The Shyft (US:SHYF)2024-04-25 19:28Financial Data and Key Metrics Changes - Sales for Q1 2024 were $197.9 million, down 18.7% from $243.4 million in the prior-year quarter [18] - Net loss was $4.7 million, or $0.14 per share, compared to net income of $1.7 million, or $0.05 per share in the previous year [18] - Adjusted EBITDA was $6.1 million, or 3.1% of sales, down from $10.8 million, or 4.4% of sales in Q1 2023 [19] - Adjusted net loss for the quarter was $1.4 million, while adjusted EPS decreased to a loss of $0.04 per share [20] Business Line Data and Key Metrics Changes - FVS achieved sales of $107.8 million, down 32.4% compared to $159.4 million a year ago, with adjusted EBITDA of $0.9 million versus $12.5 million a year ago [21] - SV delivered sales of $90.1 million, up 3.4% compared to last year, with adjusted EBITDA of $17 million, or 18.8% of sales, compared to $13.9 million, or 15.9% of sales in the same period last year [22] Market Data and Key Metrics Changes - The parcel market remains soft, with customers delaying capital expenditures, impacting FVS performance [21] - There is ongoing customer interest in the Blue Arc EV program, with commercial conversations progressing [16] Company Strategy and Development Direction - The company is focused on operational excellence and customer satisfaction, aiming to return to historical profitability [27] - A "One Shyft" mindset is being implemented to enhance collaboration and operational efficiency across the organization [12][15] - The company is affirming its 2024 outlook with sales projected in the range of $850 million to $900 million and adjusted EBITDA of $40 million to $50 million [23] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the timing of the parcel market recovery but is confident in the long-term growth of the parcel market [23] - The team is focused on driving commercial momentum and efficiency across the organization [24] - Management expressed optimism about the company's direction and commitment to enhancing shareholder value [28] Other Important Information - The company is on track to deliver its prior free cash flow guidance of $25 million to $35 million [24] - The Blue Arc EV program is progressing as planned, with production targeted for late 2024 [16][42] Q&A Session Questions and Answers Question: Where is the strength in order flow coming from for FVS? - The strength is coming from utility and food and beverage sectors, with a shift from a historical reliance on parcel orders [34] Question: What is the status of the battery supplier issue for the Blue Arc program? - The battery from One Energy is meeting all requirements, and there are no issues in the development process [39] Question: What are the gating items to getting to production for the Blue Arc program? - Final development continues on track, with some additional tooling being put in place, but no significant step-up in capital is expected [44]