shyf20240221_8k.htm
false 0000743238 0000743238 2024-02-22 2024-02-22
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
 
Date of Report (Date of Earliest Event Reported): February 22, 2024
 
THE SHYFT GROUP, INC.
(Exact Name of Registrant as Specified in Its Charter)
 
 
Michigan
(State or Other Jurisdiction
of Incorporation)
001-33582
(Commission File No.)
38-2078923
(IRS Employer
Identification No.)
     
 
41280 Bridge Street, Novi, Michigan
(Address of Principal Executive Offices)
48375
(Zip Code)
 
517-543-6400
(Registrant's Telephone Number, Including Area Code)
 
Not Applicable
(Former Name or Former Address, if changed Since Last Report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Section Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock
SHYF
The NASDAQ Stock Market LLC
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 

 
 
Item 2.02
Results of Operations and Financial Condition
 
On February 22, 2024, The Shyft Group, Inc. (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this report.
 
The information in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.
 
Item 9.01
Financial Statements and Exhibits
 
(d) Exhibits
 
99.1
 
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
THE SHYFT GROUP, INC.
 
       
       
Dated: February 22, 2024
By:
/s/ Jonathan C. Douyard
 
   
Jonathan C. Douyard
 
   
Chief Financial Officer
 
 
 
 
 
ex_629243.htm

Exhibit 99.1

 

The Shyft Group Reports Fourth Quarter and Full-Year 2023 Results

 

 

Generated free cash flow of $36 million in the year; improvement of $75 million year-over-year

 

Delivered record profitability in Specialty Vehicles business

 

Introduces 2024 outlook with sales of $850 to $900 million and adjusted EBITDA of $40 to $50 million

 

Novi, Mich., February 22, 2024 The Shyft Group, Inc. (NASDAQ: SHYF) (“Shyft” or the “Company”), the North American leader in specialty vehicle manufacturing, assembly and upfit for the commercial, retail and service specialty vehicle markets, today reported operating results for the fourth quarter and full-year ending December 31, 2023.

 

Fourth Quarter 2023 Financial Highlights         

For the fourth quarter of 2023 compared to the fourth quarter of 2022:

Sales of $202.3 million, a decrease of $99.7 million, or 33.0%, from $302.0 million

Net loss of $4.4 million, or ($0.13) per share, compared to net income of $17.8 million, or $0.50 per share

Adjusted EBITDA of $2.3 million, or 1.1% of sales, a decrease of $28.4 million, from $30.7 million, or 10.2% of sales; Results include $9.3 million of EV program related costs versus $7.6 million in the prior year

Adjusted net loss of $0.9 million, or ($0.03) per share, compared to adjusted net income of $20.5 million, or $0.58 per share in the fourth quarter of 2022

Consolidated backlog of $409.3 million as of December 31, 2023, down $423.4 million, or 50.9%, compared to $832.7 million as of December 31, 2022

 

Full-Year 2023 Financial Highlights

For the full-year 2023 compared to the full-year 2022:

Sales of $872.2 million, a decrease of $155.0 million, or 15.1%, from $1.0 billion

Net income of $6.5 million, or $0.19 per share, compared to $36.6 million, or $1.03 per share; Current year reflects an effective income tax benefit of $5.8 million

Adjusted EBITDA of $40.0 million, or 4.6% of sales, a decrease of $30.8 million, from $70.8 million, or 6.9% of sales; Results include $32.6 million of EV program related costs versus $26.9 million in the prior year

Adjusted net income of $18.7 million, or $0.54 per share, compared to adjusted net income of $44.5 million, or $1.25 per share in 2022

 

“We drove positive cash generation by remaining focused on the operational levers within our control,” said John Dunn, President and CEO. “Our Specialty Vehicles business delivered strong overall profitability driven by robust demand for our vocational work trucks. While Fleet Vehicles and Services performance was underwhelming due to lower customer demand, the leadership team is responding with decisive commercial and operational actions to improve profitability.”

 

Fourth Quarter 2023 Business Segment Financial Highlights

Fleet Vehicles and Services (FVS)

Sales were $119.0 million for the fourth quarter of 2023, down 44.1%, or $94.0 million year over year

Adjusted EBITDA for the fourth quarter of 2023 of ($2.6) million, or (2.2)% of sales, a decrease of $30.3 million, from $27.7 million, or 13.0% of sales, a year ago

Segment backlog was $325.0 million as of December 31, 2023, down 55.9% compared to $736.7 million as of December 31, 2022

 

 

 

Specialty Vehicles (SV)

Sales were $83.4 million for the fourth quarter of 2023, a decrease of $9.8 million, or 10.6%, from $93.2 million a year ago

Adjusted EBITDA for the fourth quarter of 2023 was $19.0 million, or 22.8% of sales, an increase of $3.1 million, or 19.3%, from $15.9 million, or 17.1% of sales, a year ago

Segment backlog was $84.3 million as of December 31, 2023, down 12.2% compared to $96.0 million as of December 31, 2022

 

2024 Financial Outlook

“Looking ahead, the challenging demand environment for parcel and motorhome is expected to continue in the first half of 2024,” said Jon Douyard, Chief Financial Officer. “Our team remains focused on delivering improved financial performance and generating cash flow, while maintaining investment for future growth initiatives, including our Blue Arc EV program.”

 

Guidance for full-year 2024, notwithstanding further changes in the operating environment, is as follows:

 

Sales to be in the range of $850 million to $900 million; Assumes no Blue Arc EV revenue

 

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

 

Capital expenditures of approximately $20 to 25 million

 

Free cash flow of $25 to $35 million

 

“We will actively manage and navigate a highly dynamic demand environment in 2024, while getting Blue Arc into production later this year,” said Dunn. “Shyft has a strong core business, and the team is implementing the framework to return the company to historic profitability levels. We are strengthening the leadership team, driving operational execution, and deepening our commercial capabilities to deliver long-term shareholder value.”

 

 

 

Conference Call and Webcast Information

 

The Shyft Group will host a conference call at 8:30 a.m. ET today to discuss these results and current business trends. The conference call and webcast will be available via:

 

Webcast: https://theshyftgroup.com/investor-relations/webcasts/

Conference Call: 1-844-868-8845 (domestic) or 412-317-6591 (international); passcode: 10179224

 

 

About The Shyft Group

 

The Shyft Group is the North American leader in specialty vehicle manufacturing, assembly, and upfit for the commercial, retail, and service specialty vehicle markets. Our customers include first-to-last mile delivery companies across vocations, federal, state, and local government entities; the trades; and utility and infrastructure segments. The Shyft Group is organized into two core business units: Shyft Fleet Vehicles and Services™ and Shyft Specialty Vehicles™. Today, its family of brands include Utilimaster®, Blue Arc™ EV Solutions, Royal® Truck Body, DuraMag® and Magnum®, Strobes-R-Us, Spartan® RV Chassis, Red Diamond™ Aftermarket Solutions, and Builtmore Contract Manufacturing™. The Shyft Group and its go-to-market brands are well known in their respective industries for quality, durability, and first-to-market innovation. The Company employs approximately 3,000 employees and contractors across campuses, and operates facilities in Arizona, California, Florida, Indiana, Maine, Michigan, Missouri, Pennsylvania, Tennessee, Texas, and Saltillo, Mexico. The Company reported sales of $872 million in 2023. Learn more at TheShyftGroup.com

 

This release contains information, including our sales and earnings guidance, all other information provided with respect to our outlook for 2024 and future periods, and other statements concerning our business, strategic position, financial projections, financial strength, future plans, objectives, and the performance of our products and operations that may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Generally, we have identified such forward-looking statements by using words such as believe, expect, intend, potential, future, may, will, should, and similar expressions or by using future dates in connection with any discussion of, among other things, the construction or operation of new or existing facilities, operating performance, trends, events or developments that we expect or anticipate will occur in the future, statements relating to volume changes, share of sales and earnings per share changes, anticipated cost savings, potential capital and operational cash improvements, changes in supply and demand conditions and prices for our products, trade duties and other aspects of trade policy, statements regarding our future strategies, products and innovations, and statements expressing general views about future operating results. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements are not historical facts, but instead represent only the Companys beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Companys control. It is possible that the Companys actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Management believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Companys historical experience and our present expectations or projections. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Companys historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to the risks and uncertainties described in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023, and those described from time to time in our future reports filed with the Securities and Exchange Commission (SEC), which are available at www.sec.gov or our website. All forward-looking statements in this release are qualified by this paragraph. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. We undertake no obligation to publicly update or revise any forward-looking statements in this release, whether as a result of new information, future events, or otherwise.

 

CONTACTS

 

MEDIA

Sydney Lepora

Director, Corporate Communications

Sydney.Lepora@theshyftgroup.com

586.413.4112

 

INVESTORS

Randy Wilson 

Vice President, Investor Relations and Treasury 

Randy.Wilson@theshyftgroup.com

248.727.3755

 

 

 

The Shyft Group, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

   

December 31,

   

December 31,

 
   

2023

   

2022

 

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 9,957     $ 11,548  

Accounts receivable, less allowance of $276 and $246

    79,573       115,742  

Contract assets

    50,305       86,993  

Inventories

    105,135       100,161  

Other receivables – chassis pool agreements

    34,496       19,544  

Other current assets

    7,462       11,779  

Total current assets

    286,928       345,767  

Property, plant and equipment, net

    83,437       70,753  

Right of use assets operating leases

    45,827       53,386  

Goodwill

    48,880       48,880  

Intangible assets, net

    45,268       49,078  

Net deferred tax assets

    17,300       10,390  

Other assets

    2,409       2,227  

TOTAL ASSETS

  $ 530,049     $ 580,481  
                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               

Current liabilities:

               

Accounts payable

  $ 99,855     $ 124,309  

Accrued warranty

    7,231       7,161  

Accrued compensation and related taxes

    13,526       14,434  

Contract liabilities

    4,756       5,255  

Operating lease liability

    10,817       10,888  

Other current liabilities and accrued expenses

    11,965       19,452  

Short-term debt – chassis pool agreements

    34,496       19,544  

Current portion of long-term debt

    185       189  

Total current liabilities

    182,831       201,232  

Other non-current liabilities

    8,184       10,033  

Long-term operating lease liability

    36,724       44,256  

Long-term debt, less current portion

    50,144       56,266  

Total liabilities

    277,883       311,787  

Commitments and contingent liabilities

               

Shareholders' equity:

               

Preferred stock, no par value: 2,000 shares authorized (none issued)

    -       -  

Common stock, no par value: 80,000 shares authorized; 34,303 and 35,066 outstanding

    93,705       92,982  

Retained earnings

    158,461       175,611  

Total Shyft Group, Inc. shareholders equity

    252,166       268,593  

Non-controlling interest

    -       101  

Total shareholders' equity

    252,166       268,694  

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

  $ 530,049     $ 580,481  

 

 

 

The Shyft Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

   

Three Months Ended

December 31,

   

Twelve Months Ended

December 31,

 
   

2023

   

2022

   

2023

   

2022

 
                                 

Sales

  $ 202,333     $ 302,011     $ 872,198     $ 1,027,164  

Cost of products sold

    174,421       243,723       721,840       846,731  

Gross profit

    27,912       58,288       150,358       180,433  
                                 

Operating expenses:

                               

Research and development

    7,121       5,783       25,185       25,324  

Selling, general and administrative

    28,442       29,155       118,420       107,600  

Total operating expenses

    35,563       34,938       143,605       132,924  
                                 

Operating income (loss)

    (7,651 )     23,350       6,753       47,509  
                                 

Other income (expense)

                               

Interest expense

    (1,830 )     (1,079 )     (6,527 )     (2,833 )

Other income (expense)

    261       (408 )     470       (750 )

Total other expense

    (1,569 )     (1,487 )     (6,057 )     (3,583 )
                                 

Income before income taxes

    (9,220 )     21,863       696       43,926  

Income tax expense (benefit)

    (4,803 )     4,022       (5,768 )     7,368  

Net income (loss)

    (4,417 )     17,841       6,464       36,558  

Less: net (loss) attributable to non-controlling interest

    -       -       (32 )     -  
                                 

Net income (loss) attributable to The Shyft Group Inc.

  $ (4,417 )   $ 17,841     $ 6,496     $ 36,558  
                                 

Basic earnings (loss) per share

  $ (0.13 )   $ 0.51     $ 0.19     $ 1.04  

Diluted earnings (loss) per share

  $ (0.13 )   $ 0.50     $ 0.19     $ 1.03  
                                 

Basic weighted average common shares outstanding

    34,298       35,067       34,721       35,073  

Diluted weighted average common shares outstanding

    34,298       35,443       34,861       35,494  

 

 

 

The Shyft Group, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands, except par value)

(Unaudited)

 

   

 

Year Ended December 31,

 
   

2023

   

2022

 

Cash flows from operating activities:

               

Net income

  $ 6,464     $ 36,558  

Adjustments to reconcile net income to net cash provided by (used in) operating activities

               

Depreciation and amortization

    16,953       14,774  

Non-cash stock based compensation expense

    7,834       7,619  

Deferred income taxes

    (6,911 )     (5,510 )

Loss on disposal of assets

    389       826  

Changes in accounts receivable and contract assets

    72,857       (93,989 )

Changes in inventories

    (4,975 )     (32,977 )

Changes in accounts payable

    (27,963 )     41,302  

Changes in accrued compensation and related taxes

    (908 )     (4,630 )

Changes in accrued warranty

    70       1,186  

Changes in other assets and liabilities

    (7,566 )     15,998  

Net cash provided by (used in) operating activities

    56,244       (18,843 )
                 

Cash flows from investing activities:

               

Purchases of property, plant and equipment

    (20,733 )     (20,564 )

Proceeds from sale of property, plant and equipment

    119       148  

Acquisition of business, net of cash acquired

    (500 )     -  

Net cash used in investing activities

    (21,114 )     (20,416 )
                 

Cash flows from financing activities:

               

Proceeds from long-term debt

    132,500       145,000  

Payments on long-term debt

    (138,500 )     (89,000 )

Payments of dividends

    (7,109 )     (7,148 )

Purchase and retirement of common stock

    (19,083 )     (26,789 )

Exercise and vesting of stock incentive awards

    (4,460 )     (8,414 )

Distribution to non-controlling interest owner

    (69 )     -  

Net cash provided by (used in) financing activities

    (36,721 )     13,649  
                 

Net decrease in cash and cash equivalents

    (1,591 )     (25,610 )

Cash and cash equivalents at beginning of period

    11,548       37,158  

Cash and cash equivalents at end of period

  $ 9,957     $ 11,548  

 

 

 

 

The Shyft Group, Inc. and Subsidiaries

Sales and Other Financial Information by Business Segment

(Unaudited)

 

Quarter Ended December 31, 2023 (in thousands of dollars)


 

   

Business Segments

         
   

Fleet Vehicles

   

Specialty

   

Eliminations &

         
   

& Services

   

Vehicles

   

Other

   

Consolidated

 

Fleet vehicle sales

  $ 106,011     $ -     $ -     $ 106,011  

Motorhome chassis sales

    -       26,304       -       26,304  

Other specialty vehicles sales

    -       52,528       (3 )     52,525  

Aftermarket parts and accessories sales

    12,952       4,541       -       17,493  

Total Sales

  $ 118,963     $ 83,373     $ (3 )   $ 202,333  
                                 

Adjusted EBITDA

  $ (2,592 )   $ 18,979     $ (14,062 )   $ 2,325  

 

The Shyft Group, Inc. and Subsidiaries

Sales and Other Financial Information by Business Segment

(Unaudited)

 

Quarter Ended December 31, 2022 (in thousands of dollars)


 

       Business Segments          
   

Fleet Vehicles

   

Specialty

   

Eliminations &

         
   

& Services

   

Vehicles

   

Other

   

Consolidated

 

Fleet vehicle sales

  $ 202,257     $ -     $ -     $ 202,257  

Motorhome chassis sales

    -       37,030       -       37,030  

Other specialty vehicles sales

    -       51,562       (4,148 )     47,414  

Aftermarket parts and accessories sales

    10,658       4,652       -       15,310  

Total Sales

  $ 212,915     $ 93,244     $ (4,148 )   $ 302,011  
                                 

Adjusted EBITDA

  $ 27,704     $ 15,905     $ (12,924 )   $ 30,685  

 

 

 

The Shyft Group, Inc. and Subsidiaries

Sales and Other Financial Information by Business Segment

(Unaudited)

 

Year Ended December 31, 2023 (in thousands of dollars)


 

   

Business Segments

         
   

Fleet Vehicles

   

Specialty

   

Eliminations &

         
   

& Services

   

Vehicles

   

Other

   

Consolidated

 

Fleet vehicle sales

  $ 487,072     $ -     $ -     $ 487,072  

Motorhome chassis sales

    -       104,882       -       104,882  

Other specialty vehicles sales

    -       209,434       (4,183 )     205,251  

Aftermarket parts and accessories sales

    54,566       20,427       -       74,993  

Total Sales

  $ 541,638     $ 334,743     $ (4,183 )   $ 872,198  
                                 

Adjusted EBITDA

  $ 30,326     $ 66,186     $ (56,544 )   $ 39,968  

 

The Shyft Group, Inc. and Subsidiaries

Sales and Other Financial Information by Business Segment

(Unaudited)

 

Year Ended December 31, 2022 (in thousands of dollars)


 

   

Business Segments

         
   

Fleet Vehicles

   

Specialty

   

Eliminations &

         
   

& Services

   

Vehicles

   

Other

   

Consolidated

 

Fleet vehicle sales

  $ 605,253     $ -     $ -     $ 605,253  

Motorhome chassis sales

    -       175,030       -       175,030  

Other specialty vehicles sales

    -       191,882       (6,483 )     185,399  

Aftermarket parts and accessories sales

    41,750       19,732       -       61,482  

Total Sales

  $ 647,003     $ 386,644     $ (6,483 )   $ 1,027,164  
                                 

Adjusted EBITDA

  $ 65,719     $ 54,413     $ (49,339 )   $ 70,793  

 

The Shyft Group, Inc. and Subsidiaries

Sales and Other Financial Information by Business Segment

(Unaudited)

 

Period End Backlog (amounts in thousands of dollars)


 

   

Dec. 31, 2023

   

Sept. 30, 2023

   

Jun. 30, 2023

   

Mar. 31, 2023

   

Dec. 31, 2022

 

Fleet Vehicles and Services

  $ 325,003     $ 383,448     $ 437,802     $ 584,933     $ 736,690  

Specialty Vehicles

    84,269       80,983       72,402       82,478       96,023  

Total Backlog

  $ 409,272     $ 464,431     $ 510,204     $ 667,411     $ 832,713  

 

 

 

Reconciliation of Non-GAAP Financial Measures

 

This release presents Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted net income, adjusted earnings per share, and free cash flow each of which is a non-GAAP financial measure.

 

We define Adjusted EBITDA as income before interest, income taxes, depreciation and amortization, as adjusted to eliminate the impact of restructuring charges, acquisition related expenses and adjustments, non-cash stock-based compensation expenses, and other gains and losses not reflective of our ongoing operations.

 

We present the non-GAAP measure Adjusted EBITDA because we consider it to be an important supplemental measure of our performance. The presentation of Adjusted EBITDA enables investors to better understand our operations by removing items that we believe are not representative of our continuing operations and may distort our longer-term operating trends. We believe this measure to be useful to improve the comparability of our results from period to period and with our competitors, as well as to show ongoing results from operations distinct from items that are infrequent or not indicative of our continuing operating performance. We believe that presenting this non-GAAP measure is useful to investors because it permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate our historical performance.

 

Our management uses Adjusted EBITDA to evaluate the performance of and allocate resources to our segments. Adjusted EBITDA is also used, along with other financial and non-financial measures, for purposes of determining annual incentive compensation for our management team and long-term incentive compensation for certain members of our management team.

 

We define free cash flow as Net cash provided by (used in) operating activities less purchases of property, plant and equipment and add proceeds from sale of property, plant and equipment. We believe this measure of free cash flow provides management and investors further useful information on cash generation or use in our operations.

 

We believe that the presentation of these non-GAAP measures, when considered together with the corresponding GAAP financial measures and the reconciliations to that measure, provides investors with additional understanding of the factors and trends affecting our business than could be obtained in the absence of this disclosure.

 

 

 

The Shyft Group, Inc. and Subsidiaries

Consolidated Financial Summary (Non-GAAP)

(In thousands, except per share data)

(Unaudited)

 

   

Three Months Ended December 31,

   

Twelve Months Ended December 31,

 

The Shyft Group, Inc.

 

2023

   

% of
sales

   

2022

   

% of
sales

   

2023

   

% of
sales

   

2022

   

% of sales

 

Net income (loss)

  $ (4,417 )     (2.2% )   $ 17,841       5.9 %   $ 6,464       0.7 %   $ 36,558       3.6 %

Net loss attributable to non-controlling interest

    -               -               32               -          

Add (subtract):

                                                               

Restructuring and other related charges

    368               243               1,741               757          

Acquisition related expenses and adjustments

    -               84               440               884          

Non-cash stock-based compensation expense

    2,647               2,697               7,834               7,619          

CEO transition

    107               -               2,629               -          

Loss from write-off of assets

    1,872               -               1,872               -          

Legacy legal matters

    -               -               956               -          

Non-recurring professional fees

    128               -               288               -          

Tax effect of adjustments

    (1,636 )             (371 )             (3,565 )             (1,348 )        

Adjusted net income (loss)

  $ (931 )     (0.5% )   $ 20,494       6.8 %   $ 18,691       2.1 %   $ 44,470       4.3 %
                                                                 

Net income (loss)

  $ (4,417 )     (2.2% )   $ 17,841       5.9 %   $ 6,464       0.7 %   $ 36,558       3.6 %

Net loss attributable to non-controlling interest

    -               -               32               -          

Add (subtract):

                                                               

Depreciation and amortization

    4,593               4,719               16,953               14,774          

Taxes on income

    (4,803 )             4,022               (5,768 )             7,368          

Interest expense

    1,830               1,079               6,527               2,833          

EBITDA

  $ (2,797 )     (1.4% )   $ 27,661       9.2 %   $ 24,208       2.8 %   $ 61,533       6.0 %
                                                                 

Add (subtract):

                                                               

Restructuring and other related charges

    368               243               1,741               757          

Acquisition related expenses and adjustments

    -               84               440               884          

Non-cash stock-based compensation expense

    2,647               2,697               7,834               7,619          

CEO transition

    107               -               2,629               -          

Loss from write-off of assets

    1,872               -               1,872               -          

Legacy legal matters

    -               -               956               -          

Non-recurring professional fees

    128               -               288               -          

Adjusted EBITDA

  $ 2,325       1.1 %   $ 30,685       10.2 %   $ 39,968       4.6 %   $ 70,793       6.9 %
                                                                 

Diluted net earnings (loss) per share

  $ (0.13 )           $ 0.50             $ 0.19             $ 1.03          

Add (subtract):

                                                               

Restructuring and other related charges

    0.01               0.01               0.05               0.02          

Acquisition related expenses and adjustments

    -               -               0.01               0.02          

Non-cash stock-based compensation expense

    0.08               0.08               0.22               0.21          

CEO transition

    -               -               0.08               -          

Loss from write-off of assets

    0.05               -               0.05               -          

Legacy legal matters

    -               -               0.03               -          

Non-recurring professional fees

    -               -               0.01               -          

Tax effect of adjustments

    (0.04 )             (0.01 )             (0.10 )             (0.03 )        

Adjusted diluted net earnings (loss) per share

  $ (0.03 )           $ 0.58             $ 0.54             $ 1.25          

 

 

 

 

The Shyft Group, Inc. and Subsidiaries

Consolidated Financial Summary (Non-GAAP)

(In thousands)

(Unaudited)

 

   

Year Ended December 31,

 

The Shyft Group, Inc.

 

2023

   

2022

 

Net cash provided by operating activities

  $ 56,244     $ (18,843 )

Purchases of property, plant and equipment

    (20,733 )     (20,564 )

Proceeds from sale of property, plant and equipment

    119       148  

Free cash flow

  $ 35,630     $ (39,259 )

 

The Shyft Group, Inc. and Subsidiaries

Consolidated Financial Summary (Non-GAAP)

(In thousands, except per share data)

(Unaudited)

 

   

Outlook

 
   

Year Ended December 31, 2024

 

The Shyft Group, Inc.

 

Low

   

Mid

   

High

 

Net income

  $ 2,479     $ 6,481     $ 10,483  

Add:

                       

Depreciation and amortization

    21,000       21,000       21,000  

Interest expense

    7,000       7,000       7,000  

Taxes

    621       1,619       2,617  

EBITDA

  $ 31,100     $ 36,100     $ 41,100  

Add:

                       

Non-cash stock-based compensation and other charges

    8,900       8,900       8,900  

Adjusted EBITDA

  $ 40,000     $ 45,000     $ 50,000  
                         

Earnings per share

  $ 0.07     $ 0.19     $ 0.30  

Add:

                       

Non-cash stock-based compensation and other charges

    0.26       0.26       0.26  

Less: tax effect of adjustments

    (0.05 )     (0.05 )     (0.05 )

Adjusted earnings per share

  $ 0.28     $ 0.40     $ 0.51