The Shyft Group, Inc. (NASDAQ: SHYF) (“Shyft” or the “Company”), a North American leader in specialty vehicle manufacturing, assembly, and upfit for the commercial, retail, and service specialty vehicle markets, on Thursday, unveiled its operating results for the second quarter ending June 30, 2022.
According to a press release, for the second quarter of 2022 compared to the second quarter of 2021:
- Sales of $232.2 million, a decrease of $11.8 million, or 4.8%, from $244.0 million.
- Income from continuing operations of $5.3 million, or $0.15 per share, compared to income from continuing operations of $17.0 million, or $0.44 per share.
- Adjusted EBITDA of $13.7 million, or 5.9% of sales, a decrease of $14.9 million, from $28.6 million, or 11.7% of sales. Results include $7.0 million of EV development costs.
- Adjusted net income of $7.5 million, or $0.21 per share, compared to adjusted net income of $19.0 million, or $0.53 per share in the second quarter of 2021.
- Consolidated backlog at June 30, 2022, totaled $1.1 billion, up $383.8 million, or 51.1%, compared to $751.4 million at June 30, 2021, reflecting continued strong demand across all business units.
“The Shyft Group continued to manage supply chain disruptions in the second quarter with results in line with our expectations. The Specialty Vehicles team executed well and produced solid results, while we also saw chassis deliveries in our Fleet Vehicle Services business improve steadily as the quarter progressed,” said Daryl Adams, President, and Chief Executive Officer.
“We also continued to hit key development milestones with our electrification products and remain on track for production in mid-2023.”
FVS segment sales totaled $136.9 million, a drop of $24.7 million or 15.3% from $161.6 million due to a lower volume, primarily related to reduced OEM chassis availability offset by pricing actions.
Adjusted EBITDA was $14.5 million or 10.6% of sales, compared to $28.1 million or 17.4% of sales last year. The decline was driven by lower production and volume inefficiencies due to fluctuating chassis supply, material, and labor cost inflation and partially offset by pricing actions and mix.
The segment’s backlog as of 30 June 2022 was $1.0 billion, up 53.2% compared to $652.6 million on June 30, 2021.
The Company divested its Emergency Response Vehicles (ERV) business effective February 1, 2020. Accordingly, the financial results of ERV have been classified as discontinued operations for all periods presented. Unless otherwise noted, the financial results presented are based on continuing operations.
SV segment sales reached $95.3 million, a growth of $12.9 million (or 15.7 percent) compared to $82.4 million the year before. This is due to impressive performance in the luxury motorhome chassis and service body sales, in addition to the effect of pricing decisions.
Adjusted EBITDA was $12.9 million, or 13.5% of sales, an increase of $4.1 million, or 46.0%, from $8.8 million, or 10.7% of sales, a year ago. The increase was primarily due to higher sales volume, pricing actions, and improved product mix, partially offset by material and labor cost inflation.
As of June 30, 2022, the segment backlog was $135.2 million and was growing by 36.8 percent from $98.8 million as of June 30, 2021.
“As anticipated, our second quarter started off slow but progressively improved as OEM chassis deliveries increased throughout the quarter,” said Jon Douyard, Chief Financial Officer. “Given our second quarter performance, along with increased visibility into chassis supply, strong customer demand, and a healthy balance sheet, we believe that we are on track to deliver our improved full-year guidance.”
Guidance for full-year 2022, notwithstanding further chassis and supply chain-related issues, is as follows:
- Revenue to be in the range of $925 million to $1.1 billion
- Adjusted EBITDA of $55 to $80 million, including $30 million of expenses related to EV development
- Income from continuing operations of $21 to $41 million
- Earnings per share of $0.59 to $1.15
- Adjusted earnings per share of $0.85 to $1.41
“We remain excited about our long-term business prospects, our capabilities, and our team. Our financial strength positions us well to invest in innovation and meet the evolving needs of our customers despite the current industry-wide challenges. The team is laser-focused on executing our growth strategy and driving long-term value for customers, employees, and shareholders,” Adams said.