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Dec 31, 2023
The Shyft Group Q4 2023 Earnings Report
Reported a decrease in sales and net loss compared to the previous year, with positive cash generation driven by Specialty Vehicles business.
Key Takeaways
The Shyft Group reported a decrease in sales to $202.3 million and a net loss of $4.4 million for Q4 2023, compared to sales of $302.0 million and net income of $17.8 million in Q4 2022. The company's Specialty Vehicles business delivered strong profitability, while Fleet Vehicles and Services performance was underwhelming. The company introduces 2024 outlook with sales of $850 to $900 million and adjusted EBITDA of $40 to $50 million.
Sales decreased to $202.3 million, a 33.0% decrease from $302.0 million year-over-year.
Net loss was $4.4 million, or ($0.13) per share, compared to net income of $17.8 million, or $0.50 per share year-over-year.
Adjusted EBITDA decreased to $2.3 million, or 1.1% of sales, from $30.7 million, or 10.2% of sales year-over-year.
Consolidated backlog decreased to $409.3 million, down 50.9% compared to $832.7 million year-over-year.
The Shyft Group
The Shyft Group
Forward Guidance
The company provided full-year 2024 guidance with sales expected to be in the range of $850 million to $900 million and adjusted EBITDA of $40 to $50 million.
Positive Outlook
- Sales to be in the range of $850 million to $900 million.
- 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
Challenges Ahead
- Challenging demand environment for parcel and motorhome is expected to continue in the first half of 2024.
- Assumes no Blue Arc EV revenue.
- EV spending of $20 to $25 million.
- Capital expenditures of approximately $20 to 25 million.
- Actively managing and navigating a highly dynamic demand environment in 2024.