Jaco Merwe: Yes, no, I can make, Mig, so, as you know, when we sell a big asphalt plant, it can be $5 million to $10 million on the deal. So if two of those deals do not ship, it can have a noticeable impact and that is exactly what we saw during the quarter. The majority of those, the funds have already flowed from our customers and the teams are in the process of shipping. So it’s not something that will linger for quarters. It was literally just a couple of weeks that we didn’t get into the quarter.
Operator: Your next question is from the line of Steve Ferazani with Sidoti.
Steve Ferazani: Good morning, Jaco, Becky. Appreciates the detail on the call. I did want to ask a little bit about SG&A. Even if I back out the litigation contingency, it still looks like SG&A was up pretty substantially sequentially and year-over-year, and what’s a seasonally slower quarter. Can you help out a little bit on the higher costs and whether that stays in?
Jaco Merwe: Yes, so our range of $57 million to $60 million is still what we are seeing. During the quarter, obviously, we booked the litigation loss there. And we had some threw up on our bonus structure. We have a specific project that we’re working on that we talk about in a modularization, where we have quite a bit of our engineering team working to change various of our models from an ETO type model to more of a configure to order model. That is to prepare us for our transitions at some of the sites to Oracle. That’s about another $1 million that is onetime items in the quarter. So going forward, we still feel comfortable that we will be in that range that we communicated before, Steve.
Steve Ferazani: Okay, thanks for the help on that. With the new products becoming available, I know one of the three became available this quarter, but the other two are next quarter. When you roll out new products like this for order, how much can that provide a bump?
Jaco Merwe: Yes, no, good question. So the first machine was a significant upgrade of one of our best sellers that we’ve had in the portfolio. We’ve had really good customer feedback on that and in this case it’s more of a cost improvement opportunity. On the Milling Machine that will go next, if you go and look at the market, that is the single biggest product model that is sold in the milling market. So it’s a significant opportunity for us. If you look at our dealers today, if every dealer sells two of those machines next year, we talk about 50 machines plus. So it actually can have a nice bump for us and then on the paver, same comment there. It’s the single biggest market segment where we didn’t really play in the past. We still have some testing to do. The prototypes are still being worked on. But the same comment, if every dealer just sells two of those machines, you talk about another 50 machines.
Steve Ferazani: Okay. The last couple of quarters or maybe even more, you’ve been talking about the investments to improve plant efficiency. Can you tell what’s your take on when we’ll start seeing that in your numbers?
Jaco Merwe: Yes. Now so we have, obviously we’re investing in all our facilities and that is what you’re starting to see flowing through in the margins over the last four, five quarters. The two significant ones that we are making is in our factory in Northern Ireland. And then one of our big infrastructure solutions factories here in Chattanooga. And in the last factory, as I mentioned in the script, all the capital equipment is in place. The layouts are now in place. So now it’s a matter of putting the final touches on line balancing and getting everybody trained in the new processes. So we already expect that Q4 will start to see some of those improvements and then quite a bit in next year.
Becky Weyenberg: Yes, Steve, I would also add that what we’re expecting and what we’re seeing is that about six months after a site goes live with Oracle, we’re seeing those operational improvements from the system. So we are already seeing them now in that first site and certainly in our corporate teams and their work balance. So it really confirms our investments will have solid returns. We’re seeing it a little bit ahead of what we anticipated, but definitely six months after goal life per each site.
Jaco Merwe: The investments we’re making in the factory in Northern Island, there’s significant new product development that is included in that project. So that will take a little bit longer. We will most probably start to see the benefits of that later next year and even into 2025. However, we will actually produce some of the models that we currently sell at that facility. And that will give us additional capacity for both the U.S. but for the rest of the world as well.
Operator: Your next question is from a line of Larry De Maria with William Blair.
Larry Maria: Thanks. Good morning. I wanted to go back to a couple things here. We expected orders to moderate, given the timing of the dealer event. I think you’d call that out. We discussed it last quarter. Then you also commented that you expected to write a lot of tickets and get back to your sort of prior levels. Is that implied we should be looking for orders that are in the range from 3Q of ‘22, which was really high at $450 million. So [inaudible] now what’s the reason for expectation to think about for a pickup in orders based on the comment you made?
Jaco Merwe: Yes, I must probably need to come back to you on that one. I don’t have a clear answer.
Steve Anderson: Yes, Larry, this is Steve. It’s okay if I jump in. But that $450 million range that you mentioned when you’re doing the implied orders, obviously backlogs. The key factor there, Q3 of last year, was our peak backlog at $969 million. But if you looked at the implied orders overall, I mean, we’ve been in that 235, 240, plus or minus implied order rate for the past three quarters. So, we have seen the normalization where it’s been in that range and then have some chance for some upside going forward.
Larry Maria: Okay. That’s a good range. Thank you. Secondly, can you go into some further detail in inventory? I think we’re at a point where deals were short in inventory or still there to some degree. It couldn’t get it fast enough and now we have too much. So, can you talk about what happened there? Maybe where yearend inventory might land? And if there is a level of cancellation just leading to that higher inventory?
