Mike Pettit: What we’re really trying to target here Mike is profitable growth and get some scale. So we’re not really guiding to improving margins, we think we can maintain those margins and add to the top line as you scale the business. We’ve got some specific initiatives, we’re really excited to be able to scale that business and maintain and we grew margins in ’22, but we think we can maintain that profile in ’23 and then add significant revenue on top. We’ll give some more guidance as we get through the year but that’s really the mission for 2023, which will improve the overall corporation’s margins because as you mentioned the Parts & Services margin is significantly higher at the base than the Transportation Solutions is.
Mike Shlisky: Great. If I could just maybe my last question zoom out a bit on your answer there, Mike. About your 2025 targets, you’ve talked about getting to $3.50 and getting $3 billion of top line, you actually hit that in 2023 a couple of years early, the margins obviously might not be there yet. Could you maybe outline for us a couple other moving parts that might get you either to a margin that works for the $3.50 EPS in 2025 or do you think maybe given what you know today and how things are playing out in some of your key initiatives whether there could be upside to a $3 billion top line number at that point?
Mike Pettit: Yes, so as we outlined at the Investor Day when we launched those targets in May of 2022, we said several of the drivers would be front-loaded in the three-year plan and one would be our expansion of our dry van capacity which will be a driver of revenue. So, first and foremost, what could have us hit that number quicker would be the supply chain allowing us to ramp our overall facility so rather than a little bit quicker. We’re not expecting that to happen in 2023 but certainly it could lead to us achieving those targets maybe before 2025. But as of right now, we’re focused on the guide that we’ve given and also scaling the Parts & Services, as I mentioned, at a consistent margin profile which we believe we can maintain the growth to get to $300 million that we guided to back in May of 2022 in that 2025 time period.
So had to summarize, what I think could happen, if we were to get to $3 billion quicker than the planned period, it would be our ability to get the supply for dry van components and get more volume out the door and that maybe could come quicker than 2025, but I don’t foresee that right now happen in 2023.
Brent Yeagy: Yes, one thing I would add to that is when Mike talked about your earlier first question about getting the initial scale on the parts business, and really what that is, is the scale is part and parcel with adding additional capability inside our four walls in 2023. As we execute on both ends of that, I think that is one of the areas that we’ll be able to, as Mike said, throughout 2023 give additional feedback on how that really propels us into 2024, that would be another opportunity for us to pull those targets forward, but it all comes down to growing that capability was why we’re so focused on it.
Mike Shlisky: At this point, do you feel like the reefer capacity coming online in Minnesota in ’24 and ’25 would also be a positive driver towards your margin goals and your own goal?
Brent Yeagy: I would count it as narrow as in Minnesota. But I would say, overall, the opportunity for us to grow top line relative to taking advantage of what’s going on in cold chain is absolutely another way, that is absolutely a ’24-’25 more targeted timeframe for us to get that scale, but it is something that could be very positive. At a minimum is core part hitting ’25 targets has the potential to pull that forward.
