Greetings. Welcome to REV Group Second Quarter 2023 Earnings Conference Call. This time, all participants will be in listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note, this conference is being recorded. I'll now turn the conference over to Drew Konop for opening remarks. Good morning, and thanks for joining us. Earlier today, we issued our second quarter fiscal 2023 results. A copy of the release is available on our website at investors.REV Group.com. Today's call is being webcast, and a slide presentation, which includes a reconciliation of non-GAAP to GAAP financial measures, is available on our website. Please refer now to slide two of that presentation. Our remarks and answers will include forward-looking statements, which are subject to risks that can cause actual results to differ from those expressed or implied by such forward-looking statements. These risks include, among others, matters that we've described in our Form 8-K filed with the SEC earlier today and other filings that we make with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call, if at all. All references on this call to a quarter or year are to our fiscal quarter or fiscal year, unless otherwise stated. Joining me on the call today is our President and CEO, Mark Skonieczny. Please turn now to slide 3. I will turn the call over to Mark. Thank you, Drew. Good morning to everyone joining us on today's call. I'm pleased to be speaking to you today as CEO and would like to publicly thank the board for providing me the opportunity to lead this company. Most importantly, I would like to recognize the efforts of our various business unit leaders and the people that come to work every day making vehicles that make a difference in our daily lives. Over the past quarter, I continued my visits to our various manufacturing locations, meeting with local leadership and their staff, developing site-specific paths forward to advance our strategic imperatives around product simplification and lean process capabilities. We have now successfully developed roadmaps with clear objectives in reaching throughput goals at several locations. These detailed roadmaps are focused on resource planning, both internal and external, factory and production line configurations, and upfront process capabilities across sales, engineering, purchasing, and material management. The objectives and processes are aligned with the RevDrive business system tenants designed to deliver continuous improvement. This morning, I will provide an overview of our consolidated second quarter performance, as well as detailed segment financials. Before I comment on the quarterly results, I would like to provide several highlights that occurred within our businesses during the quarter. Late last year, we announced that ENC, our municipal transit business, released its next-generation hydrogen fuel cell and battery electric buses branded Axess EVO. Since the launch, we have enjoyed robust bidding for both battery, electric, and hydrogen fuel cell models. Prior to the quarter, we announced the first order of 4 battery electric buses from the Dallas-Fort Worth Airport. Within the quarter, we announced the first order for Axess EVO hydrogen fuel cell buses, with 3 units going to the Rochester-Genesee Regional Transportation Authority. ENC's hydrogen fuel cell bus delivers an industry-leading range, up to 400 miles, and refuels in just 12-20 minutes. The Axess EVO fuel cell, which has only water as a byproduct, will help the Transportation Authority work toward its goal of transitioning to a zero-emission fleet by 2035. They received funding for the buses through the Federal Transit Administration Low or No Emission Program. ENC was recently named as an FTA grant partner by a total of 12 transit agencies located throughout the U.S., streamlining the process to receive additional orders to be qualified for federal funding. Continued availability of FTA funding, combined with communities' desire to improve their environments, have resulted in a robust pipeline of new opportunities. Subsequent to the quarter, we announced an order for 19 fuel cell buses from the California Public Transit provider, Foothill Transit, who serves Southern California, San Gabriel, and Pomona Valleys, including Pasadena and downtown Los Angeles. Foothill currently operates a fleet of 359 buses, with a commitment to operate a 100% zero-emission bus fleet. As a relatively small market share participant in a large public transportation market, we believe opportunities like this in the transition from internal combustion engines to new technologies will allow ENC the opportunity to be a disruptor and gain market share. The mentioned contract wins will not only contribute to unit growth for ENC, but also top-line revenue growth, as the average selling price of zero-emission units can be up to 2 times that of an internal combustion engine. As we have previously discussed, our battery, electric, and hydrogen fuel cell platform has over 90% commonality, therefore, we also expect to gain additional manufacturing efficiencies from this plant as production ramps. Our Type A school bus business, Collins, is also participating in increased demand for battery electric transportation solutions. Within the quarter, its bidding pipeline for EV buses grew into the hundreds of units and has active orders for 60 EV buses. In addition to providing a solution that converts traditional gas engines to electric, we recently announced the first Type A bus, an electric powertrain provided directly by a major OEM. In collaboration with Ford, Collins began taking orders for the new E-Transit T350 low floor, single rear wheel cutaway in May. Within the specialty group, we had two EV debuts from our Capacity Trucks terminal truck business. The first was the launch of its new zero emission hydrogen fuel cell electric terminal truck at the Technology & Maintenance Council in February. Its long duration operating time, heavy load capacity, and quick refueling cycle have been well received. In May, Capacity also debuted its new zero emission lithium-ion powered terminal truck at the Advanced Clean Transportation Expo. The EV terminal truck is powered by a Hyster-Yale electric powertrain and available with an option of 130 kW or 260 kW lithium-ion battery. The truck is expected to operate for the length of a normal shift before recharging is needed, while delivering consistent power and maximizing uptime. The battery can be recharged in as short as 1 hour. Across the REV EV portfolio, bidding is active for both electric and fuel cell products, as end users remain uncertain about the infrastructure, load requirements, and use case for each technology. With these launches, we now offer both fuel cell and battery electric solutions for terminal trucks and transit buses, providing our customers maximum flexibility. I am pleased that today we will be discussing results that include momentum of increased starts and completions across the F&E segment, including both the ambulance and fire groups. As you know, we face key component shortages across many of our businesses throughout fiscal 2022. Due to the complexity, customization, and large number of SKUs required in fire apparatus, the fire group was particularly impacted by shortages. Over the past 1.5 years, the sourcing teams have worked to qualify an increasing number of alternative sources, which limited the number of key component shortages within the quarter to isolated events. Material handling across our Fire plants is improving, with greater alignment between production planning, procurement, and the presentation of materials assigned to specific vehicles. To further mitigate potential shortages and keep the line moving, the Fire businesses have enhanced dedicated response teams with pickers assigned to retrieve parts missing from production cells. Communication across functions is improving, with management activities focused on daily accountability. To help ensure that this accountability continues, I made a change of leadership and organizational structure in the REV Fire Group. Within the quarter, Mike Virnig assumed the role of President, REV Fire Group, overseeing all brands. Mike has been the Vice President of Global Sales and Marketing at REV since 2018. Under his tenure, our backlog for fire apparatus has tripled, growing by over $1,000,000,000. Mike has deep relationships with our dealers and direct customers across all REV Fire brands, understands functionality and distinction of our product offerings and their capabilities, and has a unique perspective on the importance of our parts and service business, having owned a service center in the past. He's been integral in our voice of customer feedback and led various programs to eliminate product complexity while enhancing and standardizing our portfolio. Prior to joining REV, he served as Vice President of Sales at Spartan Emergency Response. He has prior management and ownership experience in other fire and specialty vehicle businesses. I was with Mike at the recent FDIC International Show, a leading firefighter conference. The response to Mike's promotion was overwhelmingly positive. In addition to this change, I have added Andy Thompson to the team as REV Fire Group Chief Operating Officer. This is a new position dedicated to managing manufacturing operations across all fire brands. Andy joined REV in 2021 as VP of Operations across the enterprise, bringing his extensive experience in manufacturing operations, supply chain, and Lean Six Sigma. Most recently, he was deployed as interim VPGM of the Holden Fire Facility, where he helped increase plant efficiencies and throughput by implementing many of the actions that I mentioned earlier, resulting in a 2-year high in quarterly shipments at the Holden facility. Under his leadership, the plant has leveraged all production slots and reduced or eliminated gaps, realigned assembly lines to reduce bottleneck constraints, launched several projects aimed at reducing production hours per value stream, and set the intermediate agenda for improved profitability. I look forward to working with Mike and Andy to drive continued improvement in overall fire performance. Within the ambulance group, quarterly shipments reached a 2-year high, and net sales reached a 3-year high as the division benefited from an improved supply chain and key plants maintained higher direct labor headcount levels. On the last earnings call, we noted that with increased chassis supply, our ability to achieve or exceed the year's production plan relied on the ability to effectively hire, train, and retain new workers. Within the quarter, we were successful increasing the group's headcount and lowering year-over-year turnover at each of the ambulance plants. I am confident that the group will experience improved productivity as new workers are onboarded and begin cross-training. We experienced the anticipated normalization of recreation segment backlog within the quarter. The industry backdrop remains challenged, with retail sales in the fifth quarter reported to be down in the low 20% range year-over-year. Many dealers have worked to reduce 2022 model year inventory and are expected to maintain a disciplined approach toward overall inventory levels given the current interest rate and economic environments. We have been proactively working with our dealers with respect to age backlog. This results in a reduction of, in orders, primarily for towable and camper units at our Lance East and West facilities, and to a lesser degree, cancellations within the Class A business, which maintains a 6-month backlog. We continue to expect a portion of these orders will replace with 2024 model year orders. Within the Class B and Class C categories, backlog remains in the 9-month range. These results are in line with the full year outlook provided in December and the first quarter update provided in March. Turning to our second quarter results on Slide 4. Consolidated net sales of $681,000,000, increased $105,000,000 or 18% versus second quarter last year. The increase was driven by higher shipments and sales across all segments. Fire and Emergency segment sales reflect higher sales in both the fire and ambulance groups. Increased Fire Group sales were primarily a result of an improved supply chain, resulting from dual sourcing initiatives, as well as improved overall component supply environment, in addition to productivity initiatives aimed at increasing throughput. Increased ambulance group sales were related to improved chassis supply, labor market and retention improvements mentioned earlier, and price re-realization. Record commercial segment sales benefited from an improved supply chain, which enabled completion of units previously trapped in work in progress and price realization. Recreation net sales increased versus the prior year as productivity initiatives took hold at our West Coast towable plant, while segment pricing remained positive and added discounts. Consolidated adjusted EBITDA of $41,900,000, increased $18,100,000 or 76% versus the prior year, with increased contribution from all segments. Higher contribution from the F&E segment includes improved results in both the Fire and ambulance groups. Commercial segment EBITDA was related to improved profitability in the school bus and specialty businesses, partially offset by a decline in the municipal transit business. Recreation momentum continued within the quarter, with increased volumes and price realization above discounting. The net result of greater profitability across all segments was a seven-quarter high in adjusted EBITDA dollars and EBITDA margin. Please turn to page 5 of the slide deck as I move to a review of our second quarter segment results. Fire and Emergency second quarter segment sales were $283,000,000, an increase of 16% compared to the prior year. The increase in net sales was primarily due to increased shipments of fire apparatus and ambulance units, a favorable mix of higher content ambulance units and price realization, partially offset by an unfavorable mix of lower content fire apparatus. Within the REV Fire Group, throughput improved sequentially and year-over-year to reach a 6-quarter high in shipments and revenue. This includes improved performance at our two largest plants, as well as increased shipments from our Holden facility that were up 70% year-over-year and 39% sequentially. With supply chain headwinds subsiding, all plants have had greater success filling production slots with a more robust clear to build process. A milestone for recovery within the REV Fire Group will be reaching the revenue run rate achieved in the second and third quarter of fiscal 2021, prior to supply chain and labor market challenges. Within the quarter alone, we've recovered half of the deficit between that period and the low points of revenue experienced in the first quarter of this fiscal year. We are encouraged that within the quarter, Fire Group starts exceeded completions by 6%, demonstrating its momentum. As I mentioned earlier, Ambulance Group unit shipments reached a 2-year high, up 6% year-on-year, with revenue reaching a 3-year high. Higher revenue is primarily related to increased shipments, higher content vehicles, and price realization. As we have noted on past calls, the recent inflationary environment has required a disciplined forward pricing strategy across all businesses. Due to lower complexity and higher production volumes, the Ambulance Group started producing units that are in the early rounds of new price tiers enacted over the past 18 months. We are encouraged by the throughput improvement we experienced at all locations within the group and the momentum it will carry into the second half of the year. F&E segment adjusted EBITDA was $9,600,000 in the second quarter of 2023, compared to an adjusted EBITDA loss of $2,200,000 in the second quarter of 2022. The increase was primarily a result of higher volumes, manufacturing efficiencies, and improved price realization, partially offset by inflationary pressures. Fire Group profitability improved 550 basis points versus the prior year and 520 basis points sequentially. This was primarily due to higher sales volume and manufacturing efficiencies related to an improved supply chain environment and initiatives enacted to improve productivity. Ambulance Group profitability improved 450 basis points year over year and 300 basis points sequentially. This was primarily a result of higher sales volumes, favorable mix, price realization, and manufacturing efficiencies. Record F&E backlog was $2,900,000,000, an increase of 60% year-over-year. The increase in backlog was a result of continued strength of unit orders in both the Fire and ambulance groups and pricing actions over the past 12 months. The Fire Group experienced greater conversion of quotes to firm orders within the quarter, while ambulance demand remained strong, resulting in individual records from backlog in both the Fire and ambulance groups. For the remainder of the year, we expect the F&E segment to post sequential revenue and margin improvement, with approximately 75% of segment earnings generated in the second half. Turning to Slide 6. Commercial segment sales of $142,000,000 was an increase of 56% compared to the prior year. The increase was due to higher sales across all product categories and price realization. Improved material availability allowed completion of school buses, terminal trucks, and street sweepers that had been trapped in inventory. Dual sourcing and improved chassis supply have allowed unit shipments of school buses to reach a seven-quarter high. Like ambulance, school buses have less complexity and a faster production cadence that allowed us to experience new pricing tiers more quickly than many other businesses. We have also started to ship more EV units, which carry a higher average selling price. The combined result is a three-and-a-half year high in school bus sales. Unit shipments of terminal trucks and street sweepers increased 28% and 50%, respectively, as the specialty group implemented productivity actions designed to increase throughput. Within the municipal transit business, we continue to experience shortages of wiring harnesses and other components, creating line rate inefficiencies and a significant amount of out-of-station work and rework, which limited unit shipments within the second quarter and is expected to continue through the third quarter. Commercial segment adjusted EBITDA of $10,700,000 increased 143% versus the prior year. The increase in EBITDA was primarily the result of higher shipments and improved profitability within the school bus, terminal truck, and street sweeper businesses, partially offset by manufacturing inefficiencies within the transit bus business. Record profitability for school buses is primarily a result of higher shipments and efficiencies gained from greater material availability, including chassis and price realization, partially offset by inflationary pressures. Profitability of terminal trucks and street sweepers benefited from higher shipments related to actions implemented over the past year to improve throughput, receipt of key components that allowed completion of WIP units, and price realization. Municipal transit bus completions continue to be limited by shortages of critical components that result in fewer than expected completions and trapped labor that weighed on profitability. Commercial segment backlog was $501,000,000 at the end of the second quarter, a decrease of 6% versus the prior year. The decrease in backlog is primarily a result of increased throughput and a normalization of orders for terminal trucks and street sweepers, partially offset by record backlog for school buses, which includes strong second quarter orders, as well as price actions enacted over the past 12 months. In the 3rd quarter, we expect commercial segment sales and margins to be constrained by supply chain challenges that are limiting completion of municipal transit buses. The benefit we experienced in this quarter by completing partially completed WIP units in the school bus and specialty business will also diminish in the 2nd half of the year. We expect lower segment sales and margin in the 3rd quarter, with improved shipments and an improved mix of municipal transit buses that benefit the segment's revenue and margin profile in the 4th quarter. This will likely result in 2nd half adjusted EBITDA being approximately the same as the 1st half of the fiscal year. As I mentioned earlier, we are encouraged by increased bidding for zero-emission school buses and transit buses, feel this provides opportunity in fiscal 2024 and beyond. Turning to Slide 7. Recreation segment sales of $257,000,000 were up 6% versus last year's quarter. Increased sales versus the prior year were primarily a result of increased shipments of Class A, Class C, towable, and camper units, and pricing actions net of discounts in certain categories. Partially offsetting the increase were lower sales of Class B units related to supply chain and irregular dealer inventory related to the fourth quarter OEM recall that resulted in a large number of industry shipments early in the year. Shipments of travel trailers and campers improved sequentially, unit starts increased 35% throughout the quarter as the new local management team implemented productivity initiatives designed to increase throughput. Unit shipments and net sales of non-motorized units increased 29% and 51%, respectively, versus the prior year. Recreation segment adjusted EBITDA of $29,100,000 was an increase of 1% versus the prior year. The increase in EBITDA was primarily the result of price realization, net of discounting in certain businesses and volume leverage, partially offset by material inflation and an unfavorable mix of gas units and greater contribution from the non-motorized categories. While towable units and campers are currently diluted to the segment margin, the business increased adjusted EBITDA margin 690 basis points versus the prior year. Segment backlog of $495,000,000 decreased 62% versus the prior year and 50% sequentially. This was anticipated in line with guidance provided during the last earnings call for segment backlog to normalize in the four to six-month range. The decrease is primarily due to continued production against backlog and cancellation of aged orders, primarily in non-motorized and Class A categories. We expect a portion of these cancellations to be replaced with upcoming model year orders. Class B and Class C backlog remains in the 9 to 12-month range. The outlook for full-year Recreation segment revenue remains in the range of flat to down low single digits. Margins have likely peaked in the second quarter, with an expectation for lower production volume in certain categories and additional discounting in the second half. We are focused on flexing costs when necessary to protect profitability and will continue our work to claw back a portion of recent inflationary pressures. The full-year segment adjusted EBITDA margin expectation remains in the high single digit to 10% range. The combined result of strong first half shipments, lower production rates, and potential discounting in second half is expected to result in approximately 45% of full-year adjusted EBITDA being generated in the second half. Turning to slide 8. Year-to-date cash from operating activities totaled $8,200,000. Trade working capital as of April 30th, 2023, was $363,300,000, an increase of $15,500,000 compared to $347,800,000 at the end of fiscal 2022. The increase was primarily a result of increased accounts receivable and inventories, partially offset by an increase in accounts payable and customer advances. Inventory increased $92,000,000 versus the prior year period, when it was more difficult to secure chassis, parts, and raw materials. Over the intermediate term, we believe there is an opportunity for meaningful inventory reduction as we gain confidence in the stability of the supply chain and chassis supply. We spent $6,800,000 on capital expenditures within the second quarter, resulting in free cash flow of $8,300,000. Net debt as of April 30th, was $221,000,000, including $9,000,000 of cash on hand. We declared a quarterly cash dividend of $0.05 per share, payable July 14th, to shareholders of record on June 30th. The board approved a new share repurchase authorization of up to $175,000,000, with flexibility to buy common stock in the open market at prevailing market prices or through block trades over the next two years. The new program replaces the prior $150,000,000 authorization approved in September 2021, of which we purchased approximately $74,000,000 of REV common shares. At the end of the quarter, the company maintained ample liquidity, with approximately $306,000,000 available under the ABL revolving credit facility, and our net debt to EBITDA leverage ratio is 1.8 times, below our stated target range of 2 to 2.5 times. Turning to slide 9. Today, we are raising our full-year outlook for net sales, adjusted EBITDA, adjusted net income, and free cash flow. The outlook for revenue is now in the range of $2,450,000,000 -$2,550,000,000, an increase of $100,000,000 at the midpoint. The range of adjusted EBITDA has been raised to $120,000,000 -$135,000,000, an increase of $7,500,000 at the midpoint. Guidance for adjusted net income is now in the range of $48,000,000 -$62,000,000, and we continue to expect cash conversion to be 90% or greater, with free cash flow in the range of $43,000,000 -$56,000,000. Thank you again for joining us on today's call, and our operator, we'd now like to open the call up for questions. Thank you. We'll now be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. Thank you. Our first question is from the line of Jerry Revich with Goldman Sachs. Please proceed with your questions. Yes, hi. Hi, good morning, everyone. Mark, congratulations again. I wanted to see if we could just start the conversation in fire and emergency, where it's nice to see the strong progress on the starts. Can you just talk about where we are on seeing higher price backlog starting to flow through? What's that cadence look like over the next couple of quarters compared to what the strong performance we saw in the second quarter? As we exited Q2, as I said in my prepared remarks, we're seeing good price realization within ambulance, given the fact that they're eating into the tiers quicker. Fire still has a significant, you know, longer backlog, we're continuing to do that. We are very myopic on knowing each vehicle and what the price tier is that it is. We do have a daily cadence where we look at price tiers and have full visibility to that. We'd expect to see progression as we move through our backlog and are able to see that visibility. We feel very encouraged, and when we look at the outlook, it's reflective of that vehicle-by-vehicle build up for F&E, with ambulance being ahead of the curve with the throughput improvements we've seen. Fire just beginning, as we've talked about, the throughput we saw in Q2, and then as we progress through the remainder of the year, we'll start eating into more of those older units and getting into new price tiers as we move along. You know, if we were to look at what's being booked today and the pricing tier that's coming in at, would that get you on a run rate basis whenever we do get to produce that to the targeted 8% margin? For sure. -range? For sure. Yes, for sure. Okay, super. Then, can we shift gears and talk about RV? Really strong execution from the team in that part of the business. Can you talk about, given the shifts in backlogs for the industry, how are you folks thinking about what production rates might look like a couple of quarters out? I know a lot of moving pieces out there, but would love to get your views. At the same time, from a margin standpoint, how are you thinking about your through cycle margin performance if we do get to the point where we're cutting production? We still feel good about where we're at from an overall recreation perspective, being at a high single digits to 10% EBITDA margin. Jerry, we look at our mix, and obviously, we've talked about this over the last year or so, or two years, about our mix of being heavily motorized, and we continue to see strength in the B and C categories. If you look at our inventory across the whole portfolio, we're still down 25%, our dealer inventory from where we were pre-COVID. We have not normalized even from an inventory level. We're still seeing a significant amount of retail sold units in that B and C category. As our dealers, as you've heard from our competitors, are dealing with, you know, challenge financing in their floor plan that they have available, given the fact that they have a lot of towable units on their lots, you know, we're able to do a lot from a retail sold perspective, where it's just to pass through that dealer, and our units continue to sell through, you know, what we see quicker than the industry norm from the perspective. We still believe we have the right product in place. Obviously, Class A never participated in the uptick that we saw, we continue to see a mix shift there of more of gas units versus high-end diesel. We are seeing a mixed impact. From a productivity perspective, we are looking at managing the production flow there, but we still feel comfortable with that 9%-10% range exiting the year. Super. Thank you. Our next question is from the line of Mig Dobre with Baird. Please just your questions. Good morning, Mark. Hi. I want to follow up on Jerry's question, this last question here. You know, if I look at your implied guidance for recreation in the back half of the year, you're still looking north of $220,000,000 of quarterly revenue. I'm curious if you are of the view that there is another sort of step down that we need to consider as we look into fiscal 2024, or if you're comfortable with the notion that this revenue run rate is sustained. I ask obviously, because the backlog is looking different than it did even a quarter ago, and at least for me, it's a little bit harder to pinpoint exactly what the underlying level of demand currently is. We obviously don't want to get into 2024 guidance at this point, but we tried to include that in our prepared remarks. When you look at our B and C businesses, which are, you know, what we talked about, our higher margin businesses, we still have a 6 to 9-month backlog in those businesses. We still have a strong backlog in those units. We look at the back half of the year, we feel very comfortable in those categories. In our Class A business, we still have in excess of 6 months, and we have the production. It's more about a mix where we're seeing the consumer go down into more gas units versus the high-end diesels. We talk about gas, you know, those margins are 50% of what a high-end diesel would produce. Obviously, the hours from a production perspective are less, given the complexity is lower as well. We are flexing our costs within that business. We feel good that we're gonna be able to flex with the unit shift there. Of course, we'll have to maintain a different production cadence than we did at the beginning of the year. On the towable side, we're seeing what everyone else is seeing, but still, we still have not normalized our inventory, and that Lance product, as you know, is more of a niche product within the whole towables business. We still have quite a heavy following there. We did introduce, you know, as we've announced, our Enduro Off-Road product within the quarter, which was well received as well. We're seeing some uptick from the acceptance of that product as well. Understood. Maybe going back to fire and emergency, and maybe even more broadly on to your guidance. You raised your sales guidance by $100,000,000. I'm assuming it's primarily driven by fire and emergency, but I'd love some confirmation there. That's right. You know, Okay. The second question here would be very high level of backlog, right? Almost $2,900,000,000. I'm sort of curious as to how you think about this backlog. Is this backlog stickier, for instance, than what we have seen in RV? What's the risk of cancellations? When you're kind of talking to customers, how are they dealing with what appears to be very extended lead times at this point? Yeah. I would say from a lead time perspective, we are quoting lead times at the same level or even within some of our competitors within the space, so we feel very good about the lead times. It is important. I've had a lot of calls and discussions and meetings with our customers. The most important thing that we have on our agenda right now is to increase throughput and get the units to our dealers as well as our customers. We understand that, especially in the F&E space and from a public providing these vehicles to the public. You know, from that side, they are stickier. When we've talked about this before, you know, these are in the majority of the fire business. We haven't experienced cancellations in the past because they are sticky when the municipalities get the budget and they go through the budgetary schedule, that money is earmarked. As you can see in our balance sheet, we do get deposits on those units, so that money is allocated to those units. We feel good about that. Ambulance, we continue to see strong demand there, and those are sticky as well. We feel real good about that. We would not have a retraction like we did in recreation, which is more consumer-based model versus municipality driven segment as F&E. Understood. My final question, can you frame maybe where you are in terms of capacity in F&E? If the supply chain finally normalizes to call it pre-COVID levels, how much more capacity do you have? Can you continue to grow, or will you be contemplating some sort of capacity additions as you look maybe beyond just your guidance here into 2024 and beyond? Thank you. Yeah, it's really two-prong, we've talked about this before. We do have inherent inefficiencies that we've talked about over the last 2 years. You know, the productivity improvements and the cycle that we've been on gets us to where we feel comfortable, and it's really by a business unit by business unit perspective. You'd have to go individually by those. We have some that are operating at 70% efficiency versus some that are in the high 90s. It's really. But, you know, a lot of our factories run on a single shift, not a second shift, so we have inherently built in there. If we have labor availability, that we could actually double our capacity in our current footprint by just adding a second shift. We do supplement with Fridays and overtime. A lot of our shifts are four tens, so we have the ability even to flex up on a full Friday shift if we needed to. We're really working first to improve our production capacity and our cadence before we start thinking about expanding that. We have that available in our current footprint to more than double where we're at right now. Okay. Very helpful. Thank you. Our next question is from the line of Jamie Cook with Credit Suisse. Please proceed with your question. Hi, good morning, congrats, Mark. I guess just, you know, longer-term strategic question, just, you know, as you're now officially the, you know, new CEO, any observations, you know, thoughts on your 2021 Analyst Day and the financial targets that you laid out? Is that still the right way to think about things? Also, is this sort of the right portfolio, you know, that is in place for the company? Then follow up, just, you know, the $175,000,000 new share authorization, just thoughts on that sort of cadence and maybe perhaps what you see versus what you think the market's missing. Thank you. Yeah, sure. I think, you know, overall from a, you know, from an overall long term or those are 2023 goals that we set out, and we still feel comfortable in what we provide in 2021 and the strategic imperatives that are driving those margins. We have reached those in recreation this year, so we feel good about the progress there. You know, F&E, when we look at how we're gonna exit the year and what we're feeling about there, the momentum and the pricing that we put into the market, we believe, like I talked about earlier in the earlier question, that we'll get to those long-term goals. We feel very good about that and the cadence around purchasing and the overall initiatives around continuous improvement. You know, those are still tenants within the RevDrive business system. As I talked about last earnings call, nothing has really changed from an overall long-term strategic imperative and what we're driving on a day-to-day basis to deliver on those. I think those are well intact. Without the supply chain challenges that we had over the last 18 months, we probably would have been at those rates. It's really a delay in achieving those, and when you look at the overall targets, we probably put in more price than what we anticipated in those initial targets. It gives us some opport-- you know, some optimism that those are very achievable targets that we set out. From a portfolio perspective, you know, like I've always said, even in my CFO role, we always assess what businesses and will they deliver the returns that we expect? Right now, we are comfortable with what we have in our portfolio. We're always open to looking at other things, either tangentially or within, you know, tuck-ins. Right now, our capital allocation, as we talked about last period, is just to drive down debt, you know, pay down the interest, the higher bearing interest that we're experiencing now and, you know, work that way with opportunistic. When you talk about the share repurchase, that was gonna expire here in September. It was just making sure that we had the flexibility before our next board call and able to do that. You know, obviously, we believe that there's a lot of growth potential in our stock price, so we do want to be opportunistic to use that with the free cash flow generation that we're doing here. The extent we're exceeding or seeing where we are from a cash flow, we will be opportunistic on from a capital market perspective. Okay, thank you. Yeah. Thank you, Jamie. Our next question has come from the line of John Joyner with BMO Capital Markets. Please proceed with your questions. Hey, good morning. Thank you. Good morning. I'll say congratulations to Mark as well. Maybe piggybacking on Jamie's question on capital allocation. I know there's, you know, this Class A, Class A chassis that's out there. I mean, would that be at all towards the upper end of any priorities around inorganic additions, or is there any kind of read-through in terms of, like, how you view that business as it relates to, you know, not adding that asset? Yeah, no, not right now. I think we're comfortable with the, with the partners we have. You know, we've always said that this is gonna be an internal. We're trying to pick the right partners to be our suppliers. That's really a strategy we're continuing to do here. From a chassis perspective, we're not looking at, you know, building our own chassis. We get that a lot of questions we do in our, in our fire business. That's one of the things we still have strong relationships with our OEM partners. We feel comfortable in the space we're currently in. Oh, okay. Thank you. In the, you know, your release and prepared remarks, like most other industrial companies, you talk about supply chains getting better, along with some, you know, kind of greater labor efficiencies. Have any supply-related issues lately cropped up in the past few weeks? I mean, I ask this question because we've heard that some on-highway markets may have experienced recent issues. I mean, I'm when I say a few weeks, I'm talking about, like. Yeah, we. 2-3 weeks in certain areas. Yeah, we do have those, so we are not immune to those, being on, you know, in the category on the industrial side, so we deal with those on a day-to-day basis. I can say that the, our supply chain team has done very well. Remember, we are in a unique situation where we said that we have been underperforming from a purchasing perspective, and we've done a lot of work from a dual sourcing perspective that would come to fruition here in the first calendar quarter of 2023, and those are now where we're well ahead where we thought we would be from a dual sourcing or alternative sourcing space. We are seeing some momentum just from improving our internal house here and expanding our supply base. Also, as I said in my quoted remarks, we are not waving the checker flag here. That we, you know, we know that there's things that pop up from a day-to-day, and we need to be nimble and be able to manage through those with our partners. You know, that's what I would say there. There's always these one-offs that we have to deal with on a day-to-day basis. Okay, got it. Then, maybe one more if I could. When you think about these, you know, kind of alternative fuel technologies, such as hydrogen fuel cells, among others, when do you think these, I mean, maybe, when do you think these will receive kind of critical mass? I mean, what has the feedback been, the reliability, what is, how has that been in kind of the capability on, say, real-world usage versus a test environment on these products? Yeah, again, we're starting to kick those off, I would say real world. We obviously, there's people in the space right now that have vehicles out there that are touting the capabilities of these units. You know, first, units at our ENC facility, I quoted, are just starting to be going down to production, but we have had, obviously, demo units that have been working, you know, several hundred thousands of miles. We feel very comfortable in our solutions. We're on the, like I said, in my quoted remarks, it's really gonna be customer choice on, do they go to a full battery electric or fuel cell? We have the capability to provide both. Right now we're trying to be flexible so we meet our customer needs. I would say we still are seeing the early days of what the full, take rate is going to be on a go-forward basis. We are seeing, heightened bidding activity, like we talked about, so the ability to have funding to pay for this, federally has also helped us. Okay, excellent. Thank you so much for the time. All right. Thank you. As a reminder, if you'd like to ask a question today, you may press star one from your telephone keypad. Our next question comes from the line of Michael Shlisky with D.A. Davidson. Please proceed with your question. Good morning, and thank you for taking my question. A little granular, but I wanted to ask about Capacity Trucks, and some of the products there, going electric. You know, in certain states like California, we're going to start to see, it sounds like you actually can't order a truck that's not electric in the, in Capacity Trucks segments. I'm curious if you could just tell us a little bit about whether you're prepared for a ramp-up in your facility to make more EVs starting in 2024. Yeah, sure. For sure, Mike. I was just out there last month. Drew and I both were out there last month. You know, at Capacity Trucks, we do have a dedicated facility there that is doing the development of both the hydrogen fuel cell and electric. We are conscious of that. We do have the Hyster-Yale product that is starting to go into use case, maybe carrying on to John's earlier point. We do have beta tests or what you would say, use case development within some major customers. We feel very comfortable there in our ability to ramp there. The team, what they've done on the ICE side, we're very confident that if it would convert to all electric, that we'd see the same sort of momentum there. We have a very seasoned team and, a team that's very capable with the throughput we've seen on the ICE side, that would carry over to the EV and hydrogen fuel cell side. We feel very comfortable from that perspective. I'm curious just to follow up that, Mark, on. It's a somewhat fragmented market. I'm curious whether you could tell us whether there's some players in the market are not going to have hydrogen or battery options going forward, and is there a reasonable market share gain opportunity, call it 2024 or 2025, for that brand? I think you'll see some substitutions at that point. Obviously, I think it'll all carry on with we will probably participate to be able to pick up market share. At the same time, when you look at our ability to produce those EVs, I think it'll be there, and it'll just be a matter of what the overall industry is from a take rate given the port activity and whatnot, that these in this product serves the industry they serve. Got it. Got it. Just touching on the F&E real quick. It sounds like in, at least in ambulances, having higher content helped you in the quarter, content per vehicle. It sounded like on the fire side, content was not a tailwind. Could you give us just a little bit of thoughts going, like, the rest of this year and the first part of next fiscal year, whether content is gonna be a tailwind for you, or as, you know, as your, as your new COO, kind of gets a better hold of the business, whether you'll be taking content out, trying to get more product out the door? What's the content outlook, I guess, and the, and the, and how that might affect- Yeah, I'll go into that. The next call or 12 months or so? Maybe not touching on 24 right now, when we look at the content, when we talk about content there, you know, on the fire side, we're talking about higher complex aerial units versus, say, commercial chassis, you know, commercial pumpers, the hour differential is significant there. Our ability to deliver more units, and again, we're looking at a mix equation here. When we're talking about fire, it's more around these commercial units versus a custom pumper or a chassis or a aerial unit. That's when we talk about low content for fire content. If you look at Q2, we had more commercial-type units going through. On the ambulance side, it's really more of a reflection of the chassis mix we have now and our ability to produce more modular units, which we call them, versus vans, which are built like on a transit van unit. We're able to have more high-content modular units within ambulance, and we are able now, with our chassis supply, to mix in more units based on a mix that is more favorable to the production environment, versus over the last year, where we were just having to build on whatever chassis we received from the OEM. We're now able to plan better, which has given us an improved mix profile, more of what we've historically seen, and is benefiting now from the throughput initiatives that we've put in place. Very interesting. I appreciate that. I'll pass it along. Thank you. Yep, thank you. Thank you. At this time, we've reached the end of the question and answer session, and I'll turn the call back over to Mark Skonieczny for closing remarks. Yeah, thank you, operator. Again, I'd like to thank everyone again for joining us on today's call. I've been encouraged by the plant visits that I've conducted over the past four months and look forward to continuing to collaborate with the local teams as we build on the momentum created in the first half of the year. You know, there's been notable progress and engagement at a local level toward the REV Drive initiative that we detailed at our Investor Day two years ago. You know, one of our REV's key values is to think like an owner, and I've been challenging our leadership team to enable all of our employees to do so at the local level. Again, I'd like to thank all of our employees for the hard work and results they achieved in the second quarter, and I look forward to speaking with all of you again with our third quarter results. Thank you. This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.