The Shyft Group’s Q1 Report Reflects Challenging Market – RVBusiness – Breaking RV Industry News
NOVI, Mich. — The Shyft Group Inc. (NASDAQ: SHYF), the parent company of Spartan RV Chassis and its Red Diamond aftermarket division and a North American leader in specialty vehicle manufacturing, assembly and upfit for the commercial, retail and service specialty vehicle markets, today (April 25) reported operating results for the first quarter ending March 31, 2024.
First Quarter 2024 Financial Highlights
For the first quarter of 2024 compared to the first quarter of 2023:
- Sales of $197.9 million, a decrease of $45.5 million, or 18.7%, from $243.4 million
- Net loss of $4.7 million, or ($0.14) per share, compared to net income of $1.7 million, or $0.05 per share
- Adjusted EBITDA of $6.1 million, or 3.1% of sales, a decrease of $4.7 million, from $10.8 million, or 4.4% of sales; Results include $5.5 million of EV program related costs versus $8.5 million in the prior year
- Adjusted net loss of $1.4 million, or ($0.04) per share, compared to adjusted net income of $4.3 million, or $0.12 per share in the first quarter of 2023
- Consolidated backlog of $439.4 million as of March 31, 2024, down $228.0 million, or 34.2%, compared to $667.4 million as of March 31, 2023; On a sequential quarter basis, consolidated backlog was up 7.4%
“We made progress implementing our operating framework, which includes high performing teams, operational excellence, and customer centricity,” said John Dunn, president and CEO. “Our sales team drove improved commercial activity in the quarter, which enabled a sequential improvement in order backlog. Our SV business continues to execute well and delivered solid results in the quarter.”
First Quarter 2024 Business Segment Financial Highlights
For the first quarter of 2024 compared to the first quarter of 2023:
Fleet Vehicles and Services (FVS)
- Sales were $107.8 million for the first quarter of 2024, down 32.4%, or $51.6 million year over year
- Adjusted EBITDA for the first quarter of 2024 was $0.9 million, or 0.9% of sales, a decrease of $11.6 million, from $12.5 million, or 7.8% of sales, a year ago
- Segment backlog was $356.1 million as of March 31, 2024, down 39.1% compared to $584.9 million as of March 31, 2023
Specialty Vehicles (SV)
- Sales were $90.1 million for the first quarter of 2024, up 3.4%, or $2.9 million year over year
- Adjusted EBITDA for the first quarter of 2024 was $17.0 million, or 18.8% of sales, an increase of $3.1 million, from $13.9 million, or 15.9% of sales, a year ago
- Segment backlog was $83.3 million as of March 31, 2024, up 1.0% compared to $82.5 million as of March 31, 2023
2024 Financial Outlook
“We are pleased with our start to the year considering the challenging end-markets,” said Jon Douyard, chief financial officer. “While there was improvement in FVS order activity to start the year, the parcel market remains soft, and we remain cautious on near-term demand. Overall, our team is focused on driving operational efficiency and commercial growth initiatives, positioning us to affirm our prior outlook.”
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
Dunn concluded, “Shyft has industry leading products and a highly engaged team, who are identifying opportunities to drive companywide synergies. Recently launched initiatives to enhance sales and procurement are beginning to deliver positive results. The Blue Arc team is making progress as production is targeted for late 2024. We remain confident in our team’s ability to manage through current market conditions and deliver for shareholders over the long term.”
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:
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.
