The Shyft Group, Inc.

Good morning and welcome to the SHIFT Group's fourth quarter and full year 2024 conference call and webcast. All participants will be in listen-only mode until the question and answer session of the conference call. As a reminder, this call is being recorded. I would now like to introduce Randy Wilson, Vice President of Investor Relations and Treasury for the SHIFT Group. Please go ahead.

Good morning, and thank you for joining us. Today, you will hear from John Dunn, President and Chief Executive Officer, and Scott Ohalik, Interim Chief Financial Officer. Their prepared remarks will be followed by a question and answer session. Before we begin, please turn to slides two and three of the presentation for a safe harbor statement. Today's conference call contains forward-looking statements which are subject to risks that could cause actual results to be materially different from those expressed or implied. Primary risks that management believes can materially affect our results are identified in our Forms 10-K and 10-Q filed with the SEC. We will be discussing non-GAAP information and performance measures, which we believe are useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures can be found in the conference call materials. We will begin with a business overview from John, followed by Scott's review of fourth quarter financial results and our 2025 outlook. John will finish up our presentation with an update on our pending merger with Abby Schmidt. We will then open the line for Q&A. Please turn to slide four, and I'll turn it over to John, who will begin today's prepared remarks.

Thank you, Randy, and good morning. Welcome to our earnings call, and we appreciate your interest in the SHIFT group. 2024 was an incredible year for our company. We made significant strides in advancing our strategy, delivered operational improvements, and achieved solid financial performance. In December, we announced a powerful next step in SHIP's journey. Our proposed merger with Abby Schmidt, a leading global specialty vehicles company. Together, we will create a highly competitive specialty vehicles leader with enhanced scale, capabilities, and expertise, and deeper customer relationships as we combine the strengths of both companies. Let's kick off this morning with some highlights from the past year at the SHIFT Group. The talented SHIFT team has been highly engaged in implementing operational and commercial improvements throughout 2024, and we are seeing improved results. we consistently improved our financial performance driven by our intense focus on increasing operational and organizational efficiencies across our company. By leveraging a one-shift mindset, we are streamlining our corporate structure and managing costs to deliver margin improvement. These efforts resulted in meaningful adjusted EBITDA growth for the company with margins of 6.2% up 160 basis points year over year. Despite a soft parcel market, our fleet vehicles and services business expanded margins to 7.2%, up 160 basis points year over year by driving operational performance. This is a testament to our team's strategic approach to controlling what they can control. Specialty vehicles continued strong EBITDA margins were supported by focused execution and steady demand for infrastructure truck bodies. Our balance sheet remained solid with net leverage less than two times, allowing us the flexibility to invest in strategic initiatives that support our growth going forward. This financial strength enables us to capture new opportunities and drive long-term success. Finally, we are pleased to bring blue art to production as we successfully shift EV trucks to FedEx, which is an exciting milestone for our entire shift team. This achievement underscores our commitment to meeting the complex needs of our fleet partners and serving as their partner of choice as they transition to more sustainable fleet operations. Turning to slide five, we outline our operating framework which has guided shift in 2024 as we drove improvements across our business. Strengthening talent, improving leadership training, and ensuring safety with our Mission Zero initiative, we reduced workplace injuries by 40% in 2024. Lean manufacturing and efficiency initiatives lowered costs and improved competitiveness in the market. In summary, We are proud of the work we have done this year, and I would like to thank our team. Without their dedication and skill sets, our accomplishments would not be possible. I would now like to welcome Scott Ohalik to his first shift earnings call, and he will provide a detailed review of our financial results and 2025 outlook.