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Mar 31, 2020
The Shyft Group Q1 2020 Earnings Report
Reported EPS gain of 154% to $0.33 on sales of $176.9 million.
Key Takeaways
The Shyft Group reported a strong first quarter with sales increasing to $176.9 million and EPS increasing 154% to $0.33. The company benefited from operating in a more focused core market and recent acquisitions.
Sales increased $4.7 million, or 2.8%, to $176.9 million from $172.2 million.
Gross profit margin improved 850 basis points to 20.5% of sales from 12.0% of sales.
Income from continuing operations increased $6.9 million, or 142.9%, to $11.7 million, or $0.33 per share, from $4.8 million, or $0.13 per share.
Consolidated backlog at March 31, 2020, totaled $344.7 million, up $200.1 million, or 138.4%, compared to $144.6 million at March 31, 2019, excluding the one-time, multi-year USPS truck body order of $73.1 million.
The Shyft Group
The Shyft Group
Forward Guidance
Spartan is withdrawing full year 2020 financial guidance and plans to provide an updated outlook once they have greater clarity regarding the implications of COVID-19 on their business.
Positive Outlook
- Strong start to the year.
- Ongoing market demand for products.
- Anticipates returning to normal production levels by the end of May.
- Has the backlog position to deliver solid growth for the balance of the year, excluding USPS chassis pass-through sales.
- Strong first quarter results are a major indicator that business transformation efforts and strategy are working.
Challenges Ahead
- Magnitude and duration of the COVID impact remain uncertain.
- Production at facilities may be further impacted by chassis and component availability.
- Possible future government, market or Company response related to the pandemic.
- Disruption to business is temporary.
- Current headwinds.