The Shyft (US:SHYF)2022-04-30 04:44Financial Data and Key Metrics Changes - Revenue for Q1 2022 was $206.9 million, an increase of 4.5% from the previous year [28] - Loss from continuing operations was $3.9 million compared to income of $11.5 million a year ago [28] - Adjusted net loss was $2.1 million, down from adjusted net income of $12.8 million in the prior year [28] - Diluted earnings per share from continuing operations was a loss of $0.11, compared to a profit of $0.32 in Q1 2021 [29] - Adjusted EBITDA fell to a loss of $600,000 from a profit of $19.2 million, with a percentage of sales declining to -0.3% compared to 9.7% in the same period last year [29] Business Segment Data and Key Metrics Changes - Fleet Vehicles and Services (FVS) revenue was $112.7 million, down from $123.8 million a year ago, primarily due to reduced production volume from chassis supply issues [30] - FVS adjusted EBITDA was a loss of $900,000 compared to a profit of $17.9 million a year ago [31] - Specialty Vehicles segment sales were $94.2 million, an increase of 27% driven by strong performance in luxury motorhome chassis and service truck body [32] - Specialty Vehicles adjusted EBITDA was $10.1 million, or 10.7% of sales, compared to $7.4 million, or 9.9% of sales, in the same period last year [33] Market Data and Key Metrics Changes - Record order intake of $500 million in Q1 2022, leading to a record backlog of $1.3 billion, up over 90% year-over-year [10] - FVS backlog increased by 34% sequentially and nearly doubled compared to the previous year [31] - Specialty Vehicles backlog was up 52% to $124 million, including a 43% growth in motorhome chassis backlog and a 63% increase in service body backlog [33] Company Strategy and Development Direction - The company is focusing on higher-growth markets and has made significant investments in its Specialty Vehicles business [10] - The introduction of the Blue Arc EV Solutions brand aims to create a new EV ecosystem with innovative products [22][24] - The company is committed to innovation and meeting evolving customer needs, particularly in the electric vehicle space [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain disruptions, particularly in chassis supply, which are expected to persist throughout 2022 [12] - The company remains confident in the long-term outlook, driven by strong underlying market trends and robust demand [38] - Revised guidance for 2022 includes revenue expectations of $900 million to $1.1 billion, with adjusted EBITDA of $50 to $80 million [37] Other Important Information - The company returned $28.7 million to shareholders in the form of dividends and share repurchases during the quarter [35] - The current leverage ratio stands at 0.5 times adjusted EBITDA, providing ample liquidity for operations and growth investments [35] Q&A Session Summary Question: Guidance for the year and chassis supply impact - Management confirmed that the 25% reduction in chassis supply is related to walk-in van and Velocity business, with significant delays impacting deliveries [47][48] Question: Expectations for second quarter versus second half - Management indicated that the second quarter is expected to be softer, with a ramp-up in production anticipated in the second half of the year [52][53] Question: Customer feedback on Blue Arc EV Solutions - Management noted positive feedback from potential customers regarding the Blue Arc products, emphasizing the focus on Class 3 vehicles to avoid competition with existing customers [70][72] Question: Supply chain challenges beyond chassis - Management stated that while commodity prices have increased, they have not seen significant disruptions from the Ukraine crisis or China shutdowns [87] Question: M&A opportunities - Management confirmed that M&A remains a priority, with a strong balance sheet allowing for potential acquisitions [79]