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Jun 30, 2023
The Shyft Group Q2 2023 Earnings Report
Second quarter results were in line with management expectations, driven by strong Specialty Vehicles performance and robust cash generation, while facing challenges in the Fleet Vehicles and Services business due to market deterioration and operational inefficiencies.
Key Takeaways
The Shyft Group reported second-quarter results in line with expectations, with sales of $225.1 million and net income of $4.7 million. The company experienced challenges in the Fleet Vehicles and Services business due to market conditions and operational inefficiencies, but strong Specialty Vehicles performance and cash generation helped offset these issues. The company revised its full-year 2023 outlook due to softness in last-mile delivery and motorhome end markets.
Sales decreased by 3.1% to $225.1 million compared to the second quarter of 2022.
Net income decreased to $4.7 million, or $0.13 per share, compared to $5.3 million, or $0.15 per share in the prior year.
Adjusted EBITDA increased to $15.9 million, or 7.0% of sales, from $13.7 million, or 5.9% of sales in the prior year.
Consolidated backlog decreased by 55.1% to $510.2 million as of June 30, 2023, compared to $1.1 billion as of June 30, 2022.
The Shyft Group
The Shyft Group
Forward Guidance
The company revised its full-year 2023 outlook, expecting sales between $850 million and $950 million, adjusted EBITDA between $40 million and $60 million, and adjusted earnings per share between $0.33 and $0.76.
Positive Outlook
- Blue Arc EV second half production remains on track.
- Expect approximately 50 vehicles to be delivered in the fourth quarter.
- Confident in the long-term growth profile of the Company.
- Expect earnings growth in 2024.
- Driving operational improvements and ramp Blue Arc production.
Challenges Ahead
- Sales to be in the range of $850 million to $950 million compared to the previous outlook of $1.0 to $1.2 billion.
- Adjusted EBITDA of $40 to $60 million compared to the previous outlook of $70 to $100 million.
- Net Income of $1 to $16 million compared to the previous outlook of $28 to $50 million.
- Earnings per share of $0.03 to $0.46 compared to the previous outlook of $0.77 to $1.39.
- Adjusted earnings per share of $0.33 to $0.76 compared to the previous outlook of $0.98 to $1.60.