The Shyft Group, Inc. (SHYF) 10-Q 25 Apr 24 2024 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2024	Apr. 19, 2024
Document Information [Line Items]
Entity Central Index Key	0000743238
Entity Registrant Name	SHYFT GROUP, INC.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-33582
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	38-2078923
Entity Address, Address Line One	41280 Bridge Street
Entity Address, City or Town	Novi
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48375
City Area Code	517
Local Phone Number	543-6400
Title of 12(b) Security	Common Stock
Trading Symbol	SHYF
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		34,374,065

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 13,251	$ 9,957
Accounts receivable, less allowance of $277 and $276	78,820	79,573
Contract assets	52,803	50,305
Inventories	97,931	105,135
Other receivables – chassis pool agreements	18,890	34,496
Other current assets	6,700	7,462
Total current assets	268,395	286,928
Property, plant and equipment, net	80,905	83,437
Right of use assets – operating leases	45,078	45,827
Goodwill	48,880	48,880
Intangible assets, net	44,399	45,268
Net deferred tax assets	17,300	17,300
Other assets	2,724	2,409
TOTAL ASSETS	507,681	530,049
Current liabilities:
Accounts payable	86,159	99,855
Accrued warranty	8,212	7,231
Accrued compensation and related taxes	11,675	13,526
Contract liabilities	3,939	4,756
Operating lease liability	10,050	10,817
Other current liabilities and accrued expenses	12,605	11,965
Short-term debt – chassis pool agreements	18,890	34,496
Current portion of long-term debt	164	185
Total current liabilities	151,694	182,831
Other non-current liabilities	7,265	8,184
Long-term operating lease liability	36,776	36,724
Long-term debt, less current portion	65,121	50,144
Total liabilities	260,856	277,883
Commitments and contingent liabilities
Shareholders' equity:
Preferred stock, no par value: 2,000 shares authorized (none issued)	0	0
Common stock, no par value: 80,000 shares authorized; 34,361 and 34,303 outstanding	94,790	93,705
Retained earnings	152,035	158,461
Total shareholders' equity	246,825	252,166
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 507,681	$ 530,049

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ / shares in Thousands, $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts receivable, allowance	$ 277	$ 276
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, authorized (in shares)	2,000	2,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	80,000	80,000
Common stock, shares outstanding (in shares)	34,361	34,303

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Sales	$ 197,889	$ 243,439
Cost of products sold	163,827	200,515
Gross profit	34,062	42,924
Operating expenses:
Research and development	3,719	6,949
Selling, general and administrative	32,273	32,289
Total operating expenses	35,992	39,238
Operating income (loss)	(1,930)	3,686
Other income (expense)
Interest expense	(2,053)	(1,648)
Other income	97	70
Total other expense	(1,956)	(1,578)
Income (loss) before income taxes	(3,886)	2,108
Income tax expense	783	430
Net income (loss)	(4,669)	1,678
Less: net loss attributable to non-controlling interest	0	32
Net income (loss) attributable to The Shyft Group Inc.	$ (4,669)	$ 1,710
Basic earnings (loss) per share (in dollars per share)	$ (0.14)	$ 0.05
Diluted earnings (loss) per share (in dollars per share)	$ (0.14)	$ 0.05
Basic weighted average common shares outstanding (in shares)	34,319	35,058
Diluted weighted average common shares outstanding (in shares)	34,319	35,340

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (4,669)	$ 1,678
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	4,435	3,864
Non-cash stock based compensation expense	1,474	1,827
Loss on disposal of assets	66	0
Changes in accounts receivable and contract assets	(1,746)	22,500
Changes in inventories	7,204	(9,147)
Changes in accounts payable	(10,119)	(16,920)
Changes in accrued compensation and related taxes	(1,851)	419
Changes in accrued warranty	981	(978)
Change in other assets and liabilities	268	2,644
Net cash provided by (used in) operating activities	(3,957)	5,887
Cash flows from investing activities:
Purchases of property, plant and equipment	(5,719)	(4,469)
Proceeds from sale of property, plant and equipment	75	25
Acquisition of business, net of cash acquired		(500)
Net cash used in investing activities	(5,644)	(4,944)
Cash flows from financing activities:
Proceeds from long-term debt	40,000	40,000
Payments on long-term debt	(25,000)	(31,000)
Payment of dividends	(1,716)	(1,878)
Purchase and retirement of common stock	0	(8,765)
Exercise and vesting of stock incentive awards	(389)	(3,470)
Net cash provided by (used in) financing activities	12,895	(5,113)
Net increase (decrease) in cash and cash equivalents	3,294	(4,170)
Cash and cash equivalents at beginning of period	9,957	11,548
Cash and cash equivalents at end of period	$ 13,251	$ 7,378

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Common Stock Including Additional Paid in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Balance at January 1, 2024 (in shares) at Dec. 31, 2022	35,066
Balance at January 1, 2024 at Dec. 31, 2022		$ 92,982	$ 175,611	$ 101	$ 268,694
Issuance of common stock and tax impact of stock incentive plan (in shares)	5
Issuance of common stock and tax impact of stock incentive plan		(4,656)	0	0	(4,656)
Dividends declared		0	(1,820)	0	(1,820)
Issuance of restricted stock, net of cancellation (in shares)	193
Issuance of restricted stock, net of cancellation		0	0	0	0
Non-cash stock based compensation expense		1,827	0	0	1,827
Net loss			1,710	(32)	1,678
Purchase and retirement of common stock (in shares)	(349)
Purchase and retirement of common stock		(893)	(7,872)	0	(8,765)
Balance (in shares) at Mar. 31, 2023	34,915
Balance at Mar. 31, 2023		89,260	167,629	69	256,958
Balance at January 1, 2024 (in shares) at Dec. 31, 2023	34,303
Balance at January 1, 2024 at Dec. 31, 2023		93,705	158,461	0	252,166
Issuance of common stock and tax impact of stock incentive plan (in shares)	10
Issuance of common stock and tax impact of stock incentive plan		(389)	0	0	(389)
Dividends declared		0	(1,757)	0	(1,757)
Issuance of restricted stock, net of cancellation (in shares)	48
Issuance of restricted stock, net of cancellation		0	0	0	0
Non-cash stock based compensation expense		1,474	0	0	1,474
Net loss		0	(4,669)	0	(4,669)
Balance (in shares) at Mar. 31, 2024	34,361
Balance at Mar. 31, 2024		$ 94,790	$ 152,035	$ 0	$ 246,825

Condensed Consolidated Statem_4

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Common Stock, Dividends, Per Share, Declared	$ 0.05	$ 0.05

Note 1 - Nature of Operations a

Note 1 - Nature of Operations and Basis of Presentation	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Business Description and Accounting Policies [Text Block]	NOTE 1 – N ATURE OF OPERATIONS AND BASIS OF PRESENTATION As used herein, the term “Company”, “we”, “us” or “our” refers to The Shyft Group, Inc. and its subsidiaries unless designated or identified otherwise. Nature of Operations We are a niche market leader in specialty vehicle manufacturing and assembly for the commercial vehicle (including last-mile delivery, specialty service and vocation-specific upfit) and recreational vehicle industries. Our products include walk-in vans and truck bodies used in e-commerce/parcel delivery, upfit equipment used in the mobile retail and utility trades, service and vocational truck bodies, luxury Class A diesel motorhome chassis and contract manufacturing and assembly services. We also supply replacement parts and offer repair, maintenance, field service and refurbishment services for the vehicles that we manufacture as well as truck accessories. The accompanying unaudited interim condensed consolidated financial statements reflect all normal and recurring adjustments that are necessary for the fair presentation of our financial position as of March 31, 2024, our results of operations for the three months ended March 31, 2024 and our cash flows for the three months ended March 31, 2024. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission on February 22, 2024. The results of operations for the three months ended March 31, 2024, are not necessarily indicative of the results expected for the full year. For a description of key accounting policies followed, refer to the notes to The Shyft Group, Inc. consolidated financial statements for the year ended December 31, 2023, included in our Annual Report on Form 10-K. Supplemental Disclosures of Cash Flow Information Non-cash investing in the three months ended March 31, 2024 and March 31, 2023 included $2,007 and $2,494 of capital expenditures, respectively. The Company has chassis pool agreements, where it participates in chassis converter pools that are non-cash arrangements and they are offsetting between current assets and current liabilities on the Company’s Consolidated Balance Sheets. See "Note 3 – Debt

Note 2 - Inventories

Note 2 - Inventories	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Inventory Disclosure [Text Block]	NOTE 2 – INVENTORIES Inventories are summarized as follows: March 31, 2024 December 31, Finished goods $ 5,164 $ 9,374 Work in process 2,209 2,543 Raw materials and purchased components 90,558 93,218 Total inventories $ 97,931 $ 105,135

Note 3 - Debt

Note 3 - Debt	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Debt Disclosure [Text Block]	NOTE 3 – DEBT Short-term debt consists of the following: March 31, December 31, Chassis pool agreements $ 18,890 $ 34,496 Total short-term debt $ 18,890 $ 34,496 Chassis Pool Agreements The Company obtains certain vehicle chassis for its walk-in vans, service bodies and specialty vehicles directly from the chassis manufacturers under converter pool agreements. Chassis are obtained from the manufacturers based on orders from customers, and in some cases, for unallocated orders. The agreements generally state that the manufacturer will provide a supply of chassis to be maintained at the Company’s facilities with the condition that we will store such chassis and will not move, sell, or otherwise dispose of such chassis except under the terms of the agreement. In addition, the manufacturer typically retains the sole authority to authorize commencement of work on the chassis and to make certain other decisions with respect to the chassis including the terms and pricing of sales of the chassis to the manufacturer’s dealers. The manufacturer also does not transfer the certificate of origin to the Company nor permit the Company to sell or transfer the chassis to anyone other than the manufacturer (for ultimate resale to a dealer). Although the Company is party to related finance agreements with manufacturers, the Company has not historically settled related obligations in cash, except as required under our credit agreement. The obligation is usually settled by the manufacturer upon reassignment of the chassis to an accepted dealer, and the dealer is invoiced for the chassis by the manufacturer. The Company has included this financing agreement on the Company’s Condensed Consolidated Balance Sheets within Other receivables – chassis pool agreements Short-term debt – chassis pool agreements Long-term debt consists of the following: March 31, December 31, Line of credit revolver $ 65,000 $ 50,000 Finance lease obligation 285 329 Total debt 65,285 50,329 Less current portion of long-term debt (164 ) (185 ) Total long-term debt $ 65,121 $ 50,144 Revolving Credit Facility On November 30, 2021, we entered into an Amended and Restated Credit Agreement (the "Credit Agreement") by and among us and certain of our subsidiaries as borrowers, Wells Fargo Bank, N.A., as administrative agent, and the lenders party thereto consisting of Wells Fargo, N.A., JPMorgan Chase Bank, N.A., PNC Bank, N.A. and Bank of America, N.A. (the "Lenders"). Certain of our other subsidiaries have executed guaranties guarantying the borrowers' obligations under the Credit Agreement. On May 31, 2023, the Company amended the Credit Agreement to effectuate the transition of the underlying variable interest rate from LIBOR to the Secured Overnight Financing Rate ("SOFR"). Our interest expense is not expected to increase materially with this transition. Increased interest expense and/or disruption in the financial market could have a material adverse effect on our business, financial condition, or results of operations. On March 27, 2024, we entered into the Second Amendment to Amended and Restated Credit Agreement (the “Credit Agreement Amendment”). which amended the Credit Agreement. The Credit Agreement Amendment, among other things, (i) reduced the revolving credit commitments from $400,000 to $300,000, (ii) increased the applicable margin for term SOFR loans and base rate loans, (iii) adjusted the calculation of debt for purposes of determining the leverage ratio and (iv) temporarily increased the maximum leverage ratio. Under the Credit Agreement, we may borrow up to $300,000 from the Lenders under a secured revolving credit facility which matures November 30, 2026. We may also request an increase in the facility of up to $200,000 in the aggregate, subject to customary conditions. The revolving credit facility is also available for the issuance of letters of credit of up to $20,000 and swing line loans of up to $15,000, subject to certain limitations and restrictions. The revolving credit facility carries an interest rate of either (i) the highest of prime rate, the federal funds effective rate from time to time plus 0.5%, or the one 2.00%; The revolving credit facility is secured by security interests in, and liens on, all assets of the borrowers and guarantors, other than real property and certain other excluded assets. At March 31, 2024 and December 31, 2023, we had outstanding letters of credit totaling $1,550, related to our workers’ compensation insurance. Under the terms of our Credit Agreement, available borrowings (exclusive of outstanding borrowings) totaled $48,155 and $83,243 at March 31, 2024 and December 31, 2023, respectively. The Credit Agreement requires us to maintain certain financial ratios and other financial covenants; prohibits us from incurring additional indebtedness; limits certain acquisitions, investments, advances or loans; limits our ability to pay dividends in certain circumstances; and restricts substantial asset sales, all subject to certain exceptions and baskets. At March 31, 2024 and December 31, 2023, we were in compliance with all financial covenants in our Credit Agreement.

Note 4 - Revenue

Note 4 - Revenue	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	NOTE 4 – REVENUE Changes in our contract assets and liabilities for the three months ended March 31, 2024 and 2023 are summarized below: March 31, 2024 March 31, 2023 Contract Assets Contract assets, beginning of period $ 50,304 $ 86,993 Reclassification of the beginning contract assets to receivables, as the result of rights to consideration becoming unconditional (37,163 ) (66,340 ) Contract assets recognized, net of reclassification to receivables 39,662 39,441 Contract assets, end of period $ 52,803 $ 60,094 Contract Liabilities Contract liabilities, beginning of period $ 4,756 $ 5,255 Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied (3,319 ) (4,421 ) Cash received in advance and not recognized as revenue 2,502 6,885 Contract liabilities, end of period $ 3,939 $ 7,719 The aggregate amount of the transaction price allocated to remaining performance obligations in existing contracts that are yet to be completed in the Fleet Vehicles and Services ("FVS") and Specialty Vehicles ("SV") segments are $356,089 and $83,334, respectively. In the following tables, revenue is disaggregated by primary geographical market and timing of revenue recognition. The tables also include a reconciliation of the disaggregated revenue within the reportable segments. Three Months Ended March 31, 2024 FVS SV Eliminations and Other Total Primary geographical markets United States $ 81,369 $ 90,098 $ - $ 171,467 Other 26,390 32 - 26,422 Total sales $ 107,759 $ 90,130 $ - $ 197,889 Timing of revenue recognition Products transferred at a point in time $ 12,281 $ 42,757 $ - $ 55,038 Products and services transferred over time 95,478 47,373 - 142,851 Total sales $ 107,759 $ 90,130 $ - $ 197,889 Three Months Ended March 31, 2023 FVS SV Eliminations and Other Total Primary geographical markets United States $ 154,028 $ 87,184 $ (3,181 ) $ 238,031 Other 5,405 3 - 5,408 Total sales $ 159,433 $ 87,187 $ (3,181 ) $ 243,439 Timing of revenue recognition Products transferred at a point in time $ 12,154 $ 37,562 $ - $ 49,716 Products and services transferred over time 147,279 49,625 (3,181 ) 193,723 Total sales $ 159,433 $ 87,187 $ (3,181 ) $ 243,439

Note 5 - Property, Plant and Eq

Note 5 - Property, Plant and Equipment	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	NOTE 5 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are summarized by major classifications as follows: March 31, 2024 December 31, 2023 Land and improvements $ 12,583 $ 12,578 Buildings and improvements 55,466 53,789 Plant machinery and equipment 61,188 60,517 Furniture and fixtures 19,460 19,474 Vehicles 2,157 2,015 Construction in process 8,190 10,570 Subtotal 159,044 158,943 Accumulated depreciation (78,139 ) (75,506 ) Total property, plant and equipment, net $ 80,905 $ 83,437 We recorded depreciation expense of $3,566 and $2,912 during the three months ended March 31, 2024 and 2023, respectively.

Note 6 - Leases

Note 6 - Leases	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Lessee, Operating Leases and Finance Leases [Text Block]	NOTE 6 – LEASES We have operating and finance leases for land, buildings and certain equipment. Our leases have remaining lease terms of one Debt Operating lease expenses are classified as Cost of products sold and Operating expenses on the Condensed Consolidated Statements of Operations. The components of lease expense were as follows: Three Months Ended March 31, 2024 2023 Operating leases $ 2,744 $ 2,964 Short-term leases(1) 318 252 Total lease expense $ 3,062 $ 3,216 (1) The weighted average remaining lease term and weighted average discount rate were as follows: March 31, 2024 2023 Weighted average remaining lease term of operating leases (in years) 7.0 7.9 Weighted average discount rate of operating leases 3.0 % 2.8 % Three Months Ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow for operating leases $ 2,918 $ 2,793 Right of use assets obtained in exchange for lease obligations: Operating leases $ 1,879 $ 3,975 Finance leases $ 7 $ 65 Maturities of operating lease liabilities as of March 31, 2024 are as follows: Years ending December 31: 2024 (1) $ 8,610 2025 10,569 2026 8,434 2027 5,735 2028 4,148 2029 3,650 Thereafter 10,715 Total lease payments 51,861 Imputed interest (5,035 ) Total lease liabilities $ 46,826 (1)

Note 7 - Commitments and Contin

Note 7 - Commitments and Contingent Liabilities	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	NOTE 7 – COMMITMENTS AND CONTINGENT LIABILITIES At March 31, 2024, we and our subsidiaries were parties, both as plaintiff and defendant, to a number of lawsuits and claims arising out of the normal course of our businesses. In the opinion of management, our financial position, future operating results or cash flows will not be materially affected by the final outcome of these legal proceedings. Warranty Related We provide limited warranties against assembly/construction defects. These warranties generally provide for the replacement or repair of defective parts or workmanship for a specified period following the date of sale. The end users also may receive limited warranties from suppliers of components that are incorporated into our chassis and vehicles. Certain warranty and other related claims involve matters of dispute that ultimately are resolved by negotiation, arbitration or litigation. Infrequently, a material warranty issue can arise which is beyond the scope of our historical experience. We provide for any such warranty issues as they become known and are estimable. It is reasonably possible that additional warranty and other related claims could arise from disputes or other matters beyond the scope of our historical experience. An estimate of possible penalty or loss, if any, cannot be made at this time. Changes in our warranty liability are summarized below: Three Months Ended March 31, 2024 2023 Balance of accrued warranty at January 1 $ 7,231 $ 7,161 Accruals for warranties issued 2,257 1,035 Changes in liability for pre-existing warranties 273 (769 ) Cash settlements (1,549 ) (1,244 ) Balance of accrued warranty at March 31 $ 8,212 $ 6,183 Legal Proceedings Relating to Environmental Matters As previously disclosed, in May 2020, the Company received an information request from the United States Environmental Protection Agency (“EPA”) requesting certain information regarding emissions labels on chassis, vocational vehicles, and vehicles that the Company manufactured or imported into the U.S. between January 1, 2017 to the date the Company received the request in May 2020. The Company responded to the EPA’s request and furnished the requested materials in the third quarter of 2020. On April 6, 2022, the Company received a Notice of Violation from the EPA alleging a failure to secure certain certifications on manufactured chassis and a failure to comply with recordkeeping and reporting requirements related to supplier-provided chassis. The Company continues to investigate this matter, including potential defenses, and is continuing to discuss the allegations with the EPA. We have recorded an accrual of $1,850 at March 31, 2024 for this matter and do not believe the outcome will be materially different from the amount accrued.

Note 8 - Taxes on Income

Note 8 - Taxes on Income	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE 8 – TAXES ON INCOME Our income tax expense was $783 and $430 for the three months ended March 31, 2024 and 2023, respectively. The tax expense represented a (20.1%) effective tax rate and 20.4% effective tax rate for the three months ended March 31, 2024 and 2023, respectively. The effective tax rate for the three months ended March 31, 2024 and 2023 differs from the U.S. statutory rate of 21% primarily due to the tax benefit of research credits offset by state tax expense and non-deductible officer compensation and a discrete tax expense in 2024 related to the difference in stock compensation expense recognized for financial reporting purposes and tax purposes upon vesting.

Note 9 - Business Segments

Note 9 - Business Segments	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE 9 – BUSINESS SEGMENTS We identify our reportable segments based on our management structure and the financial data utilized by our chief operating decision maker to assess segment performance and allocate resources among our operating units. We have two We evaluate the performance of our reportable segments based on Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and it is calculated by excluding items that we believe to be infrequent or not indicative of our underlying operating performance, as well as certain non-cash expenses. We define Adjusted EBITDA as income before interest, income taxes, depreciation and amortization, as adjusted to eliminate the impact of restructuring charges, acquisition related expenses and adjustments, non-cash stock-based compensation expenses, and other gains and losses not reflective of our ongoing operations. Our FVS segment focuses on designing and manufacturing walk-in vans for parcel delivery, mobile retail, and trades and construction industries, the production of commercial truck bodies, and the distribution of related aftermarket parts and accessories. Our SV segment consists of service bodies operations, operations that engineer and manufacture motorhome chassis, other specialty chassis and distributes related aftermarket parts and assemblies. We also provide vocation-specific equipment upfit services, which are marketed and sold under the Strobes-R-Us brand. The accounting policies of the segments are the same as those described, or referred to, in “Note 1 – Nature of Operations and Basis of Presentation. Three Months Ended March 31, 2024 Segment FVS SV Eliminations and Other Consolidated Fleet vehicle sales $ 95,478 $ - $ - $ 95,478 Motorhome chassis sales - 30,771 - 30,771 Other specialty vehicle sales - 53,405 - 53,405 Aftermarket parts and accessories sales 12,281 5,954 - 18,235 Total sales $ 107,759 $ 90,130 $ - $ 197,889 Depreciation and amortization expense $ 1,753 $ 1,542 $ 1,140 $ 4,435 Adjusted EBITDA 935 16,973 (11,820 ) 6,088 Segment assets 217,779 212,288 77,614 507,681 Capital expenditures 785 413 943 2,141 Three Months Ended March 31, 2023 Segment FVS SV Eliminations and Other Consolidated Fleet vehicle sales $ 147,279 $ - $ - $ 147,279 Motorhome chassis sales - 27,960 - 27,960 Other specialty vehicle sales - 54,697 (3,181 ) 51,516 Aftermarket parts and accessories sales 12,154 4,530 - 16,684 Total sales $ 159,433 $ 87,187 $ (3,181 ) $ 243,439 Depreciation and amortization expense $ 1,338 $ 1,679 $ 847 $ 3,864 Adjusted EBITDA 12,473 13,852 (15,537 ) 10,788 Segment assets 300,578 235,844 20,590 557,012 Capital expenditures 1,865 741 2,298 4,904

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	Item 5. Other Information During the quarter ended March 31, 2024, no
Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Supplemental Disclosures of Cash Flow Policy [Policy Text Block]	Supplemental Disclosures of Cash Flow Information Non-cash investing in the three months ended March 31, 2024 and March 31, 2023 included $2,007 and $2,494 of capital expenditures, respectively. The Company has chassis pool agreements, where it participates in chassis converter pools that are non-cash arrangements and they are offsetting between current assets and current liabilities on the Company’s Consolidated Balance Sheets. See "Note 3 – Debt

Note 2 - Inventories (Tables)

Note 2 - Inventories (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 31, 2024 December 31, Finished goods $ 5,164 $ 9,374 Work in process 2,209 2,543 Raw materials and purchased components 90,558 93,218 Total inventories $ 97,931 $ 105,135

Note 3 - Debt (Tables)

Note 3 - Debt (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Tables
Schedule of Short-Term Debt [Table Text Block]	March 31, December 31, Chassis pool agreements $ 18,890 $ 34,496 Total short-term debt $ 18,890 $ 34,496
Schedule of Long-Term Debt Instruments [Table Text Block]	March 31, December 31, Line of credit revolver $ 65,000 $ 50,000 Finance lease obligation 285 329 Total debt 65,285 50,329 Less current portion of long-term debt (164 ) (185 ) Total long-term debt $ 65,121 $ 50,144

Note 4 - Revenue (Tables)

Note 4 - Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Tables
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]	March 31, 2024 March 31, 2023 Contract Assets Contract assets, beginning of period $ 50,304 $ 86,993 Reclassification of the beginning contract assets to receivables, as the result of rights to consideration becoming unconditional (37,163 ) (66,340 ) Contract assets recognized, net of reclassification to receivables 39,662 39,441 Contract assets, end of period $ 52,803 $ 60,094 Contract Liabilities Contract liabilities, beginning of period $ 4,756 $ 5,255 Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied (3,319 ) (4,421 ) Cash received in advance and not recognized as revenue 2,502 6,885 Contract liabilities, end of period $ 3,939 $ 7,719
Disaggregation of Revenue [Table Text Block]	Three Months Ended March 31, 2024 FVS SV Eliminations and Other Total Primary geographical markets United States $ 81,369 $ 90,098 $ - $ 171,467 Other 26,390 32 - 26,422 Total sales $ 107,759 $ 90,130 $ - $ 197,889 Timing of revenue recognition Products transferred at a point in time $ 12,281 $ 42,757 $ - $ 55,038 Products and services transferred over time 95,478 47,373 - 142,851 Total sales $ 107,759 $ 90,130 $ - $ 197,889 Three Months Ended March 31, 2023 FVS SV Eliminations and Other Total Primary geographical markets United States $ 154,028 $ 87,184 $ (3,181 ) $ 238,031 Other 5,405 3 - 5,408 Total sales $ 159,433 $ 87,187 $ (3,181 ) $ 243,439 Timing of revenue recognition Products transferred at a point in time $ 12,154 $ 37,562 $ - $ 49,716 Products and services transferred over time 147,279 49,625 (3,181 ) 193,723 Total sales $ 159,433 $ 87,187 $ (3,181 ) $ 243,439

Note 5 - Property, Plant and _2

Note 5 - Property, Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Tables
Property, Plant and Equipment [Table Text Block]	March 31, 2024 December 31, 2023 Land and improvements $ 12,583 $ 12,578 Buildings and improvements 55,466 53,789 Plant machinery and equipment 61,188 60,517 Furniture and fixtures 19,460 19,474 Vehicles 2,157 2,015 Construction in process 8,190 10,570 Subtotal 159,044 158,943 Accumulated depreciation (78,139 ) (75,506 ) Total property, plant and equipment, net $ 80,905 $ 83,437

Note 6 - Leases (Tables)

Note 6 - Leases (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Tables
Lease, Cost [Table Text Block]	Three Months Ended March 31, 2024 2023 Operating leases $ 2,744 $ 2,964 Short-term leases(1) 318 252 Total lease expense $ 3,062 $ 3,216 March 31, 2024 2023 Weighted average remaining lease term of operating leases (in years) 7.0 7.9 Weighted average discount rate of operating leases 3.0 % 2.8 % Three Months Ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow for operating leases $ 2,918 $ 2,793 Right of use assets obtained in exchange for lease obligations: Operating leases $ 1,879 $ 3,975 Finance leases $ 7 $ 65
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]	Years ending December 31: 2024 (1) $ 8,610 2025 10,569 2026 8,434 2027 5,735 2028 4,148 2029 3,650 Thereafter 10,715 Total lease payments 51,861 Imputed interest (5,035 ) Total lease liabilities $ 46,826

Note 7 - Commitments and Cont_2

Note 7 - Commitments and Contingent Liabilities (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Three Months Ended March 31, 2024 2023 Balance of accrued warranty at January 1 $ 7,231 $ 7,161 Accruals for warranties issued 2,257 1,035 Changes in liability for pre-existing warranties 273 (769 ) Cash settlements (1,549 ) (1,244 ) Balance of accrued warranty at March 31 $ 8,212 $ 6,183

Note 9 - Business Segments (Tab

Note 9 - Business Segments (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended March 31, 2024 Segment FVS SV Eliminations and Other Consolidated Fleet vehicle sales $ 95,478 $ - $ - $ 95,478 Motorhome chassis sales - 30,771 - 30,771 Other specialty vehicle sales - 53,405 - 53,405 Aftermarket parts and accessories sales 12,281 5,954 - 18,235 Total sales $ 107,759 $ 90,130 $ - $ 197,889 Depreciation and amortization expense $ 1,753 $ 1,542 $ 1,140 $ 4,435 Adjusted EBITDA 935 16,973 (11,820 ) 6,088 Segment assets 217,779 212,288 77,614 507,681 Capital expenditures 785 413 943 2,141 Three Months Ended March 31, 2023 Segment FVS SV Eliminations and Other Consolidated Fleet vehicle sales $ 147,279 $ - $ - $ 147,279 Motorhome chassis sales - 27,960 - 27,960 Other specialty vehicle sales - 54,697 (3,181 ) 51,516 Aftermarket parts and accessories sales 12,154 4,530 - 16,684 Total sales $ 159,433 $ 87,187 $ (3,181 ) $ 243,439 Depreciation and amortization expense $ 1,338 $ 1,679 $ 847 $ 3,864 Adjusted EBITDA 12,473 13,852 (15,537 ) 10,788 Segment assets 300,578 235,844 20,590 557,012 Capital expenditures 1,865 741 2,298 4,904

Note 1 - Nature of Operations_2

Note 1 - Nature of Operations and Basis of Presentation (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Capital Expenditures Incurred but Not yet Paid	$ 2,007	$ 2,494

Note 2 - Inventories - Summary

Note 2 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finished goods	$ 5,164	$ 9,374
Work in process	2,209	2,543
Raw materials and purchased components	90,558	93,218
Total inventories	$ 97,931	$ 105,135

Note 3 - Debt (Details Textual)

Note 3 - Debt (Details Textual) - USD ($) $ in Thousands		3 Months Ended
	Mar. 27, 2024	Mar. 31, 2024	Dec. 31, 2023
Letters of Credit Outstanding, Amount		$ 1,550	$ 1,550
Lenders [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 300,000		400,000
Line of Credit Facility, Potential Increase Borrowing Capacity	$ 200,000
Debt Instrument Reference Rate Term (Month)	1 month
Debt Instrument, Interest Rate During Period		7.42%
Line of Credit Facility, Current Borrowing Capacity		$ 48,155	$ 83,243
Lenders [Member] | Revolving Credit Facility [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Lenders [Member] | Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2%	2%
Lenders [Member] | Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 20,000
Lenders [Member] | Swing Line Loans [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 15,000

Note 3 - Debt - Short-term Debt

Note 3 - Debt - Short-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Short-term debt	$ 18,890	$ 34,496
Chassis Pool Agreements [Member]
Short-term debt	$ 18,890	$ 34,496

Note 3 - Debt - Schedule of Lon

Note 3 - Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Line of credit revolver	$ 65,000	$ 50,000
Finance lease obligation	285	329
Total debt	65,285	50,329
Less current portion of long-term debt	(164)	(185)
Total long-term debt	$ 65,121	$ 50,144

Note 4 - Revenue (Details Textu

Note 4 - Revenue (Details Textual) $ in Thousands	Mar. 31, 2024 USD ($)
Fleet Vehicles and Services [Member]
Revenue, Remaining Performance Obligation, Amount	$ 356,089
Specialty Vehicles [Member]
Revenue, Remaining Performance Obligation, Amount	$ 83,334

Note 4 - Revenue - Contract Ass

Note 4 - Revenue - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Contract assets, balance	$ 50,304	$ 86,993
Reclassification of the beginning contract assets to receivables, as the result of rights to consideration becoming unconditional	(37,163)	(66,340)
Contract assets recognized, net of reclassification to receivables	39,662	39,441
Contract assets, balance	52,803	60,094
Contract liabilities, balance	4,756	5,255
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied	(3,319)	(4,421)
Cash received in advance and not recognized as revenue	2,502	6,885
Contract liabilities, balance	$ 3,939	$ 7,719

Note 4 - Revenue - Disaggregate

Note 4 - Revenue - Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues	$ 197,889	$ 243,439
Operating Segments [Member]
Revenues	0	(3,181)
Operating Segments [Member] | Transferred at Point in Time [Member]
Revenues	0	0
Operating Segments [Member] | Transferred over Time [Member]
Revenues	0	(3,181)
Consolidation, Eliminations [Member]
Revenues	197,889	243,439
Consolidation, Eliminations [Member] | Transferred at Point in Time [Member]
Revenues	55,038	49,716
Consolidation, Eliminations [Member] | Transferred over Time [Member]
Revenues	142,851	193,723
Fleet Vehicles and Services [Member] | Operating Segments [Member]
Revenues	107,759	159,433
Fleet Vehicles and Services [Member] | Operating Segments [Member] | Transferred at Point in Time [Member]
Revenues	12,281	12,154
Fleet Vehicles and Services [Member] | Operating Segments [Member] | Transferred over Time [Member]
Revenues	95,478	147,279
Specialty Vehicles [Member] | Operating Segments [Member]
Revenues	90,130	87,187
Specialty Vehicles [Member] | Operating Segments [Member] | Transferred at Point in Time [Member]
Revenues	42,757	37,562
Specialty Vehicles [Member] | Operating Segments [Member] | Transferred over Time [Member]
Revenues	47,373	49,625
UNITED STATES | Operating Segments [Member]
Revenues	0	(3,181)
UNITED STATES | Consolidation, Eliminations [Member]
Revenues	171,467	238,031
UNITED STATES | Fleet Vehicles and Services [Member] | Operating Segments [Member]
Revenues	81,369	154,028
UNITED STATES | Specialty Vehicles [Member] | Operating Segments [Member]
Revenues	90,098	87,184
Non-US [Member] | Operating Segments [Member]
Revenues	0	0
Non-US [Member] | Consolidation, Eliminations [Member]
Revenues	26,422	5,408
Non-US [Member] | Fleet Vehicles and Services [Member] | Operating Segments [Member]
Revenues	26,390	5,405
Non-US [Member] | Specialty Vehicles [Member] | Operating Segments [Member]
Revenues	$ 32	$ 3

Note 5 - Property, Plant and _3

Note 5 - Property, Plant and Equipment (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Depreciation	$ 3,566	$ 2,912

Note 5 - Property, Plant and _4

Note 5 - Property, Plant and Equipment - Summary of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, plant and equipment, gross	$ 159,044	$ 158,943
Accumulated depreciation	(78,139)	(75,506)
Total property, plant and equipment, net	80,905	83,437
Land and Land Improvements [Member]
Property, plant and equipment, gross	12,583	12,578
Building and Building Improvements [Member]
Property, plant and equipment, gross	55,466	53,789
Machinery and Equipment [Member]
Property, plant and equipment, gross	61,188	60,517
Furniture and Fixtures [Member]
Property, plant and equipment, gross	19,460	19,474
Vehicles [Member]
Property, plant and equipment, gross	2,157	2,015
Construction in Progress [Member]
Property, plant and equipment, gross	$ 8,190	$ 10,570

Note 6 - Leases (Details Textua

Note 6 - Leases (Details Textual)	3 Months Ended
	Mar. 31, 2024
Minimum [Member]
Leases, Remaining Lease Terms (Year)	1 year
Maximum [Member]
Leases, Remaining Lease Terms (Year)	16 years
Lessee, Operating Lease, Renewal Term (Year)	15 years

Note 6 - Leases - Lease Expense

Note 6 - Leases - Lease Expense and Information (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Operating leases		$ 2,744	$ 2,964
Short-term leases(1)	[1]	318	252
Total lease expense		$ 3,062	$ 3,216
Weighted average remaining lease term of operating leases (in years) (Year)		7 years	7 years 10 months 24 days
Weighted average discount rate of operating leases		3%	2.80%
Operating cash flow for operating leases		$ 2,918	$ 2,793
Operating leases		1,879	3,975
Finance leases		$ 7	$ 65
[1]Includes expenses for month-to-month equipment leases, which are classified as short-term as the Company is not reasonably certain to renew the lease term beyond one month.

Note 6 - Leases - Future Minimu

Note 6 - Leases - Future Minimum Operating Lease Commitments Under Non-cancelable Operating Lease (Details) $ in Thousands	Mar. 31, 2024 USD ($)
2024(1)	$ 8,610	[1]
2025	10,569
2026	8,434
2027	5,735
2028	4,148
2029	3,650
Thereafter	10,715
Total lease payments	51,861
Imputed interest	(5,035)
Total lease liabilities	$ 46,826
[1]Excluding the three months ended March 31, 2024.

Note 7 - Commitments and Cont_3

Note 7 - Commitments and Contingent Liabilities (Details Textual) $ in Thousands	Mar. 31, 2024 USD ($)
Possible EPA Violation [Member]
Loss Contingency Accrual	$ 1,850

Note 7 - Commitments and Cont_4

Note 7 - Commitments and Contingent Liabilities - Changes in Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Balance of accrued warranty	$ 7,231	$ 7,161
Accruals for warranties issued	2,257	1,035
Changes in liability for pre-existing warranties	273	(769)
Cash settlements	(1,549)	(1,244)
Balance of accrued warranty	$ 8,212	$ 6,183

Note 8 - Taxes on Income (Detai

Note 8 - Taxes on Income (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Expense (Benefit)	$ 783	$ 430
Effective Income Tax Rate Reconciliation, Percent	20.10%	20.40%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21%	21%

Note 9 - Business Segments (Det

Note 9 - Business Segments (Details Textual)	3 Months Ended
	Mar. 31, 2024
Number of Reportable Segments	2

Note 9 - Business Segments - Se

Note 9 - Business Segments - Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenues	$ 197,889	$ 243,439
Depreciation and amortization expense	4,435	3,864
Segment assets	507,681		$ 530,049
Capital expenditures	5,719	4,469
Operating Segments [Member]
Revenues	0	(3,181)
Operating Segments [Member] | Fleet Vehicles and Services [Member]
Revenues	107,759	159,433
Operating Segments [Member] | Specialty Vehicles [Member]
Revenues	90,130	87,187
Continuing Operations [Member]
Revenues	197,889	243,439
Depreciation and amortization expense	4,435	3,864
Adjusted EBITDA	6,088	10,788
Segment assets	507,681	557,012
Capital expenditures	2,141	4,904
Continuing Operations [Member] | Fleet Vehicle Sales [Member]
Revenues	95,478	147,279
Continuing Operations [Member] | Motorhome Chassis [Member]
Revenues	30,771	27,960
Continuing Operations [Member] | Other Specialty Vehicles [Member]
Revenues	53,405	51,516
Continuing Operations [Member] | Aftermarket Parts and Accessories Sales [Member]
Revenues	18,235	16,684
Continuing Operations [Member] | Operating Segments [Member] | Fleet Vehicles and Services [Member]
Revenues	107,759	159,433
Depreciation and amortization expense	1,753	1,338
Adjusted EBITDA	935	12,473
Segment assets	217,779	300,578
Capital expenditures	785	1,865
Continuing Operations [Member] | Operating Segments [Member] | Fleet Vehicles and Services [Member] | Fleet Vehicle Sales [Member]
Revenues	95,478	147,279
Continuing Operations [Member] | Operating Segments [Member] | Fleet Vehicles and Services [Member] | Motorhome Chassis [Member]
Revenues	0	0
Continuing Operations [Member] | Operating Segments [Member] | Fleet Vehicles and Services [Member] | Other Specialty Vehicles [Member]
Revenues	0	0
Continuing Operations [Member] | Operating Segments [Member] | Fleet Vehicles and Services [Member] | Aftermarket Parts and Accessories Sales [Member]
Revenues	12,281	12,154
Continuing Operations [Member] | Operating Segments [Member] | Specialty Vehicles [Member]
Revenues	90,130	87,187
Depreciation and amortization expense	1,542	1,679
Adjusted EBITDA	16,973	13,852
Segment assets	212,288	235,844
Capital expenditures	413	741
Continuing Operations [Member] | Operating Segments [Member] | Specialty Vehicles [Member] | Fleet Vehicle Sales [Member]
Revenues	0	0
Continuing Operations [Member] | Operating Segments [Member] | Specialty Vehicles [Member] | Motorhome Chassis [Member]
Revenues	30,771	27,960
Continuing Operations [Member] | Operating Segments [Member] | Specialty Vehicles [Member] | Other Specialty Vehicles [Member]
Revenues	53,405	54,697
Continuing Operations [Member] | Operating Segments [Member] | Specialty Vehicles [Member] | Aftermarket Parts and Accessories Sales [Member]
Revenues	5,954	4,530
Continuing Operations [Member] | Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member]
Revenues	0	(3,181)
Depreciation and amortization expense	1,140	847
Adjusted EBITDA	(11,820)	(15,537)
Segment assets	77,614	20,590
Capital expenditures	943	2,298
Continuing Operations [Member] | Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member] | Fleet Vehicle Sales [Member]
Revenues	0	0
Continuing Operations [Member] | Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member] | Motorhome Chassis [Member]
Revenues	0	0
Continuing Operations [Member] | Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member] | Other Specialty Vehicles [Member]
Revenues	0	(3,181)
Continuing Operations [Member] | Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member] | Aftermarket Parts and Accessories Sales [Member]
Revenues	$ 0	$ 0