing more towards the long-term side. So we see access to that capital. In addition to that, there are other sources of capital that we are working with that are much lower cost of capital for the various programs that are associated to.
And as you win more and more of the big contracts, you get advanced payments associated to those contracts. In addition to that, there is the ability to put in long-term capital PIPEs that aren’t interested in selling and other capital areas. We have incentives now starting to flow into — we’ll get our first set of incentives in the first of the year. And when we’ve got great POs from Grade A credit and BBB credit, our spread, very bankable to get advances on. However, we want to focus on this phase before we pay cost of capital, that we use the strength of the balance sheet of our customers and get them units so they can make money with our units. That makes it all that — that’s a whole vary of ways we would get the capital. But I think when the market is trading like this, you have to raise small amounts in frequency, and it also creates a behavior inside the company where they become less wasteful.
When you own companies, it’s not a question of how much capital you have on the balance sheet. It’s a big question I ask as an investor is what is the efficiency of the dollar invested on the balance sheet. And I can tell you, I’ve been doing it a long time. In the early phases, as we’re all now seeing big amounts on the balance sheet often are connected to big burn rates.
Charles Fratt: Great. And can you just — so if you do the math, it looks like fourth quarter CapEx is coming in between $30 million and $40 million — or I’m sorry, roughly $18 million to $28 million for the rest of the year. Can you take a stab at, well, one, I think you’ve been asked if that’s enough to get you to the 20,000-unit production capacity. Is that? And then secondly, how much more capital is going to be required to get you to the 40,000-unit production capacity that it sounds like you’re targeting for the end of 2024?
Tony Aquila: Yes. So from a capital perspective, we’ll invest about another $200 million. That does not take effect for some of the $0.30 and less on the dollar of some of the stuff we’re buying that some front-loaded CapEx before they had customers. So we’re in a good phase, plus we really coordinated and again, happy to have a visit and show you the creativity of the way we’re using different painting techniques. I come out of a background of that. I sold a company to PPG years back. We understand that market. We don’t use e-coat. So our ability to exit at 40,000-unit run rate, which obviously we could accelerate if we put more capital. At this point in time, we don’t see a need for that because we’ve been able to work with our customers because we want to really perfect the process to automation.
So obviously, our margins go up and we use the least amount of capital. We see 2024 by the fact that we democratized the way the assembly line goes together, we’ll be able to capitalize on a lot of those opportunities. Some of it’s luck, some of it’s timing. And if you think back to the very beginning when the pivot occurred, it occurred for a very specific reason. You got to build your business for a down market because they’re not always up. And that’s something we concentrated on. I don’t think you’ll find anyone that has been able to democratize it to make money in the 14,000, 16,000 unit range. And like I said, in a couple of quarters, we’ll explain to you why we did that.
Charles Fratt: Great. Thanks for your time.
Tony Aquila : Thanks for your question
Operator: Our next question comes from Stephen Gengaro with Stifel. Please state your question.
Stephen Gengaro: Thanks. Just a quick follow-up. When you look at the change in EBITDA guidance for the year and sort of the improvement, what are the biggest factors that are driving the delta between where you were and where you are now?
