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Jun 30, 2020
The Shyft Group Q2 2020 Earnings Report
The Shyft Group reported a decrease in sales due to the COVID-19 pandemic, but gross profit margin improved driven by product mix and cost efficiencies.
Key Takeaways
The Shyft Group reported a decrease in sales by 31.0% due to COVID-19 impacts, but improved gross profit margin by 780 basis points. The company generated $5.4 million in cash from operating activities and maintained a strong liquidity position of $114.5 million. The company transitioned its corporate brand from Spartan Motors to The Shyft Group.
Sales decreased by 31.0% due to COVID-19 impacts and supply chain disruptions.
Gross profit margin improved by 780 basis points due to product mix and cost efficiencies.
Adjusted EBITDA decreased by 4.2% despite the negative impacts of COVID-19.
Consolidated backlog increased by 22.2% year-over-year, reflecting strong demand.
The Shyft Group
The Shyft Group
Forward Guidance
The Shyft Group expects to deliver third quarter revenues in the range of $180.0 to $200.0 million, adjusted EBITDA of $20.0 to $23.0 million, and adjusted EPS of $0.36 to $0.42.
Positive Outlook
- Improvement in production throughout the quarter.
- Manufacturing in 95% of its facilities at full or modified production levels.
- Observed improvement in OEM chassis and component supply in recent weeks.
- Strong backlog position.
- Improving conditions in the short term.
Challenges Ahead
- Further pandemic related issues.
- Longer-term uncertainty.
- Implications of COVID-19 on its business.
- Supply chain recovery taking longer than anticipated.
- Chassis and key component shortages resulting from the pandemic.