David Johnson: Hi there. This is David Johnson on for Mike. Just a couple of questions. You discussed an expansion plan for your EV manufacturing, putting it in a dedicated space on the last call. But since then, the EPA doubled the subsidies for this tranche, essentially accelerating the pace of its grants. Will Blue Bird be able to keep up with all of this? Can you accelerate your capacity expansion if you need to?
Matthew Stevenson: Yes. Hi, David. This is Matt Stevenson. So, we had line of sight in terms of the funding and the subsequent buses that it would eventually provide over this time period. So, this is what we took into consideration when we developed our ramp-up plan. So, you think of that 12 per day puts us roughly around that 2,500 units a year. And then we are also expanding to 20 per day by the end of calendar year €˜23. So, that at what point of capacity there based on the needs of this program.
David Johnson: Great. And then one more for me, can you provide an update on your non-bus program through Lightning eMotors? How has that been going? And do you have an updated timeline for the development and the product launch?
Matthew Stevenson: Yes. Thanks David. So, I think you are referring to the strip chassis targeted at those last mile like box delivery vans. And we are continuing to progress with Lightning, and our goal is to have demonstration units in customers’ hands by the end of calendar year €˜23.
David Johnson: Great. Maybe if I can slip one more in there. Can you confirm whatever EV buses you are getting from the EPA program, they are going to take an order away from your diesel business? In other words, the net deliveries you expect to make in fiscal €˜23 is unchanged?
Razvan Radulescu: David, this is Razvan. I will take that question. At this point, our throughput is constrained by the supply chain, primarily. So, indeed an EV new order takes out an old diesel bus off the road, but it doesn’t necessarily mean that it’s a one-for-one stop on our total volume. Our total volume currently is constrained by the supply chain.
David Johnson: Great. Thanks a lot. I will pass it on.
Matthew Stevenson: Thank you, David.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Matthew Stevenson for any closing remarks.
Matthew Stevenson: Alright. Thank you, Gary and thank you to all those joining us on the call today. As you heard during our prepared remarks, the fundamentals of our market are strong and our demand is robust. And our business is back on track. And by Q2, we start firing on all cylinders. Plus, we remain the leader in electric school buses with more on the road than anyone else. We have also driven costs out of our business, increased parts availability, throughput and quality. The business has turned the corner and our bookings in the first quarter we are currently and will be the highest in over 10 years. We are very confident and excited about where the company is headed, and we look forward to updating you again on our progress next quarter.
Should you have any follow-up questions, please not hesitate to contact our Head of Investor Relations, Mark Benfield. Thank you, again, for your time. And we hear at Blue Bird, want to wish you a very happy and safe holiday season. All the best.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
