The Shyft Group, Inc. (NASDAQ:SHYF) Q3 2023 Earnings Call Transcript

Matt Koranda: Okay. And then just to clarify, John, maybe is the fixed to the battery issue going to be a supplier change or is it going to be a fixed with the existing supplier that you’ve that you currently have sourced from?

John Dunn: 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 on an ex-energy company has better supplier on the Class V. And so we continue to look at options, but we’re also engaged with our current supplier and trying to get resolution to the issue and so we’re certainly not myopic and how we’re trying to mitigate our resolve the problem here.

Matt Koranda: 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 the 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 there are going to sell the product for customer order flow, maybe just some additional color on sort of how that will function once you get production up and running.

John Dunn: Yes. 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 floor plan 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.

Daryl Adams: Thanks, Matt.

Matt Koranda: Okay. I appreciate it.

Operator: The next question is from Greg Lewis of BTIG. Please go ahead.

Greg Lewis: Yes. Thank you and good morning everybody and thanks for taking my questions.

Daryl Adams: Good morning.

Greg Lewis: 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 that is what it is, is there any way to kind of parcel out realizing visibility is challenged, but is there any way to kind of 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 kind of like trying to nail down that Q4?

Jon Douyard: Yes, 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, I think some of the factors including the strike, which, thankfully made it seems to have made some progress last night, but there’s a lot of variables. 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 sort of drive efficiency in the business, while managing the 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.