Q1 2025 The Shyft Group Inc Earnings Call
Operator: Good morning and welcome to the Shyft Group first quarter 2025 conference call and webcast. All participants will be in a listen-only mode until the question-and-answer session of the conference call. As a reminder, this call is being recorded.
Good morning, and welcome to the shift group fourth quarter 2025 conference call and webcast.
All participants will be in a listen only mode until the question and answer session of the conference call.
As a reminder, this call is being recorded.
Randy Wilson: I would now like to introduce Randy Wilson, Vice President of Investor Relations and Treasury for the Shyft Group. Please go ahead.
I would now like to introduce Randy Wilson Vice.
Randy Wilson: Vice President of Investor Relations, and Treasury or the shift group.
Speaker Change: Please go ahead.
Randy Wilson: Good morning and thank you for joining us. Today you will hear from John Dunn, President and Chief Executive Officer, and Scott Ocholik, Interim Chief Financial Officer. There are prepared remarks to be followed by a question and answer session.
Speaker Change: Good morning, and thank you for joining us today, you'll hear from John Dunn, President and Chief Executive Officer, Scott I'll Pollock interim Chief Financial Officer. Their prepared remarks, we followed by a question and answer session.
Randy Wilson: Before we begin, please turn to Slide 2 and 3 of the presentation for our Safe Harbor Statement. Today's conference call contains forward-looking statements which are subject to risks that can cause actual results to be materially different from those expressed or implied. Primary risks that management believes can materially affect our results are identified in our Forms 10-K and 10-Q filed with the SEC. We will be discussing non-GAAP information and performance measures, which we believe are useful in evaluating a company's operating performance. Reconciliations for these non-GAAP measures can be found in the conference call materials. We'll begin with a business overview from John, followed by Scott's review of first quarter financial results and our 2025 outlook.
Speaker Change: Before we begin please turn to slide two and three of the presentation for our Safe Harbor statement.
Speaker Change: Today's conference call contains forward looking statements, which are subject to risks that could cause actual results to be materially different from those expressed or implied.
Speaker Change: Primary risks that management believes could materially affect our results are indentified and our Form 10-K, and 10-Q filed with the SEC will.
Speaker Change: We will be discussing non-GAAP information and performance measures, which we believe are useful in evaluating the company's operating performance.
Speaker Change: Reconciliations for these non-GAAP measures can be found in the conference call materials.
Speaker Change: I'll begin with a business overview from John followed by Scott to review, our first quarter financial results and our 2025 outlook. Dan will then provide an update on our proposed merger with Abbvie spent well then open the line for Q&A. Please.
Randy Wilson: John will then provide an update on our proposed merger with Abbey Schmidt.
John Dunn: We'll then open the line for Q&A. Please turn the slide forward and I'll turn it over to John who will begin today's prepared remarks. Thank you, Randy, and good morning. Welcome to our Q1 2025 earnings call. We appreciate your interest in the Shyft Group and this opportunity to share our progress and outlook with you today. We had a strong start to the year, delivering improved financial performance while continuing to execute our strategy and growth initiative. We delivered meaningful adjusted EBITDA growth for the company with margins of 6%, which doubled year over year. I would like to personally thank Shyft's team members for these results, which exceeded expectations.
Speaker Change: Please turn to slide four and I'll turn it over to John will begin todays prepared remarks.
Speaker Change: Thank you Randy and good morning.
Speaker Change: Welcome to our Q1, 'twenty 25 earnings call.
Speaker Change: We appreciate your interest in the ship group and this opportunity to share our progress and outlook with you today.
Speaker Change: We had a strong start to the year delivering improved financial performance, while continuing to execute our strategy and growth initiatives.
Speaker Change: We delivered meaningful adjusted EBITDA growth for the company with.
Speaker Change: With margins of 6%, which doubled year over year.
Speaker Change: I would like to personally thank.
Speaker Change: <unk> team members for these results which exceeded expectations.
John Dunn: We are very excited to update you on BlueArk, where we have completed a majority of our first contract for FedEx in the quarter, and feedback has been positive with trucks actively deployed on the road. We are working to secure several opportunities for Blue Ark trucks across end markets and geographies. Blue Arc is an important part of our product portfolio as customers continue to adopt EVs. fleet vehicles and services expanded margins of 290 basis points year-over-year by improving operational efficiency. The FES team's dedication to quality, product innovation, and customer centricity positions us well to gain market share as demand increases.
Speaker Change: We are very excited to update you on Blue arc, we have completed a majority of our first contract for Fedex in the quarter and feedback has been positive with trucks actively deployed on the road.
Speaker Change: We are working to secure several opportunities for blue our trucks across end markets and geographies.
Speaker Change: Blue arc is an important part of our product portfolio.
Speaker Change: Customers continue to adopt evs.
Speaker Change: Fleet vehicles and services expanded margins up 280, 90 basis points year over year by improving operational efficiency.
Speaker Change: The F B S team's dedication to quality product innovation and customer centricity positions us well to gain market share as demand increases.
John Dunn: We have seen increased walk-in van quoting activity, which is consistent with our expectations for recovery in the second half of the year. Specialty vehicles continued to perform well, with another solid quarter that resulted in high teams' margins. Service truck order intake in the quarter was robust. And the sales team is aggressively pursuing new leads to solidify our leading industry position. At the recent NTEA Work Truck Show, our service truck portfolio displayed the full range of offerings and capabilities across our leading brands. Our sales team demonstrated our bodybuilding capabilities from Duramag and Royal to our upfit capabilities with ITU highlighting our position as a vertically integrated partner capable of meeting diverse and evolving industry needs.
Speaker Change: We have seen increased walk in van quoting activity, which is consistent with our expectations for recovery in the second half of the year.
Speaker Change: Specialty vehicles continued to perform well with another solid quarter that resulted in high teens margin.
Speaker Change: Service truck order intake in the quarter was robust.
Speaker Change: And the sales team is aggressively pursuing new leads to solidify our leading industry position.
Speaker Change: At the recent N T. A work truck show our service truck portfolio displayed the full range of offerings and capabilities across our leading brands.
Speaker Change: Our sales team demonstrated our bodybuilding capabilities from Duramax Embroil tour update capabilities with ITU highlighting our position as a vertically integrated partner capable of meeting diverse and evolving industry needs.
John Dunn: We are excited about our future growth opportunities with the service truck business as we continue to expand our portfolio of offerings. Finally, we continue to maintain a solid balance sheet with a net leverage ratio less than two times, allowing us the flexibility to invest in strategic initiatives that support our growth and drive long-term success. Overall, we remain confident in our team's ability to execute in these dynamic times.
Speaker Change: We are excited about our future growth opportunities with the service truck business.
Speaker Change: As we continue to expand our portfolio of offerings.
Speaker Change: Finally, we continue to maintain a solid balance sheet with a net leverage ratio of less than two times, allowing us the flexibility to invest in strategic initiatives that support our growth and drive long term success.
Speaker Change: Overall, we remain confident in our team's ability to execute in these dynamic times deliver.
John Dunn: deliver for our customers and achieve our financial targets. Turning to slide five, our operating framework is designed to drive sustainable financial growth and deliver long-term shareholder value. The key element to that framework is our customer-centric approach. innovating with purpose to solve real world challenges and help our customers succeed. That approach has brought to life at NTA Work Truck Week. where we saw increased customer engagement, unveiled new product innovations, and marked a major milestone. the 50th anniversary of the Shyft Group. Since 1975, we have evolved alongside our customers, delivering purpose-built solutions that perform in the most demanding environments and reinforcing the trust that drives our business forward.
Speaker Change: Deliver for our customers and achieve our financial targets.
Speaker Change: Turning to slide five.
Speaker Change: Our operating framework is designed to drive sustainable financial growth and deliver long term shareholder value.
Speaker Change: A key element to that framework is our customer centric approach.
Speaker Change: Innovating with purpose to solve real world challenges and help our customers succeed.
Speaker Change: That approach has brought to life at N T. A work truck week.
Speaker Change: Well, we saw increased customer engagement.
Speaker Change: <unk>, new product innovations and marked a major milestone.
Speaker Change: The 50th anniversary of the shift.
Since 1975, we have evolved alongside our customers delivering purpose built solutions that perform in the most demanding environments and reinforcing the trust that drives our business forward.
John Dunn: Our booth saw record engagement and we received strong customer feedback. At the show, we unveiled two new purpose-built vehicles shaped by our work-driven design approach. developed in close partnership with fleet operators. The Utility Master, Trade Master, Service Body, a reimagined version of a trusted platform which delivers enhanced durability, smart storage and integrated safety features. designed to enhance productivity in the field. It offers reinforced construction for long term strength. spacious cargo areas, and easily accessible exterior compartments for efficient tool and equipment storage. A wide rear door improves material handling, while integrated lighting supports visibility across varied working conditions.
Speaker Change: Our booth saw record engagement and we've received strong customer feedback.
Speaker Change: At the show we unveiled two new purpose built vehicles shaped by our work driven design approach.
Speaker Change: Developed in close partnership with fleet operators.
Speaker Change: And you can tell the master trade Master service body, a re imagined version of a trusted platform, which delivers enhanced durability.
Speaker Change: <unk> storage and integrated safety features.
Speaker Change: Designed to enhance productivity in the field. It offers reinforced construction for long term strength station.
Speaker Change: Spacious cargo areas and easily accessible exterior compartments for fishing tool and equipment storage.
Speaker Change: A wide viridor improves in material handling.
Speaker Change: Integrated lighting supports visibility across varied working conditions.
John Dunn: Production is scheduled to begin later this year with multiple configurations tailored to meet the needs of today's diversified fleet operation. The Marketplace Drive Freight Truck, a brand new addition to our lineup, was engineered to maximize payload capacity. weighs 900 pounds less than comparable models, improving efficiency without sacrificing durability or functionality. Features include a seamless roll-up rear door for streamlined loading and unloading, an optimized cargo layout, and a heavy-duty liftgate designed for last-mile and logistics applications. is a strong offering for both ice and electrified sleet. Both products reinforce our commitment to customer-led innovation. ensuring our solutions are designed to solve real-world challenges across service and delivery applications.
Speaker Change: Production is scheduled to begin later this year with multiple configurations tailored to meet the needs of today's diversified fleet operations.
Speaker Change: The marketplace dry freight truck a brand New addition to our lineup was engineered to maximize payload capacity.
Speaker Change: It's 900 pounds less than comparable models, improving efficiency without sacrificing durability or functionality.
Speaker Change: Features include a seamless role of rear door for streamlined loading and unloading.
Speaker Change: Optimized cargo layout and a heavy duty liftgate designed for last mile and logistics applications.
Speaker Change: It was a strong offering for both ice and electrified fleets.
Speaker Change: Both products reinforce our commitment to customer led innovation.
Speaker Change: Ensuring our solutions are designed to solve real world challenges across service and delivery applications.
John Dunn: These launches, combined with the momentum we saw at NTEA, highlight how we are executing our strategy, strengthening customer relationships, expanding our portfolio, and reinforcing our position in the market. We are building on 50 years of engineering excellence with a clear focus on where our customers are headed, and we are delivering the solutions to help them get there.
Speaker Change: These launches combined with the momentum we saw at N T. A highlight how we are executing our strategy strengthening customer relationships, expanding our portfolio and reinforcing our position in the market.
Speaker Change: We are building on 50 years of engineering excellence with a clear focus on where our customers are headed and we are delivering the solutions to help them get there.
Scott Ocholik: With that, I'll turn it over to Scott for a detailed review of our financial results and 2025 outlook. Thank you, John. Please turn to slide 7, and I will start with an overview of our first quarter financial results. Overall, we delivered financial results for the quarter that exceeded our prior expectations. We saw sustained operational improvements, benefits from overall cost management, and incremental sales that were originally planned for the second quarter. Sales for the quarter were $204.6 million, up 3% from $197.9 million in the prior year. Blue Arc delivered $26.3 million of sales in the quarter as we executed on the FedEx order for 150 vehicles.
Speaker Change: With that I'll turn it over to Scott for a detailed review of our financial results and 2025 outlook.
Scott: Thank you John Please turn to slide seven and I will start with an overview of our first quarter financial results.
Scott: Overall, we delivered financial results for the quarter that exceeded our prior expectations. We saw sustained operational improvements benefits from overall cost management and the incremental sales that were originally planned for the second quarter sales.
Scott: Sales for the quarter were $204 $6 million up 3% from $197 9 million in the prior year.
Scott: Arc delivered $26 $3 million in sales in the quarter as we executed on the Fedex order for 150 vehicles.
Scott Ocholik: Our gap net loss was $1.4 million, or negative $0.04 per share, compared to a net loss of $4.7 million, or negative $0.14 per share in the previous year. Our Q1 2025 results include $2.2 million of transaction costs related to the proposed merger with Abby Schmidt. On an adjusted basis, EBITDA was $12.3 million for the quarter, or 6% of sales, up from $6.1 million, or 3.1% of sales, in the first quarter of 2024. Adjusted net income for the quarter was $2.4 million, and adjusted EPS increased to $0.07 per share compared to a loss of $1.4 million, or negative $0.04 per share, in the first quarter of 2024.
Scott: Our GAAP net loss was $1 $4 million or negative four cents per share compared to a net loss of $4 7 million or negative <unk> 14 per share in the previous year.
Scott: Our Q1 2025 results include $2 $2 million of transaction costs related to the proposed merger with Abbvie Schmidt.
Scott: On an adjusted basis, EBITDA was $12 $3 million for the quarter or 6% of sales up from $6 1 million or three 1% of sales in the first quarter of 2024.
Scott: Adjusted net income for the quarter was $2 $4 million and adjusted EPS increased to seven per share compared to a loss of $1 $4 million or negative four cents per share in the first quarter of 2024.
Scott Ocholik: Please turn to slide 8, and I will walk you through our results by segment. In the first quarter, our fleet vehicles and services segment achieved sales of $96.1 million, down 11% compared to $107.8 million a year ago, reflecting continued softness in parcel and markets partially offset by growth in our upfit and aftermarket businesses. Adjusted EBITDA for the quarter improved to $3.6 million or 3.8% of sales compared to $900,000 or 0.9% a year ago. as sustain higher productivity and favorable mix more than offset the lower sales volume. FVF's backlog was $245.3 million at quarter end, down 31% versus prior year and flat versus year-end 2024.
Scott: Please turn to slide eight I will walk you through our results by segment.
Scott: In the first quarter, our fleet vehicles and services segment achieved sales of $96 $1 million down 11% compared to $107 8 million a year ago, reflecting continued softness in parcel end markets, partially offset by growth in our up fit and aftermarket businesses.
Scott: Adjusted EBITDA for the quarter improved to $3 $6 million or three 8% of sales compared to $900000 or 9.9% a year ago.
Scott: Our sustained higher productivity and favorable mix more than offset the lower sales volume.
Scott: <unk> backlog was $245 $3 billion at quarter end down 31% versus prior year and flat versus year end 2024.
Scott Ocholik: Turning to the specialty vehicle segment, the business delivered another solid quarter with adjusted EBITDA margins remaining in the high teens. First quarter sales were $82.2 million, a 9% decrease from $90.1 million in the prior year. Our motorhome sales were down year over year, while our infrastructure-focused service truck body business continued to deliver solid results. Adjusted EBITDA was $14.3 million or 17.3% of sales compared to $17 million or 18.8% of sales in the same period last year. SV backlog was $90 million at quarter end, up 8% versus the prior year and up 31% versus year-end, driven primarily by high-content service truck bodies.
Scott: Turning to specialty vehicle segment, the business delivered another solid quarter with adjusted EBITA margins remaining in the high teens.
Scott: First quarter sales were $82 2, million% to 9% decrease from $90 1 million in the prior year.
Scott: Our motor home sales were down year over year, while our infrastructure focused service truck body business continued to deliver solid results. Adjusted EBITDA was $14 3 million or 17, 3% of sales compared to $17 million or 18, 8% of sales in the same period last year.
Scott: S feed backlog was $90 million at quarter end up 8% versus the prior year and up 31% versus year end, driven primarily by high content service truck bodies.
Scott Ocholik: please turn to slide nine for a discussion on our 2025 outlook. Macroeconomic uncertainty and the ever-changing landscape of tariffs continue to challenge our business. We have been evaluating various scenarios relating to the tariffs that have been put into place and those that have been proposed. We implemented a supply chain strategy over the last couple of years to help mitigate risk, including U.S.-based supply alternatives. We have plans in place to help mitigate the impact through partnerships with our suppliers and we have and will continue to adjust prices where appropriate. While we will continue to monitor the macroeconomic environment and potential impact to demand, we are affirming our 2025 outlook with sales of $870 million to $970 million and adjusted EBITDA of $62 million to $72 million.
Scott: Please turn to slide nine for a discussion on our 2025 outlook.
Scott: Macroeconomic uncertainty and the ever changing landscape of tariffs continue to challenge our business, we have been evaluating various scenarios relating to the tariffs that have been put into place and those that have been proposed.
Scott: We implemented a supply chain strategy over the last couple of years to help mitigate risk, including U S. Based supply alternatives. We have plans in place to help mitigate the impact through partnerships with our suppliers and we have and will continue to adjust prices where appropriate.
Scott: While we will continue to monitor the macroeconomic environment and potential impacts of demand. We are affirming our 2025 outlook with sales of $870 million to $970 million and adjusted EBITDA of $62 million to $72 million.
Scott Ocholik: We delivered first quarter profitability ahead of our initial expectations. However, we remain cautious on the timing of the recovery of the parcel and motorhome market. Consistent with our messaging in February, we continue to expect approximately 70% of our full-year adjusted EBITDA to be delivered in the second half of the year. We remain on track to deliver a free cash flow guidance of $25 to $30 million as we expect improvement as the year progresses. In closing, we are pleased with our start to the year. We remain committed to delivering our financial outlook for the year and making further improvements in our financial performance as our end markets recover.
Scott: We delivered first quarter profitability ahead of our initial expectations. However, we remain cautious on the timing of the recovery of the parcel in motor home markets.
Scott: Consistent with our messaging in February we continue to expect approximately 70% of our full year adjusted EBITDA to be delivered in the second half of the year.
Scott: We remain on track to deliver our free cash flow guidance of $25 million to $30 million as we expect improvement as the year progresses.
Scott: In closing we are pleased with our start to the year, we remain committed to delivering our financial outlook for the year and making further improvements in our financial performance as our end markets recover.
John Dunn: With that, I will turn it back over to John to provide an update on the proposed merger with Abbey Schmitz. Thanks, Scott. Turning to slide 11, I would like to reiterate why this proposed merger is such a compelling opportunity for our organization and shareholders. By combining our businesses, we will become a leading global force in the specialty vehicles industry. The strategic move will help us drive outsized growth in high-margin markets like commercial infrastructure. Our customers will benefit from a wider range of new and innovative technologies and a broader geographical footprint for the deployment of products and services.
Speaker Change: With that I will turn it back over to John to provide an update on the proposed merger with Abbvie Schmidt.
Speaker Change: Thanks, Scott turning to slide 11, I would like to reiterate why this proposed merger is such a compelling opportunity for our organization and shareholders by combining our businesses, we will become a leading global force in the specialty vehicles industry.
Speaker Change: This strategic move will help us drive outsized growth in high margin markets like commercial infrastructure.
Speaker Change: Our customers will benefit from a wider range of new and innovative technologies and a broader geographical footprint for the deployment of products and services.
John Dunn: Our highly experienced and talented management team is working together to deliver the strategic vision and create long-term value for our shareholders.
Speaker Change: Our highly experienced and talented management team is working together to deliver the strategic vision and create long term value for our shareholders.
John Dunn: Please turn to slide 12, where I will provide an update on the integration activities underway. The combined company will be named Abby Schmidt Group and will trade on the NASDAQ under the new ticker AEBI. We have successfully syndicated a $600 million credit facility with strong support from a global group of banks, which reinforces the strategic rationale of this transaction. On April 4, 2025, Abby Schmidt Group filed the preliminary S4 filing with the SEC for review, marking a significant milestone for the proposed merger.
Speaker Change: Please turn to slide 12, where I will provide an update on the integration activities underway.
Speaker Change: The combined company will be named <unk>.
Speaker Change: <unk> Schmidt group and will trade on the NASDAQ under the new ticker H E B I.
Speaker Change: We have successfully syndicated a 600 million dollar credit facility with strong support from a global group of banks, which reinforces the strategic rationale.
Speaker Change: Of this transaction.
Speaker Change: On April 4th plenty twenty-five Abbvie Schmidt group filed the preliminary S. Four filing with the SEC for a review.
Speaker Change: Marking a significant milestone for the proposed merger.
John Dunn: We anticipate a special meeting of the Shyft Group shareholders in mid 2025 to approve the merger. In conclusion, we remain confident in the value this combination will deliver by aligning complementary capabilities. expanding our global footprint and bringing together deep expertise across platforms. and Abby Schmidt Group are positioned to lead the specialty vehicle market forward. We are not only building a stronger and more innovative organization, we are becoming stronger together and better equipped than ever to deliver long term success for our customers, employees and shareholders.
Speaker Change: We anticipate a special meeting of the ship group shareholders in mid 'twenty 'twenty five to approve the merger.
Speaker Change: In conclusion, we remain confident in the value this combination will deliver.
Speaker Change: Aligning complimentary capabilities, expanding our global footprint and bringing together deep expertise across platforms.
Speaker Change: The shift group.
Speaker Change: And Abbvie Schmidt group are positioned to lead the specialty vehicle market forward.
Speaker Change: We are not only building a stronger and more innovative organization, we are becoming stronger together and.
Speaker Change: And better equipped than ever to deliver long term success for our customers.
Speaker Change: Employees and shareholders.
Operator: We are now ready to take your questions. Operator, please open the line. Thank you.
Speaker Change: We are now ready to take your questions. Operator, please open the line.
Speaker Change: Thank you.
Operator: We will now begin the question and answer session. To ask a question, please press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the key. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. Please limit your question to one, plus a follow-up. Please stay disciplined on your follow-up questions.
Speaker Change: We will now begin the question and answer session.
Speaker Change: To ask a question. Please press Star then one on your telephone keypad.
Speaker Change: If youre using a speakerphone please pick up your handset before pressing the keys.
Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker Change: Please limit your question to one plus a follow up please.
Speaker Change: We stayed disciplined on your follow up question.
Matthew Koranda: Our first question comes from Matt Koranda from Roth Capital. Please go ahead. Hey, guys, good morning. Just to start off on the blue arc side of things.
Speaker Change: Our first question comes from Matt Koranda from Roth Capital. Please go ahead.
Speaker Change: Hey, guys. Good morning, just to start off on the Blue arc side of things.
John Dunn: Guess it was a bit of a surprise to see you guys deliver and book all 150 vehicles in the first quarter, so maybe just talk about the dynamic that's at play there and what that means for BlueArk revenue for the remainder of the year. And then just could you clarify, it looks like the gross profit dollars from BlueArk probably offset some of the corporate expense that you usually have in terms of the eliminations, but maybe just put a finer point on that one for us. Sure. Thanks for the question, Matt.
Speaker Change: So it was a bit of a surprise to see you guys deliver in books, all 150 vehicles in the first quarter. So maybe just talk about the dynamic that's at play there and what that means for Blue arc revenue for the remainder of the year and then just could you clarify it looks like the gross profit dollars from Blue arc, probably offset some of the corporate expense. It usually have in terms of the <unk>.
Speaker Change: Nominations, but maybe just put a finer point on that one for us. Please.
John Schmidt: Sure. Thanks for the question Matt This is John.
John Dunn: This is John Dunn. And to start off with, on the blue arc, we're not completely done with that order. We're in process of building those 150. So as you can see from the revenue there, we're well on our way to deliver all of them. But there will be some carryover in the second quarter of revenue coming in.
John Schmidt: And then to start off with on the board, we're not completely done with that order. We're in process of building those hundred 50. So as you can see from the revenue there we're well on our way to deliver all of them, but are there will be some carryover in the second quarter of revenue coming in.
Scott Ocholik: Yeah, Matt, this is Scott. From the profitability perspective on that question, yes, we, you know, we incurred $5.5 million in expenses in Q1 of 2024. And we have completely offset that. And, you know, LULARC is contributing here in the first quarter. Okay, got it.
John Schmidt: Yeah, Matt This is Scott from a profitability perspective on that question. Yes. We you know we incurred $5 5 million in expenses in Q1 of 2024, and we have a completely offset that and you know who <unk> is contributing or in the first quarter.
John Schmidt: Okay got it.
Matthew Koranda: And then maybe just wanted to get a better understanding if you could unpack Anything to say about the guidance? I noticed really there's no change to the outlook for you guys, but maybe just could you talk about how you thought about any incremental tariffs that might be impacting the year? And how those have been incorporated into the guidance and then on top of that, maybe just if you could take a crack at.
Speaker Change: And then maybe just a wanted to get a better understanding if you could unpack the guide and how any incremental tariffs have been incorporated into the guidance for this year I know, there's really there's no change to the outlook for you guys, but maybe just could you talk about how you thought about any.
John Schmidt: Tariffs that might be impacting the year and.
John Schmidt: And how those have been incorporated into the guidance and then on top of that maybe just if you could take a crack at it.
Matthew Koranda: What are the implications when you're combined with AB Schmidt? Are there any incremental tariffs that we should be kind of taking into account?
John Schmidt: What are the implications when you combine with a b schmid are there any incremental tariffs that we should be kind of taking into account here.
Scott Ocholik: Matt, this is Scott. Yeah, so from a tariff perspective, so, you know, obviously, this is ever changing every day, something new is coming up. So we're monitoring it very closely for what has been put into place. We have taken some action already from a, from a pricing perspective, and we continue to have and see flexibility as we move forward. But certainly, we're also working very closely with our supply base, partnering with them, looking for opportunities. And certainly, like I said, over the past couple of years, we've been identifying suppliers in the US that will additionally help us.
John Schmidt: Matt This is Scott yeah. So from a tariff perspective. So you know obviously this is ever changing every day something new is coming up so we're monitoring it very closely.
John Schmidt: For what has been put into place we have taken some action already from a.
John Schmidt: From a pricing perspective, and we continue to have and see flexibility as we move forward, but certainly we're also working very closely with our our supply base partnering with them looking for opportunities and certainly you know like I said over the past couple of years, we've been identifying.
John Schmidt: Identifying suppliers in the U S. A that will additionally, help us. So so when you think about you know our guidance and why really we havent come off and from a tariff perspective, it's really twofold. One you know we are taking actions to help mitigate it to you know we're still just monitoring in Washington, where things will fall out here.
Scott Ocholik: So, so when you think about, you know, our guidance and why really we haven't come up from a tariff perspective, it's really twofold. One, you know, we are taking actions to help mitigate it. And two, you know, we're still just monitoring and watching where things will fall out here.
Matthew Koranda: Okay, and if I could ask one on the A.B. Schmidt merger, and maybe specifically on A.B. Schmidt, any update on the trends in their business year-to-date, especially interested in first quarter, how they tracked relative to your expectations? any update on on sort of some of the pro forma metrics that were given out around the merger in terms of A.B. Schmidt 2025 revenues.
Speaker Change: Okay, and if I could ask one on the a b Smith merger and maybe specifically that maybe she met any.
Speaker Change: <unk> on the trends in their business year to date, especially interested in the first quarter.
Speaker Change: Tracked relative to your expectations any update on sort of some of the pro.
Speaker Change: Pro forma metrics that were giving out around the merger in terms of maybe she met twice twenty-five revenues EBITDA.
John Dunn: Nibedha, any incremental data points there would be appreciated. Yeah, Matt, you know, the S-4 was just recently filed with the Abby Schmidt U.S. Gap Financial Statements. That's still with the SEC.
Speaker Change: Any incremental data points that would be appreciated.
Speaker Change: Yeah, Matt you know the asked for was just recently filed with with the that'd be Schmidt on U.
Speaker Change: U S GAAP financial statements, that's still with the C. C. So we don't really want to comment on anything as it relates to abbey Schmidt with them. This call given that that's outstanding.
Matthew Koranda: So we don't really want to comment on anything as it relates to Abby Schmidt within this call, given that that's outstanding. Okay, fair enough. I'll leave it there, guys. Thanks, Matt. Thank you.
Speaker Change: Okay.
Speaker Change: Okay fair enough I'll leave it there guys.
Speaker Change: Thanks, Matt.
Speaker Change: Okay.
Speaker Change: Thank you.
Mike Shlisky: The next question comes from Mike Shlisky from DA Davidson. Please go ahead. Good morning. Thanks for taking my questions here. First I wanted to kind of show you one of the entire themes.
The next question comes from Mike Lisowski from D. A Davidson. Please go ahead.
Mike Lisowski: Good morning, Thanks for taking my questions here.
Speaker Change:
Speaker Change: First I wanted to kind of fill you on the tariff theme.
Mike Shlisky: Did concerns on tariffs at the customer level, did they affect anyone's order or delivery timing in the quarter? In other words, did anyone pull forward their plans or their deliveries to try to get ahead of the quarter, was that any kind of driver of the strength?
Speaker Change: Did the concerns on tariffs at the customer level that did they affect anyone's order.
Speaker Change: Our delivery timing in the quarter and the worst anyway pull forward their plans or their oh no deliveries.
Speaker Change: Ahead of the quarter without any kind of driver of EBITDA strength here.
John Dunn: This is John. From an order standpoint or pull-in-ahead orders, we didn't see a lot of activity around that, specifically cited around tariffs. We're in the middle of a discussion. You know, we're very close to the customers, understanding their needs, but we haven't seen a strong reaction one way or another in the ordering. of the customers, primarily due to the tariffs that they've highlighted to us.
Speaker Change: This is John from the order standpoint, or pulling ahead orders, we didn't see a lot of activity around that specifically cited around tariffs.
Speaker Change: Okay and regulatory discussions.
Speaker Change: We're very close with the customers understanding their needs.
Speaker Change: But we haven't seen a strong reaction one way or another.
Speaker Change: Audrey.
Audrey: The customers.
Speaker Change: I'm really due to the tariffs.
Speaker Change: We've highlighted to us.
Mike Shlisky: Got it, thanks.
Speaker Change: Got it thanks, and then a follow up question would be on a parcel and final mile vehicles, you had commented that the.
John Dunn: And then a follow-up question would be on parcel and final mile vehicles. You had commented that you're still looking at a potentially better second half here. Could you just share with us some of the details? Is that based on just the fact that COPS was so easy, given the past couple of years post-pandemic, or are you having, you know, conversations with customers that have been very promising that do suggest some of the deliveries happening in the back half of the country? From that standpoint, we are seeing a pickup in general quoting activity from the parcel customers over the last couple months.
Speaker Change: Are you still looking at a potentially better second half year.
Speaker Change: Could you just share with us some of the details.
Speaker Change: Is that based on just the fact that Congress so easy given the past couple of years post pandemic or you're having conversations.
Speaker Change: Huntington's with customers that have been very promising that do suggest a mill deliveries happening in the in the back half of the year.
Speaker Change: From that standpoint, we are seeing a pickup in general quoting activity from the parcel customers is over the last couple of months. So that's giving us an indication that the second half of the year.
John Dunn: So that's given us an indication that the second half of the year could come in much better. And the quotes include timing from the customers too, not just price. You're asking about when do you want them? They are including the timing as well.
Speaker Change: It could come in much better.
Speaker Change: And the quotes include timing from the customers to not just price.
Speaker Change: But you asked me about what you want them.
Speaker Change: They they are including the timing as well.
Mike Shlisky: Great. Outstanding.
Speaker Change: Great Outstanding I'll pass it along thank you.
Mike Shlisky: I'll pass it along. Thank you.
Speaker Change: Okay.
Speaker Change: Thank you.
Tyler DiMatteo: Your next question comes from Tyler DiMatteo from BT IG, please go ahead. Morning. Thanks for taking the question. I wanted to follow up on BlueArk here. I guess, John, do you expect the incremental orders here for the 150, do you expect that to be fully realized by 2Q? And then beyond that, I guess, how do you think about the pipeline of potential customer orders here and kind of getting incremental orders through the remainder of the year? So we will finish up, thanks Tyler for the question, we will finish up in Q2 that 150 unit order for FedEx, I'm going to wrap that up.
Speaker Change: Your next question comes from Tyler Dimatteo from B T. I G. Please go ahead.
Tyler DiMatteo: Good morning, Thanks for taking the question I wanted to follow up on Blue Arc here I guess John D. Do you expect the incremental orders here do you have for the $1 50, do you expect that to be fully realized by QQ and then beyond that I guess, how do you think about the pipeline of customer orders here.
Tyler DiMatteo: And kind of getting incremental orders through the remainder of the year.
Tyler DiMatteo: So we will finish all that thanks, Tyler for the question we.
Tyler DiMatteo: We will finish up in Q2 that 150 unit order for Fedex move wrap that up we have a number of.
John Dunn: We have a number of additional orders in the pipeline that we're working to close. In addition to that, we have trials with a number of key customers where they're using the vehicles, giving us some positive feedback. Often that leads into orders as well. So we're still optimistic, but cautious on additional orders.
Tyler DiMatteo: Additional orders in the pipeline that we're working to close in addition to that we have trials with a number of key customers, where they're using the vehicles, giving us some positive feedback.
Tyler DiMatteo: Often that leads into orders as well, so we're still optimistic but cautious on additional orders.
Tyler DiMatteo: Okay.
Tyler DiMatteo: Okay.
John Dunn: And then my follow-up here, I wanted to ask about maybe battery supply and kind of just get a general update in terms of how you guys are thinking about the battery supply. I know we had the agreement with Arnex Energy before, just kind of any broad updates on battery supply, how you're thinking about it, capacity, etc. We continue to be very pleased with the performance of the one battery. We're having regular meetings with their leadership to stay very close because that is the dynamic field. But right now, we're feeling very confident on the continued delivery of those batteries.
Tyler DiMatteo: And then my follow up here I wanted to ask about maybe battery supply and kind of just give us a general update in terms of how you guys are thinking about.
Tyler DiMatteo: The battery supply chain.
Tyler DiMatteo: Our next Saturday before I'm, just kind of any broad update on battery supply, how you're thinking about it capacity et.
Tyler DiMatteo: Et cetera.
Tyler DiMatteo: We continue to be very pleased with the performance of the one battery, we're having regular meetings with their leadership to stay very close because that is the dynamic field, but right now we're feeling very confident on the continued delivery of those batteries. So we don't foresee an issue there and again the performance is meeting.
John Dunn: So we don't foresee an issue there. And again, the performance is meeting all expectations. We're not having issues in the field.
Tyler DiMatteo: All expectations, we're not having issues in the field.
Tyler DiMatteo: Okay. Got it. Sounds good. Thank you guys. I appreciate it.
Speaker Change: Okay got it sounds good. Thank you guys I appreciate it I'll turn it back to the queue.
Tyler DiMatteo: I'll turn it back to the queue. Thank you.
Tyler DiMatteo: Thank you.
Speaker Change: Thank you.
Randy Wilson: This concludes our question and answer session. I would like to turn the conference back over to Randy Wilson for closing remarks. Thank you, Operator. I'd like to thank everyone for joining today's call and your interest in the Shyft Group, and as always, please reach out to me if you have any follow-up questions.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Randy Wilson for closing remarks.
Randy Wilson: Thank you operator, I'd like to thank everyone for joining today's call and your interest in the ship group and as always please reach out to me. If you have any follow up questions with that operator. Please disconnect the call.
Operator: With that, Operator, please disconnect the call. Thank you.
Speaker Change: Thank you.
Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. © BF-WATCH TV 2021
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: [music].