The Shyft Group, Inc. (NASDAQ:SHYF) Q3 2024 Earnings Conference Call October 24, 2024 8:30 AM ET

Company Participants

Randy Wilson - Vice President, Investor Relations & Treasury
John Dunn - President & Chief Executive Officer
Jon Douyard - Chief Financial Officer

Conference Call Participants

Matt Koranda - ROTH Capital
Mike Shlisky - D. A. Davidson
Gregory Lewis - BTIG

Operator

Good morning, and welcome to The Shyft Group's Third Quarter 2024 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.

I would like now to introduce Randy Wilson, Vice President of Investor Relations and Treasury for The Shyft Group. 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 Jon Douyard, Chief Financial Officer. Their prepared remarks will be followed by a question-and-answer session. Before we begin, please turn to slide two of the presentation for our safe harbor statement.

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. Primary risks that management believes could 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 the 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 our CEO John Dunn, followed by Jon Douyard’s review of third quarter performance and our 2024 outlook. We will then open the line for Q&A.

Please turn to Slide three and I'll turn it over to John Dunn who will begin today's prepared remarks.

John Dunn

Thank you, Randy and good morning. Welcome to our earnings call and we appreciate your interest in The Shyft Group. We are pleased with our third quarter performance and encouraged by our margin improvements as we continue to drive operational efficiency and flexibility. I would like to recognize The Shyft Team for their commitment and dedication to delivering improved results.

Overall, we've increased adjusted EBITDA by 31% versus the prior year and achieved 10.5% adjusted EBITDA excluding EV spending. Additionally, despite a soft market, our fleet vehicles and services business has expanded margins to 9.3% of sales, demonstrating consistent sequential improvement since the start of the year.