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• Revenue: $201.4 million for Q4, down slightly from $202.3 million in the prior year.

• GAAP Net Loss: $3.4 million or $0.10 per share, compared to a net loss of $4.4 million or $0.13 per share in the previous year.

• Adjusted EBITDA: $15.9 million for Q4, or 7.9% of sales, up from $2.3 million or 1.1% of sales in Q4 2023.

• Adjusted Net Income: $5 million for Q4, with adjusted EPS of $0.15 per share, compared to a loss of $900,000 or negative $0.03 per share in Q4 2023.

• Fleet Vehicles and Services Sales: $110.7 million, down 7% from $119 million a year ago.

• Fleet Vehicles and Services Adjusted EBITDA: $12.1 million, with a margin of 10.9% of sales, compared to a negative 2.2% in Q4 last year.

• Specialty Vehicles Sales: $87.5 million, a 5% increase from $83.4 million in the prior year.

• Specialty Vehicles Adjusted EBITDA: $16.6 million or 19% of sales, compared to $19 million or 22.8% of sales in the same period last year.

• 2025 Sales Outlook: Expected to be in the range of $870 to $970 million.

• 2025 Adjusted EBITDA Outlook: Expected to be in the range of $62 to $72 million.

• 2025 Adjusted EPS Outlook: Expected to be in the range of $0.69 to $0.92 per share.

• Free Cash Flow: Expected to be $25 to $30 million for 2025.

• Warning! GuruFocus has detected 7 Warning Signs with SHYF.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• The Shyft Group Inc (NASDAQ:SHYF) achieved significant operational improvements and solid financial performance in 2024.

• The proposed merger with Abby Schmidt is expected to create a highly competitive specialty vehicles leader with enhanced scale and capabilities.

• The company successfully launched Blue Arc EV trucks, marking a milestone in sustainable fleet operations.

• Operational efficiencies led to a 160 basis point increase in adjusted EBITDA margins, reaching 6.2% year over year.

• The company's balance sheet remains strong with net leverage less than 2 times, providing flexibility for strategic investments.

Negative Points

• The Shyft Group Inc (NASDAQ:SHYF) reported a GAAP net loss of $3.4 million for the fourth quarter, impacted by $8.5 million in merger-related transaction costs.

• Sales for the fleet vehicles and service segment decreased by 7% year over year, reflecting continued softness in the parcel market.

• The backlog for fleet vehicles and services was down 24.7% at year-end, indicating ongoing challenges in parcel demand.

• The specialty vehicles segment experienced a decrease in adjusted EBITDA margin from 22.8% to 19% year over year.

• The company anticipates continued softness in parcel and motorhome markets through mid-2025, impacting near-term demand.