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 fourth quarter and full year ending Dec. 31, 2023.
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%, from $302 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
For the full-year 2023 compared to the full-year 2022:
- Sales of $872.2 million, a decrease of $155 million, or 15.1%, from $1 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 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.”
“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.”