The Shyft (US:SHYF)2021-05-08 20:53Financial 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]