The Shyft Group, a North American leader in specialty vehicle manufacturing, assembly and upfit for the commercial, retail and service specialty vehicle markets, reported operating results for the third quarter ending Sept. 30.
For the third quarter of 2024 compared to the third quarter of 2023:
- Sales of $194.1 million, a decrease of $7.2 million, or 3.6%, from $201.3 million
- Net income of $3.1 million, or $0.09 per share, compared to $4.5 million, or $0.13 per share; third quarter 2023 net income included a tax benefit of $2 million, primarily due to favorable adjustments for R&D tax credits.
- Adjusted EBITDA of $14.3 million, or 7.4% of sales, an increase of $3.3 million, from $11 million, or 5.5% of sales; results include $6.1 million of EV program related costs versus $7.6 million in the prior year.
- Adjusted net income of $6.1 million, or $0.18 per share, compared to $6.7 million, or $0.19 per share in the third quarter of 2023.
- Consolidated backlog1 of $345.4 million as of Sept. 30 down $119 million, or 25.6%, compared to $464.4 million as of Sept. 30.
“We are improving performance by the execution of our operational framework as we achieved adjusted EBITDA growth of 31% year-over-year. The Shyft team is highly engaged in driving operational and commercial improvements and we are seeing it in our results,” said John Dunn, president and CEO.
2024 Financial Outlook
“In the quarter, Shyft delivered improved financial results while progressing key strategic initiatives, including the acquisition and initial integration of Independent Truck Upfitters. Our balance sheet remains solid as we achieved net leverage of 2.2x, which was meaningfully below our expectations for the third quarter. Based on our expected fourth quarter performance, we anticipate further improvement of our balance sheet and liquidity as we enter 2025, providing flexibility to invest capital going forward,” said Jon Douyard, chief financial officer.
Full-year 2024 outlook, notwithstanding further changes in the operating environment, is as follows:
- Sales of approximately $800 million; Assumes no Blue Arc EV revenue
- Adjusted EBITDA of $45 to $50 million, including EV spending of $20 to $25 million
- Net income of $2.6 to $6.9 million, with an income tax rate of approximately 20%
- Earnings per share of $0.07 to $0.20
- Adjusted earnings per share of $0.35 to $0.50
- Capital expenditures of $15 to $20 million
- Free cash flow of approximately $30 million
Dunn concluded, “Our team is committed to meeting our financial goals for the year and maintaining financial strength heading into 2025. As we integrate ITU and start Blue Arc production, the team is energized by Shyft’s future growth prospects and opportunities to deliver value through a one Shyft mindset. Overall, while the operating environment is highly dynamic, Shyft is well positioned to grow profitably as end-markets turn more positive.”