The Shyft Group, Inc.

Good morning and welcome to the SHIFT Group second quarter 2021 earnings results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw from the question queue, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Juris Pagraps, Group Treasurer and Head of Investor Relations. Please go ahead.

Thank you, Kate, and good morning, everyone, and welcome to the SHIFT Group's second quarter 2021 earnings call. Joining me on the call today are Daryl Adams, our President and Chief Executive Officer, and John Duyard, our Chief Financial Officer. For today's call, we've included a presentation deck, which will be filed with the SEC and is also available on our website at theshiftgroup.com. may download the deck from the investor relations section of the website to follow along with our presentation during the call. Before we start, please turn to slide two of the presentation for our safe harbor statement. You should be aware that certain statements made during today's call, which may include management's current outlook, viewpoint, predictions, and projections regarding the shift group and its operations, may be considered forward-looking statements under the Private Securities Litigation Act of 1995. I caution you that, as with any prediction or projection, there are a number of factors that could cause the shift group's actual results to differ materially from projections. All known risks that management believes could materially affect the results are identified in our Forms 10-K and 10-Q filed with the SEC. However, there may be other risks that we cannot anticipate. On the call today, we will provide a business update before moving on to a more detailed review of the results and our outlook for the remainder of 2021. We will then open the line for Q&A. I would like to also remind everyone that with the divestiture of the emergency response business last year in February, the revenues and expenses associated with the ER business as well as the assets and liabilities have been reclassified as discontinued operations for all periods presented. With this reclassification, the results discussed today will refer to continuing operations unless otherwise noted. At this time, I'm pleased to turn the call over to Daryl for his comments beginning on slide three.

Thank you, Juris. Good morning, everyone. Thank you for joining us to discuss our second quarter 2021 results. We are very excited and pleased to share with you our second quarter performance that exceeded our expectations as our sales nearly doubled and our adjusted EBITDA tripled over the prior year. As you can see on slide four, this momentum driven by strengths in quality, innovation, and customer-focused product development combined with rising demand in our markets led to a significant order intake across all segments, with backlog more than doubling to a record $751 million, providing visibility through 2021 and into 2022. The benefits of our strategy continue to be clear as we delivered our highest quarterly sales on record with revenues of $244 million, resulting in income from continuing operations of $17 million and 44 cents per share. Please turn to slide five, where I'll provide a business update. Let me start with an update on what we are experiencing with respect to the supply chain, as I'm sure this is top of mind for many of you. During the back half of the second quarter, we experienced industry-wide supply constraints, including chassis and other components, which caused production challenges. However, as our results show, we effectively managed through these challenges, thanks to the hard work and determination of our entire team. Based on feedback from our OEM and suppliers, we expect these challenges to continue at some level, and we will continue to add rigor to our internal processes to ensure we are able to minimize any potential impact. John will have more, sorry, John will have additional comments later in the presentation. Turning to the business segments. In fleet vehicle and services, strong order flow continues as we have positioned ourselves with the right products that meet the needs of our customers and the industry. In Q2, we achieved a steady ramp in production of the new Velocity vehicle, with our daily output increasing significantly despite chassis and component constraints. We expect to see continued acceleration as we enter the second half. Given the positive feedback we are receiving on the Velocity, we are now working with other locations and channels, and we are now seeing interest from the dealer market. Other highlights in the quarter include continued strong truck body order flow, and we continue to make headway in our efforts to provide grocery customers with both upfit and delivery refrigeration solutions in walk-in vans, truck bodies, and cargo vans. Moving to specialty vehicle segment, the strength of our innovative products and our underlying markets has resulted in a significant growth in sales and profitability, even as our teams manage through pandemic-related supply constraints. Our motorhome market share during the quarter increased to 31%, reflecting the demand of our product offerings and our brand among the motorhome buyers. We're even more optimistic about the upcoming 22 model year launch, which is happening this month. We believe we'll reflect strong consumer demand amid low dealer inventory levels. Our service body business continues to execute on our strategy of geographically expanding our product offerings to drive additional growth in volume and new products. Our service body team achieved record revenue in the second quarter, which includes the impact of the DERMAG acquisition. We continue to leverage our flexible manufacturing capabilities by expanding in California and adding equipment outfit and mounting in Charlotte, Michigan and West Palm Beach, Florida. Additionally, our service body operations have been approved for ship through by General Motors in Charlotte, Michigan, which allows us to deliver mounted services, sorry, mounted service bodies to any dealer in the General Motors distribution network across the United States. Let me provide an update and some additional context on Shift Innovations, which we announced in the second quarter. Shift Innovations is a dedicated mobility research and development team reporting directly to me, which is initially focused on the introduction of the Shift electric vehicle chassis. We are very excited by this opportunity to leverage our near half century of expertise and building chassis to a new product with great potential. We have a strong track record of building alternative propulsion vehicles for more than 17 years, which will bring it to bear on this new effort. We know the demand is there, and many of our biggest customers in last-mile delivery are searching for innovative and efficient ways to meet their commitments to stakeholders to improve efficiency and to reduce carbon emissions within their operations. We continue to make good progress the existing new initiative but let me outline some some of how we will differentiate our offering from the growing competitor base the first phase of the project will focus on class 3 electric vehicle chassis our electric vehicle chassis will initially be available in two wheel bases two wheel base options with 5 000 pound payload offering a range of up to 170 miles 75 miles We are very excited with the extremely talented team we are assembling to support our electric vehicle chassis development. We have made considerable progress on electric vehicle chassis design and have finalized key design objectives and performance requirements on the electric vehicle chassis. Proof of concept chassis design has been completed and we start the assembly of the first electric vehicle chassis this month. We have signed LOIs with a number of key suppliers and we have also secured additional component suppliers to support prototypes and production. We look forward to updating you on our continued progress. With that, I'll turn the call over to John to discuss SHIFT's financial results for the second quarter in more detail, as well as provide an update on our 2021 outlook, beginning on slide six.