The Shyft Group, Inc. (NASDAQ:SHYF) Q1 2023 Earnings Conference Call April 27, 2023 10:00 AM ET Company Participants Randy Wilson - Vice President, Investor Relations and Treasury Daryl Adams - President, CEO and Director Jon Douyard - CFO Conference Call Participants Felix Boeschen - Raymond James Michael Shlisky - D.A. Davidson Greg Lewis - BTIG Steve Dyer - Craig Hallum Matt Koranda - Roth MKM Operator Good morning, everyone. Welcome to the Shyft Group's First Quarter and Full-Year 2022 Conference Call a ...

Financial Performance - Sales for Q1 2023 were $243.4 million, a 17.7% increase from $206.9 million in Q1 2022[61] - Gross margin improved to 17.6% in Q1 2023, up from 12.5% in Q1 2022[61] - Operating income for Q1 2023 was $3.7 million, compared to a loss of $5.5 million in Q1 2022[61] - Net income for Q1 2023 was $1.7 million, a significant improvement from a loss of $3.9 million in Q1 2022[72] - Adjusted EBITDA for Q1 2023 was $10.8 million, compared to a loss of $0.6 million in Q1 2022, reflecting an increase of $11.4 million[73] - Sales in the Fleet Vehicles and Services (FVS) segment increased by 41.5% to $159.4 million in Q1 2023, compared to $112.7 million in Q1 2022[85] - Adjusted EBITDA for the FVS segment rose to $12.5 million in Q1 2023, compared to a loss of $0.9 million in Q1 2022, reflecting a $13.4 million improvement[86] - Sales in the Specialty Vehicles (SV) segment decreased by 7.4% to $87.2 million in Q1 2023, down from $94.2 million in Q1 2022[88] - Adjusted EBITDA for the SV segment increased by 37.2% to $13.9 million in Q1 2023, up from $10.1 million in Q1 2022[89] Order Backlog - Order backlog decreased to $667.4 million as of March 31, 2023, down 47.6% from $1,272.7 million a year earlier[75] - The Fleet Vehicles and Services backlog decreased by $563.8 million, or 49.1%, due to increased sales volume and returning demand[76] Cash Flow and Investments - Cash and cash equivalents decreased by $4.2 million to $7.4 million as of March 31, 2023, compared to the end of 2022[90] - Cash generated from operating activities was $5.9 million in Q1 2023, a $33.7 million increase from cash used in operating activities in Q1 2022[91] - The company used $4.9 million in investing activities in Q1 2023, a decrease from $5.5 million in Q1 2022[92] - The company repurchased 348,705 shares for $8.8 million in Q1 2023 as part of a $250 million stock buyback program[97] Debt and Interest Rates - The company had $65.0 million in debt outstanding under its revolving credit facility as of March 31, 2023, with an interest rate of 5.66%[101] - As of March 31, 2023, the company had $65.0 million in outstanding debt under its revolving credit facility, with a potential increase of $0.7 million in annual interest expense for a 100 basis points rise in interest rates[101] - The company believes it has sufficient financial resources to accommodate potential increases in interest rates due to market conditions[101] - The transition from LIBOR to the Secured Overnight Funding Rate (SOFR) is being managed, with no expected material increase in interest expense when LIBOR ceases to exist[102] Commodity Price Risks - The company is exposed to commodity price fluctuations, particularly in steel and aluminum, and does not typically use derivative instruments to manage these risks[103] - The company actively manages its material supply sourcing to mitigate risks associated with commodity cost fluctuations[103] Research and Development - Research and development expenses increased to $6.9 million in Q1 2023, driven by electric vehicle development initiatives[68] - The company launched Blue Arc™ Electric Vehicle Solutions, including a commercial-grade EV chassis and an all-electric delivery van[61] Internal Controls and Reporting - The company has implemented a new enterprise resource planning system in February 2023, replacing multiple internal controls with new or modified controls[108] - There were no material changes in the company's internal control over financial reporting during the quarter ended March 31, 2023[109] - The management evaluated the effectiveness of disclosure controls and procedures as of March 31, 2023, concluding they were effective[107] - The company acknowledges inherent limitations in its internal control system, which may not prevent all misstatements[110] - The company does not anticipate any material changes in its primary market risk exposure in the near term[104]

The Shyft Group, Inc. (NASDAQ:SHYF) Q4 2022 Earnings Conference Call February 23, 2023 10:00 AM ET Company Participants Randy Wilson - Vice President, Investor Relations and Treasury Daryl Adams - President, CEO and Director John Douyard - CFO Conference Call Participants Greg Lewis - BTIG Felix Boeschen - Raymond James Steve Dyer - Craig Hallum Mike Shlisky - D.A. Davidson Matt Koranda - Roth MKM Operator Good morning, and welcome to the Shyft Group's Fourth Quarter and Full Year 2022 Conference Call and W ...

6 0 Fourth Quarter 2022 Financial Review & 2023 Outlook o © 2023 THE SHYFT GROUP, INC. (S Shyft Financial Summary – 4Q22 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|--------|---------------------|-------|-------------|-------|--------|-------|-------|-------|-----------------------------------|-------|----------------|-----------------------------------------|-----------| | | | | $277.3 | Sales (in millions) | | 9% Increase ...

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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ 48375 (Zip Code) Commission File Number 001-33582 THE SHYFT GROUP, INC. (Exact Name of Registrant as Specified in ...

Financial Data and Key Metrics Changes - Revenue for Q3 2022 was $286.1 million, up 4.9% year-over-year and up 23.2% sequentially [14] - Net income from continuing operations was $17.3 million compared to $21 million a year ago [14] - Adjusted net income was $18.6 million compared with $22.9 million in the prior year [14] - Diluted earnings per share from continuing operations was $0.49, down from $0.58 in Q3 2021 [14] - Adjusted EBITDA was $27.1 million, down from $33.7 million in the previous year, with a margin decline to 9.5% from 12.4% [14] Business Line Data and Key Metrics Changes - Fleet Vehicle and Services (FBS) revenue was $184.5 million, down from $191.4 million a year ago, with adjusted EBITDA of $24.4 million compared to $36.4 million [15] - Specialty Vehicles (SV) achieved record revenue of $103.9 million, an increase of 27.9% year-over-year, with adjusted EBITDA of $15.6 million, up 730 basis points [16] Market Data and Key Metrics Changes - Backlog was $1 billion, up 22% year-over-year but down sequentially as production improved [6] - FBS backlog was $915 million, up 22% year-over-year [15] - SV backlog increased by 25% year-over-year to $129 million [16] Company Strategy and Development Direction - The company is focused on executing its growth strategy, particularly in the electric vehicle (EV) market with the Blue Arc brand [10][19] - Continued investment in technology, capacity, and talent is emphasized for long-term sustainability [19] - The company aims to maintain pricing discipline while addressing supply chain challenges [5][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand in end markets, citing a robust backlog and improved chassis availability [6][14] - The company expects a recovery in cash flow performance in Q4 as delivery of finished vehicles improves [18] - Management remains cautious about supply chain challenges but is confident in the ability to meet customer needs [5][26] Other Important Information - The company reported EV spending of $7.7 million in Q3 2022 [14] - A sustainability report was released, highlighting efforts to reduce environmental impact [12] Q&A Session Summary Question: Discussions around ICE and EV vehicles - Management noted that discussions with customers are primarily focused on internal combustion engine (ICE) vehicles, with expectations for increased EV activity once products are in customers' hands [21][22] Question: EV specific costs for next year - Management indicated a step down in EV specific costs to a range of $10 million to $15 million for the following year [23][24] Question: Chassis availability and future expectations - Management expressed cautious optimism about continued improvement in chassis availability, although they do not consider the supply chain issues fully resolved [25][26] Question: Fourth quarter revenue outlook - Management expects a significant revenue increase in Q4, driven by improved chassis flows and USPS volume [27][28] Question: Working capital and cash flow expectations - Management anticipates a reversal in working capital primarily from converting finished vehicles awaiting components into cash [28][30] Question: Order flow and backlog constraints - Management acknowledged that lead times are a constraint on order flow but remains confident in demand for 2023 [33][34] Question: Outlook for the motorhome business - Management is confident in the motorhome business despite potential downturns in smaller categories, citing record revenue in Q3 [40] Question: USPS truck body contract and pass-through revenue - Management confirmed a $40 million contract for USPS, with some pass-through revenue expected in Q4 and into 2023 [44] Question: Specialty vehicle margins - Management indicated strong margins in specialty vehicles but cautioned against modeling them at 15% on a long-term basis [45] Question: Fleet vehicle mix and pricing - Management noted favorable pricing and mix within the fleet vehicle segment, with some headwinds from product mix [46]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022. 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) Michigan (State or Other Jurisdiction of Incorporat ...

Second Quarter 2022 Earnings Conference Call July 28, 2022 © 2022 THE SHYFT GROUP, INC. SHYFTGROUP Forward-Looking Statement This presentation contains information, including our revenue and earnings guidance, all other information provided with respect to our outlook for 2022 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 may constitute "forward ...

Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $232.2 million, down 4.8% year-over-year but up 12.2% sequentially [25] - Net income from continuing operations was $5.3 million, compared to $17 million a year ago [25] - Adjusted net income was $7.5 million, down from $19 million in the prior year [26] - Adjusted EBITDA was $13.7 million, compared to $28.6 million in the previous year, with a margin decline to 5.9% from 11.7% [27] Business Segment Data and Key Metrics Changes - Fleet Vehicle Services (FBS) revenue was $136.9 million, down from $161.6 million year-over-year, with adjusted EBITDA of $14.5 million [28][30] - Specialty Vehicles (SV) revenue increased to $95.3 million, up 15.7% year-over-year, with adjusted EBITDA of $12.9 million, representing a margin of 13.5% [31][32] Market Data and Key Metrics Changes - Backlog was $1.1 billion, up 51% year-over-year but down 11% sequentially [13] - FBS backlog was $1 billion, up 53% year-over-year [30] - SV backlog increased by 37% year-over-year to $135 million [32] Company Strategy and Development Direction - The company is focused on managing supply chain disruptions and inflationary pressures while investing in automation and lean principles [9][12] - Continued development of the Blue Arc Electric Vehicle is essential for long-term sustainable fleet operations [11][21] - The company aims to maintain a strong balance sheet to support growth initiatives, including EV investments [34][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year due to improved chassis supply and strong demand [10][35] - The updated 2022 outlook includes revenue guidance of $925 million to $1.1 billion and adjusted EBITDA of $55 million to $80 million [36][37] - Management noted that the demand remains strong despite some cancellations due to chassis timing issues [49][60] Other Important Information - The company launched the Red Diamond aftermarket brand to expand its luxury motorhome parts and service business [19] - The Bristol facility installed an automated robotic painting system to enhance operational efficiency and sustainability [16] Q&A Session Summary Question: Supply chain disruptions - Management confirmed that chassis supply is the primary issue but noted improvements in flow [45][47] Question: Backlog and cancellations - Management indicated a modest level of cancellations but emphasized strong underlying demand [48][50] Question: Blue Arc EV customer testing - Management is preparing vehicles for customer testing and expects production to start in the second half of 2023 [53][55] Question: M&A opportunities - Management is monitoring potential acquisitions and expects better opportunities in the second half of the year [68][69] Question: Long-term vehicle demand - Management anticipates a 2 to 3-year recovery period for normal supply levels and fleet replacement [81][82] Question: Red Diamond brand initiative - Management sees potential for long-term value in the Red Diamond brand but considers it early days for expansion [101][102]

Financial Performance - Sales for Q2 2022 were $232.2 million, a decrease of 4.8% from $244.0 million in Q2 2021[69] - Gross margin for Q2 2022 was 18.1%, down from 21.3% in Q2 2021[69] - Operating income for Q2 2022 was $7.7 million, compared to $22.2 million in Q2 2021[69] - Total sales for the first half of 2022 were $439.1 million, a slight decrease of 0.6% from $441.9 million in the first half of 2021[84] - Income from continuing operations for Q2 2022 was $5.3 million, down from $17.0 million in Q2 2021[79] - Income from continuing operations for the six months ended June 30, 2022, decreased by $27.1 million to $1.4 million compared to $28.5 million for the same period in 2021, representing a decline of 95.1%[90] - Adjusted EBITDA for Q2 2022 was $13.7 million, a decrease of 52.1% from $28.6 million in Q2 2021[81] - Consolidated Adjusted EBITDA for the six months ended June 30, 2022, was $13.0 million, a decrease of $34.7 million or 72.7% from $47.7 million for the same period in 2021[92] Order Backlog and Demand - Order backlog increased to $1,135.2 million as of June 30, 2022, up 51.1% from $751.4 million a year earlier[69] - The order backlog as of June 30, 2022, totaled $1,135.2 million, up 51.1% from $751.4 million at June 30, 2021, indicating strong demand across the product portfolio[93] - Fleet Vehicles and Services backlog increased by $347.4 million, or 53.2%, reflecting strong demand for various vehicle products[94] Segment Performance - Sales in the Fleet Vehicles and Services segment for the six months ended June 30, 2022, were $249.6 million, a decrease of $35.8 million or 12.6% from $285.4 million in the same period of 2021[105] - Adjusted EBITDA in the Fleet Vehicles and Services segment for the six months ended June 30, 2022, was $13.7 million, a decrease of $32.3 million or 70.3% from $46.0 million in the same period of 2021[106] - Sales in the Specialty Vehicles segment for the six months ended June 30, 2022, were $189.5 million, an increase of $33.1 million or 21.1% from $156.4 million in the same period of 2021[109] - Adjusted EBITDA for the Specialty Vehicles segment for the six months ended June 30, 2022, was $23.0 million, an increase of $6.8 million or 42.0% from $16.2 million in the same period of 2021[110] Cash Flow and Liquidity - Cash and cash equivalents decreased by $30.6 million from December 31, 2021, to a balance of $6.6 million as of June 30, 2022[111] - Cash used in operating activities during the six months ended June 30, 2022, was $36.7 million, a decrease of $39.9 million from positive cash flow of $3.2 million in the same period of 2021[112] - Cash used in investing activities decreased by $2.1 million to $9.9 million for the six months ended June 30, 2022, primarily due to a $2.4 million decrease in property, plant, and equipment purchases[114] - Cash generated from financing activities increased by $24.1 million to $16.0 million during the six months ended June 30, 2022, mainly due to $70.0 million of increased proceeds from long-term debt[115] Debt and Financing - The company has a secured revolving credit facility of up to $400.0 million, maturing on November 30, 2026, with an applicable borrowing rate of 2.78% as of June 30, 2022[117] - Available borrowings under the Credit Agreement totaled $199.4 million as of June 30, 2022, down from $376.8 million at December 31, 2021[118] - The company repurchased 607,306 shares for $26.8 million in the first quarter of 2022, with a total authorization of up to $250.0 million for stock buybacks[119] - An increase of 100 basis points in interest rates would result in an incremental interest expense of $0.6 million on an annualized basis, based on $55.0 million of outstanding debt[124] Risk Management - The company is exposed to commodity price fluctuations, particularly in steel and aluminum, and does not generally use derivative instruments to manage these exposures[126] Internal Controls - The company has maintained compliance with all covenants in its Credit Agreement as of June 30, 2022[118] - There have been no changes in internal control over financial reporting that materially affected the company's financial reporting during the quarter ended June 30, 2022[131] - The internal control system has inherent limitations, including human error and the possibility of overriding controls, which may affect the reliability of financial reporting[132] - Effective internal controls can only provide reasonable assurance regarding the preparation and fair presentation of financial statements[132] Research and Development - Research and development expenses for Q2 2022 were $7.6 million, significantly up from $0.9 million in Q2 2021[76] New Products - New product offerings include the Blue Arc™ EV Solutions, featuring a commercial-grade EV chassis and a fully electric Class 3 delivery van[69]