The Shyft Group, a 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 first quarter ending March 31.
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, down $228 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.”
“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, includes sales to be in the range of $850 million to $900 million. The company assumes no Blue Arc EV revenue. Adjusted EBITDA guidance of $40 to $50 million, including EV spending of $20 to $25 million, and net income of $2.5 to $10.5 million, with an income tax rate of approximately 20%.
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.”
