Shyft Group Appoints John Dunn as President, Reports on Q3 – RVBusiness – Breaking RV Industry News

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John Dunn

NOVI, Mich. – The Shyft Group (NASDAQ: SHYF), parent company of Spartan Chassis and a North American leader in specialty vehicle manufacturing, announced that it has appointed John Dunn, as President and CEO of the Company, effective today

The company also reported operating results from its 2023 fiscal third quarter ended Sept. 30.

Dunn, who previously served as President of Shyft’s Fleet Vehicles and Services, will also join the Board of Directors. In connection with the Company’s previously announced leadership transition plan, Daryl Adams, current President and CEO, will step down from his role and resign from the Board. Adams will remain with the Company in an advisory capacity for six months to ensure a smooth transition.

“I am proud of how our team has transformed Shyft into an industry leader in our attractive end markets of last-mile delivery and infrastructure,” Adams said. “Since I joined Shyft in 2014, we have demonstrated our ability to execute through changing market conditions while driving operational improvements, investing in innovation, and delivering value to our customers and shareholders. Shyft is well-positioned with a growing roster of innovative brands with strong prospects. I look forward to working closely with John, ensuring a seamless leadership transition.”

“The Shyft Board is pleased to name John as CEO of Shyft following a deliberate and comprehensive succession process,” said James Sharman, Chair of The Shyft Board of Directors. “John is a proven leader with a track record of building and driving high-performing teams. He has extensive experience in manufacturing, operations, product development, and customer relations. We look forward to collaborating with John to deliver shareholder value as we enter the next phase of our transformation.”

“I am honored that the Board has entrusted me to lead Shyft as we accelerate our strategic vision, enhance product quality and innovation, and expand our customer reach,” Dunn said. “I am confident in our team’s resilience and ability to deliver great products across our leading brands, increase shareholder value, and strengthen Shyft’s workplace culture.”

“On behalf of the Board and shareholders, I would like to thank Daryl for his many contributions over nine years at Shyft. Under his tenure, the Company undertook an ambitious business transformation, and we are grateful for his leadership and dedication,” Sharman said.

Dunn joined Shyft in January 2023 as President, Fleet Vehicles and Services. Prior to joining Shyft, he served as President and CEO, Americas for Plastic Omnium, a global frontrunner in mobility solutions with €9.5 billion of revenue in 2022. He previously held various leadership positions at Brose, including President of North America, a global Tier 1 automotive supplier that equips half of the new cars worldwide across its 68 locations. Dunn holds a Master of Science in Industrial Engineering from the University of Wisconsin and a Bachelor of Science in Industrial Engineering from Purdue University.

Third Quarter 2023 Highlights
For the third quarter of 2023 compared to the third quarter of 2022:

Sales of $201.3 million, a decrease of $84.8 million, or 29.6%, from $286.1 million
Net income of $4.5 million, or $0.13 per share, compared to $17.3 million, or $0.49 per share; third quarter 2023 net income includes a tax benefit of $2.0 million, primarily due to favorable adjustments for R&D tax credits
Adjusted EBITDA of $11.0 million, or 5.5% of sales, a decrease of $16.1 million, from $27.1 million, or 9.5% of sales; results include $7.6 million of EV program costs consistent with prior year
Adjusted net income of $6.7 million, or $0.19 per share, compared to $18.6 million, or $0.53 per share in the prior year
Consolidated backlog of $464.4 million as of September 30, 2023, down 55.5% compared to $1.0 billion as of September 30, 2022
Operating cash flow of $9.2 million, up $17.0 million, compared to an outflow of $7.8 million in the prior year
Issued the second annual Sustainability Report highlighting our continued progress towards our environmental, social, and governance goals

“We delivered third quarter results in line with our expectations led by our infrastructure and vocational related businesses. The parcel and motorhome end-markets continue to be highly dynamic, and our team is focused on driving operational and commercial actions as we close out the year,” said Jon Douyard, Chief Financial Officer.

Third Quarter 2023 Business Segment Highlights
For the third quarter of 2023 compared to the third quarter of 2022:

Fleet Vehicles and Services (FVS)

Sales of $124.3 million, a decrease of $60.2 million, or 32.6%, from $184.5 million
Adjusted EBITDA of $8.0 million, or 6.4% of sales, a decrease of $16.4 million, from $24.4 million, or 13.2% of sales
Segment quarter-end backlog of $383.4 million, down 58.1% compared to $915.1 million in the prior year

Specialty Vehicles (SV)

Sales of $76.6 million, a decrease of $27.3 million, or 26.3%, from $103.9 million
Adjusted EBITDA of $16.0 million, or 20.9% of sales, an increase of $0.4 million, from $15.6 million, or 15.0% of sales
Segment quarter-end backlog of $81.0 million as of September 30, 2023, down 37.1% compared to $128.8 million in the prior year

Disciplined Capital Allocation
“Our balance sheet is a competitive advantage as the Company executes its long-term strategy. We are focused on cash conversion and efficiently deploying capital to maximize shareholder value, including $19.1 million of share repurchases in 2023,” said Douyard.

The Company deployed $17.2 million of capital in the third quarter with the following actions:

Repurchased $10.3 million in shares with $223 million remaining under the existing share repurchase authorization
Funded $5.2 million of capital expenditures, including investment in Blue Arc
Paid regular dividends of $1.7 million reflecting a dividend of $0.05 per share

2023 Financial Outlook
The Company is narrowing its full-year 2023 outlook to the lower-end of the range as end-market challenges and operational inefficiencies remain.

The outlook, notwithstanding further changes in the operating environment, is as follows:

Sales to be in the range of $850 million to $900 million compared to the previous outlook of $850 to $950 million
Adjusted EBITDA of $40 to $45 million compared to the previous outlook of $40 to $60 million
Net Income of $4 to $9 million compared to the previous outlook of $1 to $16 million; includes favorable adjustments for R&D tax credits
Earnings per share of $0.13 to $0.27 compared to the previous outlook of $0.03 to $0.46
Adjusted earnings per share of $0.42 to $0.56 compared to the previous outlook of $0.33 to $0.76

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 10179222.

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

Source: https://rvbusiness.com/shyft-group-appoints-john-dunn-as-president-reports-on-q3/