The Shyft Group, Inc. (NASDAQ: SHYF) (“Shyft” or the “Company”),
the North American leader in specialty vehicle manufacturing,
assembly and upfit for the commercial, retail and service specialty
vehicle markets, today reported operating results for the fourth
quarter and full-year ending December 31, 2023.
Fourth Quarter 2023 Financial
Highlights For
the fourth quarter of 2023 compared to the fourth quarter of
2022:
- Sales of $202.3 million, a decrease of $99.7 million, or 33.0%,
from $302.0 million
- Net loss of $4.4 million, or ($0.13) per share, compared to net
income of $17.8 million, or $0.50 per share
- Adjusted EBITDA of $2.3 million, or 1.1% of sales, a decrease
of $28.4 million, from $30.7 million, or 10.2% of sales; Results
include $9.3 million of EV program related costs versus $7.6
million in the prior year
- Adjusted net loss of $0.9 million, or ($0.03) per share,
compared to adjusted net income of $20.5 million, or $0.58 per
share in the fourth quarter of 2022
- Consolidated backlog of $409.3 million as of December 31, 2023,
down $423.4 million, or 50.9%, compared to $832.7 million as of
December 31, 2022
Full-Year 2023 Financial HighlightsFor the
full-year 2023 compared to the full-year 2022:
- Sales of $872.2 million, a decrease of $155.0 million, or
15.1%, from $1.0 billion
- Net income of $6.5 million, or $0.19 per share, compared to
$36.6 million, or $1.03 per share; Current year reflects an
effective income tax benefit of $5.8 million
- Adjusted EBITDA of $40.0 million, or 4.6% of sales, a decrease
of $30.8 million, from $70.8 million, or 6.9% of sales; Results
include $32.6 million of EV program related costs versus $26.9
million in the prior year
- Adjusted net income of $18.7 million, or $0.54 per share,
compared to adjusted net income of $44.5 million, or $1.25 per
share in 2022
“We drove positive cash generation by remaining focused on the
operational levers within our control,” said John Dunn, President
and CEO. “Our Specialty Vehicles business delivered strong overall
profitability driven by robust demand for our vocational work
trucks. While Fleet Vehicles and Services performance was
underwhelming due to lower customer demand, the leadership team is
responding with decisive commercial and operational actions to
improve profitability.”
Fourth Quarter 2023 Business Segment Financial
Highlights
Fleet Vehicles and Services
(FVS)
- Sales were $119.0 million for the fourth quarter of 2023, down
44.1%, or $94.0 million year over year
- Adjusted EBITDA for the fourth quarter of 2023 of ($2.6)
million, or (2.2)% of sales, a decrease of $30.3 million, from
$27.7 million, or 13.0% of sales, a year ago
- Segment backlog was $325.0 million as of December 31, 2023,
down 55.9% compared to $736.7 million as of December 31, 2022
Specialty Vehicles (SV)
- Sales were $83.4 million for the fourth quarter of 2023, a
decrease of $9.8 million, or 10.6%, from $93.2 million a year
ago
- Adjusted EBITDA for the fourth quarter of 2023 was $19.0
million, or 22.8% of sales, an increase of $3.1 million, or 19.3%,
from $15.9 million, or 17.1% of sales, a year ago
- Segment backlog was $84.3 million as of December 31, 2023, down
12.2% compared to $96.0 million as of December 31, 2022
2024 Financial Outlook“Looking ahead, the
challenging demand environment for parcel and motorhome is expected
to continue in the first half of 2024,” said Jon Douyard, Chief
Financial Officer. “Our team remains focused on delivering improved
financial performance and generating cash flow, while maintaining
investment for future growth initiatives, including our Blue Arc EV
program.”
Guidance for full-year 2024, notwithstanding further changes in
the operating environment, is as follows:
- Sales to be in the range of $850 million to $900 million;
Assumes no Blue Arc EV revenue
- Adjusted EBITDA of $40 to $50 million, including EV spending of
$20 to $25 million
- Net income of $2.5 to $10.5 million, with an income tax rate of
approximately 20%
- Earnings per share of $0.07 to $0.30
- Adjusted earnings per share of $0.28 to $0.51
- Capital expenditures of approximately $20 to 25 million
- Free cash flow of $25 to $35 million
“We will actively manage and navigate a highly dynamic demand
environment in 2024, while getting Blue Arc into production later
this year,” said Dunn. “Shyft has a strong core business, and the
team is implementing the framework to return the company to
historic profitability levels. We are strengthening the leadership
team, driving operational execution, and deepening our commercial
capabilities to deliver long-term shareholder value.”
Conference Call and Webcast Information
The Shyft Group will host a conference call at 8:30 a.m. ET
today to discuss these results and current business trends. The
conference call and webcast will be available via:
Webcast:
https://theshyftgroup.com/investor-relations/webcasts/Conference
Call: 1-844-868-8845 (domestic) or 412-317-6591 (international);
passcode: 10179224
About The Shyft Group
The Shyft Group is the North American leader in
specialty vehicle manufacturing, assembly, and upfit for the
commercial, retail, and service specialty vehicle markets. Our
customers include first-to-last mile delivery companies across
vocations, federal, state, and local government entities; the
trades; and utility and infrastructure segments. The Shyft Group is
organized into two core business units: Shyft Fleet Vehicles and
Services™ and Shyft Specialty Vehicles™. Today, its family of
brands include Utilimaster®, Blue Arc™ EV Solutions, Royal® Truck
Body, DuraMag® and Magnum®, Strobes-R-Us, Spartan® RV Chassis, Red
Diamond™ Aftermarket Solutions, and Builtmore Contract
Manufacturing™. The Shyft Group and its go-to-market brands are
well known in their respective industries for quality, durability,
and first-to-market innovation. The Company employs approximately
3,000 employees and contractors across campuses, and operates
facilities in Arizona, California, Florida, Indiana, Maine,
Michigan, Missouri, Pennsylvania, Tennessee, Texas, and Saltillo,
Mexico. The Company reported sales of $872 million in 2023. Learn
more at TheShyftGroup.com.
This release contains information, including our
sales and earnings guidance, all other information provided with
respect to our outlook for 2024 and future periods, and other
statements concerning our business, strategic position, financial
projections, financial strength, future plans, objectives, and the
performance of our products and operations that may constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. We intend the
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in those sections.
Generally, we have identified such forward-looking statements by
using words such as “believe,” “expect,” “intend,” “potential,”
“future,” “may,” “will,” “should,” and similar expressions or by
using future dates in connection with any discussion of, among
other things, the construction or operation of new or existing
facilities, operating performance, trends, events or developments
that we expect or anticipate will occur in the future, statements
relating to volume changes, share of sales and earnings per share
changes, anticipated cost savings, potential capital and
operational cash improvements, changes in supply and demand
conditions and prices for our products, trade duties and other
aspects of trade policy, statements regarding our future
strategies, products and innovations, and statements expressing
general views about future operating results. However, the absence
of these words or similar expressions does not mean that a
statement is not forward-looking. Forward-looking statements are
not historical facts, but instead represent only the Company’s
beliefs regarding future events, many of which, by their nature,
are inherently uncertain and outside of the Company’s control. It
is possible that the Company’s actual results and financial
condition may differ, possibly materially, from the anticipated
results and financial condition indicated in these forward-looking
statements. Management believes that these forward-looking
statements are reasonable as of the time made. However, caution
should be taken not to place undue reliance on any such
forward-looking statements because such statements speak only as of
the date when made. We undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
law. In addition, forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially from the Company’s historical experience and our present
expectations or projections. In addition, forward-looking
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from the Company’s
historical experience and our present expectations or projections.
These risks and uncertainties include, but are not limited to the
risks and uncertainties described in “Item 1A. Risk Factors” in our
Annual Report on Form 10-K for the year ended December 31, 2023,
and those described from time to time in our future reports filed
with the Securities and Exchange Commission (SEC), which are
available at www.sec.gov or our website. All forward-looking
statements in this release are qualified by this paragraph.
Investors should not place undue reliance on forward-looking
statements as a prediction of actual results. We undertake no
obligation to publicly update or revise any forward-looking
statements in this release, whether as a result of new information,
future events, or otherwise.
CONTACTS
MEDIASydney LeporaDirector, Corporate
CommunicationsSydney.Lepora@theshyftgroup.com586.413.4112
INVESTORSRandy Wilson Vice President,
Investor Relations and
Treasury Randy.Wilson@theshyftgroup.com248.727.3755
The Shyft Group, Inc. and Subsidiaries |
Consolidated Balance Sheets |
(In thousands) |
(Unaudited) |
|
|
December 31, |
|
|
December 31, |
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
9,957 |
|
|
$ |
11,548 |
|
Accounts receivable, less allowance of $276 and $246 |
|
79,573 |
|
|
|
115,742 |
|
Contract assets |
|
50,305 |
|
|
|
86,993 |
|
Inventories |
|
105,135 |
|
|
|
100,161 |
|
Other receivables – chassis pool agreements |
|
34,496 |
|
|
|
19,544 |
|
Other current assets |
|
7,462 |
|
|
|
11,779 |
|
Total current assets |
|
286,928 |
|
|
|
345,767 |
|
Property, plant and
equipment, net |
|
83,437 |
|
|
|
70,753 |
|
Right of use
assets–operating leases |
|
45,827 |
|
|
|
53,386 |
|
Goodwill |
|
48,880 |
|
|
|
48,880 |
|
Intangible assets,
net |
|
45,268 |
|
|
|
49,078 |
|
Net deferred tax
assets |
|
17,300 |
|
|
|
10,390 |
|
Other
assets |
|
2,409 |
|
|
|
2,227 |
|
TOTAL
ASSETS |
$ |
530,049 |
|
|
$ |
580,481 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
99,855 |
|
|
$ |
124,309 |
|
Accrued warranty |
|
7,231 |
|
|
|
7,161 |
|
Accrued compensation and related taxes |
|
13,526 |
|
|
|
14,434 |
|
Contract liabilities |
|
4,756 |
|
|
|
5,255 |
|
Operating lease liability |
|
10,817 |
|
|
|
10,888 |
|
Other current liabilities and accrued expenses |
|
11,965 |
|
|
|
19,452 |
|
Short-term debt – chassis pool agreements |
|
34,496 |
|
|
|
19,544 |
|
Current portion of long-term debt |
|
185 |
|
|
|
189 |
|
Total current liabilities |
|
182,831 |
|
|
|
201,232 |
|
Other non-current
liabilities |
|
8,184 |
|
|
|
10,033 |
|
Long-term operating
lease liability |
|
36,724 |
|
|
|
44,256 |
|
Long-term debt, less
current portion |
|
50,144 |
|
|
|
56,266 |
|
Total liabilities |
|
277,883 |
|
|
|
311,787 |
|
Commitments and
contingent liabilities |
|
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
|
|
|
Preferred stock, no par value: 2,000 shares authorized (none
issued) |
|
- |
|
|
|
- |
|
Common stock, no par value: 80,000 shares authorized;
34,303 and 35,066 outstanding |
|
93,705 |
|
|
|
92,982 |
|
Retained earnings |
|
158,461 |
|
|
|
175,611 |
|
Total Shyft Group, Inc.
shareholders’equity |
|
252,166 |
|
|
|
268,593 |
|
Non-controlling interest |
|
- |
|
|
|
101 |
|
Total shareholders' equity |
|
252,166 |
|
|
|
268,694 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
530,049 |
|
|
$ |
580,481 |
|
The Shyft Group, Inc. and Subsidiaries |
Consolidated Statements of Operations |
(In thousands, except per share data) |
(Unaudited) |
|
|
Three Months EndedDecember
31, |
|
|
Twelve Months EndedDecember
31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
$ |
202,333 |
|
|
$ |
302,011 |
|
|
$ |
872,198 |
|
|
$ |
1,027,164 |
|
Cost of products sold |
|
174,421 |
|
|
|
243,723 |
|
|
|
721,840 |
|
|
|
846,731 |
|
Gross
profit |
|
27,912 |
|
|
|
58,288 |
|
|
|
150,358 |
|
|
|
180,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
7,121 |
|
|
|
5,783 |
|
|
|
25,185 |
|
|
|
25,324 |
|
Selling, general and administrative |
|
28,442 |
|
|
|
29,155 |
|
|
|
118,420 |
|
|
|
107,600 |
|
Total operating expenses |
|
35,563 |
|
|
|
34,938 |
|
|
|
143,605 |
|
|
|
132,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) |
|
(7,651 |
) |
|
|
23,350 |
|
|
|
6,753 |
|
|
|
47,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(1,830 |
) |
|
|
(1,079 |
) |
|
|
(6,527 |
) |
|
|
(2,833 |
) |
Other income (expense) |
|
261 |
|
|
|
(408 |
) |
|
|
470 |
|
|
|
(750 |
) |
Total other expense |
|
(1,569 |
) |
|
|
(1,487 |
) |
|
|
(6,057 |
) |
|
|
(3,583 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
(9,220 |
) |
|
|
21,863 |
|
|
|
696 |
|
|
|
43,926 |
|
Income tax expense
(benefit) |
|
(4,803 |
) |
|
|
4,022 |
|
|
|
(5,768 |
) |
|
|
7,368 |
|
Net income (loss) |
|
(4,417 |
) |
|
|
17,841 |
|
|
|
6,464 |
|
|
|
36,558 |
|
Less: net (loss) attributable
to non-controlling interest |
|
- |
|
|
|
- |
|
|
|
(32 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to The Shyft Group Inc. |
$ |
(4,417 |
) |
|
$ |
17,841 |
|
|
$ |
6,496 |
|
|
$ |
36,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share |
$ |
(0.13 |
) |
|
$ |
0.51 |
|
|
$ |
0.19 |
|
|
$ |
1.04 |
|
Diluted earnings (loss) per
share |
$ |
(0.13 |
) |
|
$ |
0.50 |
|
|
$ |
0.19 |
|
|
$ |
1.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares outstanding |
|
34,298 |
|
|
|
35,067 |
|
|
|
34,721 |
|
|
|
35,073 |
|
Diluted weighted average
common shares outstanding |
|
34,298 |
|
|
|
35,443 |
|
|
|
34,861 |
|
|
|
35,494 |
|
The Shyft Group, Inc. and Subsidiaries |
Consolidated Statements of Cash Flows |
(In thousands, except par value) |
(Unaudited) |
|
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
Net income |
$ |
6,464 |
|
|
$ |
36,558 |
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities |
|
|
|
|
|
|
|
Depreciation and amortization |
|
16,953 |
|
|
|
14,774 |
|
Non-cash stock based compensation expense |
|
7,834 |
|
|
|
7,619 |
|
Deferred income taxes |
|
(6,911 |
) |
|
|
(5,510 |
) |
Loss on disposal of assets |
|
389 |
|
|
|
826 |
|
Changes in accounts receivable and contract assets |
|
72,857 |
|
|
|
(93,989 |
) |
Changes in inventories |
|
(4,975 |
) |
|
|
(32,977 |
) |
Changes in accounts payable |
|
(27,963 |
) |
|
|
41,302 |
|
Changes in accrued compensation and related taxes |
|
(908 |
) |
|
|
(4,630 |
) |
Changes in accrued warranty |
|
70 |
|
|
|
1,186 |
|
Changes in other assets and liabilities |
|
(7,566 |
) |
|
|
15,998 |
|
Net cash provided by
(used in) operating activities |
|
56,244 |
|
|
|
(18,843 |
) |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(20,733 |
) |
|
|
(20,564 |
) |
Proceeds from sale of property, plant and equipment |
|
119 |
|
|
|
148 |
|
Acquisition of business, net of cash acquired |
|
(500 |
) |
|
|
- |
|
Net cash used in
investing activities |
|
(21,114 |
) |
|
|
(20,416 |
) |
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
Proceeds from long-term debt |
|
132,500 |
|
|
|
145,000 |
|
Payments on long-term debt |
|
(138,500 |
) |
|
|
(89,000 |
) |
Payments of dividends |
|
(7,109 |
) |
|
|
(7,148 |
) |
Purchase and retirement of common stock |
|
(19,083 |
) |
|
|
(26,789 |
) |
Exercise and vesting of stock incentive awards |
|
(4,460 |
) |
|
|
(8,414 |
) |
Distribution to non-controlling interest owner |
|
(69 |
) |
|
|
- |
|
Net cash provided by
(used in) financing activities |
|
(36,721 |
) |
|
|
13,649 |
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash
equivalents |
|
(1,591 |
) |
|
|
(25,610 |
) |
Cash and cash equivalents at
beginning of period |
|
11,548 |
|
|
|
37,158 |
|
Cash and cash equivalents at
end of period |
$ |
9,957 |
|
|
$ |
11,548 |
|
The Shyft Group, Inc. and Subsidiaries |
Sales and Other Financial Information by Business
Segment |
(Unaudited) |
|
Quarter Ended December 31, 2023 (in thousands of
dollars) |
|
|
Business Segments |
|
|
|
|
|
|
Fleet Vehicles |
|
|
|
Specialty |
|
|
|
Eliminations & |
|
|
|
|
|
|
|
& Services |
|
|
|
Vehicles |
|
|
|
Other |
|
|
|
Consolidated |
|
Fleet vehicle sales |
$ |
106,011 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
106,011 |
|
Motorhome chassis sales |
|
- |
|
|
|
26,304 |
|
|
|
- |
|
|
|
26,304 |
|
Other specialty vehicles
sales |
|
- |
|
|
|
52,528 |
|
|
|
(3 |
) |
|
|
52,525 |
|
Aftermarket parts and
accessories sales |
|
12,952 |
|
|
|
4,541 |
|
|
|
- |
|
|
|
17,493 |
|
Total Sales |
$ |
118,963 |
|
|
$ |
83,373 |
|
|
$ |
(3 |
) |
|
$ |
202,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
(2,592 |
) |
|
$ |
18,979 |
|
|
$ |
(14,062 |
) |
|
$ |
2,325 |
|
The Shyft Group, Inc. and Subsidiaries |
Sales and Other Financial Information by Business
Segment |
(Unaudited) |
|
Quarter Ended December 31, 2022 (in thousands of
dollars) |
|
|
Business Segments |
|
|
|
|
|
|
|
Fleet Vehicles |
|
|
|
Specialty |
|
|
|
Eliminations & |
|
|
|
|
|
|
|
& Services |
|
|
|
Vehicles |
|
|
|
Other |
|
|
|
Consolidated |
|
Fleet vehicle sales |
$ |
202,257 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
202,257 |
|
Motorhome chassis sales |
|
- |
|
|
|
37,030 |
|
|
|
- |
|
|
|
37,030 |
|
Other specialty vehicles
sales |
|
- |
|
|
|
51,562 |
|
|
|
(4,148 |
) |
|
|
47,414 |
|
Aftermarket parts and
accessories sales |
|
10,658 |
|
|
|
4,652 |
|
|
|
- |
|
|
|
15,310 |
|
Total Sales |
$ |
212,915 |
|
|
$ |
93,244 |
|
|
$ |
(4,148 |
) |
|
$ |
302,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
27,704 |
|
|
$ |
15,905 |
|
|
$ |
(12,924 |
) |
|
$ |
30,685 |
|
The Shyft Group, Inc. and Subsidiaries |
Sales and Other Financial Information by Business
Segment |
(Unaudited) |
|
Year Ended December 31, 2023 (in thousands of
dollars) |
|
|
Business Segments |
|
|
|
|
|
|
|
Fleet Vehicles |
|
|
|
Specialty |
|
|
|
Eliminations & |
|
|
|
|
|
|
|
& Services |
|
|
|
Vehicles |
|
|
|
Other |
|
|
|
Consolidated |
|
Fleet vehicle sales |
$ |
487,072 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
487,072 |
|
Motorhome chassis sales |
|
- |
|
|
|
104,882 |
|
|
|
- |
|
|
|
104,882 |
|
Other specialty vehicles
sales |
|
- |
|
|
|
209,434 |
|
|
|
(4,183 |
) |
|
|
205,251 |
|
Aftermarket parts and
accessories sales |
|
54,566 |
|
|
|
20,427 |
|
|
|
- |
|
|
|
74,993 |
|
Total Sales |
$ |
541,638 |
|
|
$ |
334,743 |
|
|
$ |
(4,183 |
) |
|
$ |
872,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
30,326 |
|
|
$ |
66,186 |
|
|
$ |
(56,544 |
) |
|
$ |
39,968 |
|
The Shyft Group, Inc. and Subsidiaries |
Sales and Other Financial Information by Business
Segment |
(Unaudited) |
|
Year Ended December 31, 2022 (in thousands of
dollars) |
|
|
|
|
|
|
|
Business Segments |
|
|
|
|
|
|
|
|
|
|
Fleet Vehicles |
|
|
|
Specialty |
|
|
|
Eliminations & |
|
|
|
|
|
|
|
& Services |
|
|
|
Vehicles |
|
|
|
Other |
|
|
|
Consolidated |
|
Fleet vehicle sales |
$ |
605,253 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
605,253 |
|
Motorhome chassis sales |
|
- |
|
|
|
175,030 |
|
|
|
- |
|
|
|
175,030 |
|
Other specialty vehicles
sales |
|
- |
|
|
|
191,882 |
|
|
|
(6,483 |
) |
|
|
185,399 |
|
Aftermarket parts and
accessories sales |
|
41,750 |
|
|
|
19,732 |
|
|
|
- |
|
|
|
61,482 |
|
Total Sales |
$ |
647,003 |
|
|
$ |
386,644 |
|
|
$ |
(6,483 |
) |
|
$ |
1,027,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
65,719 |
|
|
$ |
54,413 |
|
|
$ |
(49,339 |
) |
|
$ |
70,793 |
|
The Shyft Group, Inc. and Subsidiaries |
Sales and Other Financial Information by Business
Segment |
(Unaudited) |
|
Period
End Backlog (amounts in thousands of dollars) |
|
|
Dec. 31, 2023 |
|
|
|
Sept. 30, 2023 |
|
|
Jun. 30, 2023 |
|
|
|
Mar. 31, 2023 |
|
|
Dec. 31, 2022 |
|
Fleet Vehicles and Services |
$ |
325,003 |
|
|
$ |
383,448 |
|
|
$ |
437,802 |
|
|
$ |
584,933 |
|
|
$ |
736,690 |
|
Specialty Vehicles |
|
84,269 |
|
|
|
80,983 |
|
|
|
72,402 |
|
|
|
82,478 |
|
|
|
96,023 |
|
Total Backlog |
$ |
409,272 |
|
|
$ |
464,431 |
|
|
$ |
510,204 |
|
|
$ |
667,411 |
|
|
$ |
832,713 |
|
|
Reconciliation of Non-GAAP Financial Measures
This release presents Adjusted EBITDA (earnings
before interest, taxes, depreciation and amortization), adjusted
net income, adjusted earnings per share, and free cash flow each of
which is a non-GAAP financial measure.
We define Adjusted EBITDA as income before
interest, income taxes, depreciation and amortization, as adjusted
to eliminate the impact of restructuring charges, acquisition
related expenses and adjustments, non-cash stock-based compensation
expenses, and other gains and losses not reflective of our ongoing
operations.
We present the non-GAAP measure Adjusted EBITDA
because we consider it to be an important supplemental measure of
our performance. The presentation of Adjusted EBITDA enables
investors to better understand our operations by removing items
that we believe are not representative of our continuing operations
and may distort our longer-term operating trends. We believe this
measure to be useful to improve the comparability of our results
from period to period and with our competitors, as well as to show
ongoing results from operations distinct from items that are
infrequent or not indicative of our continuing operating
performance. We believe that presenting this non-GAAP measure is
useful to investors because it permits investors to view
performance using the same tools that management uses to budget,
make operating and strategic decisions, and evaluate our historical
performance.
Our management uses Adjusted EBITDA to evaluate
the performance of and allocate resources to our segments. Adjusted
EBITDA is also used, along with other financial and non-financial
measures, for purposes of determining annual incentive compensation
for our management team and long-term incentive compensation for
certain members of our management team.
We define free cash flow as Net cash provided by
(used in) operating activities less purchases of property,
plant and equipment and add proceeds from sale of property, plant
and equipment. We believe this measure of free cash flow provides
management and investors further useful information on cash
generation or use in our operations.
We believe that the presentation of these
non-GAAP measures, when considered together with the corresponding
GAAP financial measures and the reconciliations to that measure,
provides investors with additional understanding of the factors and
trends affecting our business than could be obtained in the absence
of this disclosure.
The Shyft Group, Inc. and Subsidiaries |
Consolidated Financial Summary (Non-GAAP) |
(In thousands, except per share data) |
(Unaudited) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
The Shyft Group,
Inc. |
|
2023 |
|
|
% ofsales |
|
|
2022 |
|
|
% ofsales |
|
|
2023 |
|
|
% ofsales |
|
|
2022 |
|
|
% ofsales |
Net income (loss) |
$ |
(4,417 |
) |
|
|
(2.2 |
%) |
|
$ |
17,841 |
|
|
|
5.9 |
% |
|
$ |
6,464 |
|
|
|
0.7 |
% |
|
$ |
36,558 |
|
|
|
3.6 |
% |
Net loss attributable to
non-controlling interest |
|
- |
|
|
|
|
|
- |
|
|
|
|
|
32 |
|
|
|
|
|
- |
|
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other
related charges |
|
368 |
|
|
|
|
|
243 |
|
|
|
|
|
1,741 |
|
|
|
|
|
757 |
|
|
|
Acquisition related expenses
and adjustments |
|
- |
|
|
|
|
|
84 |
|
|
|
|
|
440 |
|
|
|
|
|
884 |
|
|
|
Non-cash stock-based
compensation expense |
|
2,647 |
|
|
|
|
|
2,697 |
|
|
|
|
|
7,834 |
|
|
|
|
|
7,619 |
|
|
|
CEO transition |
|
107 |
|
|
|
|
|
- |
|
|
|
|
|
2,629 |
|
|
|
|
|
- |
|
|
|
Loss from write-off of
assets |
|
1,872 |
|
|
|
|
|
- |
|
|
|
|
|
1,872 |
|
|
|
|
|
- |
|
|
|
Legacy legal matters |
|
- |
|
|
|
|
|
- |
|
|
|
|
|
956 |
|
|
|
|
|
- |
|
|
|
Non-recurring professional
fees |
|
128 |
|
|
|
|
|
- |
|
|
|
|
|
288 |
|
|
|
|
|
- |
|
|
|
Tax effect of adjustments |
|
(1,636 |
) |
|
|
|
|
(371 |
) |
|
|
|
|
(3,565 |
) |
|
|
|
|
(1,348 |
) |
|
|
Adjusted net income
(loss) |
$ |
(931 |
) |
|
|
(0.5 |
%) |
|
$ |
20,494 |
|
|
|
6.8 |
% |
|
$ |
18,691 |
|
|
|
2.1 |
% |
|
$ |
44,470 |
|
|
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(4,417 |
) |
|
|
(2.2 |
%) |
|
$ |
17,841 |
|
|
|
5.9 |
% |
|
$ |
6,464 |
|
|
|
0.7 |
% |
|
$ |
36,558 |
|
|
|
3.6 |
% |
Net loss attributable to
non-controlling interest |
|
- |
|
|
|
|
|
- |
|
|
|
|
|
32 |
|
|
|
|
|
- |
|
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
4,593 |
|
|
|
|
|
4,719 |
|
|
|
|
|
16,953 |
|
|
|
|
|
14,774 |
|
|
|
Taxes on income |
|
(4,803 |
) |
|
|
|
|
4,022 |
|
|
|
|
|
(5,768 |
) |
|
|
|
|
7,368 |
|
|
|
Interest expense |
|
1,830 |
|
|
|
|
|
1,079 |
|
|
|
|
|
6,527 |
|
|
|
|
|
2,833 |
|
|
|
EBITDA |
$ |
(2,797 |
) |
|
|
(1.4 |
%) |
|
$ |
27,661 |
|
|
|
9.2 |
% |
|
$ |
24,208 |
|
|
|
2.8 |
% |
|
$ |
61,533 |
|
|
|
6.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other
related charges |
|
368 |
|
|
|
|
|
243 |
|
|
|
|
|
1,741 |
|
|
|
|
|
757 |
|
|
|
Acquisition related expenses
and adjustments |
|
- |
|
|
|
|
|
84 |
|
|
|
|
|
440 |
|
|
|
|
|
884 |
|
|
|
Non-cash stock-based
compensation expense |
|
2,647 |
|
|
|
|
|
2,697 |
|
|
|
|
|
7,834 |
|
|
|
|
|
7,619 |
|
|
|
CEO transition |
|
107 |
|
|
|
|
|
- |
|
|
|
|
|
2,629 |
|
|
|
|
|
- |
|
|
|
Loss from write-off of
assets |
|
1,872 |
|
|
|
|
|
- |
|
|
|
|
|
1,872 |
|
|
|
|
|
- |
|
|
|
Legacy legal matters |
|
- |
|
|
|
|
|
- |
|
|
|
|
|
956 |
|
|
|
|
|
- |
|
|
|
Non-recurring professional
fees |
|
128 |
|
|
|
|
|
- |
|
|
|
|
|
288 |
|
|
|
|
|
- |
|
|
|
Adjusted
EBITDA |
$ |
2,325 |
|
|
|
1.1 |
% |
|
$ |
30,685 |
|
|
|
10.2 |
% |
|
$ |
39,968 |
|
|
|
4.6 |
% |
|
$ |
70,793 |
|
|
|
6.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net earnings (loss)
per share |
$ |
(0.13 |
) |
|
|
|
$ |
0.50 |
|
|
|
|
$ |
0.19 |
|
|
|
|
$ |
1.03 |
|
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other
related charges |
|
0.01 |
|
|
|
|
|
0.01 |
|
|
|
|
|
0.05 |
|
|
|
|
|
0.02 |
|
|
|
Acquisition related expenses
and adjustments |
|
- |
|
|
|
|
|
- |
|
|
|
|
|
0.01 |
|
|
|
|
|
0.02 |
|
|
|
Non-cash stock-based
compensation expense |
|
0.08 |
|
|
|
|
|
0.08 |
|
|
|
|
|
0.22 |
|
|
|
|
|
0.21 |
|
|
|
CEO transition |
|
- |
|
|
|
|
|
- |
|
|
|
|
|
0.08 |
|
|
|
|
|
- |
|
|
|
Loss from write-off of
assets |
|
0.05 |
|
|
|
|
|
- |
|
|
|
|
|
0.05 |
|
|
|
|
|
- |
|
|
|
Legacy legal matters |
|
- |
|
|
|
|
|
- |
|
|
|
|
|
0.03 |
|
|
|
|
|
- |
|
|
|
Non-recurring professional
fees |
|
- |
|
|
|
|
|
- |
|
|
|
|
|
0.01 |
|
|
|
|
|
- |
|
|
|
Tax effect of adjustments |
|
(0.04 |
) |
|
|
|
|
(0.01 |
) |
|
|
|
|
(0.10 |
) |
|
|
|
|
(0.03 |
) |
|
|
Adjusted diluted net
earnings (loss) per share |
$ |
(0.03 |
) |
|
|
|
$ |
0.58 |
|
|
|
|
$ |
0.54 |
|
|
|
|
$ |
1.25 |
|
|
|
The Shyft Group, Inc. and Subsidiaries |
Consolidated Financial Summary (Non-GAAP) |
(In thousands) |
(Unaudited) |
|
|
Year Ended December 31, |
The Shyft Group,
Inc. |
|
2023 |
|
|
|
2022 |
|
Net cash provided by operating
activities |
$ |
56,244 |
|
|
$ |
(18,843 |
) |
Purchases of property, plant
and equipment |
|
(20,733 |
) |
|
|
(20,564 |
) |
Proceeds from sale of
property, plant and equipment |
|
119 |
|
|
|
148 |
|
Free cash
flow |
$ |
35,630 |
|
|
$ |
(39,259 |
) |
The Shyft Group, Inc. and Subsidiaries |
Consolidated Financial Summary (Non-GAAP) |
(In thousands, except per share data) |
(Unaudited) |
|
|
Outlook |
|
Year Ended December 31, 2024 |
The Shyft Group,
Inc. |
Low |
|
Mid |
|
High |
Net income |
$ |
2,479 |
|
|
$ |
6,481 |
|
|
$ |
10,483 |
|
Add: |
|
|
|
|
|
Depreciation and
amortization |
|
21,000 |
|
|
|
21,000 |
|
|
|
21,000 |
|
Interest expense |
|
7,000 |
|
|
|
7,000 |
|
|
|
7,000 |
|
Taxes |
|
621 |
|
|
|
1,619 |
|
|
|
2,617 |
|
EBITDA |
$ |
31,100 |
|
|
$ |
36,100 |
|
|
$ |
41,100 |
|
Add: |
|
|
|
|
|
Non-cash stock-based
compensation and other charges |
|
8,900 |
|
|
|
8,900 |
|
|
|
8,900 |
|
Adjusted EBITDA |
$ |
40,000 |
|
|
$ |
45,000 |
|
|
$ |
50,000 |
|
|
|
|
|
|
|
Earnings per share |
$ |
0.07 |
|
|
$ |
0.19 |
|
|
$ |
0.30 |
|
Add: |
|
|
|
|
|
Non-cash stock-based
compensation and other charges |
|
0.26 |
|
|
|
0.26 |
|
|
|
0.26 |
|
Less: tax effect of
adjustments |
|
(0.05 |
) |
|
|
(0.05 |
) |
|
|
(0.05 |
) |
Adjusted earnings per
share |
$ |
0.28 |
|
|
$ |
0.40 |
|
|
$ |
0.51 |
|
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