0001628280-26-034785
SEC filingRevenue surged 83% on the Shyft acquisition, but net income fell 67% due to acquisition-related costs and interest expense, while operating cash flow remained negative.
Operating income rose 6.8% to $15.4 million, as the increase in gross profit was partially offset by higher selling, general and administrative (SG&A) expenses and research and development (R&D) costs. SG&A expenses increased due to costs attributable to Shyft, as well as higher sales, finance, and IT department costs. R&D expenses also rose as the company invested in new product development. Net income declined 66.5% to $695,000, primarily due to higher interest expense and other costs associated with the acquisition financing. Diluted earnings per share fell to $0.01 from $0.39 in the prior year.
Net cash used in operating activities improved to negative $17.7 million from negative $26.6 million in Q1 2025, reflecting better working capital management. Capital expenditures decreased to $1.9 million from $3.1 million. Free cash flow was negative $19.7 million, indicating that the company continues to invest in growth while managing cash outflows. The company's liquidity position remains adequate to support operations and debt service obligations.
The company's balance sheet reflects the impact of the Shyft acquisition, with increased intangible assets and goodwill. Identifiable intangible assets include brand, technology, customer relationships, and order backlog. The company continues to monitor the fair value of these assets and will adjust as necessary. Forward-looking statements involve risks and uncertainties, including integration of acquisitions, market conditions, and cost management. The company remains focused on executing its strategic initiatives to drive long-term value.