Mig Dobre: Understood. Thank you for that. So my follow up, if we’re sort of looking at inventories going up again in the fourth quarter, I guess I’m curious as to how you’re thinking about fiscal ‘25, and I’m not looking for you to provide your own guidance in terms of the top line, but obviously Deere, commented on next year DNH, your OEM is thinking that volumes are going to be down as well. So I guess with the inventory built that you have, if indeed volumes are going to be a little bit lower in your fiscal ‘25, how do you think about managing that inventory and your own order placing with the OEM? Thank you.
Bo Larsen: Yes. And you’re right. I think the OEMs in their latest earning calls provided some color, and Deere being the end of their fiscal year provided some more granular color on their outlet for the next12 months. For us, I mean, it’s not something — we’ve been continually managing and estimating where things are going. You’re always looking out a year ahead. So in terms of dialing things in and what we’re ordering for next year, that’s stuff that we’ve been working on already for quite a while, and are filling really good about where we’re sitting and the dials that have been turning over time. We will absolutely manage inventory and focus on that. But overall, as we’ve said, we do feel good about where our levels are at.
On the Ag side, we want more four-wheel drive tractors. On the CE side, we want some more wheel loaders. But one data point for you, just comparing it to say the prior cycle, right? The number of combines that we have in inventory is about 55% lower than it was in the prior peak. So I think some of that’s reflective of the industry and the constraints that we’re out there. But then also, our back-office team that’s focused on managing inventory levels, both what we’re ordering from a new side and also the used equipment valuations. So, the dollars that people are making comparison to in terms of prior peak, I think you need to consider the decade of price increases, the acquisitions that we’ve done and otherwise. I mean, overall, we feel really good about the inventory levels, but appreciate the comment and we’ll certainly, as industry volumes trended downwards, we’ll be managing our inventory accordingly.
We want to keep inventory terms high, we want to keep interest free terms, and we want to keep our balance sheet really healthy.
Bryan Knutson: Yes, and Mig, I would just add, as Bo mentioned, when you’re talking about 6 to 12 and greater months lead time here, you better already have done the actions in place, and we’ve done that and we feel really good about that and heading into next year, and just as he mentioned, our professional team that just focuses on that for a living, that’s all they do really watching a lot of the analytics and metrics and running the dials on our inventory. So, we feel really good about the actions we have taken. I think as we mentioned on our previous call and as Scott Wine mentioned on the CNH call, there is a little bit of pockets with some of that lower took, horsepower tractor inventory, real life style stuff that we’re a little bit longer on than we’d like, but we have got actions in place on that as well to clean that up.
And then as we mentioned with four wheel drives and wheel loads and so on, there is some pockets that we are still a little short on some certain categories. But other than that, we feel really good about where we are positioned to deliver the fourth quarter results that we need to and then as we transition into next year and what we anticipate the market is going to do next year.
Operator: Our next question comes from the line of Alex Rygiel with B. Riley Securities. Please proceed with your question.
Alex Rygiel: Thank you and good morning, gentlemen. A couple of quick questions here, first, your full EPS guidance includes a range of $0.65 of which I believe $0.22 could be from the incentives. So if you could maybe talk about some of the catalysts being at high-end or low end of that $0.43 difference?
Bo Larsen: This isn’t going to sound overly sophisticated, but it is related to the revenue and where that comes in took in terms of whether it is toward the top end or the low end of the range. We feel pretty good in terms of where we are going to be operating from a margin perspective. Operating expenses are pretty well, honed in right. So it really is just a function of how much of that equipment gets delivered.
Alex Rygiel: That is helpful. And then, as it relates to sort of inventory kind of walking up a little bit in fourth quarter, I believe you might have thought that it would kind of tail off from the third quarter and decline into the fourth quarter, but now it sounds like you are expecting it to increase a little bit. Maybe I guess my question is. What has changed? And then, what’s the mix of inventory across Ag versus construction is? Is one higher or lower than where you would like the optimal level to be?
Bo Larsen: Maybe addressing the latter first. I don’t think so. I mean, in general, we are feeling pretty good about our inventory levels. On the CE side, the one that’s short as well orders like we mentioned, but otherwise across the board in general, it is good. There are probably a couple areas just like on the Ag side, for example, low horsepower tractors, where we want to continue to look to trim just as we anticipate, trends going into next year. On the Europe side, also some areas there that we would be looking at to try to trim as we are seeing some softness specifically in Bulgaria and Romania, but on the whole, there is not a drastic difference, in terms of our take thoughts or level of health between Ag and CE as you were asking there.
Operator: Thank you. Our next question comes from the line of Daniel Imbro with Stephens Inc. Please proceed with your question.
Daniel Imbro: Hey guys, and thanks for the question. We were just wondering how much visibility do you all have into these OEM deliveries improving, as we move into like the fourth and first quarter, and since we are going to have a similar dynamic to last year with maybe a heavier fourth quarter, do you foresee maybe delivery timing being a problem again in the first quarter, since you might get a large influx in the fourth quarter?
Bo Larsen: So, we definitely anticipate being a strong fourth quarter revenue wise compared to the prior year. And even a bit, if you do the math from where we were in the third quarter. Obviously, we have more equipment available and we have backlog there, right? So in terms of the confidence in the fourth quarter, we’re feeling good about that stuff. And I think at the same time, we have talked a little bit about today in terms of anticipating that the inventory increases a bit from where we’re at. So I think both of those we’re saying is what our expectation is, right? And then we’re in terms of setting up for next year, again, we are feeling like we’re ending the year to healthy spot inventory wise. We’ll provide more context guidance wise as we get into the March year end call. Did that answer your question?
