The Shyft Group, Inc. (NASDAQ:SHYF) Q3 2024 Earnings Conference Call October 24, 2024 8:30 AM ET Company Participants Randy Wilson - Vice President, Investor Relations & Treasury John Dunn - President & Chief Executive Officer Jon Douyard - Chief Financial Officer Conference Call Participants Matt Koranda - ROTH Capital Mike Shlisky - D. A. Davidson Gregory Lewis - BTIG Operator Good morning, and welcome to The Shyft Group's Third Quarter 2024 Conference Call and Webcast. All participants will be in a liste ...

The Shyft Group (SHYF) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 38.46%. A quarter ago, it was expected that this maker of chassis for Last Mile Delivery, RVs and other vehicles would post earnings of $0.12 per share when it actually produced earnings of $0.16, delivering a surp ...

Financial Performance - Sales for Q3 2024 were $194.1 million, a decrease of 3.6% from $201.3 million in Q3 2023[59] - Gross margin improved to 20.4% in Q3 2024, compared to 18.3% in Q3 2023[59] - Operating income for Q3 2024 was $5.3 million, up from $4.1 million in Q3 2023[59] - Net income decreased to $3.1 million in Q3 2024 from $4.5 million in Q3 2023, with diluted earnings per share at $0.09 compared to $0.13[59][71] - Consolidated sales for the first nine months of 2024 were $584.7 million, a decrease of 12.7% from $669.9 million in the same period of 2023[72] - Net income for the first nine months of 2024 was $0.6 million, a decrease of $10.3 million from $10.9 million in the same period of 2023[78] - Adjusted EBITDA for Q3 2024 increased to $14.3 million, up from $11.0 million in Q3 2023[72] - Adjusted EBITDA for the first nine months of 2024 was $32.9 million, down $4.7 million from $37.6 million in the first nine months of 2023[79] Order Backlog and Sales Segments - Order backlog was $345.4 million as of September 30, 2024, a decrease of 25.6% from $464.4 million a year earlier[59] - Consolidated order backlog as of September 30, 2024, totaled $345.4 million, a decrease of $119.0 million or 25.6% compared to $464.4 million at the same date in 2023[80] - Fleet Vehicles and Services segment sales for the first nine months of 2024 were $323.5 million, a decrease of $99.2 million or 23.5% from $422.7 million in the first nine months of 2023[91] - Specialty Vehicles segment sales for the first nine months of 2024 were $260.4 million, an increase of $9.0 million or 3.6% from $251.4 million in the first nine months of 2023[95] Cash Flow and Investments - Cash and cash equivalents increased by $11.5 million to $21.4 million as of September 30, 2024[98] - Cash generated from operating activities during the first nine months of 2024 was $17.2 million, a decrease of $27.6 million from $44.8 million in the same period of 2023[98] - Cash used in investing activities increased by $43.5 million to $60.0 million for the nine months ended September 30, 2024, primarily due to a $48.1 million increase related to the acquisition of ITU[99] - Cash generated from financing activities increased by $84.2 million to $54.3 million for the nine months ended September 30, 2024, driven by $35.0 million in increased proceeds from long-term debt[100] Debt and Credit Facilities - The company has $110.0 million outstanding debt under its revolving credit facility as of September 30, 2024, with a potential increase in interest expense of $1.1 million for a 100 basis point rise in interest rates[111] - The revolving credit facility was reduced from $400.0 million to $300.0 million, with a maturity date of November 30, 2026[102] - Available borrowings under the Credit Agreement were $34.1 million as of September 30, 2024, down from $83.2 million at December 31, 2023[105] - The company reported compliance with all financial covenants in its Credit Agreement as of September 30, 2024[105] Acquisitions and Operations - The company acquired Independent Truck Upfitters for $50.9 million, enhancing service body product offerings and upfit capabilities[59] - The company is currently integrating operations following the acquisition of Independent Truck Upfitters (ITU) on July 24, 2024[116] Research and Development - Research and development expenses for Q3 2024 were $4.2 million, down from $5.2 million in Q3 2023, reflecting a shift towards production readiness for electric vehicle initiatives[68] Tax and Compliance - The effective tax rate for the first nine months of 2024 was 50.3%, compared to (9.7%) for the same period in 2023[77] Other Financial Metrics - Adjusted EBITDA in the Fleet Vehicles and Services segment for the first nine months of 2024 was $19.1 million, down $13.8 million from $32.9 million in the first nine months of 2023[92] - Adjusted EBITDA for the Specialty Vehicles segment for the first nine months of 2024 was $50.7 million, an increase of $3.5 million from $47.2 million in the first nine months of 2023[96] - The company has outstanding letters of credit totaling $1.9 million related to workers' compensation insurance as of September 30, 2024[104] - The company does not enter into derivative instruments to manage exposure to fluctuations in steel and aluminum prices, relying instead on pre-buys and active supply sourcing[112] - The company declared dividends of $0.05 per share on multiple occasions in 2024 and 2023, maintaining a consistent dividend policy[108]

Exhibit 99.1 The Shyft Group Reports Third Quarter 2024 Results ● Expanded gross margin to 20.4%, up 210 basis points year-over-year ● Blue Arc Class 4 vehicle now in production with first customer deliveries expected in the fourth quarter ● Maintained full year 2024 adjusted EBITDA outlook of $45 to $50 million; positioned for significant profit growth in 2025 Novi, Mich., October 24, 2024 – The Shyft Group, Inc. (NASDAQ: SHYF) ("Shyft" or the "Company"), the North American leader in specialty vehicle manu ...

Expanded gross margin to 20.4%, up 210 basis points year-over-yearBlue Arc Class 4 vehicle now in production with first customer deliveries expected in the fourth quarterMaintained full year 2024 adjusted EBITDA outlook of $45 to $50 million; positioned for significant profit growth in 2025NOVI, Mich., Oct. 24, 2024 /PRNewswire/ -- The Shyft Group, Inc. (NASDAQ: SHYF) ("Shyft" or the "Company"), the North American leader in specialty vehicle manufacturing, assembly and upfit for the commercial, retail and s ...

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NOVI, Mich., Oct. 10, 2024 /PRNewswire/ -- The Shyft Group, Inc. (NASDAQ: SHYF) ("Shyft" or the "Company"), the North American leader in specialty vehicle manufacturing, assembly, and upfit for ecommerce-driven parcel delivery, as well as the broader commercial, retail, and service specialty vehicle markets, will announce its third quarter 2024 financial results prior to the market opening on Thursday, October 24, 2024. A conference call and webcast will begin at 8:30 A.M. Eastern Time. Teleconference and w ...

Commitment to environmental stewardship, social impact, and governance excellence continues to drive progress NOVI, Mich., Sept. 17, 2024 /PRNewswire/ -- The Shyft Group, Inc. (NASDAQ: SHYF), the North American leader in specialty vehicle manufacturing, assembly, and upfit for the commercial, retail, and service specialty vehicle markets, today announced the release of its 2024 Sustainability Report, Focusing Forward, Sustainably. The report outlines strategic efforts in reducing emissions, improving workpl ...

NOVI, Mich., Sept. 12, 2024 /PRNewswire/ -- The Shyft Group, Inc. (NASDAQ: SHYF) ("Shyft" or the "Company"), the North American leader in specialty vehicle manufacturing, assembly, and upfit for the commercial, retail, and service specialty vehicle markets, announced today that its management team will be hosting investors at the D.A. Davidson 23rd Annual Diversified Industrials & Services Conference on Thursday, September 19, 2024, in Nashville, Tennessee. About The Shyft Group The Shyft Group is the North ...

Nationwide Access to Innovative EV Solutions and Significant Financial Incentives for Customers NOVI, Mich., Sept. 5, 2024 /PRNewswire/ -- The Shyft Group, Inc. (NASDAQ: SHYF), the North American leader in specialty vehicle manufacturing, assembly, and upfit for the commercial, retail, and service specialty vehicle markets, has announced that its Blue Arc™ Class 4 EV truck has received both Zero-Emission Powertrain Certification (ZEPCert) and a Heavy-Duty Greenhouse Gas (GHG) Enhanced Electric Executive Ord ...