SHYF - Earnings call transcript Q3 2021

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Operator

Good morning, and welcome to The Shyft Group Third Quarter 2021 Earnings Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Juris Pagrabs, Group Treasurer and Head of IR. Please go ahead.

Juris Pagrabs

Thank you, Kate, and good morning, everyone, and welcome to The Shyft Group’s Third Quarter 2021 Earnings Call.

call Officer; Daryl Chief and the and our Financial on Executive Chief Jon me today Adams, are President Officer. Joining Douyard, our

has SEC call, filed the on shyftgroup.com. today’s we’ve a at deck For included our website with is and that the also available presentation been

You the the deck IR website of the call. may follow during along the download to with from section our presentation

turn for please start, to our harbor we of presentation Slide Before the safe statement. X

prediction today’s Group conference factors the projection, aware identified number current projections. considered Group’s with that certain or XX-K The operations, Shyft Private All during Reform a are believes SEC. of and that the affect XX-Q results include and statements You management Securities may under results which that should management’s cause could Act call, any made to XXXX. materially outlook, of projections be actual may regarding there materially and known are be as predictions differ caution viewpoint, from I statements that, Forms the Litigation The could forward-looking with Shyft its you in filed risks

be However, we risks cannot other anticipate. that there may

a a the the call will the we on review XXXX. update of results remainder detailed provide today, moving before to and On our for more of business outlook

today his turn this I’m will At With the periods unless this revenues to have over discussed for X, time, the with assets and everyone Slide comments will the of then XXXX, discontinued We refer results business open expenses to call otherwise the on reclassified the operations as operations, as I the on X. would the been ER all the divestiture noted. that, presented. February as beginning for Response line to to remind associated pleased Daryl Q&A. liabilities like well for Emergency with continuing business and reclassification,

Daryl Adams

review you, XXXX our you Juris. to today joining for results. third Thank Thank everyone. quarter us Good morning,

to the share trend quarter of pleased of financial continues and delighted performance, with another year. strong are We beginning our which the you since

continues Fastest-growing XXX resilience been challenges, team’s enabling our year. our to of a to to plans incredible without Companies week, us face list. for the Our endure not despite in would Fortune in notably, for execute the XXXX possible the operational record been the have last the team have on honored were work, named growth we This to and, positioning while distinction Fittingly, hard most adversity the of business momentum industry-wide years. couple over this dedication supply

quarter, XXX Please Services continued pleased our relentless for X, demand the Slide of million million execution Throughout I’ll XXXX. an in completion revenues. particularly continuing that shortages on begin business inflationary to team’s X% $XX for results. order is and of resourcefulness USPS macroeconomic from the income of tremendous As Production a a XX slated truck in We representing to this add-on order Vehicles announced growth of drove record operations. the represents minimize next on team am recently targets. our continue million can the of delivery in I these pressures of sorry, for from $XX provide we generate parcel or focus Fleet all share, year, bodies, since vehicles. update. customer QX -- see to where year-over-year record unabated, & ensure turn that X, with expected products beginning worked while year-over-year per $X.XX extremely navigating proud financial a year, and I’m meeting Slide our job did constraints, hard and which deliveries to our labor to the actually supply the continuing operations income growth on you headwinds $XXX to XX% revenue of

is strategy prior refrigerated flexible delivery evaluate identify capabilities into our grocery we XXX orders in discussed than and City FVS leveraging these production existing new more locations. expanded strategy. vehicles orders, To to of Kansas our several announced August, ways in critical for In manufacturing As our calls, facility, we can from a expand our we chains. component fulfill

by grocers delivery. while delivery We these continue are orders encouraged evaluate shifting are as toward expectations to consumer home solutions

We continue delivery grocers to work needed as they their solutions develop optimize strategies. with home to

segment. and and products our to in orders Moving revenues during The innovative our Vehicles the strong markets resulted Specialty of underlying quarter. strength

production business, luxury Isuzu during body capacity motor in manufacturing quarter, latest And service F-Series our again, growth the continues of critical our on flexible This continue XX% among execute of share chassis market reaching coach work and our to vehicle. strategy. Charleston motorhome expand unabated contract to we increased our We and In luxury expanding our product strength demand customers. partner business, leveraging this the closely we excited North their existing into a manufacturing launch XX% our strategy business, as on provides of high our reflecting by coach August, Builtmore as on facility. with the our grow while offerings brand to are our motor for

are optimistic continuing forward into this year. to in ramp We volume next look vehicle’s to prospect and

developing provide me an and our van which Shyft’s walk-in body electric currently team, dedicated Let mobility is on and focused update research our new vehicle Innovations, Shyft development design. on chassis

of electric we R&D proof-of-concept quarter, X new the facility, and is home vehicles. Innovations our an opened Shyft During which the

introduced of innovation our progress vehicle challenges, XXXX the line but is to detail X. With Our results to in product the June, impress vehicles. look continues financial team product discuss immune the are over XXXX. and beginning and electric on me we proof-of-concept I’ll turn the call forward update Shyft’s quarter provide this This on to an Jon on this third to as the -- first project as quarter our X that, build track currently outlook, for well proof-of-concept supply Slide time not in unveiling of to to more we status we in their on development the with

Jon Douyard

Revenue Slide X, segments We for turn improvements revenue quarter sales delays. chain in and and higher Daryl, results overview of increased growth you, delivered Thank I’ll despite margin of from up net quarter. $XX.X in inflation an another of XXXX. provide and record for financial supply strong share continuing everyone. Diluted the we QX, In year third our both saw $XXX.X quarter. per good the quarter and morning, sequential the and million, Please operations the to record income delivered to quarter profit. compared $X.XX operations XX% to a third from ago ago. $XX year third per from compared share was was of continuing share, Income earnings per a was million, $X.XX million

favorable despite with mix period. challenging margin margin we in quarter a levels the the year more reduced driven gross product highest consistent body company operating Our volumes increased in fleet our margin year-to-date benefited for sales. truck XX.X%, Prior gross by as and XX.X%, was history, from was

in As expected, normalized more to our level XXXX. mix returned a

helped and $XX.X saw operations productivity from $XX.X inflation quarter, which us million, up disruptions. million adjusted the supply basis, and in offset also last of increased EBITDA favorable impact We pricing year. higher to from continuing the On an

investing $X managing XX As improvement additional a we versus through percent chassis saw XX.X% in important and the quarter, in supply while of our note and EBITDA, sales, second adjusted It’s million XX.X% adjusted EBITDA sequential EV to points an tougher a from environment basis up year. body XX% in initiative. was that last

Services by segment, Slide on results our beginning through & walk Fleet Vehicles now operating with X. me Let

Sales year. was history, were doubled the took and up Adjusted was walk-in COVID-impacted up another FVS behind on third quarter. increase $XX.X year. lines. level, a backlog the increase the USPS million turn $XX.X was sales, or was of segment a profit consistent to quarter continued quarter year-over-year by labor Our addition of order is the EBITDA FVS third was for raw body product decrease year sales diligent add-on or the $XX.X team impressive in to to of sales third driven ramp -- parcel ago. X.X% continued of particularly Vehicle for period remarkable business inflation a primarily $XX.X to at million Velocity last of a FVS continued actions prior up $X.X a sales XX.X% revenue million, prior in which same of while and adjusted the XX.X%, outpaced versus both by of order base. These versus compared high quarter perform ago. million, million. up to an management and $XX million achieved or last in Specialty with highest sales the year. The EBITDA posting intake, and year. growth $X.X Adjusted last Please which parcel of across million, $XXX.X driven and million material $XXX.X Slide earlier of more up in XX.X% was in the the compared X% well X year, as to vehicles, year with production, growth, The and sequentially as of EBITDA business the while million a delivery the Velocity, quarter. pricing supply quarter XXX% XX.X% compared than organically, year truck The the constraints demand, margin end-market remained XX% we momentum collectively the overview. second FVS impacting by driven after vans Specialty in Vehicles sales pricing including supply third robust delivery accelerated increase factors that in

and outlook impact October, and the bodies. to we benefits to and significant to price we in X our quarters. liquidity our and in X end at managing focused was Through recover Slide liquidity Please our XXXX, XX% growth in $XX million turn SV incremental the see generated us the inflation coming XX. growth up and operations, initiatives. million, months and cash entirely, will from off to We in fund expect total We the dealing motorhome backlog leaving chain Year-to-date, availability are the CapEx the approximately the enabling our on million. cash the with both remain has starting to flow have of overall on borrowings included be executed which debt full $XX first spent a service to supply $XX on operations million in update agreement. pay At fully of level hand we overall quarter. despite and results. quarter expect a range. of of Overall, capital, had $XX previously And approximately of our $X year-to-date. highly year $XXX market, million, we disclosed cash million current team on dynamic borrowing end we $XX our of pleased our million was the liquidity in line upper we credit the September, labor under with for $XXX million, and high including with at end

for As our we to ability the are about growth. products our and demand forward, optimistic we underlying look sustain

taking into supply continue year, mitigate we and and to to next constraints the actions inflation expect We appropriate are impact. the

pleased from are raise adjusted midpoint guidance $XXX we Given our from up million, million; our up million, $X.XX position, to to and million; turn performance revenue date per the $X.XX $XXX of of share, adjusted to solid up backlog closing $XXX from share. as and for that, per With I’ll back Daryl follows: XXXX of EBITDA remarks. EPS call $XXX

Daryl Adams

to XX. Please Slide Jon. turn you, Thank

results record of the of reflect our Our growth incredible third quarter the our and long-term efforts team. strategy success

operational customers the operations is drive of proud creative questions. commitment our that, collaboration our will and to innovation Our delivered and team and shareholders. we invest I’m our our team we revenue now quality generating and labor excellence ensure and in nimble issues We for remain to while continuing new improved into to growth. the managing technologies With operator, to are they our that take ready current of future dedication manage and execution, macroeconomic through and XXXX our as and our in suppliers approach products, profitability. our

Operator

Capital. question Matt ROTH first of from is The Instructions] Koranda [Operator

Matt Koranda

if On revenue in I front, not pull-through to the pretty were getting put in just wanted growth you’re of you segment related each that maybe generated margin the maybe finer pricing the like just fleet in in point the coming a on wanted sort see you cost like could the that could recover exciting what product the you’ve headwinds it seems SCV, from XQ. to SCV see speak vehicles price you’ve action, inflation there’s recovery from especially of but inflation. to on some inflation, sounded And both maybe labor of and to been front. kind experiencing headwinds it to if

Jon Douyard

Matt. Jon. Sure, is This

in in from the the I remarks, percentage think headwinds an that pleased look certainly faced at when some performance, overall said EBITDA we’re we there’s as But result we with prepared certainly perspective. the the quarter. we

I board, think of et at seen look it we’ve others, on you just the inflation, impact when across commodities, like cetera. the labor,

and that on think, through on to I at job more multiple We’ve FVS across least the SV supply done think side. have business. really the that, the as our in I constraints on team the manage has been quarter, in increases able nice than taken as offset side, being the really so a price well able to

you if the price X think business, I of increases look throughout X or the taken at we’ve year. pieces

we’ve seen of expect impacts that that we the to QX. pricing so QX and sort of and felt And in of that trickle see more in, in

And and markets. be the so of we’ll to the continue environment conscious

continue consistent and the in our we’ve opportunities of pricing lock We just to material that getting on to and execute previously for customers. focusing really strategy talked look of products execution about and the hands with

think inefficiencies quarter, the that some that were by shortages. there really in I part driven occurred just

as quarter productivity, to we throughout And did the but across see be team had so business certainly which quarter, the impacted productivity the nimble well. in the

and how year-to-date, first X consistent year. we think I the quarters pieces gross look of mentioned so the And I at margin the those is at performed all we for look as

we’re has think way the the pleased really performed. I with really, team

Matt Koranda

Very And the Great. just more fleet one Jon. for just helpful, me, side. then, healthy. extremely still on looks Backlog vehicles

fleet Just And could then flow It other backlog. you trends -- backlog notable in strength in clarify. just Is order the in and healthy here, wondered provided in sort maybe mix sort like maybe, the you vehicles are if million FVS. order, the that wanted that late. $XX in of of you figure the looks platform, of just you’ve see the what you as Daryl, could terms order for pretty that in looks parse could Velocity any seen USPS backlog backlog trends if speak of but to to out

Daryl Adams

I think both I of those. can answer

First it’s one our is in easy. Yes, backlog.

we’re Velocity a increase Your dealers the number second vans. backlog, also in ordering traditional seeing but walk-in and question, we FedEx Velocity are both of and Ground seeing contractors

truck mentioned, QX Jon is as and significantly -- up last over So body year.

is I too, on not products products. it just the how in I excited all not it’s and So don’t diverse the across pick we’re base, seeing a about in we’re it one. but think one customer could just particular, And one. all

Matt Koranda

Is That’s a just question. question revenue helpful. quite more around? $XX in of with was for guys? that pass-through this, the way bit great. it go chassis on a you this But I cabin more recall had. USPS body this, body dissimilar? around And clarify you with I Is sort one associated modeling modeling-oriented revenue that around be last going truck that of to just recognized Just truck contract if to you it there contract, lied, a is the us of similar of could would go Or million all be that in that terms

Jon Douyard

last Yes. is with No, time. what order we had the consistent

be bodies. procuring we’ll building So truck chassis and

the $XX is that so million of inclusive And both.

Operator

of Craig-Hallum. question next The from is Dyer Steve

Steve Dyer

Great quarter.

mean, slog? things chain, guess, bit I like a still I As is du loosen the you little supply it like it relates guess, feel a to will does as to I it feel up supply incrementally a when subject Or bit. color chain? are better the jour, getting with things any

Daryl Adams

that, comment. our with Steve. because your The Thank appreciates start it. constantly interesting we’ve for -- It’s quarter I’ll team on mind. it’s you

about it. talking We’re

we to to think and we some Some then days, And with chassis get we mentioned piece. I then got it the last chips. went some on is at we suppliers. have think shutdown supply, which different And issue a a labor chassis fiber the moves days they’ll the breaking supply short suppliers there’s later, X the procuring we trying one glass, into loose we’ll supply of hear few think where then Aerocaps. quarter, that the And

a to that’s enough they it’s you the all same suppliers. It’s been. -- didn’t the year. understanding tell team had procured, the enough actually had. or as could So see for through -- they I the they’d XXXX, mean QX resourceful been shape. we been into half sure. first the has -- look, product backlog at other And pretty now, sure have same, continuing that’s find beginning things that allowed we the can’t battle, and of but through how successful XXXX, been making it’s I QX, volume look looking think the of the I and about same. But it frankly right in we and I least in change. say -- constant And And we’re they would about what us the quarter good and And have it

Steve Dyer

to that allocation, a point. you it. of picture, acquisition then Is the see of I you guys the historically or I spending to, guess, things sort capital still a little any color find And going guess of capital strategy been acquisitions, debt to at Got playing just things accretive this generate has to sort on tuck-in of with have sense give lot cash, sort very, And sort are strategy? very bigger sort how of respect business. that could I forward. make out of your pipeline, you guess,

Daryl Adams

Again, over And you we that do continue have have Friday have morning. a we But to lead Yes. as maybe still can with move Jon. question, every pipeline financial that, I’ll Steve. we to our

I the only something that dealing we couple it supply there’s any haven’t at executed and could felt on them, assets is the reasons. are But that been think look with, with all constraints for were looked of We’ve people at. them a of we disruption tight. various

when supply are companies think to happen constraints people try to looking because a different. is had most are on year something for that you are down all to owner value and I company going revenues the down, they waiting profits see -- has what’s and

that. do searching But We’re continue discussions. now, But some and are right in to still we’ll actionable. nothing

smaller smaller you continue a rather a be but but third now look we’ve we do larger, we to the might nothing have X or the right, as and like something larger acquisition, leg tuck-ins, said. been We’d horizon at see recently, that both something in that right one done preference, actionable. Our which

Steve Dyer

it. Got

for Okay. me. not to And it’s Jon, offense no but Last one financial.

Your manufacturing capacity, a added you’ve bunch.

of rejiggered geographically last capabilities kind few You’ve the years.

years? you or number. feel there? Sort expect you’re do different feel against feel like pretty big needing or starting the how next more up me of to But set rub for you do up you set location? give a up I utilization Or you’re guess, do don’t of you like you’re there to couple just like I different well picture,

Daryl Adams

body to truck place more matter the right? to Good seeing There’s at. Yes. -- at -- would starting ‘XX, working, Pennsylvania. to some put expanding of glad front the that Steve. is doesn’t is an it lumpiness Pennsylvania. manufacturing Due it’s orders, fill plant the the we’re SV so in what grow. of I try it’s on name expand or you’re smaller questions, it looking Last We we FVS to going buildings than I’m double it strategy that maybe we’re plant, a in Whether capacity, got to flexible the that how the looking we’re we understand where because in us, like our of orders, facility continue we did right? probably to we’re plant, order in we’re it, currently and in with USPS to was looking believe, if

struggle the shifts just shift that. the I X to we’ve finalized, today for it’s orders But But we seeing good but X on which we’re give X, the square mainly it’s labor feel lot over managing if have City. has that add some feet, locations, because to a -- at while. And nothing the done that really else of comes needed, running job still and just XXX-and-some due a tried when capacity do currently team besides continue -- extra there do think continue in a I will to and is like to a capacity -- growth, to go with we thousand will see we’re the we’ll Pennsylvania right in footprint, X But do years last an challenges last market. now, our in We that. available get we us that the Kansas and the as to

growth into it we add we capacity. to reminder, X-year strategy. talk discussion and we we part script, continue the that to rolling of a a about we And think at. our as But -- that look have is do long-term strategy I continue

forward. So the continue we’re and usually same we’ll ahead run that process to of game,

Operator

question Boeschen next from James. Raymond is The Felix of

Felix Boeschen

was I Juris, Jon, the to comments. Daryl, hoping on start grocery

from you approaching you you’re bodies maybe if the curious, KC there expanding I’m just is insulation? maybe and it. think where going, conversations versus curious with facility to opportunity customers, with in general talk Just refrigerated is grocery mentioned refrigeration the for You van units. your could the that how market dry more

Daryl Adams

solidify something different guys. that’s be location Like did but was And the grocery Yes. we I new not mean, XX shapes body. I when right? able in to They actually big with We go do to that gave product. we’re what and nice truck right, different the I them is It -- like -- order, receiving Felix, believe any were by at we that’s options. product, or sizes back, trucks, This that’s means new can a And going where it’s Amazon, to order. the feel trying. and with to all no the the receive only that order, they’re market, solution that

But they’re compartmentalization a going if to truck. inside or real have not large right, you even freeze. to, will, cool there, the it’s have in some So space to

what more there out, saw them I not morning about be ideas still our of -- beside right trying to to figure we them, and all make we’re different help like different have customers sure stuff was strategy with we Kroger solutions doing. you So to they’re been the mean at give them they’re some but and CNBC Kroger efficient sure on doing. if what I’m is it, this

alluded from do try without to calls they’re that brick-and-mortar center. more I or it think that call a ago to DC couple of last and stores -- do on a to we going

out. confident we as solution them. something last-mile to, as -- in starting the all be we’ll figure when when delivery mix it it’s So still will are And not be did, feel finally it opinion, gain fast for I the there. my in think vehicles be maybe there’ll don’t one And they some again, but traction, of

by different and So could different customers be different grocers. there strategies

So ideas. we’ll and monitor continue to offer

Felix Boeschen

Right.

Okay. Velocity That’s of could and specifically could if product And sort curious you on maybe little time of lineup. And on then there switching comment Mercedes a bit, curious progress the and touch Ram you expectations. the but chassis line just helpful. gears I’m the if launch the

Daryl Adams

Yes.

sure, I the know For do Ram.

our So we to done It’s are with passed. Vehicle testing. ready go.

our of with some Stellantis understand to how in discussions XXXX. customers for vehicles many And are they’re going get to

and [indiscernible] it but liked some sure is should not testing. when So see on the like some all It they QX, ready, customers we’ll we I’m them durability -- believe get passed in orders. said, also, I did in that the be ‘XX it And there we’ll we early vehicle.

go. ready to we’re So

And for is defer which We’re heard just Jon waiting of he typical I’m going anything if to Mercedes. orders, I’ve process. any the the not lately. updates to has on

Jon Douyard

will will X those it next orders in backlog, year. have the be early and mean do we not production. in be I Yes. If December,

Felix Boeschen

Got it.

Okay. there. if that And pretty and with the in could that wondering, to sequential we backlog about think around pricing into how Jon, or looking inflation price in the through it over like just then up would ramp swiftly assuming Curious quickly hoping, XQ. seems -- early that we segment, and on agree/disagree actions that Specialty run happen follow statement recovering you XXXX, should time. just Vehicles with the margins commentary I full was the at cost I was

Jon Douyard

taken in I right -- mean think you’re No, QX. will that. pricing Yes. in additional I we’ve we see

in the year, work piece. from see backlog, in we will that year And pricing we’ve be We already early through we that taken will incrementally as -- earlier QX. benefits recovery we next in should that then

note to important it QX QX. half did will in that at it’s as we look the more of the today than like for is year SV the business think I where first look

And into year. so sequential expect in next improvement we there incremental going

Operator

The from is of Davidson. question D.A. Mike next Shlisky

Michael Shlisky

had most mean us Can it’s challenges first. done I you’ve you with most in you’ve than in I FVS chassis to and this -- parts delivery for seen larger the make smaller as need they same paying holidays big folks? better treatment you gotten and from they fleets, Fords what for not touch the quarter to you’ve smaller chassis have the have you’ve It’s the parcel the next to maybe share want you from opposed or companies, up these or clear year I securing can just performance fewer need. than from securing whether the we the performance -- for easy, chassis get on the probably but Are customers at seen getting what certain not they Do of point. sure maybe better -- to the world? GMs to

Jon Douyard

I I say wouldn’t think it, when you necessarily look I off. at mean, they’re paying

the some more back we for and parcel demand the not the last-mile front -- having go year we’re was it did year, around even last in think I in overall chassis on that you if profile general. were anticipate discussions earlier to issues but that was necessarily on just delivery availability, we though

chassis our terms pool we we customers the given early so with year. the expected, at well seeing demand as our securing in own of the And worked we with that time in were closely as

And even to us, through there. customers with continue that’s so we uncertainty we as year-to-date. look I And of though XXXX at benefited certainly in volumes closely terms think, there’s as work well, some

to And back supporting you of our customers ability in in last early our think in can chassis as well identify ourselves year, so even securing as I go that. the QX to terms year,

a and differentiator. think potentially dynamic it’s a I big

Michael Shlisky

get more bit of on There’s probably comments some also Got a maybe little to it. a more EV. on your granularity want I depth there.

of develop clear then it’s some if various EV there have have this coming agreements own to platform So an Atlas providers new been the announcing one X, customers with must your the for Zeus here? as well, X of have to just or platform be more not like you to all III And sector? without than address vehicles, touch or for basic your out announcing that, one competitors to as Are it EV doing publicly main point. manufacturing platform next going of a but at generation just you vehicle. probably us or is Or the them? you’re development what of more signing EV still update come beyond Class to that’s up class you Can you

Daryl Adams

Mike, I hope I just remembered I but all ask. your questions, didn’t, please if

EV our Day typically strategy want Class our for I system, looking to chassis we we customer our have, as product. right? V, chassis, III. things. first, so Class believe of will Class So axles, be do, going but and up II our to in it only with down do we operating So with on EV Analyst to any typically our we’re and a for shop will and one-stop buying mentioned we’re III, And motorhome and as Class we we’re isn’t starting springs procure, clarify, all any not we be through that, moving I will

going to except operating the not software system. the vertically We’re in for that’s Innovations. integrate And Shyft

if the our which builds would past. to the and So other some we or are EV talked others. we’ve ability have we’ll the upfit sell for as possibly product own expect, they look doing then even them, about at some we customers, chassis doing And for build to FVS, currently in

some having discussions. good they’re So

talk think, about far, we decision. have, in feel We it we’ll so we Utilimaster. wanted chassis, was as future. keep So just addition in which, didn’t we But the group, have Analyst talked a some other right to with the people will it the Day, the to products, want and make to mix to as we that separate sure at we I FVS to

Michael Shlisky

right? big oftentimes, Okay. choose a competitor guy, other of in or can to kind bodies, really Utilimaster The partnered has their your correct? the when company there, not to clarify these it’s some of just specify And decision, customer with

Daryl Adams

absolutely. Absolutely,

Michael Shlisky

get the business. going they’re Got mean it. doesn’t it to So

Daryl Adams

And -- interrupt. to I Mike, if sorry think, you

If said, that out Stanley more suppliers? it’s wonder a from there for report by there, if it’s it the you So problem. answer And a a is out enough was to not Morgan saying of is Morgan demand also anyway business there supply, look EVs, yesterday that that’s enough ask, yes. when than they by think I Stanley appetite the answer -- at demand when people problem, when there’s comes the it’s right? couple they

very made at I guys decision the it’s we’re I’m in is So you really the as the comfortable share decision the that what could back in timing. with team project, progress announced rewarding we back mentioned, we’re EV if seeing making, June. that on I And with where and the

Michael Shlisky

squeeze it. the that Royal I you put If on you’ve update been issues. if the some benefits? and of any good us just in has supply pause given more chain can Or Magnum integration can here, one Got and on business gotten

Daryl Adams

Sorry.

question Ask again. that

Michael Shlisky

to get to X how if additional product just lines their you Royal you I things pause whether from chain. Magnum and going of to that are know and have the trying and with had the footprints across any benefits want because supply

Daryl Adams

more you the standpoint? talking Are from strategy

Michael Shlisky

exactly. Yes,

Daryl Adams

towards the mounting on are strategy the in for But I -- yes, it bodies financial. DuraMag currently was thought California locations. the more I’ll we sure, side,

other Carolina we doing of capacity Florida -- in South increase facility We’re think mounting DuraMag out And as bodies DuraMag. existing bodies as doing our are some for in well Royal facilities I building of as our mentioned the bodies some in our I to Florida well.

hoping the getting that year good to really it we we’re improving again, I progress he’s there going. if came last about activities. integration And that Royal we’re hear the days. due see in or this our on when And was morning, so probably him And So operations to few mean, saw and And throughput same Maine I they’re progress at that with mention the I just last X really the back. we the COO, capacity. excited can focused in and excited it when report talked we’ll Todd lean over are to the between was to how Heavin, improve the out our

Michael Shlisky

all like go. systems sounds It

Operator

to like question-and-answer turn the would our conference I remarks. to Pagrabs for closing Juris back over concludes session. This

Juris Pagrabs

Kate. you, Thank

in interested of weeks. be more about those couple For participating of learning Shyft, we’ll conferences couple next in the a in

week, on then XX. Deutsche Next on And XX. November November Bank the at Baird Tuesday,

to please and today’s up sign learn call, Having that, for said if thanks great day. you’d So like have participating more. a in

Operator

attending for today’s you Thank concluded. presentation. now has conference The

disconnect. may now You

The Shyft Group, Inc. (SHYF) 6 Nov 212021 Q3 Earnings call transcript