The Shyft Group, Inc. (SHYF) 26 Feb 222021 Q4 Earnings call transcript

Good day, and welcome to The Shyft Group's Fourth Quarter and Full Year 2021 Earnings Results Conference Call. [Operator Instructions]. This event is being recorded. At this time, I'd like to turn the conference over to Juris Pagrabs, Group Treasurer and Head of Investor Relations. Please go ahead.

good quarter and earnings and and Shyft to call. Allison, fourth Group's full you, morning, welcome everyone, the Thank year XXXX

President Officer. Joining Daryl and call the Douyard, and our Jon Financial me Officer; Chief Chief today our Executive on Adams, are

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

call. deck our our download the from the website presentation follow may Relations of the You section with to along during Investor

Before to statement. presentation we turn for our the start, X of please Slide safe harbor

Private with today's You call, outlook, XXXX. of that should regarding its statements factors be or certain our affect you results Securities aware caution All and of filed and I the be predictions could management may statements the the as are that current Litigation Group's made management's with Forms XX-Q Reform may a during Group and differ believes forward-looking could operations conference Act known include materially any number actual Shyft projection, identified that in projections Shyft projections. which considered results are from viewpoint, that under to the prediction XX-K there risks the SEC. cause materially

other we risks there However, be may cannot anticipate. that

results we the On and before overview of our moving business for the business call will of update, outlook today, trends detailed more on a provide including review an to XXXX. a

quarter as the to operations assets periods I'd associated been the We today expenses the XXXX, organizational Daryl discontinued With remind for change then segment, AR revenues to on Emergency the February discussed will the Montebello in this and will and reclassified for like his of this reporting. the that presented. to the time, also operations made beginning I'm business fourth with the with Strobes-R-Us with as change have the over in turn Q&A. for In the segments reclassification, pleased all divestiture X. as business Response results in and comments line everyone consistent segment liabilities to the the of open unless otherwise company well and SV moved its a to XXXX, continuing from Slide the refer noted. FVS At call

everyone, record but Thank Juris. year for our quarter the our you of morning, full we They've flexible, again team. Good do. results. past always challenging right to results. calls, and year joining power thank we agile, on often in is in benefits strategy you, right been of fourth us truly XXXX ways, many was be strategy in and this and The approach our highlighted has to everything Last we saw try year, these the said with and and the solution-based nimble, proactive the possible what review

focus was proactively resourcefulness the efforts for XXXX on customers. year relentless team the operational our of with of challenges team. and a entire managed many built record on incredible our financial Our through execution performance

Our us we perseverance our the what the navigated positions in against success performance and coming made years. in challenges is for industry-wide difference greater as

our products of illustrated billion. which have $X now in is as over demand continued strong our efforts rewarded by Our customer been backlog,

Turning to financial summary. Slide X for our

strong a continue Our to supply our backlogs. intake increased navigating to growth a order executing and demand challenges and growth generate team a With in labor XX% year-over-year of products, we our did record industry-leading result job on and plans to revenue $XXX tremendous see record very million.

-- was $X.XX year-over-year. per history, Adjusted $XXX EBITDA share. income share million, per the the $X.XX first a up XX% ending $XX over For million, XX% time million, from while at to EPS of record in $XXX adjusted adjusted increased company's was from

impacted $X.X and they by we in that ourselves. continue development, basis our XXXX, provide these we points to opportunities as core business investments our we turn believe positive invested us XXXX, which to see outline to Slide markets. invest We where In year. it approximately in will Please will leading for full in the imperative the business continue the throughout We margins XX continue market is to EV X, Jon later, which in plan in a update. put I'll to vehicles for a transition believe million electric position

Fleet Velocity driven our and pattern X its platform. Vehicle delivery Our growth van our parcel vehicles, Service strong our walk-in business of continues traditional by industry-leading

on where entirely debuted and in additional vans. innovation, as we will walk-in purpose-built platform 'XX of new our order approximately Also parcel a of delivery road. XXXX, You success FX Velocity solution introduced MX Velocity vehicle. units recall an X category customer-driven Class for in the the was We we secured customer X the focused created tremendous XXX saw and

manufacturer delivery excited last leading are the this by offer. unique mile potential has a vehicles, As category of we to

van now In is Utilimaster the pound the fact, walk-in building of new debuted on orders Velocity built Velocity be which chassis, Ram a month success Show XX,XXX on taking platform, Promaster GVWR RX will NTEA at next Truck the Indianapolis. and under our in on

an we units a product's recently testament the to from order customer. a X,XXX As leading for received capability parcel delivery

tested creating with Velocity vehicle body Additionally, transit gas-powered to pilot and Ford produce work all-electric that on delivery vehicles announced the Ford are F-Series our These are conveyable a fit we E vehicles X route Velocity Pro vehicle. currently chassis. the with recently Utilimaster to being

and to our motor we expect segment. experience to luxury motorhome in brand increased market our as Vehicles continues our chassis Specialty to continue To through XXXX. for consumers. demand our business, In product continued reflecting XX.X% unabated we date, for demand motorhomes, the the growth and luxury products strong for this quarter, revenue and resulted continue in demand the coach motor during for Demand to our share coach Moving quarter. strength of our among orders strong offerings

service show. and new in continues driven supply second system business, launched Tampa indications of Last our the be into seeing leveling market to share In we beginning our quarter. body by growth market. the the are Red chassis month, improved we Our introduction Diamond the component of at technologies RV

for We aid With of to in specialty continue geographically, national and strong chassis expand Magnum expansion well backlogs, in commercial-grade update X, body products. secured approach. a distribution another our On vehicle distributor a year charger positioned efforts development delivery EV are will SV. to full I we truck we the on to design products Slide you service and ecosystem of channels recently strong performance a our supporting for of portable our

a mentioned met many viable our we the looked we're As chassis one I've to EV that in find for unable and option, times past, needs.

prototype years custom delivery chassis leveraging EV development this transit, developed with we work that and all-new new I'm body delivery, mass a high of So to excited Indianapolis. for trucks, mile we our on and team incredibly vehicle body excited by In ideal vehicles the that and you schedule solution Show has experience recreational testing proof-of-concept reveal our our the made to in chassis are the vehicle original our to for of a validation new the delivery lightweight nearly new plan weeks, plan hands customers' all emerging the Truck of in our vehicles NTEA second manufacturing. to half year. in charging to other progress in has time look last-mile have and III configurability, line with XX With decided We electric own. of an I'm vehicle on at electric a build this degree our we share by vehicle. a last proprietary all-new X EV Class portable EV in and is markets. chassis purpose-built this

well a in delivery next taking begin annual up I'll the and orders to location discuss vehicles EV call per Shyft's production flexible the the Plymouth our over outlook capacity in in electric transitioning in current vehicles beginning month expect on With full to Southeast as provide XXXX XXXX Slide results to ultimately our build impacting year fourth X,XXX segment. in the facility quarter directly the financial to production launching to turn We supply detail, with year, X. that, with and more and for gap commercial Jon as

Slide up supply despite earnings continuing impacting and XXX% many availability were others. for industry a included and quarter fourth per pressures, margin the the which Overall, year and million Daryl, an continue quarter million, financial able compared broadly pleased year These turn Please to net from full operations that fourth record Revenue morning, up fourth operations our overview $X.XX as and to good to of labor in and our deliver results for quarter we you, and solid performance team's macro was $X.XX expansion I'll our Thank remain That headwinds through per everyone. that challenges a of was of share, continuing provide ago. to quarter XXXX. with $XX.X share for delivered from are year-over-year. year to per $X.X quarter. delays, report inflation we excited from record ago are the said, X, well the chassis as today. quarter a share Diluted results the in fourth $XXX.X year, a Income the dynamic we chain accelerated XX% was from million income still XXXX.

Our was fourth from for adjusted prior basis, million up year. from year. operations an compared continuing quarter gross EBITDA On XX.X% XX.X% margin quarter $XX to the for increased the last to million, $XX.X the in

$X.XX earned results income returns benefit million share. $XX.X of Adjusted income quarter. $XX.X or amending the was operations company favorably was As net compares year. to from These a or $X.XX by million a in per additional was or quarter impacted to prior for were credits. sales adjusted EBITDA per $X.XX the million. percent Fourth which of year X.X% This per $XX.X include the share, of the of tax continuing for compared quarter share tax QX sales, to X.X% fourth $X.X last by net million favorably

Fleet an in Services walk efforts of the our year. for Our now by Slide through resulted operating area segment, and this beginning tax Vehicles XX.X% I'll with XX. in full on rate results effective

year. XX.X% FVS to up due XX.X% strong year, was up fourth The quarter. remarkable a in compared a material Postal million, which in prior delivery as States ago. and $XXX.X United the $XX.X EBITDA parcel announced of vehicles XX.X% was dynamic the was and $XX QX, unfavorable business was FVS Service part well million was sales the year the Velocity another $XX.X compared business the of driven of ago. in EBITDA in primarily sequentially impressive FX million million, achieved up demand effectively million year perform managed deliveries versus by a supply environment. FVS sales, driven chain XX.X% $XXX.X for in closing in compared well revenue The was and profit adjusted growth a of year walk-in while order to increase of to strong team van. intake, The last through the by quarter costs add-on to continued market and order fourth Our and quarter year-over-year XXX% labor increase in as to demand Adjusted backlog higher margin mix.

Given look the the we Slide Vehicle length turn orders effective overview. of was as team input as proactive costs quarter. on and be higher segment well of for during portion to orders price for significant size ways the in repricing and new increasing mitigate the backlog, the continue Please XX a to prior and Specialty to

exhausting repurchased production, of generated our talked an or sales to of as to motorhome in-sourcing investment pay remain compared flexibility Isuzu. of our accordion credit period our SV initiatives higher labor delivering $XX material new and shares million Adjusted to fabrication, believe which share to conditions. compared about turn line is the feature. by of quarter, lines. inefficiencies we body our luxury allocation year, cash and growth the $XX.X initiatives. debt performance million. establishing next $XXX XXX,XXX stock as expanded truck investments by in facility. company of just to shareholders million, off for was cash for strength offset R&D debt. will return we new the our sales an from our driven end quarterly revolver they partially F-Series diligent had in was QX, we and in of Velocity and year. of the through fund a the as Class week, line take Pennsylvania We dividends and reflecting mix, the announced to Slide VII on the well a committed product for markets launched $XXX flexibility proactively providing initial our we new year year, while we up prior was for SV through operations as ample of and $XX forward. as $XX of of unfavorable $X.XX us repurchases. our which allocation flow CapEx the we new of impressive were our cash And the year, agreement million to value from up continued The Earlier facility full remain that or by $XX well million, improved provide of million EBITDA an January, year, approximately to on expandable of of strength an service and and Through At advantage enabling backlog was fourth in capital of continued sales lending million stock, costs, In As order were QX us throughout offerings in liquidity tight $XX.X management under the or hand our prior to we liquidity $X.X quarter from providing year. amendment focused pricing authorization. total increase and same last phase quarter share. we product capital overall operations, the as additional call, $XXX including authorization liquidity during XX.X% XX.X% expected versus in repurchase favorable dividend XX.X% December, most growth to million capital Sales month, projects $XXX In $XX.X Fourth X million chassis $X.X the the credit recent update circumstances million, by per delivered. Key our this We the Board working amended shareholders. million, our million moving well to on across provides of market certain fund actions. included our driven managing XX.X% announced to approved We we the XX. and invested million, company this Please liquidity doubling this to bodies

result significant would XXXX, pleased XX. Before the like incredibly that to I our close to we material remediated finance, extremely turn weakness report to fully This I that controls. highlight proud. comments strong is progress. from perspective, on the operating continue also accounting make remaining controls out reflective the an across my to to and has team and teams internal accounting organization our which Slide Please in our efforts I'm of of I'm

investment for supply constraints, our company ongoing our to the of inflation we customers' well positioned growing as underlying and chassis look in products we with we this optimistic balance availability to XXXX, to to continue. deliver As And short-term forward term, and impact are manage cost and ability feel future our about growth. our our In we short long-term the the the environment, is we demand meet to expect future look needs. in management

we the half As the evolve, while softer year first to market the expect to continue more financial conditions seeing performance impact the of in quarter. a be acute for first

environment we We the from breakeven, First EBITDA our $X.XX quarter QX optimism as be see midpoint. second billion followed at XXXX we are to billion, million date which to the as of be EV the million stronger the expect half supply chain-related $XXX in provide to $XX hearing our we we deterioration, of approximately customers. are program representing growth by guidance much made $X.XX to $XX a Notwithstanding given the stabilizing. follows: pleased revenue are have progress of to range in million, accelerated and and year-over-year expected margins acceleration the XX% on inclusive for to approximately Adjusted further development,

EPS core which per midpoint expected costs. includes million $X.XX $XX investment, $XXX is at of of million. EV EV and Adjusted per share achieve implies to $XXX share the per to XX% $X.XX a which development guidance our share, growth million for the this business, Excluding rate between

in including of start We expect XXXX. million expenditures to into $XX EV investments approximately heading year capital as in of million, million the $XX look production to $XX we

took nimble Looking to innovation to exceptional approach DNA. the the year, back to afford we the our Group, of for on success still. cannot XXXX, the is we our challenges past resiliency the of was the year that team, an and of we while industry stand enjoy expression core it address And by Shyft driven

industries financial We will performance. continue innovate another year leadership the our energized serve, across we strong and expand for to of

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

Slide you, to Jon. turn Please XX. Thank

results of amazing in the our record of efforts the long-term our team. growth reflect XXXX Our and success strategy

Our long-standing commitment excellence to is sales quality, growth. execution, order and and innovation operational generating improved

ensure customer vision. inflationary achieve Our manage will and customers proud to came new together challenges products, our and to shareholders. relationships the new for our Velocity enable including in deliver broader with our the solution strong strategic and and the 'XX the way combined exciting I'm that of supply us our chain EV we team

we success past space in in core of electric to we just also While well. the grow vehicle as year, enjoy driven the but not the business, remain our

very to investing a in products. chain growth new supply XXXX, in drive solutions evidence approach backlog of customer-centric production market and future excellence our that managing and processes flexibility Looking providing our body our our people, to our ahead by to and nimble chassis strong creative in will truck our for while customers. maintain is the technology remains and and demand products our We'll all that continue take for operational

Before quick to back I'll Jon a pass the the it announcement. call back for turning operator, to

Juris' Thanks, to me to to the great he as Shyft, well-deserved best quickly transitions Daryl. I'd He in coming team retirement at to take acknowledge and into the opportunity the leadership we here over the contributions entire like the all to and partner wish a has been past years. a and the company to Daryl him X months.

transformation through he of the a admirably. the XX-year, navigated Juris key the change his in all company, leader During was and

replacement look that, of and Operator, and Q&A certainly for ready luck, of will the shortly. his we're to the call. we announcing best With Juris now You forward missed. be Congratulations portion

Instructions]. [Operator

today first Dyer Group. come Capital Steve Our question will Craig-Hallum from with

for Steve. Ryan Juris, well. And congrats, on as

in guidance, commentary more into QX what's if going on there but did QX? you I say can detail you so, for think question, First And I some on give it? caught the it breakeven

factory that on. we're planned shutdowns Yes. terms vehicles with seeing I of volume also for perspective. would as a our and of been around examples Which Saltillo, through this, us mix they seen X.X it business, well certainly of from see to for months a retooled No, planned the Mexico Stellantis still and that couple made down in able his being piece really build flowing And have correctly. provides the QX we're as improvement as down down that what are and OEM service -- in Velocity But chassis plants, but which timing. availability unplanned biggest in March an heard limits shut to of we starting you we has of it impacting from perspective point comment Daryl that but in upfit we've to The plant into well. in our couple as body month things. the remarks, A here

there. And so challenges there's some

I from of some discrete say and has point year just down types delays can which also that to first things, being facility, One which contractors our would been and the we now operating. that permitting some will think is improve those there Pennsylvania for given we are items quarter, progresses. as the

and from some perspective, we truck of that, softer the body we so the have be will on a continue just that, backlog chassis the deliveries Also, the a to QX. record today. of And business Velocity in orders in bit see and timing

are themselves. got specific we've when backlog, to our would present and certainly ready execute teams chassis some to the there's we so point where And items

clarify, EPS And comment? EBITDA an an is just to that or

EBITDA an was comment. It

How better that Is this on probably that year. through there. next you we years? EV coming rate breakout the It's into the investment an appreciate the steady I start investments kind think revenue helpful. should upfront launch of about you leverage and over year that run is in? commercial it several Moving getting this as the million year then next to and and $XX back? it and before just the scales the volumes Or then get of

here. But that I the framework at I'll Daryl, still you the overall expectations laid we line as were. Maybe, Yes. jump we're our what think start. out, can with investment look we for in in

I some in team well time. have excitement has given investment, seen short of incredibly just an we've mentioned, as as the been that We as the of around the make accelerated period product able progress the to

to balanced in initially more the what get 'XX we in would by XXXX, So supporting really more vehicle that starting and of ready the we year end and will you see customers' at upfront have would and We between profit have the point, to which there revenue thought business. hands had the plan 'XX. be production that investment

not orders us, for following them opportunity. on customers? yet? indication in guys just taking from you one EV of the what's But kind up the wanting test early put realize to wanting hearing or Last are kind of either to yet. you not potentially from What I beta even are accepting you're but orders,

Daryl. Yes. this is Ryan, one. take I'll this

dealers that, get So any I've these dealers. number hands to are they been on And meetings of imagine, are can trying can. customer you in their as with EV a

They're out actually front They And not them I we in We in show think we've can show. of we're and going any the to orders out until we excited. Truck them we you've anything it all delivery customers. they any about taking for the not product the And it are calling us the first. from customers to putting talking hearing them when had we're parcel want seen even yet last-mile we've product. unveil it We well. get it. start weeks and our let taking. traditional have truck the before the to see NTEA asking X has get because the But seen to everybody buzz that the -- hearing the the all chassis. -- orders or So March, And to gotten excited. We at gone want to at or as from in now. early vehicle. the They're wait we're done want They're Show They've be looked out.

excitement. and show to at waves everybody of So we're lot excited a seeing weeks. with are starting to pick X we're meet in The up, the truck

I can more one quick sneak here. If in

Just from and kind that EV you for e-transits others Ford to think get work market, on them. you when comes and the do other of your impacts as chassis look Do think the side. competitive to supply you

to we -- current And II Class and that's thought Class disrupt didn't because No, we and long in the right that of the there that their relationship we any in will because about hard the of beginning, the space, Class vehicles III into went want that right, be most why at now, III we them them. had play with of none space. that's

we're a want to relationship have we say in them II the we we isolated, but So -- Class still with feel believe space. I great don't

next Felix of Raymond James. will from Our Boeschen come question today

wanted on up specifically into next I follow the EV and $XX Congratulations. to year. here million around the

that all to then I under between in, is, impression $XX think to XX-XX I sounds And guys you'll $X split million another million $XX going originally, CapEx. changed million that at number. $XX I'm the entire call and was roughly was it, it split at to in really did figure cost have trying out the million 'XX Has like of and all million. R&D you the in What project, all. $XX or be pegged

XX% to of you the alone. kind that just already $XX million gets on costs R&D So of

trying Just think kind to Jon. through of that,

Yes. Yes, framework is I I think the close. think

expense an from XX-XX to closer potentially XX-XX said standpoint. we think I

are at year. you here we of vehicle think the that, a the as end developed planning have about to So

indicated will our level standpoint, is the potentially that expectation expense an than majority had the from more so upfront be previously. we And loading that cost a of

but XXXX be guys actual producing way, put asking like vehicles? you So million the another sounds $XX lower I'm into materially as that for not 'XX, should guidance start it exact into

think you'll fair 'XX 'XX, for pick get and into And expenditures specifically up I see Class into capital I production. think the late here as III some in vehicle. that's we the to start of

better could a also the a you I And And as in back if talk point? maybe, general. in to now. buying on wanted Or pipeline little if just this earlier touch thinking the right of think bit the about Daryl, bit Curious, M&A a about share how the you that, capital is part stock, capital of guys buyback authorization. frankly, week you're at then use announcement on allocation

go Daryl, you to first? want

I'll be Yes. start been over of the with -- of think mean, think months. I returns that I number target not the couple of mean number in particularly well. -- make time, We've companies I for to last at us. going reach the a or I #X active on M&A priority the business. here same the piece to M&A as But sense to our continues we're don't for

And so in standpoint, the year. at that, we of absence end wanted debt-free as sit allocation of from a particularly we capital really some the the flexibility here,

on M&A path lot talked ourselves lot fab of I we maybe to well. see only space, a a of to as piece down as add not we active nice again, in as fab. bit continue more continue out We're that. so production about some the was but the do us benefit separate you a get M&A our out to Jon a out in-sourcing an maybe, plants, facility there's let move little some our current our In plant market. in is be was outreach. a our in invest it what fab continue And there, Felix, it'll time acquisition get to them equipment And if so to will, are have also Board we're facility and on to of if of spending the the that And supportive that would But flexibility. to well we'd like more we of looking to seeing bringing grow, of fab, as a in larger we

number can alternatives. Jon hoping we're said, as and year So we of think, close we're looking And this a one. active, at we're I

to got be it's So right…

be going where it's instead We're synergies out think it accretive negatively. to not we it the right to get of the something to make to going reach and we company of impacting

And EPS share that Is repo. for up on XXXX? any guidance embedded in Jon, of following quickly then, just the the

we Not did beyond in what January.

And then one. last just my

you in down going XH talk through if EBITDA sales year, the you curious presumably would from, kind does of about what year-over-year, on of Jon, say, breakeven that confidence Just breakeven could And be in gives assume just kind assumption ramp cadence that constraints? the the chassis XQ?

We'll likely see. -- up be in facility grow our will to see be clarity those will some body I have touched see of in Pennsylvania, in the we down some year. second But see of we'll the units the first second the and the production pricing which took quarter, with quarter think by half. at on When you offset actions I that look we we'll into was not in confidence truck laid well. on the timing. from due up to until the as of was backlog we're those shortly, a perspective. production as in OEMs here And flow really. start the timing well see Velocity, week of orders as that Stellantis which we'll chassis this -- but gives here the in how QX that Part just record us to chassis shutdown, out ramp a sitting

at certainly think profitability perspective, so look And a back-end it's you look you from year -- I at loaded. if the

it the first the it half. in to half then and second range the ramps probably in XX% XX% You're in will --

Mike from come today of D.A. Our next Davidson. question Shlisky will

particular you share give your non-parcel piece. Royal locations to the final to I'd are you And how start mile going. on Truck curious any some are stuff like besides are if that. I vehicles, if your mile of Can us that just could obviously out with be as your and Body, wanted some those standing there Magnum, non-final me sense

transitioning into it as also the our between the side some on both other we Mike, the seeing across area Nice saw plant. We're of Northeast the and the tour body. coming with and start, the geographically sales Royal at Jon Kansas product Board bodies Strobes California I area. meeting strategy, progress. product the already in the and from side. I'll there. down of the service took come down let City the mounting with product back Maybe They're a the our just From into seeing about We talk Florida landscape way And moving were country. we're that and progress, and DuraMag standpoint a mentioned, product them

dealer that Jon, is we up those the strategy look growth to seeing with our standpoint, that to continuing picked move distributor as of -- Racks -- well. lines the to get both We We're strategic across the this don't more know, country a to is forward think, Headache we I you X for working. product and in do from that about exciting. So we be, that talk performance Magnum of want the going distribution new X.

Yes.

I picking ability that think to I a moving the when from to things the well GM so expectations have here that the you the it top in the execute geographic testament incredibly acquired look our with standpoint, them. and Daryl talk think on than [indiscernible] continued that's picking businesses really faster about we strategies in our terms when line And launches. brand performed through at shift product up We've nationally. got which of value be creation of expansion, will QX, potentially

although more we I the locations, Texas in it's terms those prices customer higher well, base. I infrastructure of speak some space, down from broad. broad-based benefit pretty We think a to branches have but oil as our seen in relatively think in are it businesses

growth, we at It's seeing let nice, diversity, I more -- Mike, the when look say, FVS side, customer, food not parcel, seeing too. And and right? in which all right, right? we're have think their We some is much We're me beverage.

actually is grocery some there, and linen. have We synergy. there into laundry food some some and coming have We

as we're a expansion maybe well. of So FVS seeing broad type on nice the backlog

does across So get something strong if pretty I board. sound that the

sure. Yes, for

strength there, and to our right through. industry issues work has it just is point that the the We're supply is seen some wait. our right, strong. underlying -- We've to of they're the think want Customers now, got we willing that I chassis backlog. products

day to that want or cause global And make you the Ukraine on you sure to you can seen Eastern does come be conflict prepared work speaking any any aluminum area. a on any find Europe, a to supply, another issues issues some topic, of this, tough or touch like changes of of ways I of the quoting of with that but here? out looking might a Have of lot armed earnings commodity? kind that Are to Russia, day through on supply

the... put place FVS walk you the through strategy Daryl, want in on to has that

of mean, likely. I inflation, of see obviously, continued an we'll but a is expectation things. Talk aluminum both to this the plays couple how out, fuel I think and standpoint, from commodity

continues a we to our for able of team material, year portion job think our nice to in and significant a for do extrusion. locked being of I lock the are for volumes sheet both and

do close it. does continue remain to really dynamic And to environment so staying the teams we'll that but that, are our

Koranda Capital. Matt question will with ROTH come from Our today next

I'll to Juris well. add as congrats my

be diversity high vehicles curious, we're think order for could is range to maybe some you've a there of was running truck and just that speak is that elements flow, you next to other several of of beyond with price. of curious that sort sort body On sort this sort the to of for fleet I demand fleet order if at of flow million comfortable the $XXX up then vehicles in And do mentioned of room tick the quarters, also implied I'm you in Velocity.

prepared of couple and of some and to take the backlog. question. on and in the the impacting in stickiness or you and in go speak interesting flow could in back things price renegotiating that already my taking first order a that sort that's embedded of were those but the just of backlog orders how that, said sort of that's that you remarks movements the out You around going That's wondered the if also price backlog, price,

I would to the you range. I well. as it FBS look you million see high Daryl quarters, when really $XX mid- think at last to order X alluded in think flow Yes. mean that I

see the of here to quarter. X really quarter months first strong through orders first -- continue the We first

continues. is I trend the we're demand not that so, a think at And this here. issue clearly staring And

repricing backlog, think us. for do I feel well. backlog positioned to be well We at did underlying to we're your it was continue perspective, from as a diversify the the to strong think parcel actually, continues be like and there the to I understood. body we look that taking we then and point, I share really truck When piece you think, pretty received well

I it's external from no an environment secret think happening what's standpoint.

have you little exercise. very think we fallout of about from millions stickiness single-digit So that when of fallout it, the

top we've environment and on there And as continue to got the of it be stay evolve. to so continues proactive to

sort here, backlog the of we about you've be you the think provided FVS that got year that backlog of portion on back it a at and good probably outlook you'll and guidance moment. for does half when the weighted look year And the existing the at delivering the the that then like looking just

that I on mind But about? about of are kind of pertains backlog, that mean, capacity obviously, pretty about should chassis or ability on labor backlog curious given be items constraints? gating your thinking it of to we always sort gating year, to of sort What deliver was the the for of of back back I production folks. is be as there should are any that thinking we of to guys the other into the production items some a suggesting top just in other maybe FVS deliver uptick move kind are we rates in So as half you half. big the that

end. on Jon, I'll take the the you in let beginning Maybe and jump it,

but now, blocks, any making very due automation to Matt, some we standpoint, and delayed We're in issues. to we last changes. right? a that's We road planning was right supplier some -- don't don't components supposed little be see It's late facility in. We're put timely It getting a So it. actually for year, year, last have from delayed.

X I expansion, Now right? right ago, out with are, looking up seen months, the backlog which it's will maybe about believe, those A set We've were X to grow. we at a help our few right? now, to being So years year.

plans it made from and a we've seen we've coming, So manufacturing standpoint.

right, one chassis, you -- you of the mentioned Now them, labor. some than other mentioned of

to something But is we're enough good find making 'XX less. then had people now continues And is years, hard as QX labor challenging. 'XX, of the team it a build little QX last ramp. did X we've in We muscle efforts number a get building to it's bit and and board on to that the to and X are we take have that us to really we memory -- products. over of help and the right, right be So formula able believe and that

So load typical we try to to but stay continue patterns. customers continue get with to level they that, -- our their to

to So we've memory hire. is some and team muscle the gained ready

you know So don't we anything else we'll have there. have believe to success if add. Jon, I

[indiscernible] No

takes the point the a you're you so relative into 'XX. embedded you was like year for costs, margin sort the put chart like Jon, 'XX sort and of out of and about of to of can in where you mix puts we you some in talk what sort margin sort for just expand of that and the the just looks then if expect the EV finer business assuming And more wondered, on maybe, the underlying could little slightly you help to about helpful EBITDA there EBITDA bit development Can price EBITDA. doesn't and It 'XX? the a underlying movements stripped bridge around cost guidance it understand

Sure.

mix perspective, a from couple of things. think I a

body it negative historically truck mix business been for us. our grows, as has think I a

which USPS headwind well, XX point a to other or the as a the there so basis from From I in standpoint, were point the -- is pass-through we perspective cost actually for chassis price The is we in body thing and inflation to by would truck good were from we've there got neutral pricing QX, a team. us. basically standpoint, progress XX

work. to expect 'XX. just the get we of margin that We to going as necessarily the calculations given dynamics into But improve there the how not get we're uplift

perspective, dollar covered but or And a [indiscernible] so from other less from certainly more at rate standpoint. those each a

and productivity types headwind EV investment We when you continue is But certainly, to a the push of include those things. that.

the from some pressures that And I guidance so overall, mix with of relatively a standpoint think talked about. we flat

that Maybe volatility you've this. Have markets resets I'll private which question the is might valuation, more of into for we've coming the M&A smaller, slightly public to way, pipeline I and and stuff at looked different the ask we've may be looking than some may any me. volatility think, any seen? just takes a of other expectations that's one at the been market a then of faster And there from that pipeline last targets shake just loose that in that time, some filter of in of opportunities of be bit here. Obviously, that given terms sort bit sort public you got now or little but a market the

I be to think we the very they've -- I the we've they in at think highly involved competitive. when -- been continue you been deals look

made to, which So markets the some we're to. ourselves at ready not are are to has flush willing to extend multiples cash, deploy, with there we've that that competitive of them sort is -- seen alluded levels we've as the of and

own continue And go and us. continue multiples cultivation and research companies actionable for we deals at we like for to And and -- to out feel reasonable do our identifying right out so there there. we opportunities and looking those are

[Operator Instructions].

Our today come will Chris Sidoti McGinnis next from Company. question of &

QX? you backlog, expect. the out disruption just Congrats, expect you around the Juris, the just given chassis me. you have the issues any question is had X thanks for there that sales of the given given any in risk help just QX on I losing in of And

don't And it. take -- maybe

Jon. ahead. ahead, Go Go

don't going say, as we sales. it to necessarily lost I was view

it think really, timing. Unfortunately, is really industry-wide. I it's

deliver -- I we chassis and think and walk-in chassis. ability, with the particularly, on multiple our multiple is Velocity what platform build benefit where vans expand to on

get us so delay I loss. and up, some later -- in it versus the it's give flexibility as as year. as it would does But into of backlog we from free a that really And a QX perspective we think

pricing Chris, digit as Jon millions in And items when And we on sales. would 'XX. our only were the based we took the of only lost thing watching in I is very mentioned, single we inflationary add, closely up

then. to the other to on growth all continue it going The There's talk So were growth, market, done about, is we right, going still e-commerce as if and have in would think away, back they demand the right, I they infrastructure. there.

out what line. -- because to they line of they do So is get the don't they the go to want of back then

stick view going they're to it is come. chassis for to our in -- the wait they're going to So and

me, So it's it's to the all timing. -- about

remarks. And our over Question-and-Answer turn conclude gentlemen, the this like will Pagrabs Session. and to back for conference to Juris at Ladies any this closing time, I'd

to the and have Thank see you, comments. Thank month. couple more for you next participating call. Unfortunately, me for a here in in thanks times to Allison, kind today's everybody the over you

ROTH earlier, week conferences And some in next James X vehicle. and the be we we'll EV At we actually presentation. on to the Raymond March have up NTEA events. and then have Conference March X one-on-ones or at weeks, we'll doing X, And a the alluded group March We as unveil show then XX coming XX.

We all forward best. the you stay tuned. and seeing to So you wish look

now The has for may attending you conference and presentation, today's disconnect concluded, now lines. and we your thank you