Sign In  |  Register  |  About San Rafael  |  Contact Us

San Rafael, CA
September 01, 2020 1:37pm
7-Day Forecast | Traffic
  • Search Hotels in San Rafael

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

The Shyft Group Reports Second Quarter 2023 Results

  • Second quarter results in line with management expectations
  • Solid operating cash flow performance in the quarter
  • Revised full-year 2023 outlook primarily driven by softness in last-mile delivery and motorhome end markets

NOVI, Mich., July 27, 2023 (GLOBE NEWSWIRE) -- 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 reports operating results for the second quarter ending June 30, 2023.

Second Quarter 2023 Highlights        
For the second quarter of 2023 compared to the second quarter of 2022:

  • Sales of $225.1 million, a decrease of $7.1 million, or 3.1%, from $232.2 million
  • Net income of $4.7 million, or $0.13 per share, compared to $5.3 million, or $0.15 per share
  • Adjusted EBITDA of $15.9 million, or 7.0% of sales, an increase of $2.2 million, from $13.7 million, or 5.9% of sales; results include $7.4 million of EV program costs versus $7.3 million in the prior year
  • Adjusted net income of $8.7 million, or $0.25 per share, compared to $7.5 million, or $0.21 per share in the prior year
  • Consolidated backlog of $510.2 million as of June 30, 2023, down 55.1%, compared to $1.1 billion as of June 30, 2022
  • Operating cash flow of $29.7 million, up $38.6 million, compared to an outflow of $8.9 million in the prior year

“We delivered second quarter results in line with our expectations led by strong Specialty Vehicles performance while also driving robust cash generation,” said Daryl Adams, President and Chief Executive Officer. “We experienced challenges in the Fleet Vehicles and Services business as market conditions deteriorated and operational inefficiencies remain. We continue to flex our operations while implementing additional cost reductions to reflect lower short-term demand.”

Second Quarter 2023 Business Segment Highlights
For the second quarter of 2023 compared to the second quarter of 2022:

Fleet Vehicles and Services (FVS)

  • Sales of $139.0 million, an increase of $2.1 million, or up 1.5%, from $136.9 million
  • Adjusted EBITDA of $12.5 million, or 9.0% of sales, a decrease of $2.0 million, from $14.5 million, or 10.6% of sales
  • Segment quarter-end backlog of $437.8 million, down 56.2% compared to $1.0 billion in the prior year

Specialty Vehicles (SV)

  • Sales of $87.6 million, a decrease of $7.7 million, or 8.1%, from $95.3 million
  • Adjusted EBITDA of $17.4 million, or 19.8% of sales, an increase of $4.5 million, from $12.9 million, or 13.5% of sales
  • Segment quarter-end backlog of $72.4 million as of June 30, 2023, down 46.4% compared to $135.2 million as of June 30, 2022
  • Achieved significant milestone with the 100,000th Isuzu N-Series gas-powered truck produced at Builtmore

Disciplined Capital Allocation
“Our balance sheet continues to be a strength and differentiator for the Company. We are confident in our long-term growth story and ability to generate cash, giving us the flexibility to efficiently deploy capital to maximize shareholder value,” said Jon Douyard, Chief Financial Officer.

The Company deployed $8.3 million of capital in the quarter with the following actions:

  • Funded $6.5 million of capital expenditures, including investment in Blue Arc
  • Paid regular dividends of $1.8 million reflecting a dividend of $0.05 per share
  • $233 million remaining under our existing share repurchase authorization

2023 Financial Outlook
Douyard continued, “Our prior concerns surrounding a tougher demand environment materialized late in the quarter. As softness in the parcel market continued and dealer inventories remained high, last-mile customers deferred and cancelled orders leading to lower OEM chassis production. In addition, consistent with broader recreational vehicle markets, we are experiencing incremental weakness in our motorhome chassis business. These headwinds have negatively impacted our full-year outlook.”

Our revised full-year 2023 outlook, notwithstanding further changes in the operating environment, is as follows:

  • Sales to be in the range of $850 million to $950 million compared to the previous outlook of $1.0 to $1.2 billion
  • Adjusted EBITDA of $40 to $60 million compared to the previous outlook of $70 to $100 million
  • Net Income of $1 to $16 million compared to the previous outlook of $28 to $50 million
  • Earnings per share of $0.03 to $0.46 compared to the previous outlook of $0.77 to $1.39
  • Adjusted earnings per share of $0.33 to $0.76 compared to the previous outlook of $0.98 to $1.60
  • Blue Arc EV second half production remains on track; expect approximately 50 vehicles to be delivered in the fourth quarter

Adams concluded, “We remain confident in the long-term growth profile of the Company. Despite market and economic uncertainty, we expect earnings growth in 2024 as we drive operational improvements and ramp Blue Arc production.”

Conference Call and Webcast
The Shyft Group will host a conference call and webcast at 8:30 a.m. ET today.

The U.S. toll-free dial-in for the conference call is 1-844-868-8845, and the international dial-in number is 412-317-6591. The conference passcode is 10176862.

A live webcast of the conference will also be available on the investor relations page of the company’s website at www.the shyftgroup.com/webcasts.

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 4,200 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 $1.0 billion in 2022. Learn more at TheShyftGroup.com.

Forward Looking Statement

This release contains information, including our sales and earnings guidance, all other information provided with respect to our outlook for 2023 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, anticipated disruptions to our operations and industry due to the COVID-19 pandemic, 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, 2022, 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.

Contact
Randy Wilson
Vice President, Investor Relations and Treasury
Randy.Wilson@theshyftgroup.com
248.727.3755

The Shyft Group, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
  June 30,  December 31, 
  2023  2022 
ASSETS        
Current assets:        
Cash and cash equivalents $7,808  $11,548 
Accounts receivable, less allowance of $270 and $246  93,442   115,742 
Contract assets  41,230   86,993 
Inventories  101,303   100,161 
Other receivables – chassis pool agreements  9,312   19,544 
Other current assets  7,078   11,779 
Total current assets  260,173   345,767 
Property, plant and equipment, net  77,393   70,753 
Right of use assetsoperating leases  49,132   53,386 
Goodwill  48,880   48,880 
Intangible assets, net  47,173   49,078 
Net deferred tax assets  10,390   10,390 
Other assets  2,705   2,227 
TOTAL ASSETS $495,846  $580,481 
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
Current liabilities:        
Accounts payable $85,733  $124,309 
Accrued warranty  6,018   7,161 
Accrued compensation and related taxes  14,770   14,434 
Contract liabilities  4,198   5,255 
Operating lease liability  11,378   10,888 
Other current liabilities and accrued expenses  8,549   19,452 
Short-term debt – chassis pool agreements  9,312   19,544 
Current portion of long-term debt  179   189 
Total current liabilities  140,137   201,232 
Other non-current liabilities  9,826   10,033 
Long-term operating lease liability  39,501   44,256 
Long-term debt, less current portion  45,184   56,266 
Total liabilities  234,648   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; 34,956 and 35,066 outstanding  90,606   92,982 
Retained earnings  170,523   175,611 
Total Shyft Group, Inc. shareholdersequity  261,129   268,593 
Non-controlling interest  69   101 
Total shareholders' equity  261,198   268,694 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $495,846  $580,481 


The Shyft Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
  2023  2022  2023  2022 
                 
Sales $225,101  $232,195  $468,540  $439,078 
Cost of products sold  182,347   190,077   382,862   371,029 
Gross profit  42,754   42,118   85,678   68,049 
                 
Operating expenses:                
Research and development  5,890   7,563   12,839   12,490 
Selling, general and administrative  30,270   26,860   62,559   53,412 
Total operating expenses  36,160   34,423   75,398   65,902 
                 
Operating income  6,594   7,695   10,280   2,147 
                 
Other income (expense)                
Interest expense  (1,477)  (463)  (3,125)  (617)
Other income (expense)  124   (488)  194   (523)
Total other expense  (1,353)  (951)  (2,931)  (1,140)
                 
Income before income taxes  5,241   6,744   7,349   1,007 
Income tax expense (benefit)  556   1,461   986   (424)
Net income  4,685   5,283   6,363   1,431 
Less: net loss attributable to non-controlling interest  -   -   32   - 
                 
Net income attributable to The Shyft Group Inc. $4,685  $5,283  $6,395  $1,431 
                 
Basic earnings per share $0.13  $0.15  $0.18  $0.04 
Diluted earnings per share $0.13  $0.15  $0.18  $0.04 
                 
Basic weighted average common shares outstanding  34,935   35,049   34,995   35,078 
Diluted weighted average common shares outstanding  34,991   35,243   35,161   35,437 


The Shyft Group, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands, except par value)
(Unaudited)
 
  
  Six Months
Ended June 30,
 
   2023  2022 
Cash flows from operating activities:       
Net income $6,363 $1,431 
Adjustments to reconcile net income to net cash provided by (used in) operating activities       
Depreciation and amortization  8,050  6,696 
Non-cash stock based compensation expense  3,090  3,708 
Deferred income taxes  -  (432)
Loss on disposal of assets  128  481 
Changes in accounts receivable and contract assets  68,064  (12,863)
Changes in inventories  (1,142) (34,826)
Changes in accounts payable  (38,567) 7,333 
Changes in accrued compensation and related taxes  303  (6,146)
Changes in accrued warranty  (1,143) (379)
Changes in other assets and liabilities  (9,525) (1,672)
Net cash provided by (used in) operating activities  35,621  (36,669)
        
Cash flows from investing activities:       
Purchases of property, plant and equipment  (10,963) (10,010)
Proceeds from sale of property, plant and equipment  82  148 
Acquisition of business, net of cash acquired  (500) - 
        
Net cash used in investing activities  (11,381) (9,862)
        
Cash flows from financing activities:       
Proceeds from long-term debt  70,000  85,000 
Payments on long-term debt  (81,000) (30,000)
Payments of dividends  (3,653) (3,640)
Purchase and retirement of common stock  (8,786) (26,789)
Exercise and vesting of stock incentive awards  (4,541) (8,591)
Net cash provided by (used in) financing activities  (27,980) 15,980 
        
Net decrease in cash and cash equivalents  (3,740) (30,551)
Cash and cash equivalents at beginning of period  11,548  37,158 
        
Cash and cash equivalents at end of period $7,808 $6,607 
        


The Shyft Group, Inc. and Subsidiaries
Sales and Other Financial Information by Business Segment
(Unaudited)

Quarter Ended June 30, 2023 (in thousands of dollars)

      Business Segments     
   Fleet Vehicles  Specialty  Eliminations &   
   & Services  Vehicles  Other  Consolidated
 Fleet vehicle sales$125,291 $- $- $125,291
 Motorhome chassis sales -  30,099  -  30,099
 Other specialty vehicles sales -  51,652  (1,443) 50,209
 Aftermarket parts and accessories sales 13,692  5,810  -  19,502
             
 Total Sales$138,983 $87,561 $(1,443)$225,101
             
Adjusted EBITDA$12,468 $17,367 $(13,968)$15,867
            


The Shyft Group, Inc. and Subsidiaries
Sales and Other Financial Information by Business Segment
(Unaudited)

Quarter Ended June 30, 2022 (in thousands of dollars)

   Business Segments   
   Fleet Vehicles  Specialty  Eliminations &   
   & Services  Vehicles  Other  Consolidated
 Fleet vehicle sales$126,181 $- $- $126,181
 Motorhome chassis sales -  42,710  -  42,710
 Other specialty vehicles sales -  47,044  -  47,044
 Aftermarket parts and accessories sales 10,716  5,544  -  16,260
             
 Total Sales$136,897 $95,298 $- $232,195
             
Adjusted EBITDA$14,525 $12,859 $(13,695)$13,689
            


The Shyft Group, Inc. and Subsidiaries
Sales and Other Financial Information by Business Segment
(Unaudited)

Period End Backlog (amounts in thousands of dollars)

  Jun. 30, 2023  Mar. 31, 2023  Dec. 31, 2022  Sept. 30, 2022 Jun. 30, 2022 
Fleet Vehicles and Services$437,802 $584,933 $736,690 $915,135 $1,000,021 
                
Total Specialty Vehicles 72,402  82,478  96,023  128,769  135,162 
Motorhome Chassis 25,123  28,180  35,471  49,769  62,811 
Other Specialty Vehicles 47,279  54,298  60,552  79,000  72,351 
                
Total Backlog$510,204 $667,411 $832,713 $1,043,904 $1,135,183 
                

Reconciliation of Non-GAAP Financial Measures

This release presents Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted net income, and adjusted earnings per share, each of which is a non-GAAP financial measure. These non-GAAP measures are calculated by excluding items that we believe to be infrequent or not indicative of our underlying operating performance, as well as certain non-cash expenses. We define Adjusted EBITDA as income from continuing operations 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. We believe that the presentation of this non-GAAP measure, 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.

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.


The Shyft Group, Inc. and Subsidiaries
Consolidated Financial Summary (Non-GAAP)
(In thousands, except per share data)
(Unaudited)
 
 Three Months Ended June 30,
The Shyft Group, Inc. 2023 % of
sales
  2022 % of
sales
Net income$4,685 2.1% $5,283 2.3%
Add (subtract):     
Restructuring and other related charges 1,253    354  
Acquisition related expenses and adjustments -    341  
Non-cash stock-based compensation expense 1,263    2,060  
CEO transition 2,287    -  
Non-recurring professional fees 160    -  
Tax effect of adjustments (981)   (496) 
Adjusted net income$8,667 3.9% $7,542 3.2%
      
Net income$4,685 2.1% $5,283 2.3%
Add (subtract):     
Depreciation and amortization 4,186    3,727  
Income tax expense 556    1,461  
Interest expense 1,477    463  
EBITDA$10,904 4.8% $10,934 4.7%
Add:     
Restructuring and other related charges 1,253    354  
Acquisition related expenses and adjustments -    341  
Non-cash stock-based compensation expense 1,263    2,060  
CEO transition 2,287    -  
Non-recurring professional fees 160    -  
Adjusted EBITDA$15,867 7.0% $13,689 5.9%
      
Diluted net earnings per share$0.13   $0.15  
Add (subtract):     
Restructuring and other related charges 0.04    0.01  
Acquisition related expenses and adjustments -    0.01  
Non-cash stock-based compensation expense 0.04    0.05  
CEO transition 0.07    -  
Non-recurring professional fees -    -  
Tax effect of adjustments (0.03)   (0.01) 
Adjusted diluted net earnings per share$0.25   $0.21  


The Shyft Group, Inc. and Subsidiaries
Consolidated Financial Summary (Non-GAAP)
(In thousands, except per share data)
(Unaudited)
   Outlook
   Twelve Months Ended December 31, 2023
The Shyft Group, Inc.  Low Mid High
Net income  $998  $8,622  $16,246 
Add:       
Depreciation and amortization   19,500   20,000   20,500 
Interest expense   6,000   6,000   6,000 
Taxes   250   2,155   4,061 
EBITDA  $26,748  $36,777  $46,807 
Add:       
Non-cash stock-based compensation and other charges  13,500   13,500   13,500 
Adjusted EBITDA  $40,248  $50,277  $60,307 
        
Earnings per share  $0.03  $0.24  $0.46 
Add:       
Non-cash stock-based compensation and other charges  0.38   0.38   0.38 
Less tax effect of adjustments   (0.08)  (0.08)  (0.08)
Adjusted earnings per share  $0.33  $0.55  $0.76 

*Table amounts may not add due to rounding


Primary Logo

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SanRafael.com & California Media Partners, LLC. All rights reserved.