The Shyft Group Optimistic After Q2, Eyes Future Development By Investing.com

The Shyft Group (NASDAQ: SHYF) has reported a productive second quarter in 2024, with notable strategic developments and monetary enhancements. CEO John Dunn introduced throughout the earnings name that the corporate achieved $12.5 million in adjusted EBITDA and is transferring ahead with optimistic prospects. The current acquisition of Impartial Truck Upfitters (ITU) is predicted to bolster gross sales by roughly $25 million and contribute $3-4 million to adjusted EBITDA from August to December 2024. Moreover, the corporate has secured a major order from FedEx (NYSE:) for 150 Blue Arc electrical vans and anticipates a fleet automobile market restoration in 2025, which is projected to boost monetary efficiency.

Key Takeaways

• The Shyft Group studies $12.5 million in adjusted EBITDA for Q2 2024.
• An order for 150 Blue Arc electrical vans from FedEx highlights market confidence.
• The acquisition of ITU is poised to contribute considerably to gross sales and EBITDA.
• The Shyft Group is optimistic about its 2024 revenue outlook and expects additional enchancment in 2025.
• The corporate goals for the Blue Arc enterprise to achieve breakeven by the tip of 2025.

Firm Outlook

• The Shyft Group is enthusiastic in regards to the integration of ITU and the industrial alternatives it presents.
• They foresee the Blue Arc electrical truck transferring into manufacturing with deliveries anticipated later within the 12 months.
• A restoration within the fleet automobile market is anticipated in 2025, which ought to positively impression monetary efficiency.
• The corporate stays centered on effectivity and margin safety, particularly throughout the motorhome enterprise.

Bearish Highlights

• There have been no particular bearish highlights talked about within the earnings name abstract offered.

Bullish Highlights

• The Shyft Group’s strategic acquisition of ITU is predicted to increase product choices and geographic presence.
• The order from FedEx for Blue Arc vans signifies sturdy market demand and confidence within the firm’s new product line.
• The corporate is assured in its potential to realize breakeven within the Blue Arc enterprise by the tip of 2025.

Misses

• The abstract didn’t present any particular data concerning misses or shortfalls within the firm’s efficiency or expectations.

Q&A Highlights

• Through the Q&A, the rationale behind the ITU acquisition was mentioned, emphasizing cross-selling and product enlargement alternatives.
• ITU’s experience in specialty automobiles will improve The Shyft Group’s product portfolio.
• The corporate plans to maximise effectivity by leveraging present services and sharing assets throughout its totally different crops.

In conclusion, The Shyft Group’s second quarter of 2024 has proven vital promise, with strategic strikes such because the ITU acquisition and the FedEx order for Blue Arc vans positioning the corporate for future progress. The administration workforce stays optimistic in regards to the firm’s revenue outlook and its potential to navigate the evolving market panorama within the coming years. Buyers and events can count on additional updates on the corporate’s progress by means of the Shyft IR web site.

InvestingPro Insights

The Shyft Group (NASDAQ: SHYF) has demonstrated a sturdy second quarter in 2024, with strategic initiatives poised to drive future progress. A more in-depth have a look at the corporate’s monetary well being and market efficiency by means of InvestingPro’s lens presents further insights:

InvestingPro Knowledge highlights a market capitalization of $466.11M, underlining the corporate’s average dimension within the business. Regardless of a difficult income trajectory with a lower of twenty-two.29% over the past twelve months as of Q1 2024, SHYF has maintained a gross revenue margin of 17.12%, indicating some resilience in its profitability.

An InvestingPro Tip factors to the corporate’s excessive earnings a number of, with a P/E ratio of 4560, suggesting that the market has excessive expectations for the corporate’s future earnings progress. Moreover, the inventory’s volatility is notable, which can appeal to traders on the lookout for dynamic buying and selling alternatives.

Furthermore, the corporate’s constant dividend funds for 37 consecutive years present a sign of stability and a dedication to shareholder returns, an element notably interesting to income-focused traders.

For these contemplating a deeper dive into SHYF’s financials and market prospects, InvestingPro presents further suggestions and metrics that may additional inform funding selections. There are 8 extra InvestingPro Suggestions accessible for SHYF, which may be accessed at https://www.investing.com/professional/SHYF. For these , use the coupon code PRONEWS24 to stand up to 10% off a yearly Professional and a yearly or biyearly Professional+ subscription, providing an array of analytical instruments and real-time knowledge to navigate the markets successfully.

Full transcript – Spartan Motors (NASDAQ:) Q2 2024:

Operator: Good morning, and welcome to The Shyft Group’s Second Quarter 2024 Convention Name and Webcast. All contributors might be in a listen-only mode till the question-and-answer session of the convention name. As a reminder, this name is being recorded. And I’d now wish to introduce Randy Wilson, Vice President of Investor Relations and Treasury for The Shyft Group. Please go forward.

Randy Wilson: Good morning, and thanks for becoming a member of us. At this time, you’ll hear from John Dunn, President and Chief Govt Officer; and Jon Douyard, Chief Monetary Officer. Their ready remarks might be adopted by a question-and-answer session. Earlier than we start, please flip to Slide 2 of the presentation for our secure harbor assertion. At this time’s convention name accommodates forward-looking statements, that are topic to dangers that would trigger precise outcomes to be materially totally different from these expressed or implied. Major dangers that administration believes may materially have an effect on our outcomes are recognized in our Varieties 10-Okay and 10-Q filed with the SEC. We might be discussing non-GAAP data and efficiency measures, which we consider are helpful in evaluating the corporate’s working efficiency. Reconciliations for these non-GAAP measures may be discovered within the convention name supplies. We are going to start with a enterprise overview from our CEO, John Dunn, adopted by Jon Douyard’s assessment of second quarter efficiency and our 2024 outlook. We are going to then open the road for Q&A. Please flip to Slide 3, and I will flip it over to John Dunn, who will start as we speak’s ready remarks.

John Dunn: Thanks, Randy, and good morning. I want to welcome everybody as we focus on our second quarter efficiency, in addition to the thrilling strategic announcement we made this morning concerning the acquisition of Impartial Truck Upfitters, a novel enterprise that aligns properly with our progress technique. For the quarter, we had been happy with our efficiency given the surroundings, as we noticed advantages from our give attention to operational effectivity. General, we delivered $12.5 million of adjusted EBITDA with vital enchancment in our FVS enterprise with margin rising to excessive single-digits within the quarter. We’ve got made organizational modifications on the company workplace, in addition to within the companies, as we continued to drive effectivity throughout the corporate. We introduced earlier within the quarter an order from FedEx, a long-time companion for 150 Blue Arc vans. The Blue Arc workforce additionally achieved key venture milestones as we transition to manufacturing and we’ll ship vans to prospects by the tip of the 12 months. General, I wish to emphasize that Shyft workforce members are appearing with urgency to drive improved outcomes with give attention to industrial exercise, profitability, and money move. Please flip to Slide 4, and I’ll increase on our progress. Again in February, I launched an working framework to drive sustainable monetary progress. This framework is anchored by the next pillars: excessive performing groups, operational excellence, buyer centricity, and monetary progress. We proceed to make progress throughout all pillars. We noticed operational advantages in each margin efficiency and the standard scoring that now we have just lately acquired from our prospects, which place us properly for extra enterprise sooner or later. We’ve got additionally elevated buyer engagement. Once I meet with prospects, I persistently hear that they respect our partnership and are supportive of exploring further alternatives the place we will present worth and in the end develop Shyft’s share of the enterprise. With that stated, as we speak I wish to go into extra element and share current progress on the workforce and progress actions. General, our excessive performing groups are collaborating, holding one another accountable, and dealing effectively to ship for our prospects. Within the quarter, we had been proud to launch our security initiative Mission Zero. Workforce member security shouldn’t be new right here at Shyft, however now we have made nice strides over the previous couple of years. A secure work surroundings is prime to make sure that we’re a terrific place to work. Our security mission is easy, zero incidents, zero accidents, each job, day-after-day. As well as, now we have made nice strides in streamlining our management construction, empowering our groups and recruiting prime expertise. We consolidated management roles on the company workplace and within the FVS and SV companies, whereas additionally flexing our operations to mirror the present surroundings. We are going to proceed to give attention to effectivity and suppleness in these areas transferring ahead. Turning to monetary progress, I am thrilled to debate the acquisition of Impartial Truck Upfitters, or ITU, which we introduced this morning and can considerably improve our service physique upfits capabilities. We’ve got persistently mentioned how properly our specialty automobiles service physique enterprise has carried out as we executed our technique to grow to be a nationwide market chief. This acquisition carefully aligns with that technique, and I’ll present further particulars on strategic match and the transaction on Slide 5. With the ITU acquisition, Shyft provides 3 places, a robust administration workforce, and it enhances our upfitting capabilities as they concentrate on bigger automobiles and extra advanced service physique updating than Shyft has traditionally. The acquisition gives distinctive cross promoting alternatives for us, the place we will promote our Royal, DuraMag, and Utilimaster merchandise by means of ITU, whereas additionally leveraging their upfitting capabilities and industrial relationships throughout Shyft. General, the mixture of Shyft and ITU is highly effective and properly aligned strategically. From a monetary perspective, we view this as a pretty mixture assembly key return thresholds, whereas sustaining steadiness sheet flexibility as we transfer ahead. We’re assured this transaction is a superb strategic and monetary alternative for Shyft, one which we consider will drive worth creation as we proceed to develop our infrastructure associated enterprise. We look ahead to working with the ITU workforce to combine the enterprise and ship vital advantages for purchasers, workforce members, and shareholders. Now, let’s flip to Slide 6 and I’ll present an replace across the standing of the Blue Arc program. We’ve got made nice progress since launching Blue Arc again in 2021, and I am completely satisfied to say, sitting right here as we speak, we’re in an inflection level in this system. We’re on the cusp of beginning industrial automobile manufacturing and our focus is making certain that we solely put prime quality automobiles on the street. As we ramp, now we have rigorous processes to assist a well-disciplined automobile launch. As we method the supply of our first automobiles, we’re seeing elevated buyer curiosity. We’re excited to announce the FedEx order earlier within the quarter and we respect their partnership by means of the event course of. We’ve got just lately accomplished further demos, offering finish customers the chance to expertise the efficiency and high quality of the Blue Arc automobile. Buyer suggestions continues to present us confidence that now we have the proper automobile for the market’s wants. Turning to product improvement, testing and validation of the automobile is now efficiently accomplished. We just lately celebrated the primary manufacturing pilot automobile constructed on our Charlotte, Michigan manufacturing line, a key milestone that validated our manufacturing and high quality processes. We’re happy to report that the battery efficiency from our provider continues to carry out at our expectations. General, we’re assured automobile deliveries will start later this 12 months with a ramp up in 2025. I’m happy by the unbelievable progress our workforce has made and I look ahead to offering additional updates within the coming months. I’ll now flip it over to Jon for an in depth assessment of our monetary outcomes and 2024 outlook.

Jon Douyard: Thanks, John. Please flip to Slide 8. General, our workforce delivered monetary outcomes above our expectations as we stay centered on driving effectivity throughout the group. Gross sales for the second quarter had been $192.8 million down 14% from $225.1 million within the prior 12 months quarter. Web revenue was $2.2 million or $0.06 per share in comparison with web revenue of $4.7 million or $0.13 per share within the earlier 12 months. Within the second quarter, adjusted EBITDA was $12.5 million or 6.5% of gross sales, down from $15.9 million or 7% of gross sales within the second quarter of 2023. These outcomes embody EV program spend of $5.9 million down from $7.4 million within the prior 12 months. Excluding these bills, adjusted EBITDA was 9.5% of gross sales. Adjusted web revenue for the quarter was $5.3 million whereas adjusted EPS was $0.16 per share. Please flip to Slide 9, and I will present an replace on our phase efficiency. Within the second quarter, FVS achieved gross sales of $109.8 million down 21% from a 12 months in the past. Adjusted EBITDA for the quarter was $8.4 million versus $12.5 million a 12 months in the past, primarily pushed by decrease quantity. Adjusted EBITDA margin was 7.6% of gross sales in comparison with 9% within the second quarter final 12 months. Sequentially, the FVS workforce made vital progress with EBITDA margins up 670 foundation factors versus the primary quarter, pushed by operational enhancements. Quarter finish backlog for FVS was $295 million down 9% versus the tip of the 12 months. Whereas order exercise was mushy and the parcel market has not but recovered, now we have seen optimistic indicators. These embody current studies on year-over-year will increase in package deal quantity at a big parcel buyer, in addition to indications that stroll in band vendor stock ranges have declined and are trending in direction of more healthy ranges. Turning to SV, the enterprise delivered one other stable quarter with sturdy margin efficiency. Gross sales of $82.9 had been down 5% in comparison with final 12 months with power in our vocational service physique companies, partially offsetting motorhome softness. Adjusted EBITDA was $17.5 million or 21.2% of gross sales, in comparison with $17.4 million or 19.8% of gross sales in the identical interval final 12 months. SV backlog of $59.9 million was down 29% versus the tip of 2023, attributable to decrease motorhome demand. Please flip to Slide 10 for a dialogue on our full 12 months outlook. We’re rising our 2024 revenue outlook to the upper finish of our beforehand said vary. Up to date adjusted EBITDA is now anticipated to be within the vary of $45 million to $50 million on gross sales of $800 million to $850 million supported by improved first half revenue conversion, the ITU acquisition offsetting ongoing finish market softness. On the midpoint of our present adjusted EBITDA outlook, we’ll ship progress of 19% versus prior 12 months. General, we count on the acquisition of ITU to contribute roughly $25 million of gross sales and roughly $3 million to $4 million of adjusted EBITDA the interval of August by means of December 2024, and have included this impression in our present outlook. The ITU impression on EPS is predicted to be minimal this 12 months. We stay on-track to ship our free money move outlook of $25 million to $35 million and count on sequential enchancment within the second half. In closing, our workforce stays centered on delivering our monetary commitments for the 12 months, investing in progress, and sustaining our monetary power as we acquire momentum heading into 2025. With that, I’ll flip it again over to John Dunn.

John Dunn: Thanks, Jon. Turning to Slide 11. In abstract, we delivered improved second outcomes because the workforce focuses on our working framework. We elevated our 2024 revenue outlook and are positioned for improved monetary efficiency heading into subsequent 12 months. The workforce is keen to welcome ITU to the Shyft Group household and rapidly drive worth as we combine the enterprise. Our Blue Arc truck is transferring into manufacturing and buyer momentum continues to construct. General, it’s a very thrilling time for our firm and I am assured that the Shyft workforce is taking the proper steps to drive long run progress and improve shareholder worth. We at the moment are able to take your questions. Operator, please open the road.

Operator: [Operator Instructions] Our first query comes from Matt Koranda of ROTH Capital.

Q – Matt Koranda: Beginning the couple of the ITU acquisition little extra element, simply by way of the EBITDA a number of you talked about is 6x, put up synergies and tax advantages. Simply any approach you’ll be able to assist us quantify the synergies that you simply count on from the acquisition, how lengthy these take to exit and get, after which the tax advantages, embedded within the, the language there?

Jon Douyard: Yeah, I feel, Matt, whenever you have a look at it, what we famous within the presentation was gross sales of $55 million with roughly low double-digit margins for 2023. We do count on some progress out of the enterprise in 2024. And whenever you have a look at it on a full 12 months run charge as we transfer ahead and full 12 months 2025, we might count on someplace within the neighborhood of $10 million of adjusted EBITDA popping out of the enterprise. That does embody the impression of some synergies, however and we really feel like we will understand these comparatively rapidly. I feel the corporate has a implausible footprint, has implausible manufacturers and attain from a industrial perspective. And we really feel that John talked about in his feedback, our potential to place Royal, DuraMag, Utilimaster our bodies by means of their places and thru their prospects is fairly excessive. And so, we expect we will execute these fairly rapidly. I feel from a price perspective, this actually the price synergies we’re anticipating out of this transaction are actually extra on the procurement facet of issues. It could take a little bit bit extra time to develop, however I feel we’re extra excited in regards to the industrial alternatives this brings us. And so hopefully that provides perspective you want.

Q – Matt Koranda: After which possibly simply shifting over to the fleet automobile facet of issues, you talked about within the ready remarks that clearly we’re doubtlessly getting some package deal quantity progress at a bigger parcel buyer. We have stroll in then stock ranges at sellers that possibly at more healthy ranges. Possibly simply in case you may possibly take these 2 knowledge factors and draw for us form of an image of what does that imply by way of the timing of order move and once we see that decide up on the fleet automobile facet? Might that occur this 12 months? Is it nonetheless seemingly that it is in all probability extra of a 2025 occasion? We simply wished to listen to your newest considering round form of order move within the fleet automobile facet of issues?

Jon Douyard: Sure, I feel as we have a look at it from a industrial perspective, our workforce is extremely lively. John has even spent the final couple of weeks on the market with prospects actually participating and driving quantity. I feel as you have a look at total parcel market restoration, we beforehand indicated that it may very well be second half of this 12 months. It feels prefer it’s extra early 2025 at this level. I feel from our perspective, it is all the time been about how will we ship on the EBITDA dedication for us in 2024 whereas positioning the corporate for ’25 and so our groups are extremely lively, on the lookout for new alternatives to drive quantity, however seemingly not restoration until 2025. And I feel whenever you have a look at that total from a 24% to 25% perspective, there are a few catalysts that now we have inside the corporate which can be actual, proper? We have the acquisition of ITU being incremental year-over-year. We have Blue Arc transitioning into manufacturing. We’d count on to see some materials revenue advantages from that. After which on prime of that, you’ve got acquired anticipated finish market restoration on the parcel facet of the enterprise. And so, as we transition execute 2024, however actually give attention to positioning us for progress in 2025 and past.

Q – Matt Koranda: Okay, honest sufficient. I will simply ask yet one more after which I will go away it to others. On the Blue Arc facet of issues, so now we have the 150 unit order with FedEx. Possibly simply the most recent expectation setting for us on the ramp up in manufacturing there? And I observed you had the pilot items undergo. Possibly when ought to we count on unit deliveries? I’d assume it is later this calendar 12 months. As soon as FedEx has these items in fleets, I assume, is there a approach to consider timing of any comply with on orders? Curious to get your perspective on that. After which what does this all imply for, I assume, improvement prices and the price of this system as we head into ’25? I’d assume these prices drop a bit from the ’20 to ’25 that you have guided for this 12 months. Any perspective on that will be useful.

Jon Douyard: To start out off with, simply wish to reaffirm that we’ll be transport manufacturing items this 12 months. We’re ramping up manufacturing proper now as we go into the tip of the 12 months. So we may have bought items on the market and we see that persevering with to progress into 2025. You talked about FedEx. We clearly have a pleasant order from FedEx. We’re very excited in regards to the curiosity from different prospects as properly. And so we’re not able to announce these but, however we’re seeing sturdy total buyer curiosity within the automobile. And as we get automobiles on the street, that curiosity will proceed to develop. We actually assume now we have the proper product. Thus far all of our demos are coming again with actually optimistic suggestions that that is the automobile they have been on the lookout for. We’re centered on Class IV. So from a improvement spending, we’re being very constrained in that space. As we undergo 2025, we’re striving to get near a breakeven enterprise by the tip of the 12 months.

John Dunn: And I feel simply so as to add to that, Matt, I feel the preliminary orders might be or preliminary deliveries would be the FedEx order in addition to the random Marion order that we beforehand introduced as properly. However I feel whenever you have a look at this from a monetary perspective, you famous the $20 million, $25 million, we’re striving for that to be nearer to breakeven subsequent 12 months. Can we get all the way in which there? I feel we’ll see how that performs out, however the workforce’s carried out a pleasant job being environment friendly on this. And so we do not want a major quantity ramp to offset the working prices of the enterprise and may get nearer to breakeven with even name it lower than 500 items. And so I feel a optimistic for us as properly. While you have a look at these automobiles, we’re not out right here attempting to be loss leaders. We’re gross margin optimistic variable gross margin optimistic automobiles right here proper out of the gates, which once more helps fund a few of that underlying working prices and will get us nearer to that breakeven quantity.

Operator: The following query comes from Mike Shlisky of D. A. Davidson.

Q – Mike Shlisky: Sure. Hello, good morning and thanks for taking my questions. First, I wish to begin off with a fast ITU query. As you start-off with the corporate right here this month and subsequent month, are there any type of one-time prices, are they associated to bringing your different manufacturers to their places or every other one-times we must be considering of which may happen within the third quarter numbers?

Jon Douyard: No, I feel within the — we talked about $3 million to $4 million for the steadiness of the 12 months. I feel as you have a look at it, there might be some preliminary integration prices, however I would not view that as overly materials. So it may not be a clean run charge for the second half however I feel there’s nothing that is vital there. I imply, these are standalone working firms as we speak. We’re seeking to leverage the potential of their enterprise and their workforce, and we’re anticipating to try this fairly early and it is actually how will we form of get in and form of speed up worth from a shift perspective on getting our merchandise by means of their channels.

Q – Mike Shlisky: Bought it. You are trying on the merchandise that you simply put on the market. Do you anticipate that ITU will open up the doorways to some newer totally different chassis suppliers, like for instance within the Class 7, 8 dimension vary or is it nonetheless the identical people both working with all alongside?

John Dunn: Sure, I do not know if we might stand up into form of a Class 8, however they do bigger automobiles. I imply in case you have a look at what we’re doing as we speak, we’re in form of the Tremendous Responsibility vary. I feel as you have a look at the place ITU is, they’re up in a a lot bigger truck dimension and in order that does open some capability there. And I feel not solely us leveraging — us with the ability to form of promote into their buyer base, I feel their capabilities by way of customization design working with the suppliers is issues that we will leverage throughout the corporate as properly at our totally different places and in order that’s the place we’re fairly enthusiastic about this transaction.

Q – Mike Shlisky: Bought it. If we simply flip to the motorhome enterprise briefly right here. That is been we’re guiding to be about 12-months of a really powerful business 12 months. Are you able to give us a way as to whenever you really feel which may lap in your numbers and begin turning to some progress from right here?

John Dunn: Sure, I feel equally it is in all probability out in 2025. At this level, I imply, we did have a really sturdy first quarter that confirmed progress. I feel on the time we pointed to that as possibly a little bit of an anomaly. I feel the second quarter was mushy, second half of the 12 months might be mushy. Our SV backlog, you’ll be able to see is down versus the tip of the 12 months and that is primarily all motorhome and so we’re not anticipating that to get well right here as we get into the second half of the 12 months. It is one other space the place now we have been centered on effectivity and defending margins in that enterprise and getting ready for that restoration, however it’s seemingly out in 2025.

Operator: The following query comes from Tyler DiMatteo of BTIG.

Tyler DiMatteo: Hey, guys. Good morning. Thanks for taking the query right here. Jona, I wished to return again to a few of your feedback, I consider it was within the ready remarks associated to the product portfolio of impartial outfitters right here and the way you stated a few of it’s a little bit extra advanced. I imply, is it honest to imagine that within the close to time period that is type of the way you’re viewing it by way of bolstering your present product portfolio after which down the road to your level, type of transferring your personal merchandise by means of their channels. Are you able to simply type of assist me perceive a little bit bit extra across the rationale by way of what’s complementary versus the cross-selling parts that you simply additionally alluded to there?

Jon Douyard: We initially highlighted as properly that DuraMag Royal service physique goes by means of their services and Utilimaster as properly. So we see there’s a variety of cross-selling that’s going to happen and may. It must be fairly fast to have the ability to ramp that up. However ITU additionally brings is simply experience in among the totally different specialty automobiles that we simply have not spent a variety of time in. So in case you have a look at their web site, you will see the cranes, the oil vans, simply variations that we’ve not carried out and we expect that is going to be very additive to our portfolio.

John Dunn: I feel whenever you have a look at it, Tyler, I feel our technique has been on increasing geographies in addition to increasing product choices. And so we have further places, it provides us entry to further chassis swimming pools and ship by means of places and it provides us that product enlargement as properly. I imply, we’re doing crane mounts as we speak, however they’re doing crane mounts on a a lot bigger automobile for instance, which given form of progress in underlying infrastructure in these areas, there’s a want for all automobile class sizes and so we get we’re enthusiastic about what the corporate can carry to us.

Tyler DiMatteo: Okay, nice. Sure, that is sensible. After which my follow-up right here is, I wished to type of speak a little bit bit about that actual level on the nationwide footprint. I do know we have talked about this previously and the way we’re seeking to increase that. I assume, can we speak a little bit bit extra about what this might imply from increasing into the Midwest and the way we’re seeking to increase nationally and simply the totally different geographic areas? I do know now we have the three services. Can we transcend that? I imply, what wouldn’t it take to transcend that? It looks as if we’re centered on the three for now. Simply every other coloration there on type of the geographic element of this?

Jon Douyard: Sure. I assume I will return to additionally consult with what we have carried out in Nashville, as we have type of gone nationwide and that was our first step. This simply continues on that journey, provides us 3 extra places to proceed to increase our total portfolio. They’re Midwest positioned, so it simply strengthens our presence within the Midwest, which is unquestionably a optimistic the place we see there’s a variety of industrial exercise. And we’ll proceed to leverage all of our merchandise inside our totally different crops. So we’re higher using our footprint the place they don’t seem to be simply devoted for 1 enterprise unit or model, we’re sharing these crops going ahead.

Tyler DiMatteo: Okay, nice. That makes full sense. Thanks guys. Actually respect the time right here. I will flip it again to the queue.

Operator: This concludes our question-and-answer session. I would like to show the decision again over to Mr. Randy Wilson for any closing remarks.

Randy Wilson: Thanks, operator. I would wish to thank everybody for becoming a member of as we speak’s name. The Shyft administration workforce seems to be ahead to connecting with the funding group over the approaching months, and we’ll replace you thru the Shyft IR web site of our convention attendance. Thanks to your curiosity within the Shyft Group. And as all the time, please attain out you probably have any follow-up questions. With that, operator, please disconnect the decision.

Operator: The convention is now concluded. Thanks for attending as we speak’s presentation. Chances are you’ll now disconnect.

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