The Shyft Group, Inc. (NASDAQ:SHYF) Q2 2023 Earnings Call Transcript

Ryan Sigdahl: Last one for me. Just reminding dealer inventory versus direct business, kind of a mix of how much is in each? And then how long do you think it will take to normalize the dealer channel inventory?

A – Jon Douyard: Yes. I mean every point, our business is a little bit lumpy from a customer perspective, but it’s relatively balanced between it, I’ll call it, direct and dealer on the SCS side of the business. Sometimes it’s tilted one way or the other. We would expect to see some of that clear through as we get into next year, I think we don’t want to get ahead of ourselves and assume that it’s just going to turn around here in the second half of the year. And so we expect it to be a softer environment here through at least the next 3 quarters, 3 or 4 quarters, maybe even through mid-next year. So we’ll continue to monitor that. Again, I’d point back to the conversations we’re having with customers is that they need vehicles. And so at some point, that’s going to break and we’ll see an increased demand. I think we’re just in a period of pause.

Ryan Sigdahl: Thanks, guys. Appreciate it. Thank you.

A – Jon Douyard: Thanks, Ryan.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Randy Wilson for closing remarks.

Randy Wilson: Thank you. I’d like to thank all investors for participating in today’s conference call. We look forward to hosting investors in September at the RBC Global Industrials Conference in Las Vegas. The Raymond James Vehicle Technology Day held virtually and the D.A. Davidson 22nd Annual Diversified Industrials and Service Conference in Nashville. We thank you for your interest in the Shyft Group. And with that, operator, please disconnect the call.