SHYF First Quarter 2021 Earnings Conference Call 05.06.2021 () Forward-Looking Statement This presentation contains several forward-looking statements that are not historical facts, including our revenue and earnings guidance, all other information provided with respect to our outlook for 2021 and future periods, and other statements concerning our business, strategic position, financial projections, financial strength, future plans, objectives, and the performance of our products and operations. These stat ...

Financial Data and Key Metrics Changes - The Shyft Group achieved first-quarter revenues of $198 million, an increase of 11.8% from the previous year [15] - Adjusted EBITDA for the first quarter was $19.2 million, up from $18.4 million, but as a percentage of sales, it declined to 9.7% from 10.4% [16][17] - Adjusted net income increased 12% to $12.8 million from $11.4 million in the prior year [16] Business Line Data and Key Metrics Changes - Fleet Vehicles and Services (FVS) revenue was $131.7 million, unchanged from the previous year, with adjusted EBITDA of $18.2 million, down from $21.7 million [18] - Specialty Vehicles segment saw sales of $66.2 million, a 60.5% increase driven by a 56% rise in luxury motor coach chassis volume and a 109% increase in service body revenue [20] Market Data and Key Metrics Changes - FVS backlog reached a record high of $589.6 million, up 38% sequentially and 95% year-over-year [18] - Specialty Vehicles backlog increased by 81% to $76.9 million, including a 39% growth in motorhome chassis backlog [21] Company Strategy and Development Direction - The company plans to continue investing in growth through new products and technologies, with a focus on electric vehicle (EV) platforms [25][27] - The backlog increase reflects the success of the business strategy, which includes growth in higher-margin products and expanding market share [6][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2021 guidance despite supply chain uncertainties, particularly regarding chassis availability due to semiconductor shortages [8][24] - The company reaffirmed its 2021 guidance for revenue between $850 million and $900 million, adjusted EBITDA of $95 million to $105 million, and adjusted EPS of $1.65 to $1.85 per share [24] Other Important Information - The company reported a total liquidity of $136 million at the end of Q1, including $10 million in cash and $126 million in borrowing availability [22] - Capital expenditures for the quarter were approximately $6 million, with expectations for full-year CapEx in the range of $20 million to $25 million [22][23] Q&A Session Summary Question: Supply chain impact and backlog guidance - Management indicated that the supply chain issues are primarily related to chassis, but with a strong backlog, there is potential to exceed guidance if chassis supply improves [30] Question: Labor shortages and management strategies - Management noted that while there are challenges in labor markets, they are currently managing well in key locations [33] Question: Order environment and seasonality - Management expects a potential slowdown in Q3 as customers prepare for 2022 purchases, but demand remains strong [40] Question: Chassis supply issues and production capabilities - Management confirmed that while there are chassis supply issues, they are still able to fulfill orders and maintain production levels [41][52] Question: EV strategy and platform development - Management is developing a purpose-built chassis solution for EVs, with more details expected in the future [25][56]

[Forward-Looking Statements](index=3&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section provides a cautionary statement that the Form 10-Q contains forward-looking statements based on current expectations and projections - The report contains "forward-looking statements" which involve significant risks and uncertainties, meaning actual future results could differ materially from those discussed[11](index=11&type=chunk) - Investors are cautioned not to place undue reliance on these statements as predictions of actual results. The company is not obligated to update forward-looking statements after the filing date[12](index=12&type=chunk) [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements%3A) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2021, including balance sheets, statements of operations, cash flows, and shareholders' equity with detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2021, total assets were **$411.5 million** and total liabilities were **$204.7 million**, driven by increases in current assets and corresponding current liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $206,122 | $156,207 | | **Total Assets** | $411,533 | $359,049 | | **Total Current Liabilities** | $141,005 | $93,363 | | **Total Liabilities** | $204,707 | $158,890 | | **Total Shareholders' Equity** | $206,826 | $200,159 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2021 sales increased to **$197.9 million**, with net income attributable to The Shyft Group rising to **$11.6 million** or **$0.32 per diluted share**, primarily due to the absence of discontinued operations losses Q1 2021 vs Q1 2020 Statement of Operations (in thousands, except per share data) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Sales | $197,888 | $176,948 | | Gross Profit | $39,986 | $36,301 | | Operating Income | $14,667 | $13,360 | | Income from Continuing Operations | $11,530 | $11,742 | | Net Income Attributable to The Shyft Group Inc. | $11,576 | $7,811 | | Diluted EPS | $0.32 | $0.22 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly improved to **$1.3 million** in Q1 2021, with investing and financing activities also using cash, resulting in a net decrease of **$11.0 million** in cash and cash equivalents Q1 2021 vs Q1 2020 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,303) | $(17,068) | | Net cash (used in) provided by investing activities | $(5,510) | $52,567 | | Net cash used in financing activities | $(4,133) | $(13,945) | | **Net (decrease) increase in cash** | **$(10,946)** | **$21,554** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes provide context on COVID-19, the sale of the ERV business, DuraMag acquisition, revenue recognition, debt, segment performance, and the effective tax rate, which was significantly higher in Q1 2021 - The company completed the sale of its Emergency Response Vehicle (ERV) business on February 1, 2020, for **$55 million**, with results reclassified to discontinued operations[33](index=33&type=chunk) - On October 1, 2020, the company acquired DuraMag, an aluminum truck body manufacturer, for a total purchase price of **$17.8 million**, integrated into the Specialty Vehicle segment[35](index=35&type=chunk)[38](index=38&type=chunk) - As of March 31, 2021, the company had a backlog of remaining performance obligations totaling **$666.5 million**, split between **$589.6 million** in Fleet Vehicles and Services and **$76.9 million** in Specialty Vehicles[52](index=52&type=chunk) - The effective income tax rate for Q1 2021 was **23.2%**, significantly higher than **3.1%** in Q1 2020, which benefited from a **$2.6 million** tax benefit under the CARES Act[67](index=67&type=chunk)[68](index=68&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2021 performance, highlighting an **11.8%** revenue increase to **$197.9 million**, a **93.4%** surge in order backlog to **$666.5 million**, and a **4.3%** rise in Adjusted EBITDA to **$19.2 million**, driven by strong demand and acquisitions Q1 2021 Financial Highlights vs. Q1 2020 | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Revenue | $197.9M | $176.9M | | Gross Margin | 20.2% | 20.5% | | Operating Income | $14.7M | $13.4M | | Diluted EPS (Continuing Ops) | $0.32 | $0.33 | - Order backlog increased **93.4%** to **$666.5 million** at March 31, 2021, from **$344.7 million** at March 31, 2020, reflecting strong demand across the company's product portfolio[84](index=84&type=chunk)[98](index=98&type=chunk) - Consolidated Adjusted EBITDA rose **4.3%** to **$19.2 million** in Q1 2021 from **$18.4 million** in Q1 2020[96](index=96&type=chunk) - The company is advancing its product line with introductions like the Velocity F2 and M3 walk-in vans and has EV demo units in customer testing[84](index=84&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q1 2021 sales increased **11.8%** to **$197.9 million**, but gross margin slightly compressed to **20.2%** due to pre-production costs, and a significantly higher income tax expense led to a slight decrease in income from continuing operations Change in Adjusted EBITDA (in millions) | Description | Amount | | :--- | :--- | | Adjusted EBITDA Q1 2020 | $18.4 | | Sales volume including acquired business | $5.0 | | Sales pricing and mix | $(0.4) | | Productivity and other cost reductions | $1.5 | | Pre-production costs | $(2.3) | | General and administrative costs and other | $(3.0) | | **Adjusted EBITDA Q1 2021** | **$19.2** | - The effective tax rate was **23.2%** in Q1 2021 versus **3.1%** in Q1 2020, with the 2020 rate favorably impacted by a **$2.6 million** benefit from the CARES Act[92](index=92&type=chunk)[93](index=93&type=chunk) [Order Backlog](index=25&type=section&id=Order%20Backlog) The company's total order backlog surged **93.4%** to **$666.5 million** as of March 31, 2021, with significant increases in both Fleet Vehicles and Services and Specialty Vehicles segments, indicating robust demand Order Backlog by Segment (in thousands) | Segment | March 31, 2021 | March 31, 2020 | | :--- | :--- | :--- | | Fleet Vehicles and Services | $589,604 | $302,236 | | Specialty Vehicles | $76,896 | $42,419 | | **Total Consolidated** | **$666,500** | **$344,655** | [Our Segments](index=26&type=section&id=Our%20Segments) Fleet Vehicles and Services sales decreased **3.0%** due to pre-production costs, while Specialty Vehicles sales surged **60.5%** and Adjusted EBITDA nearly doubled, driven by higher volumes and the DuraMag acquisition Fleet Vehicles and Services (FVS) Performance (in thousands) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Sales | $131,673 | $135,688 | | Adjusted EBITDA | $18,210 | $21,736 | | Adj. EBITDA Margin | 13.8% | 16.0% | Specialty Vehicles (SV) Performance (in thousands) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Sales | $66,215 | $41,260 | | Adjusted EBITDA | $7,016 | $3,721 | | Adj. EBITDA Margin | 10.6% | 9.0% | [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Cash decreased by **$11.0 million** in Q1 2021, but the company maintained strong liquidity with **$126.0 million** available under its revolving credit facility, using cash for operations, capital expenditures, share repurchases, and dividends - Cash and cash equivalents decreased by **$11.0 million** during the quarter, ending at **$10.0 million**[114](index=114&type=chunk) - The company has a **$175 million** revolving credit facility, with **$126.0 million** in available borrowings as of March 31, 2021[122](index=122&type=chunk)[124](index=124&type=chunk) - A quarterly dividend of **$0.025 per share** was declared in February 2021[127](index=127&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies interest rate fluctuations on variable-rate debt and commodity price changes, particularly steel and aluminum, as primary market risks, with a **100 basis point** rate increase potentially adding **$0.2 million** to annual interest expense - The company is exposed to interest rate risk on its **$22.4 million** of variable-rate debt, where a **100 basis point** rate increase would add **$0.2 million** to annual interest expense[129](index=129&type=chunk) - The company faces commodity risk from price changes in raw materials, mainly steel and aluminum, which it mitigates through pre-buys and active supply management[131](index=131&type=chunk) - The planned phase-out of LIBOR is noted as a potential risk that could increase interest expense and disrupt financial markets[130](index=130&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were not effective as of March 31, 2021, due to a previously identified material weakness, for which a remediation plan is underway, though financial statements are still deemed fairly presented - Disclosure controls and procedures were concluded to be **not effective** as of March 31, 2021, due to a previously identified material weakness[134](index=134&type=chunk) - A remediation plan is being executed with the goal of resolving the material weakness before the end of fiscal 2021[136](index=136&type=chunk) - Notwithstanding the material weakness, management has concluded that the condensed consolidated financial statements are fairly presented in all material respects[135](index=135&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) This section confirms that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - There have been no material changes from the risk factors disclosed in the Form 10-K for the year ended December 31, 2020[139](index=139&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2021, the company repurchased **100,000 shares** of common stock under its program, with approximately **0.4 million shares** remaining available for repurchase as of March 31, 2021 Issuer Purchases of Equity Securities (Q1 2021) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Publicly Announced Plan | | :--- | :--- | :--- | :--- | | Jan 2021 | - | $- | - | | Feb 2021 | 45,496 | $32.76 | 45,000 | | Mar 2021 | 120,184 | $35.03 | 55,000 | | **Total** | **165,680** | **-** | **100,000** | - As of March 31, 2021, **408,994 shares** may yet be purchased under the existing stock repurchase authorization[141](index=141&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q report, including CEO and CFO certifications and Inline XBRL financial data files - The exhibits filed with the report include certifications from the President and CEO, and the CFO, as well as Inline XBRL documents[144](index=144&type=chunk) [Signatures](index=33&type=section&id=SIGNATURES) The Form 10-Q report was officially signed and authorized by Jonathan C. Douyard, the Chief Financial Officer, on behalf of The Shyft Group, Inc. on May 6, 2021 - The report was duly signed on May 6, 2021, by Jonathan C. Douyard, Chief Financial Officer[146](index=146&type=chunk)[147](index=147&type=chunk)

2020 Performance Highlights - The Shyft Group strategically aligned its product portfolio to capitalize on more profitable growth markets following the sale of the ER business[2] - The company's 2020 sales reached $676 million, compared to $757 million in 2019, which included $91 million of nonrecurring USPS sales[8,9] - Adjusted EBITDA for 2020 was $76 million, a 19% increase from $64 million in 2019[8,123] - The adjusted EBITDA margin increased by 280 basis points to 113% in 2020[123] Segment Performance (4Q20 vs 4Q19) - Fleet Vehicles & Services (FVS) revenue decreased by 15% to $1124 million[129] - Specialty Vehicles (SV) revenue increased by 25% to $592 million[129] - FVS adjusted EBITDA was down 21% to $166 million, with a margin of 148%[142] - SV adjusted EBITDA increased by 38% to $69 million, with a margin of 116%[148] Financial Position and Outlook - The Shyft Group had a total liquidity of $147 million at the end of 4Q20, including $21 million in cash and $126 million of borrowing capacity[34] - The company's leverage ratio was approximately 04x adjusted EBITDA[34] - The Shyft Group anticipates revenue between $850 million and $900 million for 2021, representing a 29% increase[154] - The company projects adjusted EBITDA between $95 million and $105 million for 2021, a 32% increase[154]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ Commission File Number 001-33582 THE SHYFT GROUP, INC. (Exact Name of Registrant as Specified in Its Charter) Mich ...

(S SHYP Fourth Quarter 2020 Earnings Conference Call 03.11.2021 Forward-Looking Statement This presentation contains several forward-looking statements that are not historical facts, including our revenue and earnings guidance, all other information provided with respect to our outlook for 2021 and future periods, and other statements concerning our business, strategic position, financial projections, financial strength, future plans, objectives, and the performance of our products and operations that are n ...

Shyft Group, Inc. (NASDAQ:SHYF) Q4 2020 Earnings Conference Call March 11, 2021 10:00 AM ET Company Participants Juris Pagrabs - Director, IR & Group Treasurer Daryl Adams - President, CEO & Director Jonathan Douyard - CFO Conference Call Participants Michael Shlisky - Colliers Securities Steve Dyer - Craig-Hallum Felix Boeschen - Raymond James & Associates Steve O'Hara - Sidoti & Company Matthew Koranda - ROTH Capital Partners Operator Good morning, and welcome to the Shyft Group Fourth Quarter and Full Ye ...

The Shyft Group, Inc. (NASDAQ:SHYF) Q3 2020 Earnings Conference Call November 5, 2020 10:00 AM ET Company Participants Juris Pagrabs - Group Treasurer & Head of Investor Relations Daryl Adams - President & Chief Executive Officer Jon Douyard - Chief Financial Officer Conference Call Participants Mike Shlisky - Collier Securities Matt Koranda - ROTH Capital Steve Dyer - Craig-Hallum Steve O'Hara - Sidoti & Company Operator Good morning, and welcome to The Shyft Group's Third Quarter 2020 Conference Call and ...

(s) Third Quarter 2020 Earnings Conference Call 11.05.2020 © 2020 THE SHYFT GROUP, INC. Forward-Looking Statement This presentation contains several forward-looking statements that are not historical facts, including our revenue and earnings guidance and other statements concerning our business, strategic position, financial projections, financial strength, future plans, objectives, and the performance of our products and operations. These statements can be identified by words such as "believe," "expect," " ...

NASDAQ: SHYF 1 SHYFTGROUP September 2020 © 2020 THE SHYFT GROUP, INC. | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------| | | | | | | | "For 45 years, the Company has gone to market as Spartan. This new chapter has been well | | | contemplated, it's aligned with our long-term growth strategy, and it's one we're incredibly proud of … The Shyft Group repr ...