Steve Ferazani: Great. Thanks, Dave. Thanks, Fay.
Dave Huml: Thanks, Steve.
Fay West: Thank you.
Operator: [Operator Instructions] The next question is from Tim Moore with EF Hutton. Your line is open.
Tim Moore: Thanks and congratulations on the very strong organic sales growth and the very, very impressive guidance raise for both growth in EBITDA this year. I have three questions. So, maybe first I’ll just start off a bit on the aftermarket services penetration, you’ve added some service trucks. I think that service truck count might have been up to 556 in March and I’ve been estimating just based on some other competitors that possibly maybe one-third of your equipment orders can be triggered from leads, from your on-site technicians they get focused there and they’re telling the customer about new things. So could you maybe just give us a little bit more color on the aftermarket service? And do you think it will be more of a focus this year?
Dave Huml: Yes, thanks, Tim. Thanks for the compliments, really proud of the results and focused on delivering the second half of the year. Service remains a critically – a critical component to the business and our view of service is not to run service just as a stand-alone business, we do measure it on its own P&L and its own metrics, but services part of an integrated ecosystem and the value we provide to the customer over the life cycle of ownership in the product. And the reason that’s important, you noted one facet of it, what we want is satisfied customers that are pleased with Tennant getting the full benefit and ROI from our machines and coming back to buy more and buy Tennant next time. If you run service solely as a stand-alone business, you run the risk of keeping customers in old products that require too much investment in service when they really should be in a new product that gives them better functionality, better performance, and a better ROI.
And so it’s an integrated part of our go-to-market and channel strategy and that’s how we approach it philosophically. We are investing in our service capabilities. We have invested in training our service technicians, so they’re fully capable across our broad product portfolio, including AMR and that’s an entirely new set of capabilities that our service technicians need to have in order for our customers to have the experience so that we can drive adoption in that category. We’ve invested in – you mentioned additional trucks, what that gives us is additional capacity and coverage, so that we can deliver on service level agreements for all customers but especially the largest customers where we can go in and make a commitment to a large national or regional retailer in terms of response time you need to have the service truck coverage in order to deliver on that commitment.
We believe we are uniquely positioned because of our factory direct service organization and we’re adding the coverage and strategic areas to make sure that we can make differentiated commitments to customers and earn new business for the largest customers in each of the verticals. And last but not least, we’re investing in the digital infrastructure that enables our service capability and that’s broad reach and that’s everything from working on telemetry as well as our protocols for dispatching as well as the actual infrastructure, IT system we use for processing orders and improving the efficiency and capability of our service technician, so they can spend less time sitting at a computer entering orders or parts orders or looking at customer data and spend more time, hands-on with equipment performing necessary maintenance and repairs to deliver uptime to our customers.
So – excuse me, a significant investment in kind of the IT side of service as well to make sure that we can deliver a fantastic customer experience, the first time, every time for our customers.
Tim Moore: Thanks, Dave for those deep insights and color that was very helpful. And my second question is how is the equipment maybe as a service model going for rental and leasing to, you know, smaller customers in South America and Europe I remember I think had a reconditioning infrastructure in place surface infrastructure. Are you seeing any notable uptick in sales or interest there or do you think maybe that’s more of a story for next year?
Dave Huml: I’ll start with, we called equipment as a service kind of that long-term all-in leasing model, and I think I’ll set the backdrop first. we have a variety of ways of transacting with our customer today from a capital purchase model, from a break and fix service to a full contracted service model. We partner with banking partners for leasing models. We serve the short-term users through our rental channel relationship and treat them as strategic partners to serve people that need a machine for a day, a week, a month. We’re not set up to do that directly so we partner with the industry’s best rental channel partners. And then we have this equipment as a service model where it’s really one-price all-in equipment and service.
