Shyft Group Inc (SHYF) 2023 Q3 法說會逐字稿

Good morning and welcome to the Shyft Group's third-quarter 2023 conference call and webcast. (Operator Instructions) As a reminder, this call is being recorded.

早安，歡迎參加 Shyft 集團 2023 年第三季電話會議和網路廣播。 （操作員說明）謹此提醒，此通話正在錄音。

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

現在我想介紹 The Shyft Group 投資者關係和財務部副總裁蘭迪威爾遜 (Randy Wilson)。威爾遜先生，您可以繼續了。

Thank you for joining this morning's call. As you may have already seen this morning, we issued a press release announcing the appointment of John Dunn as the Shyft Group's next President and Chief Executive Officer. He will succeed Daryl Adams effective today as part of our previously announced leadership transition plan. On today's call, I'm joined by Daryl Adams, Outgoing President and Chief Executive Officer; John Dunn; and Jon Douyard, Chief Financial Officer.

感謝您參加今天早上的電話會議。正如您今天早上可能已經看到的那樣，我們發布了一份新聞稿，宣布任命 John Dunn 為 Shyft 集團的下一任總裁兼執行長。作為我們先前宣布的領導層過渡計劃的一部分，他將從今天起接替達裡爾·亞當斯（Daryl Adams）。即將離任的總裁兼執行長達裡爾亞當斯 (Daryl Adams) 也參加了今天的電話會議。約翰‧鄧恩；喬恩‧杜亞德 (Jon Douyard)，財務長。

Before we begin, please turn to slide 2 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 risk that management believes to 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.

在我們開始之前，請參閱簡報的投影片 2，以了解我們的安全港聲明。今天的電話會議包含前瞻性陳述，這些陳述存在可能導致實際結果與明示或暗示的結果有重大差異的風險。管理層認為對我們的業績產生重大影響的主要風險已在我們向 SEC 提交的 10-K 和 10-Q 表格中列出。我們將討論非公認會計原則資訊和績效衡量標準，我們認為這對於評估公司的經營績效很有用。

For today's call, we've included a presentation deck that has been filed with the SEC and is also available on our website. We will provide a business update before moving on to a more detailed review of the results and our updated 2023 outlook. We will then open the line for Q&A.

對於今天的電話會議，我們提供了一份演示文稿，該演示文稿已向 SEC 備案，也可在我們的網站上取得。在對結果和更新的 2023 年展望進行更詳細的審查之前，我們將提供業務更新。然後我們將開通問答熱線。

Please turn to slide 3, and I'll turn it over to Jon Douyard who will lead today's prepared remarks.

請翻到幻燈片 3，我將把它交給喬恩·杜亞德 (Jon Douyard)，他將主持今天準備好的發言。

Good morning, and thank you for joining us to review our third-quarter 2023 results.

早安，感謝您與我們一起回顧我們的 2023 年第三季業績。

Overall, our team delivered third-quarter performance that was in line with our expectations as our vocational- and infrastructure-related businesses continue to perform well, leading to another quarter of record profitability in specialty vehicles. We remain focused on driving operational and commercial execution, as well as generating cash flow to enable long-term investment in the company.

整體而言，我們的團隊第三季的業績符合我們的預期，因為我們的職業和基礎設施相關業務持續表現良好，導致特種車輛的獲利能力又創歷史新季紀錄。我們仍然專注於推動營運和商業執行，以及產生現金流以實現對公司的長期投資。

For the third quarter, the company delivered solid operating cash flow of $9.2 million invested in the Blue Arc electric vehicle program and repurchased $10.3 million in shares. In addition to our third-quarter financial highlights, we were pleased to release our second Annual Sustainability Report, highlighting the progress we've made on environmental, social, and governance initiatives to benefit our team members, communities, and other stakeholders. In summary, we continue to make good progress on key strategic initiatives, and we are committed to driving improved execution in a challenging macro environment.

第三季度，該公司交付了 920 萬美元的穩健營運現金流，投資 Blue Arc 電動車項目，並回購了 1,030 萬美元的股票。除了第三季的財務亮點外，我們很高興發布第二份年度永續發展報告，強調我們在環境、社會和治理舉措方面取得的進展，以使我們的團隊成員、社區和其他利益相關者受益。總而言之，我們在關鍵策略措施上持續取得良好進展，並致力於在充滿挑戰的宏觀環境中推動執行力的提升。

Turning to our market commentary on slide 4. The long-term fundamentals for our key last-mile delivery and infrastructure end markets remained strong. As we laid out in our July earnings call, the markets continue to be fluid driven by higher dealer inventory levels in both last-mile delivery and motorhome, as well as fleet strategy initiatives and mixed parcel volume reports that have limited recent order activity.

轉向我們在幻燈片 4 上的市場評論。我們關鍵的最後一哩交付和基礎設施終端市場的長期基本面仍然強勁。正如我們在 7 月的財報電話會議中所指出的那樣，由於最後一英里交付和房車經銷商庫存水平較高，以及車隊戰略舉措和混合包裹量報告限制了近期的訂單活動，市場繼續波動。

Throughout the third quarter, we were able to gain some clarity on these items including the depth of OEM chassis production cuts, but additional items including the auto workers' strike that started in September continue to drive uncertainty across the market.

在整個第三季度，我們對這些項目有了一些了解，包括 OEM 底盤減產的深度，但包括 9 月開始的汽車工人罷工在內的其他項目繼續給整個市場帶來不確定性。

Fortunately, our infrastructure-related truck businesses continue to see strong demand, and the impact of the strike on those products has been minimal to date. We continue to stay close to our customers and monitor market drivers while focusing on execution to ensure we respond appropriately, both commercially and operationally.

幸運的是，我們與基礎設施相關的卡車業務繼續看到強勁的需求，迄今為止，罷工對這些產品的影響很小。我們繼續與客戶保持密切聯繫，監控市場驅動因素，同時專注於執行，以確保我們在商業和營運方面做出適當的反應。

Turning to slide 5, I will provide an update on our Blue Arc EV program and key milestones that relate to the product, production readiness, and dealer network. On our last earnings call, we discussed the field test that was in process with the large parcel customers. We subsequently completed that test, and the feedback was overwhelmingly positive. The vehicle performance exceeded expectations and easily met the customers' daily needs, giving us confidence that our Blue Arc vehicle will meet the daily rigor demanded by our customers.

轉向投影片 5，我將提供有關 Blue Arc EV 計劃的最新資訊以及與產品、生產準備和經銷商網路相關的關鍵里程碑。在我們上次的財報電話會議上，我們討論了與大包裹客戶正在進行的現場測試。我們隨後完成了該測試，反饋非常積極。車輛性能超出預期，輕鬆滿足客戶的日常需求，讓我們相信我們的 Blue Arc 車輛能夠滿足客戶日常的嚴格要求。

From a commercial perspective, we made further progress on building out our Blue Arc dealer network by adding Rush Enterprises, the operator of the largest commercial vehicle dealer network in North America. In addition to Randy Marion, the dealer we announced in the fall of 2022, Rush expands our geographic reach and will be a fantastic representative of the Blue Arc brand.

從商業角度來看，我們透過加入北美最大商用車經銷商網路的營運商Rush Enterprises，在Blue Arc經銷商網路的建置上取得了進一步的進展。除了我們在 2022 年秋季宣布的經銷商 Randy Marion 之外，Rush 還擴大了我們的地理覆蓋範圍，並將成為 Blue Arc 品牌的出色代表。

As we communicated earlier in the quarter, we experienced an increase in quality issues related to production batteries from a key supplier. Our goal is and has always has been to provide customers high-quality products that will meet their daily needs, and unfortunately, due to these battery issues, we have had to delay customer deliveries into 2024. We continue to work with the supplier to resolve these issues. Overall, customer interest remains high, and we are incredibly excited about our Blue Arc electric vehicle program.

正如我們在本季早些時候所傳達的那樣，我們遇到了與主要供應商生產電池相關的品質問題的增加。我們的目標始終是為客戶提供滿足其日常需求的高品質產品，不幸的是，由於這些電池問題，我們不得不將客戶交付推遲到 2024 年。我們將繼續與供應商合作解決問題這些問題。總體而言，客戶的興趣仍然很高，我們對 Blue Arc 電動車計畫感到非常興奮。

Please turn to slide 7, and I'll provide an overview of our third-quarter 2023 financial results. We delivered earnings that were in line with our expectations despite facing market pressures that impacted our year-over-year sales and margin performance. Sales for the third quarter were $201.3 million down 29.6% from the year-ago quarter. Net income was $4.5 million or $0.13 per share compared to net income of $17.3 million or $0.49 per share in the previous year.

請前往投影片 7，我將概述我們 2023 年第三季的財務表現。儘管面臨影響我們同比銷售額和利潤率表現的市場壓力，但我們的獲利仍符合我們的預期。第三季銷售額為 2.013 億美元，比去年同期下降 29.6%。淨利潤為 450 萬美元，即每股 0.13 美元，而上一年的淨利潤為 1730 萬美元，即每股 0.49 美元。

Third-quarter 2023 net income includes a tax benefit of $2 million primarily driven by favorable adjustments for R&D tax credits. In the third quarter, adjusted EBITDA was $11 million or 5.5% of sales down from $27.1 million or 9.5% of sales in the third quarter of 2022. These results include EV program spend of $7.6 million consistent with the prior year.

2023 年第三季淨利包括 200 萬美元的稅收優惠，這主要是由研發稅收抵免的有利調整所推動的。第三季度，調整後EBITDA 為1,100 萬美元，佔銷售額的5.5%，低於2022 年第三季的2,710 萬美元，佔銷售額的9.5%。這些結果包括與前一年一致的760 萬美元的電動車項目支出。

Excluding these expenses, adjusted EBITDA was 9.2% of sales. Adjusted net income was $6.7 million compared to $18.6 million in the year-ago quarter while adjusted EPS decreased to $0.19 per share from $0.53 per share last year.

排除這些費用，調整後的 EBITDA 佔銷售額的 9.2%。調整後淨利為 670 萬美元，而去年同期為 1,860 萬美元，調整後每股收益從去年同期的每股 0.53 美元下降至每股 0.19 美元。

I'll now walk you through our third-quarter results by operating segment on slide 8. In the quarter, fleet vehicles and services achieved sales of $124.3 million down 32.6% compared to $184.5 million a year ago with strong truck body in aftermarket sales partially offsetting softness in walk-in van. Adjusted EBITDA for the quarter was $8 million versus $24.4 million a year ago. Adjusted EBITDA margin was 6.4% of sales compared to 13.2% in the third quarter last year.

現在，我將在幻燈片8 上按營運部門向您介紹我們的第三季度業績。本季度，車隊車輛和服務實現銷售額1.243 億美元，比去年同期的1.845 億美元下降32.6%，部分原因是售後市場銷售強勁的卡車車身抵消步入式貨車的柔軟度。本季調整後 EBITDA 為 800 萬美元，而去年同期為 2,440 萬美元。調整後 EBITDA 利潤率為銷售額的 6.4%，而去年第三季為 13.2%。

Turning to specialty vehicles, our team delivered another great quarter with record margin performance. Third-quarter sales were $76.6 million, a 26.3% decrease from $103.9 million in the prior year driven by lower motorhome market demand. Adjusted EBITDA was $16 million or 20.9% of sales compared to $15.6 million or 15% of sales in the same period last year.

談到特種車輛，我們的團隊再次實現了出色的季度業績，並創下了創紀錄的利潤率表現。由於房車市場需求下降，第三季銷售額為 7,660 萬美元，較上年同期的 1.039 億美元下降 26.3%。調整後 EBITDA 為 1,600 萬美元，佔銷售額的 20.9%，而去年同期為 1,560 萬美元，佔銷售額的 15%。

Please turn to slide 9 for our 2023 outlook. Throughout the year, we remain cautious regarding our outlook as there was uncertainty across our key markets driven by broader economic headwinds. Entering the third quarter, we expect that uncertainty to remain given overall market conditions. And in the quarter, while we saw a sequential uptick in FBS orders, we continue to experience slower demand versus historical levels. We also gained further visibility to the severity of reduced OEM chassis supply for key parcel products, and the OEM auto workers' strike began. While the strike's impact has been minimal for us to date, it has created uncertainty across the industry.

請參閱投影片 9 以了解我們的 2023 年展望。全年，我們對前景保持謹慎態度，因為更廣泛的經濟逆風驅動我們的主要市場存在不確定性。進入第三季度，鑑於整體市場狀況，我們預計不確定性仍將存在。在本季度，雖然我們看到胎牛血清訂單連續上升，但與歷史水準相比，我們的需求持續放緩。我們也進一步認識到關鍵包裹產品的 OEM 底盤供應減少的嚴重性，以及 OEM 汽車工人罷工的開始。雖然迄今為止罷工對我們的影響很小，但它給整個行業帶來了不確定性。

Given these factors, we have narrowed our 2023 outlook, notwithstanding further changes in the operating environment as follows. Sales to be in the range of $850 million to $900 million, adjusted EBITDA of $40 million to $45 million. We expect positive operating cash flow for the year and additional working capital reductions in the fourth quarter, and we continue to take additional cost actions given the current environment, and we'll manage the business aggressively as we close out the year.

考慮到這些因素，儘管經營環境發生了以下進一步變化，我們還是縮小了 2023 年的展望。銷售額將在 8.5 億美元至 9 億美元之間，調整後的 EBITDA 為 4,000 萬美元至 4,500 萬美元。我們預計今年將實現正營運現金流，並在第四季度進一步削減營運資本，鑑於當前環境，我們將繼續採取額外的成本行動，並且我們將在年底時積極管理業務。

Please turn to the capital allocation update on slide 10. Shyft's balance sheet remains a competitive advantage. In the third quarter, we generated $9.2 million in operating cash flow, reflecting significant improvement over the prior year. The company's capital structure remains strong with a net leverage ratio of approximately one turn in a $400 million revolver which provides us solid access to capital.

請參閱投影片 10 上的資本配置更新。Shyft 的資產負債表仍具有競爭優勢。第三季度，我們產生了 920 萬美元的營運現金流，比前一年有了顯著改善。該公司的資本結構仍然強勁，淨槓桿率約為 4 億美元的左輪手槍一回合，這為我們提供了可靠的資本獲取管道。

We continue to fund organic growth initiatives focused primarily on Blue Arc EV and market expansion in our SB business. We maintain a healthy M&A pipeline and remain active in cultivating opportunities to accelerate growth.

我們繼續資助主要關注 Blue Arc EV 和 SB 業務市場擴張的有機成長計劃。我們保持健康的併購管道，並持續積極培育加速成長的機會。

In the quarter, we repurchased $10.3 million of shares, as we believe the company represents an attractive value. We have now repurchased $19.1 million of shares in 2023, leaving $223 million remaining on our share repurchase authorization.

本季度，我們回購了 1,030 萬美元的股票，因為我們相信該公司具有有吸引力的價值。目前，我們已在 2023 年回購了 1,910 萬美元的股票，我們的股票回購授權還剩 2.23 億美元。

Please turn to slide 11. The Shyft Group has compelling industrial growth story with robust long-term market fundamentals. We are confident in our long-term strategy, the strength of our balance sheet, and we are focused on driving execution across the business.

請參閱投影片 11。Shyft 集團擁有引人注目的工業成長故事和強勁的長期市場基本面。我們對我們的長期策略和資產負債表的實力充滿信心，並且我們致力於推動整個業務的執行。

Before turning the call over to Daryl and John Dunn for closing remarks, on behalf of The Shyft management team and all our team members, I would like to take the opportunity to thank Daryl for his vision, leadership, and partnership during his tenure with Spartan Motors and The Shyft Group. While I was not here in 2024 when he started, I'm confident in saying that the company looks different and is much stronger today because of his leadership. He has left a great foundation for us as we move forward.

在將電話轉交給 Daryl 和 John Dunn 致閉幕詞之前，我謹代表 Shyft 管理團隊和所有團隊成員感謝 Daryl 在 Spartan 任職期間的遠見、領導力和合作關係汽車公司和 Shyft 集團。雖然 2024 年他剛入職時我並不在這兒，但我有信心地說，由於他的領導，公司今天看起來有所不同，而且變得更加強大。他為我們前進留下了良好的基礎。

With that, I will turn the call to Daryl.

這樣，我就把電話轉給達裡爾。

Thanks, Jon.

謝謝，喬恩。

Before we conclude today's call, I'd like to briefly take a moment to address the leadership news we announced this morning. Earlier this year in June, we announced a leadership transition plan in which I will step down from my role as President and CEO following the appointment of a successor. Following a comprehensive search process in which the Board considered internal and external candidates, we have announced the appointment of John Dunn as Shyft's next CEO effective today. John previously served as President of Fleet Vehicle and Services business.

在我們結束今天的電話會議之前，我想花點時間簡短地談談我們今天早上宣布的領導新聞。今年六月初，我們宣布了一項領導層過渡計劃，在任命繼任者後，我將辭去總裁兼執行長的職務。經過董事會考慮內部和外部候選人的全面搜索流程後，我們宣布任命 John Dunn 為 Shyft 的下一任首席執行官，即日生效。約翰此前曾擔任車隊車輛和服務業務總裁。

It has been a privilege for me to lead The Shyft team for the last nine years. I am proud of the incredible work our team has done to transform Shyft into an industrial leader in our attractive end markets and last-mile delivery and infrastructure. As I look ahead, I'm confident Shyft is well positioned with a growing roster of innovative brands, strong prospects, and we will work closely with John to ensure a seamless transition.

在過去的九年裡，我很榮幸能夠領導 The Shyft 團隊。我為我們的團隊所做的令人難以置信的工作感到自豪，他們將 Shyft 轉變為我們有吸引力的終端市場以及最後一英里交付和基礎設施領域的行業領導者。展望未來，我相信 Shyft 已處於有利地位，擁有越來越多的創新品牌和強大的前景，我們將與 John 密切合作，確保無縫過渡。

Given John's familiarity with the company along with his significant leadership in manufacturing, operations, and product development, we are confident John is the right person to lead Shyft through the next phase of transformation and growth. And thank you to our analysts and the investment community for your interest and support of the company. I thoroughly enjoyed spending time with all of you and getting to know you professionally and personally.

鑑於 John 對公司的熟悉以及他在製造、營運和產品開發方面的重要領導能力，我們相信 John 是領導 Shyft 進入下一階段轉型和成長的合適人選。感謝我們的分析師和投資界對公司的興趣和支持。我非常喜歡與你們所有人共度時光，並在專業和個人方面了解你們。

And I'll hand it over to John Dunn for some remarks.

我將把它交給約翰鄧恩（John Dunn）發表一些評論。

Thank you, Daryl.

謝謝你，達裡爾。

I'm honored that the Board selected me for this role. With our great products, team members, and customers, I'm excited to lead the organization in its next chapter of growth. In our fast-paced industry, I recognize the need for Shyft to continually adapt and perform. We will grow through innovation, commercial and operational excellence, product quality, and an increased customer focus. We are committed to delivering shareholder value by allocating resources and efficiently deploying capital. In early 2024, we will share more details regarding my business priorities and the company's strategic direction. Thank you.

我很榮幸董事會選擇我擔任這一職位。憑藉我們出色的產品、團隊成員和客戶，我很高興能夠領導組織進入下一個成長篇章。在我們快節奏的行業中，我認識到 Shyft 需要不斷適應和表現。我們將透過創新、卓越的商業和營運、產品品質以及更注重客戶的關注來成長。我們致力於透過配置資源和高效部署資本來創造股東價值。 2024 年初，我們將分享有關我的業務優先事項和公司策略方向的更多詳細資訊。謝謝。

And with that, operator, we are now ready for the Q&A portion of the call.

接線員，我們現在已經準備好進行電話的問答部分了。

(Operator Instructions) Matt Koranda, ROTH Capital.

（操作員指令）Matt Koranda，羅斯資本。

Hi guys, good morning and congrats to John and best of luck to Daryl. Just wanted to maybe dig into the FBS implied order flow that you reported this morning. It does look like it's ticking up for the first time in several quarters. I just wondered if you could maybe break down some of the factors that's driving demand in the quarter specifically order flow like for truck body versus walk-in van and just the mix in the current order flow that you're observing.

大家好，早安，祝賀約翰，祝達裡爾好運。只是想深入了解您今天早上報告的 FBS 隱含訂單流。看起來確實是幾個季度以來首次出現上漲。我只是想知道您是否可以分解一些推動本季需求的因素，特別是訂單流，例如卡車車身與步入式貨車以及您正在觀察的當前訂單流中的組合。

Yeah, I think we definitely saw an uptick in orders. I think, as you know, our business is historically lumpy from an orders perspective, so I wouldn't call one point a trend necessarily. But it's positive to see some progress there. We continue to see activity on the truck body side of the business as well as some of the opposite side of the business as well. I think walk-in van continues to be slow which leads to some of the production cuts that we've talked about.

是的，我認為我們確實看到訂單增加。我認為，如您所知，從訂單的角度來看，我們的業務歷來是不穩定的，所以我不一定將某一點稱為趨勢。但看到一些進展是正面的。我們繼續看到卡車車身業務以及一些相反業務方面的活動。我認為步入式貨車的運行速度仍然緩慢，這導致了我們已經討論過的一些減產。

But I think we've also taken a number of actions internally under John's leadership within the FBS business. We brought in a new sales leader here in the quarter, which you may have seen on some of our social media and continue to look at different ways to attract the market. And so I think good progress, but again we're not going to sit here and call it a trend at this point.

但我認為，在 John 的領導下，我們在 FBS 業務內部也採取了一些行動。我們在本季度引入了一位新的銷售領導者，您可能在我們的一些社交媒體上看到他，並繼續尋找不同的方式來吸引市場。因此，我認為取得了良好的進展，但我們不會坐在這裡並稱其為一種趨勢。

Okay, fair enough. And then just on Blue Arc. I mean, maybe can we cover one, I guess, are you getting any order indication -- obviously, you're indicating that the trials with customers have shown some success, but it doesn't seem like it has translated to order flow yet. What's holding it back? Is that just essentially the fact that you have the battery issue, and you won't be ramping production until 2024?

好吧，很公平。然後就在藍弧上。我的意思是，也許我們可以討論一個，我想，您是否收到任何訂單指示 - 顯然，您表明與客戶的試驗已經取得了一些成功，但似乎還沒有轉化為訂單流程。是什麼阻礙了它？這是否本質上是因為您遇到了電池問題，並且要到 2024 年才會提高產量？

And then maybe also, if you could talk about the production ramp in '24. Any additional thoughts on when we should start modeling a ramp up in production in '24 for Blue Arc? And what does that mean in the context of the multi-year targets you guys put out last year around the ride and drive event?

如果你能談談 24 年的產量成長的話，也許還有。關於我們何時應該開始為 Blue Arc 建模 24 年的產量提升還有其他想法嗎？就你們去年圍繞騎行和駕駛活動制定的多年目標而言，這意味著什麼？

Yeah. There's a lot to that question, but I mean, I think the battery issues are certainly a gating item at this point. We do talk about solid customer demand and interest. There's clearly Canadian demand. There's clearly other parcel demand that's out there that the customers have a high level of interest or the dealers, whether it's Rush or Randy Marion that we've signed up to this point, continue to react or interact with some of the local customers. And so there continues be that demand, but we obviously need to get through a battery issue before we let production go and move forward from that perspective.

是的。這個問題有很多，但我的意思是，我認為電池問題在這一點上肯定是一個門控項目。我們確實談論了可靠的客戶需求和興趣。加拿大顯然有這樣的需求。顯然還有其他包裹需求，客戶對此有很高的興趣，或者經銷商，無論是我們到目前為止已經簽約的 Rush 還是 Randy Marion，都會繼續與一些當地客戶做出反應或互動。因此，這種需求仍然存在，但我們顯然需要解決電池問題，然後才能停止生產並從這個角度向前推進。

So as we look -- when we announced the delay or the push out into 2024 in September related to that supplier issue, we didn't put a date on it because we continue to work through it, and so the team is very focused on driving closure to that. And we continue to look at other opportunities and alternatives to mitigate that risk as well.

因此，正如我們所見，當我們在 9 月宣布與該供應商問題相關的推遲或推遲到 2024 年時，我們沒有確定具體日期，因為我們仍在繼續努力解決這個問題，因此團隊非常關注推動這一目標的結束。我們也將繼續尋找其他機會和替代方案來減輕這種風險。

So I think from a long-term perspective, I guess point there is 2024, probably a little tough to model, but I wouldn't -- it's probably not early in the year at this point. But I think as you look out 2025 and beyond, we continue to make progress from a production standpoint and being able to address or react to the production curve and the demand profile.

所以我認為，從長遠的角度來看，我猜想是 2024 年，建模可能有點困難，但我不會——現在可能還不是年初。但我認為，展望 2025 年及以後，我們將繼續從生產角度取得進展，並能夠解決或應對生產曲線和需求狀況。

And so the 2025 numbers, we still feel pretty confident, and so we'll continue to provide updates to you on that. But we view this more as a short-term issue than a longer-term issue. And again, we're very confident in the product and the feedback that we've received from customers.

因此，對於 2025 年的數字，我們仍然非常有信心，因此我們將繼續向您提供相關最新資訊。但我們認為這更多的是短期問題，而不是長期問題。再說一次，我們對產品和從客戶那裡收到的回饋非常有信心。

Okay. And then just to clarify, John, maybe, is the fix to the battery issue going to be a supplier change or is it going to be a fix with the existing supplier that you currently source from?

好的。然後澄清一下，約翰，電池問題的解決方案可能是更換供應商，還是與您目前採購的現有供應商一起解決？

Well, I mean I think at the end of the day, we want to make sure that we have all options open, right? We've talked in the past about having multiple battery suppliers. We have announced ONE battery on the Class V, Our Next Energy company as our battery supplier on the Class V. And so we continue to look at options, but we're also engaged with our current supplier in trying to get resolution to the issue. And so we're certainly not myopic in how we're trying to mitigate or resolve the problem here.

好吧，我的意思是，我認為最終，我們希望確保我們擁有所有選擇，對吧？我們過去曾討論過擁有多家電池供應商。我們已經宣佈在V 級上使用ONE 電池，我們的Next Energy 公司作為我們在V 級上的電池供應商。因此，我們將繼續考慮選擇，但我們也在與我們目前的供應商合作，試圖解決這個問題。因此，我們在如何努力減輕或解決這裡的問題方面當然不是短視的。

Okay. Got it. And then just one more on Blue Arc from me and then I'll leave it to others. But the agreement that you announced with Rush, maybe just a little bit more detail on how that works. Are they going to actually be taking any units into inventory or is that essentially just they're going to sell the product for customer order flow? Maybe just some additional color on how that will function once you get production up and running.

好的。知道了。然後我再寫一篇關於 Blue Arc 的文章，然後我會把它留給其他人。但您與 Rush 宣布的協議可能只是關於其運作方式的更多細節。他們是否真的會將任何單位納入庫存，或者本質上只是他們要為客戶訂單流銷售產品？也許只是一些額外的顏色來說明一旦你開始生產並運行它將如何運作。

Yeah. I think it will be a combination of both. I think there'll be -- they've got a fantastic footprint that covers really all of the country and a great service network. So we'll have solid support from them as well from that perspective. But we would anticipate some level of stocking once we get into production. I think we've talked in the past about how we're working with both the dealers on financing arrangements and those types of things. And so we would expect it to operate in that normal commercial environment, but there's going to be opportunities where there is a one-off orders that we end up leveraging their dealership network for as well.

是的。我認為這將是兩者的結合。我認為他們的足跡遍布全國，並且擁有出色的服務網絡。因此，從這個角度來看，我們也將得到他們的堅定支持。但一旦投入生產，我們預期會有一定程度的庫存。我想我們過去已經討論過我們如何與經銷商就融資安排和此類事情進行合作。因此，我們希望它能夠在正常的商業環境中運營，但也會有機會獲得一次性訂單，我們最終也會利用他們的經銷商網路。

Okay. I appreciate it.

好的。我很感激。

Greg Lewis, BTIG.

格雷格·劉易斯，BTIG。

Daryl, thanks for everything, congrats, and maybe I'll see you on circuit. Jon, I was hoping to get some more color around the guidance change as I kind of do the implied for Q4, and it is what it is. Is there any way to parcel and realizing visibility is challenged, but is there any way to think about the high end and the low end and really is that going to be around revenues, margins, like any kind of more color as we try to nail down that Q4?

達裡爾，謝謝你所做的一切，恭喜你，也許我會在賽道上見到你。喬恩，我希望在指導變化方面獲得更多的色彩，因為我對第四季做了暗示，事實就是如此。有沒有什麼方法可以打包並實現可見性受到挑戰，但是有沒有什麼方法可以考慮高端和低端，這實際上是圍繞收入、利潤，就像我們試圖確定的任何更多顏色一樣下Q4？

Yeah, I mean I think when we came out in July, we obviously had a pretty wide range. I think as we look at the quarter, some of the dynamics that we talked about in terms of chassis supply in the overall demand environment and some of the factors including the strike which thankfully seems to have made some progress last night, but there's a lot of variables.

是的，我的意思是，我認為當我們七月推出時，我們顯然有相當廣泛的範圍。我認為，當我們審視本季時，我們在整體需求環境中談到了底盤供應方面的一些動態，以及包括罷工在內的一些因素，值得慶幸的是，昨晚似乎取得了一些進展，但還有很多變數。

So the impact as we get closer to the end of the year from a volume perspective, I think we've got pretty good visibility at this point. I mentioned in the prepared remarks that we continue to be aggressive from a cost standpoint. And so we're continuing to drive efficiency in the business while managing significantly lower volumes year-over-year. So the variability is probably more around the cost side, and we're certainly pushing from a commercial perspective as well.

因此，從數量的角度來看，隨著我們接近年底，我認為我們目前已經獲得了相當好的能見度。我在準備好的發言中提到，從成本的角度來看，我們將繼續採取激進的態度。因此，我們將繼續提高業務效率，同時管理年比大幅下降的銷售量。因此，變化可能更多地圍繞著成本方面，我們當然也在從商業角度推動。

Okay, great. And then just, I did want a little bit more color around the share repurchases, how we're thinking about that? Was that just opportunistic or is, we're here, this is something we're going to look to continue to do. And maybe it's not going to be continual given the outlook maybe for Q4, but any kind of broad thoughts about how you're thinking about the buyback here just given where the stock is?

好的，太好了。然後，我確實希望在股票回購方面有更多的色彩，我們是如何考慮的？這只是機會主義還是，我們在這裡，這是我們將繼續做的事情。考慮到第四季度的前景，也許這種情況不會持續下去，但考慮到股票的狀況，你對這裡的回購有什麼廣泛的想法嗎？

Yeah, I mean, I think, fortunately we've got flexibility from that perspective. We've got a fantastic balance sheet despite some of the challenging market environment, and so we were able to adapt and be flexible from that perspective. I think we certainly feel there's value in the stock. Today, we bought close to $20 million in shares this year. We like the long-term prospects of the company. I think as we move forward, I think, we've got a significant authorization that's out there, but we also don't want to have that be the only capital allocation that we're doing as a company.

是的，我的意思是，我認為幸運的是，從這個角度來看我們有靈活性。儘管市場環境充滿挑戰，但我們仍擁有出色的資產負債表，因此從這個角度來看，我們能夠適應並保持靈活性。我認為我們當然認為該股票有價值。今天，我們今年買了近 2,000 萬美元的股票。我們看好該公司的長期前景。我認為，隨著我們的前進，我們已經獲得了重大授權，但我們也不希望這成為我們作為一家公司所做的唯一資本配置。

I think we'd like to be able to accelerate growth and we think organic and inorganic investments here over time. And so we'll continue to balance that as we look at it. And I think in the quarter, it was an opportunity for us to repurchase shares that were above and beyond the annual dilution that we've done over the last couple of years. So good opportunity, we'll continue to look at that as a lever for us given where our balance sheet strength is.

我認為我們希望能夠加速成長，並且隨著時間的推移，我們認為這裡的有機和無機投資。因此，我們將在研究過程中繼續平衡這一點。我認為在本季度，我們有機會回購股票，回購股票的數量超出了我們過去幾年所做的年度稀釋。這是一個很好的機會，考慮到我們的資產負債表實力，我們將繼續將其視為我們的槓桿。

Mike Shlisky, D.A. Davidson.

麥克‧史利斯基 (Mike Shlisky)，D.A.戴維森。

Good morning, and thanks for taking my question. And Daryl, of course, thank you for your partnership overall these years. I really appreciate everything.

早安，感謝您提出我的問題。當然，達裡爾感謝您這些年來的合作。我真的很感激一切。

Thanks, Mike.

謝謝，麥克。

Yes. So John, you just touched on it briefly in passing in your last answer, but it does look like Ford had essentially resolved the strike overnight. I guess, do you feel materially better about your near-term prospects today compared to yesterday especially regarding the Kentucky plant that was on strike? And do you have any feel for whether (inaudible) will get better coming out of Kentucky after the strike than we have before?

是的。約翰，你在最後的回答中只是簡單地提到了這一點，但看起來福特基本上已經在一夜之間解決了罷工問題。我想，與昨天相比，您今天對近期前景的感覺是否明顯好轉，特別是對於正在罷工的肯塔基工廠？您是否認為（聽不清楚）罷工後從肯塔基州出來的情況是否會比以前更好？

Yeah, I mean, I think the impact that we have seen to date has been relatively minimal. I think as we got closer to the end of the year and into 2024 is where we really would have seen some risks, and so to the extent that the timing of this resolves itself in the next weeks or days, we certainly feel more confident as we enter 2024. There certainly maybe some risk that we took into the narrowing of the guidance at the end of the year. But we haven't really seen an impact to date or is minor anyway.

是的，我的意思是，我認為迄今為止我們所看到的影響相對較小。我認為，隨著接近年底和進入 2024 年，我們確實會看到一些風險，因此，如果這一問題的時間在未來幾週或幾天內自行解決，我們當然會更有信心，因為我們進入2024年。我們在年底縮小指導範圍肯定可能存在一些風險。但到目前為止，我們還沒有真正看到影響，或者說影響很小。

Got it. I also wanted to touch on the battery issue as well. Are there any costs that Shyft Group will have to incur that you hadn't foreseen, thanks to the issues that are going on with the supplier or the cost to fixed what's going on strictly going to be borne by that supplier.

知道了。我還想談談電池問題。由於供應商出現的問題，Shyft Group 是否需要承擔您未預見的任何成本，或者解決問題的成本將嚴格由該供應商承擔。

Yes, I think largely carried by the supplier. I mean we obviously have a bit of a distraction internally in supporting that, which is inefficiency from a cost perspective. And then as we continue to look at other avenues of potential supply, I think there could be some incremental cost from that perspective. But in terms of fixing this issue, that really lies in the supplier.

是的，我認為主要是由供應商承擔的。我的意思是，我們內部在支持這一點上顯然存在一些幹擾，從成本角度來看，這是低效率的。然後，當我們繼續尋找其他潛在供應途徑時，我認為從這個角度來看可能會產生一些增量成本。但就解決這個問題而言，這實際上取決於供應商。

One last one for me and that is the EBITDA in the SV Group was relatively flat despite, I guess, the RV business being down over the prior year. I'm just curious, is the RV business generally that challenge on EBITDA that we have a large decline and have no change and the with EBITDA? Is there anything you can do to fix that issue you're working on to get margins in the RV business to improve a bit?

對我來說最後一個，那就是 SV 集團的 EBITDA 相對持平，儘管我猜房車業務比前一年有所下降。我只是很好奇，房車業務對 EBITDA 的挑戰是否普遍存在，我們的 EBITDA 大幅下降且沒有變化，而 EBITDA 則沒有變化？您可以採取什麼措施來解決您正在解決的問題，以使房車業務的利潤率提高？

Yeah, as you look at that business, I think, with the volume declines that we've seen, you're certainly going to have some pressure just on the motorhome business in terms of margin absorption. We don't have a ton of fixed cost tied up in that business, but there's certainly still has some and so you know - I think we've structured that business appropriately for where the market is today. I think when you look at the rest of the business, it continues to perform well. We continue to drive top line. We continue to increase capacity through pretty much the same footprint.

是的，當你審視這項業務時，我認為，隨著我們所看到的銷售量下降，房車業務在利潤吸收方面肯定會面臨一些壓力。我們在該業務中沒有大量的固定成本，但肯定還有一些，所以你知道 - 我認為我們已經根據當今的市場狀況適當地構建了該業務。我認為當你看看其他業務時，它仍然表現良好。我們持續推動營收成長。我們在幾乎相同的佔地面積下繼續增加產能。

We've talked before about expansion in Nashville. These are all creating opportunities for us to gain share, and it can drive the top line, which is helping gain some leverage. But the team is also doing a fantastic job managing supply chain and managing the operations to push margins. And so we like that business. I think the service body infrastructure-related businesses that we have in that portfolio, I think, continue to perform really well. We like that space, and we'll continue to invest there.

我們之前討論過納許維爾的擴張。這些都為我們創造了獲得份額的機會，並且可以推動營收，這有助於獲得一些影響力。但該團隊在管理供應鏈和管理營運以提高利潤方面也做得非常出色。所以我們喜歡這個行業。我認為我們在該投資組合中擁有的與服務機構基礎設施相關的業務繼續表現良好。我們喜歡這個空間，我們將繼續在那裡投資。

All right. Thanks so much. I appreciate it.

好的。非常感謝。我很感激。

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

我們的問答環節到此結束。我想將會議轉回蘭迪·威爾遜致閉幕詞。

Thank you, everyone. And we look forward to hosting investors at the Baird Global Industrials Conference in Chicago and the UBS Annual Industrial Summit in Florida. We thank you for your interest in The Shyft Group. And with that operator, please disconnect the call.

謝謝大家。我們期待在芝加哥舉行的貝爾德全球工業會議和在佛羅裡達州舉行的瑞銀年度工業高峰會上接待投資者。我們感謝您對 Shyft 集團的興趣。請掛斷與該接線員的通話。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。