SHYF - Earnings call 4 2022 | The Shyft Group, Inc.

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Operator

Good morning, and welcome to the Shyft Group's Fourth Quarter and Full Year 2022 Conference Call and Webcast. [Operator Instructions] As a reminder, this call is being recorded at the request of the Shyft Group. And if anyone has any objections, you may disconnect at this time.

I would now like to introduce Randy Wilson, Vice President of Investor Relations and Treasury of the Shyft Group. Mr. proceed. may you Wilson,

Randy Wilson

welcome XXXX Shyft Earnings and and Fourth Full Year Conference to morning, Group's the Quarter Good Call.

Financial and Joining are me a Douyard, question-and-answer Officer; followed Daryl today prepared Chief John Adams, President session. will on and Chief by the be Officer. Their call remarks Executive

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

forward-looking the be Today's actual start, we please contains which Before conference for statement. or safe harbor results from Slide to of turn subject expressed our presentation X cause call risks materially statements, are could implied. those to that different to

SEC. All materially Forms affect known in could which our believes XX-K identified that risks our and results the are management are XX-Q, with filed

information believe, discussing measures company's performance the evaluating be are in performance. will we operating We non-GAAP useful and

In operations results continuing will unless refer otherwise addition, to discussed the today noted.

results to moving detailed During review business update today's before the our will a call, a more provide in on XXXX we of outlook.

open then Q&A. over Slide and the for will We to it Daryl Adams. I'll to Please X, turn turn line

Daryl Adams

morning, sales supply operations, adjusted close team's a both fourth Randy. our but year-over-year EBITDA I'm year on ability proud in past and XXXX presented of This and you in us, to the and for Good impacted review out and solid our results. you, Thank year quarter. in the growth challenges year numerous to execute, high full with chain joining the that fourth our note, quarter thank

navigated value customers. environment approach, as we our approach in operations. effectively year, this the nimbleness saw benefit our in We team operating to of to rapidly evolving and to built agility deliver our Last

led in as summary. generated and half, you a able growth sequential supply billion improvement to by a challenging After we on record our update X%, improve first across profitability, the in our I'll were $X Turning year, Specialty our to saw portfolio. output. The up significant X. Vehicle team financial of sales chassis a teams Slide stabilized,

investments full supply that in year, achieved the strategic through EV-related EV $XX we impacted Arc which made adjusted Overall, EBITDA shortages million, Blue For operational of efficiency. expenses. million we and profits manage declined $XX of included as chain

X. to I'm The good remains Arc on progress to Blue to EV development Slide program. about team excited time our make Turning track our original continues line. and

and fleets continue zero-emission feedback commercial positive development the vehicles results lead confidence years. our of which Blue We gives testing, receive favorable Arc toward will in coming to from that us help customer evolution the

Arc you addition engineers of of accelerate to of acquisition efforts, which second on as Blue update we January, to enhances our production and the Blue Fleet, commence group highly a of XL we results XXXX. talented Arc recent team's the further with experts. half the prepare technical me completed the Let of In at capabilities innovation in

Michigan recently announced to other initial planned the includes Blue production Arc for and for We the selection Arc support investment of campus of growth. Blue for million which Charlotte, million future enhancements production, $XX $X a site,

ARB testing, or positive final have We approval. with Board completed Air and and EPA results certifications Resource received awaiting

emission will In competition. receive demonstrate from us expect certification, to the exceeds X coming final we and customers incentives. the formally vehicle Blue vehicle expect our We differentiates that qualifying results of requirements our for Arc test months, the performance ARB

begin customers discussions to builds. initial production key have demonstrations and vehicles we service meaningful field and continued the customers of and with testing validate look Arc national We pilot to to continue demonstrate key network, continue performance, with fleet dealer expand our deliver as our Blue we to partners, as vehicle sorry support -- and

efforts X, our our vehicle, road on we've map. to have development on due product While accelerated enthusiasm Class the initial focused the

cab you. chassis at with body the important the Week V have we March, Arc made cab options. will result, on Class Blue X The As Truck a with looks progress this in Work chassis team display product showcasing a flexible Class NTEA to significant and developing be on forward

Slide have remain of we strategically confident, to company how that in serve. terms I the X. turn positioned markets, we in the Please end

Given the I dynamic how on to environment, these viewing provide additional operating perspective segments. of markets our we for each want are business

trends will drive continues, long-term Fleet Services for with parcel business, according our demand to domestic e-commerce delivery secular to & remain volumes intact, America Starting industry Vehicles shift continue demand favorable to for the as estimates, vans. North parcel

here create macroeconomic are announcements given have in cautious with near-term external capital Which customer and operators sit influence we in we today, fleet spending As near-term may uncertainty conditions. feedback mixed, plans. been the outlook, and as

sustainable Over time, visibility, to we flex increased will are levels, level working broader reports, last of like good delivery is industry how appropriate. our are an XXXX, provides expectations positioned. vehicles, for continue are demand Entering we our towards operations orders our and times near-term more there that we reduce as long-term and we backlog lead aligned to mile with through

to our Specialty business. Turning Vehicle

businesses Our strategy are body infrastructure-related contract well. in to invest manufacturing and to service as pay off, performing continues

performance projects entering underway, meet improved is of the by backlog their infrastructure service projects. demand our construction XXXX. and and get to these new evidenced contractors The success strategy fleets As in position providers strong their of invest 'XX

we expensive smaller coaches. slowed this in units, has luxury towable elevated home softening stock Class of broader space RV the levels that than chassis motor serve broader robust dealer A dealers But more has A our after of retail which the business, in resulted growth, stable limited the XXXX, luxury the retail demand of years ability motor remains market. inventory RV coach to industry Turning unfortunately, motorized motor and more in Class to

and declined in industry position, progress parts aftermarket And continued result, and our conditions. remain innovation by XXX-horsepower as services backlog than excited a our helped again share XX%. motorhome greater offset market up year-over-year. year-over-year. has our As market slower has the points increased in been in about diesel to competitive X We class, This has chassis investment and driven XXXX the

that we cautious remain positioned the have confident manage about win our are serve. the to team's dynamic remain markets to brands through to environment. in continue macro in ability We Overall, industry-leading we we uncertainty,

it With that, financial on over I'll beginning results our John to discuss to Slide turn X.

Jonathan Douyard

Daryl, Please everyone. with good results, of our X, to the close quarter . improvement morning, we I'll overview turn in the we the you, second an financial the Slide of to for and out pleased as fourth year. and provide the well Thank Overall, are performance experienced half, as XXXX.

us the the despite delivered chain year. team in industry our continuation results of and impacted inflation Our pressures, fourth the delays, that strong labor in throughout challenges supply quarter

operational the income from XX% was continuing $X.XX quarter. up Net the The efficiency issues by operations increased for comparison EV to XXXX. item a chain year-over-year year ago $XX.X million Sales fourth decreased million, by supply and were driven from or quarter $XXX favorable in share. and spending, onetime impacted X% per tax

improved financial on fourth $XX.X sales, quarter, the sales In include or in year. X.X% These EBITDA $XX.X we adjusted adjusted results $X.X or our X. million of quarter EV XX.X% of of XXXX. prior the the $X.X million of fourth from up results Slide to Turning to up from million million, spend

while year. to per EPS spend, net up $XX.X income Arc adjusted Adjusted quarter, from adjusted $X.XX Blue over $X.XX compared to rose year year-over-year. points ago EV million $XX.X million improved XX.X%, to share X.X in last share the was EBITDA Excluding per

XX. with XX% output. Vehicles Fleet fourth X%, FVS through walk strong & results our enabled supply Slide team beginning operating growth consistent adjusted improvements EBITDA as by segment, now The in on of quarter more and Services I'll delivered of chassis production

operations face continue million, quarter in was growth. overall second chassis supply adjusted million was inefficiencies, to pressured up and XX% solid FVS a drove schedule, $XX.X our we $XXX.X in capital. for the ago. to the stable $XXX.X our year achieved component million marking of rework half, working which impacted million versus ago, and compared year EBITDA While sequential shortages, sales year-over-year FVS a $XX.X and

compared EBITDA off fourth quarter. to margin of sales year turn to another the the with in for was the SV Specialty Adjusted overview. segment year. Please capped XX.X% Slide last Vehicles XX fantastic quarter XX%

SV and a well Our contract motorhome sales service softening businesses to perform luxury demand by impacted of continued were chassis. and body strong, for but remained overall manufacturing

the compared strong XX.X% million in sales quarter sales actions last inflationary X% or implemented XX.X% period of prior $XX.X to Adjusted a was of Fourth the and earlier sales million same the operational decrease or performance, year, reflecting recover versus $XX.X $XX.X the year. were to pricing of in year million, EBITDA impact costs.

Please turn to outlook. our XXXX Slide for XX

offsetting forward the with potential luxury top look into be continued and to line, service near-term we we record macroeconomic motorhome. of said, company's industries. exceed growth XXXX's headwinds impact As the we positive That perform, given the in expect body across want on but to delivery year ability softness on cautious XXXX, in to remain

expect launch well production by acquisition. the as Blue as go later off the with X strong pay driven growth the expect of term Fleet vehicle our strategic -- Blue initial geographic support the remaining investment revenue expect first as to announcement Arc perspective from weeks, expenses near we production. Class exciting see year-over-year initiatives profitability R&D as in despite incurring year costs the coming expansion growth a we We strong start-up we an From the SV well into to in Arc as and incremental XL

midpoint, EBITDA the EPS of year-over-year these outstanding range midpoint. representing be share, as to per XX% growth sales effective $XXX of $X.X of which shares growth and representing of our X% the approximately XXXX is to at drivers, billion to underlying approximately million the to $X.XX Given per adjusted in an $X.XX rate tax $XX $XX million, $X outlook Adjusted million. XX% for share includes of follows: billion at

capital. work are income as cash a to expected conversion of expenditures to and flow working $XX we million, greater net expected XXX%, be down than as percentage Capital be approximately is free

fund on Please cash We robust and year. with turn remain In $XX ratio leverage our of million focus a to generated maintain in to the allocation just the EBITDA, utilizing initiatives. a at quarter, net allocation internally the generated operations capital capital cash XX. adjusted we the with our X.XXx disciplined capital to update end of in free structure approach growth We on flow. Slide fourth

credit maintained of giving invest access of $XXX line to strong million, growth. a We to capital in us also

EV we attractive including Blue noted, recent focus our on investment have previously As solutions. has growth organic Arc been opportunities,

In maintain to funnel and a opportunities M&A addition, evaluate active disciplined evaluation M&A continue process. and an we

our and return shareholders on -- focused appropriate. dividend a share efficient capital to capital payment remain assessing We including of repurchases consistent as pursuing

a are strategic investments to taking return while cash strong balance support In conclusion, approach efficiently to we disciplined to future, a shareholders. our a sheet, maintaining committed as our in foundation to

I'll Daryl remarks. for turn the closing back Now call to

Daryl Adams

Please Shyft Group, a compelling you, Slide to company. created John. growth turn industrial At have we Thank XX. the

differentiates of Operational our us from address our efficiency that a solutions, delivering Our culture needs. operations, innovation. priorities and start in our customer-focused quality customers' in market-leading drives win competition. by our with products We excellence

strength financial our flexibility to with Lastly, the long-term of returns invest growth peers. in strive our and deliver to provides us ahead

of Looking in strategy customers for growth we with on the beginning production with are year ahead, right especially this shareholders. our excited our the later Arc Blue the and prospects, processes right about execute people and deliver and to place, our the

for call. With we are of that, Operator, ready the the Q&A portion now

Operator

[Operator Instructions]

first our And Greg question of . Lewis BTIG. from comes

Gregory Lewis

the was later My around margin start kind progression. guidance for on maybe we there we kind year, gross as -- impact at QX. gross of going delivering nice any sequential in year? first EBITDA we increase margin range about kind Blue think margins question this of of about how of sequentially I your we is -- adjusted forward? be look as, And Arc And Kind as should congratulations guess, next -- this for thinking

Jonathan Douyard

for thanks Greg, the Yes, question.

resembles I second that something we're think overall at of environment, as the year. the next half we operating expecting look

of begin any operational exist inflation the of some as the expecting, the perfectly not year . we're so that to we and here. challenges, themselves efficiencies And write

expecting -- improvement. see And so margin the to gross we are

an year. have I work some from EBITDA operating perspective. to But through You'll see think the the remain as half going we do challenging, of environment year-over-year, expansion is continue the we to first margin

the through are said, in focused fixing where driving base. teams that think of and and that getting inefficiencies better our those supply terms flow, I is

see sort an position of throughout expansion. margin we're but And in taking here progression -- on not so the we will it's year, the aggressive guidance

Gregory Lewis

Blue next that's guess, classified where since couple Great. where next yes, a classified on building I part we how out of the rolling that we as we're into Blue we're over we out -- about year that I I the was plan the about over embarked of of And the plan, Okay. footprint a we years, should guess, the Michigan, believe vehicle few I that I and now, the think I always years have guess Arcs half. and rollout in that, EVs. that the or move think a then, mean, existing the given guess, rolling you on Arc

Daryl Adams

Greg, part be Daryl. cab Partly broke is van. original NTEA This plan will up at This of something walk-in that bit. you shown is a X, the plan. Class The was a a little vehicle original and chassis. was not different. It's classified

some of it landscape. So and still say whether because see I it have -- announced development the any timing type going type a it does it's show, a might need other, even I we dump production city flexible don't would the back, it's steal phase, that have thinking on truck want It's type municipalities would but once haven't exciting pretty for trucks on be to for of a opportunities flatbed, the early options or the a box say, NTEA, that to in that. but people on it in we're

so this plan, part about it. the in . the we're original wasn't customers excited we're from receiving but And about enthusiasm

Operator

question of Raymond Felix from next The James. comes Boeschen

Felix Boeschen

Good morning, everybody. .

Daryl Adams

Good morning, Felix.

Felix Boeschen

want just clear couple of up I things. to a

you revenue included included crystal and clear, start maybe production Arc. I the the backlog guidance? it Blue a EV So for And, But I today? this. in to XH is And want associated just be missed is in the reiterated

Jonathan Douyard

is today. of terms included the in backlog, not backlog Just it the in

of talked units, terms the is and think the we've XXX, number. expecting I sales XXX what consistent in with that which we're guidance, in is about, previously

Felix Boeschen

for better you be might can the just Fleet, maybe bucket now trying the it incremental between to, that Okay. how associated you're costs of us walk R&D Class guess, implied through understand, there X, And between some then sort XXXX, what about thinking Class R&D X. is the John, I'm with XL I sounds and like the

here, the trying Just understand John. to buckets

Jonathan Douyard

Yes.

something previously would up that towards the of if talked well XXXX $XX from million million higher the I ended $XX spending go some the in just of $XX I this about million. was $XX what that you year, as million $XX spending end trending in fact range we we're to carryover So say, million, based think, back about on last year. having we as

'XX as And we then puts cost got into of 'XX. we in you million contemplated adding $XX range. the you've in from acquisition so million $X that incremental . And XL noted Fleet that that the deck, spending really the throughout and is

in about, as but business of a cost, more for us it's of talented so group of And an like for view very a transformational acceleration to opportunity, great opportunity we we've us. stabilize saw people bring to that as talked the that we a really project that as we as

think this XL the at $XX EV million of the range, talked with that of it's I look addition variance us about. previously being on overall if what million impact biggest in the $XX you year, Fleet we So versus of sort to

Felix Boeschen

EV Would just know is that? mentioned Okay. hit some with remarks, Can the And potential, at about year. an production, was all you about it the I $X the stated to how breakeven, to the the relative and we understand had think around last breakeven originally what talked kind to incremental XL then trying prepared being on that in. start-up to of be thinking of us of last you're assume Day update I'm earnings safe million ramp you sort the associated I in costs year,

Jonathan Douyard

when breakeven that you think I approximately mean, I number. Yes. look at

higher end originally that I of think, we're versus probably what again, at the contemplated. we range R&D

You've XL $X you XXXX got program, which to that. Fleet but investment the of and then top is isn't cost, incremental have incremental carryover the the to some on million, again,

that. I And so how bridge would that's

then bit Class the incremental being to probably coming as of always there some higher costs higher we of we that drivers are well end a and with just the XL but X than about, the the associated in big the activity Daryl closer development talked to call little as costs contemplated start-up some, is think R&D expected, Fleet it, range. had I --

Felix Boeschen

sounds if And then it bit before? can just strategic to to behind an a the you I'm XL of of the there's in-house you like rationale kind Just Fleet that deal capabilities understand Got trying I'm a better. but in, talk how just sort acceleration, that bit it Okay. have didn't little any about it. fits that brought deal? of you curious understand trying

Jonathan Douyard

were in. Felix, I telematics Yes. side, internally engineers can also we on support. and as parties on Maybe that I'll the some of this using battery electrical group think jump start side, Again, Daryl looked we and the at a software both talented on building to side, third the

opportunistic sort for that us for development And play not information organization through here, so provide only again, will . an talent us this phase the the us help into that move to last also, forward. accelerate but was really as of we stable get

Daryl Adams

thing question. only EV, I Yes, -- to which John mentioned to would new already bringing that right? what that our that The is bringing in Felix, to aren't is technology thought talent a there's add on that everybody good to, find, with it opportunity. engineers people, us was in it's Because going others they're hard we engineers leapfrog grab have market, great in familiar and opinion, is the help

absolutely you amazing tell how far, I'll in they've they've And the helped. made and progress so what, it's

of where worth it going accelerated, excited the take And we're but throughout to us it's about like So benefit the year. and cost new it's in we to bring John really thought trying said, instead was people.

our excited off is about it. opinion, right paying So we're and -- in now, it's

Felix Boeschen

John, this just Okay. update. better could, maybe for my allocation I I And Got is appreciate then capital it. if the and last but one,

this decreases for income into share net that. matter? I guide? there just working how that that guide, should necessarily I'm in your And you're is would I doesn't even a just incremental noted that conversion like flow? seem I'm a allocation higher capital think accounting in perspective anything So of for about the or interest any in in the But curious, be as it flow the plays baked XXX% deploying curious than imagine percent think you expense counts, year. cash capital free from cash you free

Jonathan Douyard

a Yes. No, I question. think good it's

we we we've million at count the and which we any repurchase continue $XXX put I activity But forward. think, not that this point, remain certainly, have, under we'll flexible on authorization flexibility share that. got given the have to contemplated

in or standpoint standpoint expense interest general, are an from think, levered return. from a debt I under we

comfortable range. obviously being We're with in that very

pay with deployment other balance so sort debt of down And options. we'll

I interest bit versus where think the I interest changes. based we expense, in general, really on a is think, XXXX, elevated ended rate just

-- deploy but to So strong again, to got sheet and we've it we've balance flexibility, a appropriately. able be got

Operator

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

Steven Dyer

near you talked sort normalized had relates how maybe back year sort backlog, of a you've as right you of about are now? say a any or it seeing sort less for levels, talked to change? from of now, of is or plus backlog down seeing into down later that cancellations Are of quarters just sort or the X the You move-outs coming order versus of anticipated burn term, to more sort any the you quarters X you intake couple would

Jonathan Douyard

Yes.

chassis year, the say, the -- obviously, to think us up in rate. is at order mean, produce also with when of the less would half biggest supply the second I accelerated an intake allowing I I freed impact,

X say drivers. so main those are the And I'd

of is his comments, I there out environment. Daryl uncertainty in a noted in there think ton the as

having favorable rate really then we're out about the moving delaying would or about say, I definitely orders customers some buys or marketplace. as of conversations dynamics that some potentially discussions are And this there. either the just and out opportunities there's having of in sort fleet and plan floor there we're well with perspective, with an We're dealers given dealers ordering attractive from having interest -- customers or on

the be that there so in are perspective, so, we midpoint much do as optimistic is just the do out to there uncertainty environment. certainly And collectively, want we a of cautious look because where but we remain to at we upside from

Steven Dyer

Yes.

my the So Blue and The I 'XX. was the core incremental second in half this maybe for you sort sort of costs. little it of a even that softer those guess math, year Arc in is costs normalize the implies business looking Fleet XXXX of when even to guidance, than XL

conversations moving So in just on Or you of parts? recently pause? I of mean gives all conservatism is that something are part, given the your specific that seeing you sort sort customer

Jonathan Douyard

piece the remain rest then in the than softer of expected I monitor would would would the the side, balanced what one say is on And is on sort we portfolio, say the fleet the on we of particularly side the as remain have fourth we motorhome business. market. of that quarter we the I

well service Like the in fantastic as about remarks, we talked business, manufacturing for continues to us. contract be body the as prepared growth

as out we're all we And so like right again, in system that's at look noise call we do feel the But balanced. the there it, cautious now. --

Steven Dyer

talking near chain I of for supply disruption than bit it. now, guess, we more still point supply Got lines, little less uncertainty about the those guess, kind Yes. where, been right I is or the along we've long. to term of ideal? maybe a challenge Are chain demand so

Jonathan Douyard

I XX of think of ago, demand don't little about But think talking they're problems. would I both. months -- a I we have it's think been mean I bit sort

the reacting of in that of the to things some people just some types in be might that is industry headlines of are are think it general. those I customers and So and there out

said I'd -- more like that straight it growth we a bit We say a for like than maybe demand that we're we're well needs very But customers. the meet long playing of But positioned think know term, But the the year we'd our over line. markets to prevalent in. always is in little is we being again, was we've ago. -- a

Operator

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

Michael Shlisky

I only -- schedule more I FVS. already replacement was on a growth even the on me in outlook of are to what happened hone it anticipate then feels pandemic on to looking price up got guess, to given there. is first during dire to your a put comments what XXXX? details and having I And And off wanted we've behind mean, the on before the with course, and in think caught year-over-year more question road. fleets its itself. start pricing. started, on don't in pandemic positive and you and FVS like on 'XX, want I I secondly, the of to Do Maybe

So is I'm there eventually, fleets if if here new strongest because this the and the it 'XX. the these out the kind on 'XX, not curious, year is then be road in following of will all trucks pushing are just inevitable not this year

Daryl Adams

I Yes, the we're And macroeconomic it we're where think Mike, like and to think on your prepared you We don't point, out. think want slip vehicles, there's I your up I had not it's a it's just in pause, issues, a just -- remarks, positioned. but we I still have right, say but we question. maybe answered -- think at the to caught

right We parcel still We the see packages moving the in see direction. demands.

earnings and the on macroeconomic about, that everyone just reading UPS. They had themselves. talking those out cautious with talking was their FedEx, it's being we're issues all think, I and

So changes, right, out think I in. unless but something a a great it's pushed bit, to be it's little to going you're business be still

Jonathan Douyard

ahead. think I the think, I Mike, on comment, sorry And price just go

Michael Shlisky

Yes.

price please. question, the On

Jonathan Douyard

through. just now as expectation XX we've Yes, last price. mean is pricing, came inflation I taken over on months our the right solid

Our standpoint expectations will pricing a in positive 'XX. be from

Michael Shlisky

Okay. Great.

a your actually be people to there, the EV perspective, upfit but X, are that's in the EVs. Class curious to nothing Blue whether do XXXX, at Arc going you start point to sprinter ready to main in of place Moving kinds doing coming from other have to We -- some you're EV a forward? Sprinters the the and facilities, going comes when there's that products do some design and announcements an out with on saw that

Daryl Adams

are to company, of and it's I customers, whether like management all business. EV those the Mercedes, or quote with Mike, or it's we're in right, if We're And Yes, fleet we to case, our Stellantis, and it's think them our upfit orders build on through this prepared whether to vehicles Ford. the customers, direct win the try vehicle, We working right, like packages. business. any and working always a them obviously, whether with

e-transit the like is more just some this we're transit, to gain the business. opportunity yes, and like another auto So upfit -- [indiscernible] Stellantis,

Michael Shlisky

touch you Okay. just the on about sort first Got John, on quarter on year here, just feel just out it. know quarter? you the the here, would maybe appreciated. the for chassis some do And things be guidance the of how well challenges first detail Can supply the some at might stating play of in on margins, cadence, in start of

Jonathan Douyard

Yes.

as margin us for of up low model probably think changes seasonally low we mid-single-digit a just do. QX some typically know, you expect the is QX range I the the from would given is perspective year before perspective, supply to from typically midyear chassis in ramping in like we

half, full but like look XX% something here, the year as in you quarters guiding first at it's the not we're obviously probably So guide.

Michael Shlisky

. appreciate I the it. Got color.

Operator

of question MKM. Koranda comes Matt . next The ROTH from

Matt Koranda

So bridge want last I -- versus guidance understand just EBITDA year. I to from embedded the sure in make the

roughly then million spend incremental excluding million, million would So spend, but XL, any Arc to from be the growth. take the embedded from Blue got of unwinds $X the $XX $XX $XX benefit million million from in you the $X segment guidance, $X from million

So maybe in segment $X contribution million the of sort of growth guidance. embedded

the Just the that a adding SV to headwind? pieces understand guidance. I moving just to in growth? Or segment the curious, want overall is is underneath

Jonathan Douyard

you year-over-year. sorry, to see positive business that as expect in look think, do at the growth SV we I business,

perspective motorhome we we need contract about the opportunities be that those. obviously I headwinds and some body offset that will have think that have but offset, to talked do service you manufacturing from a

at year-over-year. operationally, growing probably a slower still So pace growth but

Matt Koranda

just then makes bit a And digging sense. more. That backlog right. the All Okay. into FVS

we talked that is speaking So of chassis they're the obviously, dealers in guys seem found among maybe order a fleet macro. one sort of this But some thing little like caution about that have customers, around books you bit reticence with closed year.

they And year this rest so given essentially new if just order the of to really order middle get the fleets early to for they're how for flow there chassis -- is the next just much can't year of weakness kind or the or indicating vehicles, implied that an be in. going of is and put

lead their reticence. versus ordering just for macro just behavior that. longer have any that So like curious sense throttles time I'm you back guys if

Jonathan Douyard

of we're I Yes. same mean, the I hearing -- think specifically much thing.

historically, think, the at quickly. Class -- been absorbed, some X pretty OEMs the vehicles capacity look vehicles, the as commercial allocate you I has I of as think those the

And so anything not sure that there's I'm certainly we're hearing aspect, .

Daryl Adams

with Matt. Yes, would John, agree I

X because think quarterly. more what heard now Class I allocating in it's a we've is Ford is

adjustment of be that year, and quarterly. it So book make, in that you let some forcing to whole people understand book the now they're are might and the to past, would you for the trying

shortened it John, we're Class X in that any the X the of some So and has space. not and up above. hearing Class of in . I But, the view

Operator

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

Randy Wilson

I'd like you participating thank to today's in conference call. for

John mentioned March place their forward As week X remarks, in X. on Work taking prepared through Daryl investors the and Truck look we Minneapolis, NTEA at in to hosting

XXth XX Conference Institutional on chats be the X, one-on-one addition, will at Annual March, in March meetings Investor fireside on and March In Conference investor and Capital XX. the we hosting ROTH and Raymond James

call. your in interest the for you disconnect that, And Shyft operator, with the please Group. thank We

Operator

has Conference for and now Thank disconnect. may you attending you presentation, concluded. today's now

The Shyft Group, Inc. (SHYF) 23 Feb 232022 Q4 Earnings call transcript