Mike Riordan: Yes, definitely. So inventory is higher than we would have planned in Q3 given the delays at the border and the issue that caused. And as you go through the 10-Q, you’ll see a breakout of that inventory and then – in the inventory footnote, between raw material and finished goods. You’ll see finished goods is elevated compared to last year, which is obviously the shipments in transit. But you also see width is high, and that is unable to ship the products fully off property. It’s much higher than last year, but based on our delivery guidance for Q4 and our outlook, we do expect to get that all up. And importantly, we haven’t really come off that we still expect to be operating cash flow positive for the year.
Matt Elkott: Are you guys able to tell us how many cars were built and were unable, to be delivered in the third quarter, because of the border issues?
Mike Riordan: I’m not able to share that number right now.
Matt Elkott: Okay. And then just I want to switch to the three line changeover that Jim mentioned on – in the prepared remarks. Jim, were they in response to something new that happened? Or were they already planned for the third quarter? And are you anticipating any more line changeovers planned for 4Q and into next year?
Jim Meyer: Yes, Matt. No, there was nothing unplanned in these line changeovers. You may recall, our book of business for the year was really cemented in the February type time frame. So no surprises to us there. It was coming. The surprise was it coming at the same time, we had some issues with the rail service getting product out. In terms of – and they were big line changeovers. There’s not all line changeovers are equal and these happen to be larger ones. But again, nothing unplanned in that. What we have in the fourth quarter is a couple of much smaller, quicker to implement line changeover. So the ability to run essentially use all of our time for producing product as opposed to using any of the time for setting up product. Again, one of the enablers to why we expect to get so much product out in the fourth quarter.
Matt Elkott: Got it. And then switching back to the backlog here. I think this is your highest backlog ASP since 4Q 2019 and possibly the second highest ever. Is this just purely a function of inflation and higher costs? Or is there a favorable mix?
Mike Riordan: I think it’s a little bit of a combination of both. Obviously, steel costs are higher than they would have been if you look back a decade, but also the car types we’re building, not all car types are the same cell price. And so when you look at the higher average selling price, that’s going to speak to the mix of cars as well in our backlog.
Matt Elkott: Got it. Just one final question for me guys here. I know demand is pretty solid, in general. But how concerned are you that if the kind of ability to deliver cars remains constrained by border issues and other supply disruptions that some customers who are not getting cars when they need them might cancel orders. I mean, it looks like you did not have any cancellations in the third quarter. But is there — is this a risk if the disruptions continue?
Jim Meyer: Matt, we don’t view that as a risk. The outbound delivery is on any particular car associated with any particular order is measured in days or weeks. I mean, these aren’t like months long, drawn out type things. And we have had a very steady track record of – take accepting and delivering orders without cancellations. I mean I don’t think we’ve seen a cancellation in the time I’ve been here, certainly not that I recall. So we would view that as very low risk.
Matt Elkott: Got it. And Jim, one final one. As when we get to February, I imagine you will be providing guidance for 2024. Do you think you’ll be sticking to the same kind of metrics you’ve been providing for the last few quarters? Or should we expect any new metrics that you might talk about?
Jim Meyer: Well, Matt, we haven’t really thought about it. We certainly won’t provide fewer metrics. We’ll certainly provide the same. And whether or not we expand upon that, I think we’ll have those discussions. And our goal is always provide the most visibility we can without sort of running too close to the edge that we might have to pull some of it back later on. So the guidance will be at least what it was this year, possibly enhanced. We’ll see.
Matt Elkott: Now that’s good to know. Thank you, gentlemen. Thank you, everyone. Appreciate it.
Jim Meyer: Thanks Matt.
Mike Riordan: Thanks Matt.
Operator: Thank you. This concludes today’s question-and-answer session. I would now like to turn the floor over to Jim Meyer for closing comments.
Jim Meyer: Well, as always, thank you, everyone, for joining us today. Thank you for your interest and support of the company. And we look forward to the next call and keeping everyone abreast of our progress as we proceed forward. So thank you, and have a nice day.
Operator: Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
