Michael Coffey: Yes. The charges went in place in June, and they went in place for open orders. And then as is typical, we adjust pricing in June for new orders. So new orders that we’ve received have adjusted pricing for next year. We did have surcharges that vary by content and exposure. And honestly, we — we’re fortunate to have exceptional dealers that understand some of these challenges. In some cases, they had sold units. They weren’t going into their fleets. They were sold, and we made adjustments to accommodate that. So it’s not a full recovery by any means, but we are expecting improved profitability going forward because of these charges and quite frankly because of the work that we’re doing with the suppliers to adjust costs or find alternate supplies.
Matthew Koranda: Okay, alright, that’s great. And then just shifting over to Rabern, just wanted to see if maybe you guys could comment a little bit more on the opening progress in Lubbock. Maybe, where you are on utilization and just thoughts around demand in that region as it pertains to the expansion in Rabern?
Michael Coffey: Yes. I appreciate the question. So let me just — a quick refresher. The way to think about Lubbock is, Lubbock is about 130% of the size of Amarillo, and Amarillo is our base, our home operation. So the first thing to know about Lubbock is we are about four months delayed in opening just due to construction delays and various challenges that contractors are dealing with these days. But the opening has gone exceptionally well. Although we’re behind in our schedule, the revenue projections are coming in exactly where we wanted them. We’re thinking that the business may actually close above forecast this year. Customer sentiment has been very positive. But we have our eyes wide open. We’re going — we’re the new kids in the market.
And we need to prove ourselves as the better supplier for the contractor. But thus far, it’s working out really, really quite nice. The overall fleet utilization has held steady or improved over the last year, and that’s also a good sign. So we’re really pleased with how Lubbock is coming together.
Matthew Koranda: Okay, great. And then just how do we think about expansion at Rabern like in a broader way after Lubbock is sort of up to speed and fully utilized. Are there incremental locations we should be thinking about, what’s the thought process for expansion on that front?
Michael Coffey: We have some interesting markets that we have been studying that we’re excited about. At this stage, we’re not ready to expand but the Rabern model is perfect for market fee size. Rabern, we’re competing in a very — as you know, the North American rental market has had a very robust few years. The projections are strong and the competitors that are in that space are significant. We’re operating in smaller markets where we can differentiate ourselves very nicely. We bring a high level of service to bear for our customers, and that’s really paying dividends. And the good news is there are a great many smaller markets that we believe are underserved and right for Rabern, we’re just not ready to pull the trigger there.
We want to prove to our investors that this investment is working, get a good foundation laid in Lubbock and then look at other markets. But the supposition that we can do this in other locations is 100% correct, and that’s one of the reasons we like Rabern.
Matthew Koranda: Okay, excellent. Maybe just last one for me. On the low double-digit EBITDA growth commentary for the full year. I just want to check in on sort of what that implies for the back half of the year because like there’s a range, I guess, in terms of low double-digit, and what that would imply on the lower end or low double digit, it would suggest that you are kind of maybe flat to down on adjusted EBITDA in the back half of this year. But just wanted to give you the opportunity to maybe talk about how you’re thinking about the growth in the back half, specifically on adjusted EBITDA.
Michael Coffey: Yes. This is one that — let me own this myself. The reality is, is that we’re already running at our projection. We just — we closed TTM at 26-plus million. We’ve already achieved the early onset. And I am — I guess, if I’m going to be faulted, we’re going to be faulted on being more conservative in our growth. The reality is we’re looking very optimistic at our future and our ability to continue to perform. You may remember in December of last year, as we closed out the year, we achieved one quarter of 10% adjusted EBITDA. And that’s been a long-standing objective before I came to Manitex something that we wanted to achieve. And we finally got there, but we also offered some guidance. Listen, we’re going to be at the 10%.
